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This research paper examines the necessity of implementing "common prosperity" in mainland China, as emphasized by Xi Jinping during the 20th Congress of CCP on October 16, 2022. The issue of provincial income divergence remains a challenge to China's sustainable growth. The new concept of "common prosperity" stresses the requirement of reducing income inequality for the balance of growth and stability in the next development phase of China. This study analyzes regional income inequality and convergence using the club convergence approach. This method offers more precise indications of economic symmetry than traditional unit root tests, enabling clearer policy implications. The empirical analysis reveals that while full cross-provincial variance convergence is unsustainable, the 31 cities and provinces can be grouped based on club variance convergence of the per capita GDP. The past and current public policies could have an impact on the imbalanced convergence, such as "the richer got more" from the fiscal transfers, the hukou system, and the educational and tax justice among cities and provinces. [ABSTRACT FROM AUTHOR]

This study analyzes drops in East Asian investment and their determinants after the 1997-1998 Asian financial crisis. We first employ a random level-shift autoregressive model to quantify the shift in investment ratios of four Asian economies hit by the 1997-1998 Asian financial crisis: Indonesia, Korea, Malaysia, and Thailand. We trace the major historical shifts in the levels of investment ratios and we find that the cumulated downward shifts in investment ratios during 1997-1998 for Indonesia, Korea, Malaysia, and Thailand are 6, 5, 14, and 14 percentage points, respectively. The investment ratios of most countries experienced several rebounds between 1999 and 2001, but the rebounds were too small to bring investment ratios back to their pre-1990 levels. Having identified the episodes of investment shifts, the Bayesian Model Averaging (BMA) and several robust tests are employed to investigate the determinants of those level shifts in investment ratios. We find that real per capita gross domestic product growth and banking crises are the two most important factors contributing to shifts iii the investment levels of these four crisis-hit Asian economies. The results are useful in understanding the causes and remedies of global imbalances. (jEL C11, E22, F32, 053), I. INTRODUCTION Previous studies suggest three factors that help to explain the emergence of global imbalances: swings in the saving-investment gap in East Asian economies, financial sector imperfections in emerging [...]

Taiwan's brain drain has been a significant concern due to China's strong economic drawing power, and the situation may have worsened over the past decade. In the literature, the causes and influence of human capital outflow are uncertain, but the outflow of younger workers can be a problem for the future domestic economic growth. This paper explores the determinants for Taiwan's youth overseas employment and entrepreneurship using the questionnaire administered in 2015 for residents between 20–45 years old. A binary logit model and robustness tests investigate the push and pull factors directing Taiwan's youth to go abroad. Corresponding to changes in Taiwan's economic diplomatic policy, we focus on China (including the mainland, Hong Kong, and Macao) and Southeast Asia (including Australia, India, and other Oceanic economies) as the two main destination areas. The data do not show clear evidence to support Taiwan's brain drain by 2016, especially in the case of employees with a master's education or above in high tech and financial sectors. In contrast, personal considerations, such as broadening international vision and resolving career bottlenecks are more important influences for Taiwan's youth to seek employment in China. [ABSTRACT FROM AUTHOR]

This research explores the question of which exchange rate regime would bring about better output and price stability, given the initial conditions and the external shocks facing Argentina's economy in 2001–2002. Our analytical model incorporates a transmission mechanism, the balance‐sheet effects, which formulates the possible interaction between foreign debt and exchange rate policy. We find that a floating exchange rate that depends on external finance outperforms dollarization, after supposing the amount of foreign debt payments is limited. As the relative performance of alternative exchange rate arrangements depends on the foreign debt payments, our empirical results imply that the restructuring of foreign debt should be an integral part of any negotiation concerning the postcrisis exchange rate regime. Our results also show that with the existence of foreign debt, the policy trade‐off implied by the Trilemma becomes much constrained. [ABSTRACT FROM AUTHOR]