Reviews, Commentaries, etc. - YOSHINO, Naoyuki

INTRODUCTION: WAYS TO ACHIEVE GREEN ECONOMIC RECOVERY AND MITIGATE GREENHOUSE GASES IN THE POST-COVID-19 ERA

Farhad Taghizadeh-Hesary, Naoyuki Yoshino, Muhammad Mohsin, Nawazish Mirza

CLIMATE CHANGE ECONOMICS (WORLD SCIENTIFIC PUBL CO PTE LTD)  13 ( 3 )  2022.08

ISSN  20100078

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財政赤字の安定化条件「ドーマー条件」の再考察—特集 人口高齢化のもとでの財政金融政策の有効性

吉野 直行, 宮本 弘曉

フィナンシャル・レビュー / 財務省財務総合政策研究所 編 (財務省財務総合政策研究所)  2021 ( 2 ) 4 - 14 2021.03

ISSN  0912-5892

高齢化が財政政策の効果に与える影響—特集 人口高齢化のもとでの財政金融政策の有効性

宮本 弘曉, 吉野 直行

フィナンシャル・レビュー / 財務省財務総合政策研究所 編 (財務省財務総合政策研究所)  2021 ( 2 ) 49 - 67 2021.03

ISSN  0912-5892

Introduction

Taghizadeh-Hesary F., Panthamit N., Yoshino N.

Economics, Law, and Institutions in Asia Pacific (Economics, Law, and Institutions in Asia Pacific)     vii - xi 2021

Article, review, commentary, editorial, etc. (scientific journal),  ISSN  21998620

Introduction: Investment in Startups and Small Business Financing

Farhad Taghizadeh-Hesary, Naoyuki Yoshino, Chul Ju Kim, Peter J. Morgan, Daehee Yoon

World Scientific Series in Finance (World Scientific Series in Finance)  17   IX - XVII 2021

Article, review, commentary, editorial, etc. (scientific journal),  ISSN  20101082

Introduction: Energy efficiency financing and market-based instruments

Yang Liu, Farhad Taghizadeh-Hesary, Naoyuki Yoshino

Economics, Law, and Institutions in Asia Pacific (Economics, Law, and Institutions in Asia Pacific)     v - x 2021

Article, review, commentary, editorial, etc. (scientific journal),  ISSN  21998620

Internal and external determinants of housing price boom in Hong Kong

Farhad Taghizadeh-Hesary, Naoyuki Yoshino, Aline Mortha, Alvin Chiu, Niki Naderi

Buletin Ekonomi Moneter dan Perbankan 23 ( 4 ) 597 - 620 2020.12

ISSN  1410-8046

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Hong Kong's housing market witnessed a dramatic housing price appreciation in recent years, with the price index for private domestic housing units being three times higher than ten years ago. This trend is supported by both internal and external factors, as illustrated in this paper. By developing a theoretical model and an empirical analysis on the key variables influencing housing prices using monthly data from 1999 to 2018, we find that the main drivers of housing price appreciation are from the demand side and include income level, money supply and inflation. The main contribution of this study is the quantification of the role of Mainland China's macroeconomic factors in housing price booms in Hong Kong. Our study shows that capital inflow from and inflation and recessions in Mainland China contribute to increasing housing prices in Hong Kong because the city's real estate is seen as a way to preserve asset value. These findings call for the need for control of capital inflow between the two economies as well as for stricter regulations against empty houses in Hong Kong.

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Comments on reforms and crises in government statistics: The case of japan

Yoshino N.

Asian Economic Papers (Asian Economic Papers)  19 ( 2 ) 38 - 40 2020.06

Article, review, commentary, editorial, etc. (scientific journal),  ISSN  15353516

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経済学者が読み解く 現代社会のリアル(第63回)経済危機へマクロ対策 緊急コロナ債の発行を

吉野 直行, 宮本 弘曉

週刊東洋経済 (東京 : 東洋経済新報社)   ( 6919 ) 74 - 75 2020.04

ISSN  0918-5755

Regional economic integration in asia: Challenges and recommended policies

Farhad Taghizadeh-Hesary, Naoyuki Yoshino, Chul Ju Kim, Peter J. Morgan

Journal of Economic Integration (Journal of Economic Integration)  35 ( 1 ) 1 - 9 2020.03

Article, review, commentary, editorial, etc. (scientific journal), Joint Work,  ISSN  1225651X

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© 2020-Center for Economic Integration, Sejong Institution, Sejong University, All Rights Reserved. Regional economic integration is one of the most effective ways of fostering stability, addressing regional challenges, and increasing rates of economic growth. Strengthening regional cooperation and integration in different Asian sub-regions offers great potential for eliminating poverty and achieving inclusive and sustainable development. Hurdles remain, however, for further integration. The willingness to commit to “unity in diversity” is important to overcoming this, requiring the acceptance of cultural, linguistic, social, religious, and political differences. Such complex unities have been achieved in the European Union (EU) and elsewhere (Fella, 2002). Currently, in most Asian sub-regions, such political ambitions for economic integration have been scarce. This implies that a more cautious approach is needed in Asia than in other places. However, by studying the European context, we can derive valuable lessons for better fostering economic integration. Regional economic integration should first ensure the maximization of benefits for all participants. With this, complete cooperation is required to develop an effective and uniform regional business environment. Second, a well-developed infrastructure with an absence of trade barriers is needed. Various Asian sub-regions (e.g., Central and South Asia), however, suffer from a lack of infrastructure, which hinders trade opportunities. Difficulties in accessing capital also presents a key obstacle. In this regard, the role of infrastructure financing is very important. In the EU, their European Investment Bank maintains equitable financing for intra-EU projects. Open engagements with partner countries also play a key role. Third, over the past 30 years, different institutional mechanisms have sprung into existence in Europe that have created the basis for strategic economic integration. Such institutional mechanisms and initiatives are needed in Asia.

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Energy insecurity in Asia: A multi-dimensional analysis

Thai-Ha Le, Youngho Chang, Farhad Taghizadeh-Hesary, Naoyuki Yoshino

ECONOMIC MODELLING (ELSEVIER)  83   84 - 95 2019.12

ISSN  0264-9993

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Energy insecurity has been a critical challenge facing Asia's economic growth. This study constructs a comprehensive index for energy insecurity as well as examines its trend using a sample of 24 selected Asian countries during the 1990-2014 period. For this purpose, principal component analysis is applied to a series of 12 selected variables. The variables are standardized using different techniques including z-score, min-max and softmax normalization. Three different measures of energy insecurity are created accordingly. The empirical results depict the trend of increasing energy insecurity in Bangladesh, China, India, Indonesia, Malaysia, Nepal, Pakistan, Saudi Arabia, Sri Lanka, Thailand and Vietnam. On the other hand, the trend of fluctuating but recently improving energy security was observed in Hong Kong, Japan, Mongolia, Singapore, South Korea, and United Arab Emirates. Meanwhile, the trend of fluctuating but recently increasing energy insecurity was found in Iran, Iraq, Jordan, Kazakhstan, Lebanon, and Tajikistan. These findings are robust to all three measures of energy insecurity.

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Trade linkages and transmission of oil price fluctuations

Farhad Taghizadeh-Hesary, Naoyuki Yoshino, Ehsan Rasoulinezhad, Youngho Chang

ENERGY POLICY (ELSEVIER SCI LTD)  133 2019.10

ISSN  0301-4215

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This study is an attempt to ascertain how oil price shock can affect a trade-linked system via monetary variables. To this end, a simultaneous equation model (SEM) was applied through a Weighted Two Stage Least Squares (W2SLS) estimation method to different countries (21 cases) with business relations over the period from Q1 2000 to Q4 2015. In the case of oil-exporting countries consisting of Iran, Russian Federation, UAE, Indonesia, and Kazakhstan the findings revealed that they totally benefit from oil price increases. In the case of oil importing countries, the effects are more diverse. To derive a better interpretation, we divided them into four groups: European Union (EU) members (Germany, Italy, the Netherlands, and Poland); East and South East Asian nations (Japan; People's Republic of China; Republic of Korea; Viet Nam; Taipei China; Singapore; and Hong Kong, China); Commonwealth of Independent States (CIS) (Ukraine and Belarus) and others (the United States, India, and Turkey). The results showed that all these countries importing oil face a negative supply shock. Furthermore, the indirect effect coefficient almost received through trade for all these countries was positive.

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Preface

Yoshino N., Taghizadeh-Hesary F.

Unlocking SME Finance in Asia: Roles of Credit Rating and Credit Guarantee Schemes (Unlocking SME Finance in Asia: Roles of Credit Rating and Credit Guarantee Schemes)     xxi - xxi 2019.01

Article, review, commentary, editorial, etc. (scientific journal), Joint Work,  ISSN  9781138353428

Credit risk analysis of small and medium-sized enterprises based on thai data

Farhad Taghizadeh-Hesary, Naoyuki Yoshino, Phadet Charoensivakorn, Baburam Niraula

Unlocking SME Finance in Asia: Roles of Credit Rating and Credit Guarantee Schemes    112 - 135 2019.01

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© 2020 Asian Development Bank Institute (ADBI) and Organisation for Economic Co-operation and Development (OECD). Small and medium-sized enterprise (SMEs) often face severe difficulties raising money. Considering the bank-dominated characteristic of Asian economies, banks are the main source of financing. In order to prevent the accumulation of nonperforming loans in the SME sector, it is crucial for banks to distinguish healthy SMEs from risky ones. This chapter examines how a credit rating scheme for SMEs can be developed when financial and non-financial data are not accessible just by using lending data of banks to SMEs. We employ statistical techniques on five variables from a sample of 3,272 Thai SMEs and classify them into subgroups based on their financial health. The source of data used for the credit risk analysis in this research is the National Credit Bureau of Thailand. By employing these techniques, banks could reduce information asymmetry and consequently set interest rates and lending ceilings for SMEs. This would ease financing to healthy SMEs and reduce the number of nonperforming loans to this important sector.

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Establishment of the credit risk database: Concrete use to evaluate the creditworthiness of SMEs

Satoshi Kuwahara, Naoyuki Yoshino, Megumi Sagara, Farhad Taghizadeh-Hesary

Unlocking SME Finance in Asia: Roles of Credit Rating and Credit Guarantee Schemes    89 - 111 2019.01

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© 2020 Asian Development Bank Institute (ADBI) and Organisation for Economic Co-operation and Development (OECD). A credit risk database (CRD) makes it possible to mitigate the problem of information asymmetry between SMEs and financial institutions and contributes to improving SMEs’ access to finance by collecting a large number of financial statements through the mechanism of SME finances and establishing a robust statistical model. In this chapter, we use the CRD in Japan, confirm the situation in Japan, and highlight the CRD’s contribution to evaluating the creditworthiness of SMEs. We also explain how to establish the CRD as a financial infrastructure, while indicating that the CRD and the scoring model based on it have maintained their quality due to their operating system. We hope our experience contributes to the introduction of a statistical CRD composed of a large number of anonymous financial statement data in other countries and that the CRD helps improve SMEs’ access to finance as a financial infrastructure.

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Role of SMEs in Asia and the financing challenges they face

Naoyuki Yoshino, Farhad Taghizadeh-Hesary

Unlocking SME Finance in Asia: Roles of Credit Rating and Credit Guarantee Schemes    3 - 22 2019.01

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© 2020 Asian Development Bank Institute (ADBI) and Organisation for Economic Co-operation and Development (OECD). Small and medium-sized enterprises (SMEs) are the backbone of the Asian economy. They make up more than 96% of all Asian businesses, providing two out of three private-sector jobs on the continent. Therefore, it is vital for Asia’s economic success that fully functioning support measures for SMEs are in place. However, SMEs face major challenges in accessing cheap finance, mainly because of the asymmetric information problem between suppliers and users of funds and high transaction costs. These lead to more collateral requirements for lending to SMEs with higher lending interest rates, which hinder their growth. As most Asian countries are bank-dominant economies, capital market financing is not a realistic option for SMEs. Therefore, we need to look for solutions that simplify banks’ lending to SMEs. This chapter will highlight the difficulties faced by SMEs in accessing finance and provide measures for mitigating them. The remedies proposed in this chapter include the development of a credit information infrastructure for SMEs, the utilization of credit-rating techniques for SMEs to address the problem of asymmetric information, and the development of a sustainable credit guarantee scheme to resolve the collateral issue.

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A comprehensive method for credit risk assessment of small and medium-sized enterprises based on Asian data

Naoyuki Yoshino, Farhad Taghizadeh-Hesary

Unlocking SME Finance in Asia: Roles of Credit Rating and Credit Guarantee Schemes    55 - 71 2019.01

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© 2020 Asian Development Bank Institute (ADBI) and Organisation for Economic Co-operation and Development (OECD). Due to the asymmetry of information between borrowers that are small and medium-sized enterprises (SMEs) and lenders (banks), many banks consider this sector to be risky. It is crucial for banks to be able to distinguish healthy companies from risky ones in order to reduce their nonperforming assets in the SME sector. If they can do this, lending and financing to SMEs through banks will be easier, with lower collateral requirements and lower interest rates. In this chapter, we provide a scheme originally developed by Yoshino and Taghizadeh-Hesary (2014) for assigning credit ratings to SMEs by employing two statistical analysis techniques - principal component analysis and cluster analysis - using 11 financial ratios of 1,363 SMEs in Asia. If used by financial institutions, this comprehensive and efficient method could enable banks and other lending agencies around the world, especially in Asia, to group SME customers based on financial health, adjust interest rates on loans, and set lending ceilings for each group.

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Unlocking SME finance in Asia: Roles of credit rating and credit guarantee Schemes

Naoyuki Yoshino, Farhad Taghizadeh-Hesary

Unlocking SME Finance in Asia: Roles of Credit Rating and Credit Guarantee Schemes    1 - 400 2019.01

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© 2020 Asian Development Bank Institute (ADBI) and Organisation for Economic Co-operation and Development (OECD). There is limited access for small and medium-sized enterprises (SMEs) to bank credit. This book proposes new and sustainable models to help ease the access of SMEs to finance and boost economic growth and job creation in Asia. This book looks at the difficulties of SMEs in accessing finance and suggests ways on how to mitigate these challenges. It suggests how we can develop credit information infrastructures for SMEs to remedy the asymmetric information problem and to utilize credit rating techniques for the development of a sustainable credit guarantee scheme. The book provides illustrations of various Asian economies that implemented credit guarantee schemes and credit risk databases and is a useful reference for lessons and policy recommendations.

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Comments by Naoyuki Yoshino, on RMB Bloc in East Asia: Too Early to Talk about It?

Yoshino N.

Asian Economic Papers (Asian Economic Papers)  17 ( 3 ) 50 - 53 2018.10

ISSN  15353516

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Alternatives to private finance: Role of fiscal policy reforms and energy taxation in development of renewable energy projects

Naoyuki Yoshino, Farhad Taghizadeh-Hesary

Financing for Low-carbon Energy Transition: Unlocking the Potential of Private Capital    335 - 357 2018.06

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© Springer Nature Singapore Pte Ltd. 2018. The main obstacle to the development of Renewable Energy (RE) projects is lack of access to finance. Electricity tariff is often regulated by the government, hence, to increase the investment incentives the spill over effects originally created by energy supplies need to be used. Tax revenues are refunded to the investors in energy projects and such fiscal policy reform will increase the rate of return of energy projects. For smaller-size energy projects, this chapter provides a theoretical model for combining utilisation of carbon tax and a new way of financing risky capital, i.e., Hometown Investment Trust Funds (HITs). Because of the Basel capital requirement, and because most RE projects from the point of view of financers are considered to be risky projects, and thus many financers are reluctant to lend to them or they lend at high interest rates. This chapter theoretically shows that by taxing carbon dioxide (CO2), sulphur dioxide (SO2), and nitrogen oxides (NOx) and allocating those tax revenues to HITs, RE projects will become more feasible and more interesting for hometown investors, hence the supply of investment money to these funds will increase.

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