International Journal of Economic Policy in Emerging Economies (5 papers in press)
Macroeconomic Policy and Exchange Rate Impacts on the Foreign Direct Investment in ASEAN Economies
by Mei Foong Wong
Abstract: ASEAN region has become one of the most attractive investment regions in the developing world which attracted significant amount of foreign direct investment (FDI) stock. Nevertheless, FDI inflows of the ASEAN region has shown increasing volatility which has given a renewed stimulus to research interest in the linkages between the macroeconomic policies, exchange rate and FDI inflows in ASEAN economies. This study examines the long-run relationship between macroeconomic policy, exchange rate and foreign direct investment in the selected ASEAN-four-plus-one countries from 1995 to 2015. The analysis was based on the panel unit root test, panel cointegration test, fully modified ordinary least squares estimator and dynamic ordinary least squares estimator. The results demonstrate that fiscal and monetary policies, exchange rate and FDI are cointegrated for the whole panel of countries. Furthermore, the panel estimators reveal that the relationship between macroeconomic policy, exchange rate and FDI is positive and statistically significant.
Keywords: foreign direct investment; FDI; macroeconomic policy; exchange rate; ASEAN economies.
Russian Trade Policy: Main Trends and Impact on Bilateral Trade Flows
by Tatiana M. Isachenko, Ekaterina Y. Arapova
Abstract: The paper provides a comprehensive analysis of current Russian foreign trade policy and evaluates empirically its influence on the country's trade flows. First, it considers the role of trade in the country's economic development. Second, it examines the evolution of the trade policy and the effect of the WTO accession process on its development. Third, Russian foreign trade policy is contextualised in broader regional perspective, looking at relations with EAEU partners, EU, APEC and BRICS. Finally, the authors explore the impact of 'sanctions' on Russian trade. The authors apply an augmented gravity model to explore the influence of the Russian foreign trade policy on bilateral trade flows. They conclude that tariff liberalisation may increase foreign trade, WTO accession asserted a significant positive influence on the Russia's trade flows, and economic sanctions hurt Russian exporters significantly. Trade with APEC partners is relatively more promising than with BRICS, EU or EAEU.
Keywords: trade policy; foreign economic policy; competitiveness; foreign markets; WTO accession; multilateral trading system; Euroasian Economic Union; BRICS; value-added chains; sanctions.
The Impact of Relationship Marketing on Customer Value, Satisfaction and Loyalty: Evidence From Banking Sector in Indonesia
by Ludfi Djajanto, Yunia Afiatin, Zainal Abdul Haris
Abstract: Indonesia's business community and banks of Indonesia have been contributing significantly to the development of the nation's emerging economy. This paper analyses the impact of relationship marketing on customer value, customer satisfaction, and loyalty in Indonesia's banking sector. Partial least square (PLS) tests conducted on data collected through a survey of 160 customers of banks in Surabaya and Malang have revealed that although relationship marketing does not influence customer satisfaction and loyalty significantly, it does do so with respect to customer value. Furthermore, there exist positively significant relationships between customer value and customer satisfaction and loyalty.
Keywords: relationship marketing; customer value; customer satisfaction; customer loyalty; banking sector.
Scale economies in the Korean airline industry since the entry of low-cost carriers
by Sang-Lyul Ryu, Jayoun Won
Abstract: This paper investigates how the economies of scale in the Korean airline industry have changed since the emergence of low-cost carriers (LCCs). Our sample consists of 66 firm-years from 2008 to 2017. We estimate the translog cost function (TCF) to determine the changes in scale economies during the sample period. The TCF represented airlines' cost function more appropriately than the Cobb-Douglas model. The estimated cost function suggests that overall economies of scale have prevailed in the Korean airline industry since the entry of LCCs. Depending on the type of airline business, scale economies seem to be exhausted for full-service carriers, whereas LCCs have enjoyed economies of scale.
Keywords: airline industry; full-service carriers; low-cost carriers; economies of scale.
PLACE BRANDING AS BANDUNG CITYS COMPETITIVE ADVANTAGE
by Pratami Wulan Tresna, Arianis Chan, Mohammad Benny Alexandri
Abstract: This study aims to see the place branding of Bandung as a competitive advantage of the city. This study uses the qualitative method to confirm place branding as Bandung City's competitive advantage. The participants in this study are people who understand the branding strategy of this city. Place branding is viewed from the dimensions of presence, place, potential, pulse and people. Results show that Bandung is renowned as a creative city that has many historical places, complete facilities, easy access and offers many interesting activities, low cost of living and varied culinary products. Bandung is also known as a friendly city. Therefore, place branding in a city will result in the popularity of various places, thereby leading people to support the management of a city to gain competitive advantage.
Keywords: Place Branding; Creative City; Tourism; Competitive Advantage.