Geoscience Reference
In-Depth Information
Table 9.1
ANP results for benefit (B), opportunity (O), cost (C), and risk (R)
Ideals
Normals
Raw
Ranking
Benefit
1. Encourage Outflows
1
0.438129
0.858812
1
2. Assigning Levies
0.994591
0.435759
0.854167
2
3. Reg Safety Nets
0.287844
0.126113
0.247204
3
Opportunity
1. Encourage Outflows
1
0.477338
0.826065
1
2. Assigning Levies
0.712725
0.340211
0.588757
2
3. Reg Safety Nets
0.382225
0.182451
0.315742
3
Cost
1. Encourage Outflows
1
0.725513
1
1
2. Assigning Levies
0.08878
0.064411
0.08878
3
3. Reg Safety Nets
0.289555
0.210076
0.289555
2
Risk
1. Encourage Outflows
1
0.488161
0.983803
1
2. Assigning Levies
0.313358
0.152969
0.308283
3
3. Reg Safety Nets
0.735147
0.35887
0.72324
2
Source
: Results of ANP
(C
R) and (2) the additive approach (bB + oO-cC-rR); for the rationale of both,
see Saaty and Vargas (
2006
).
Table
9.2
lists the results. The upper panel equally ranks BOCR, with the last
column shows the superiority of “Assign Levy.” The middle and lower panels
display the results of sensitivity analyses; the middle reflects a more subdued
option, where COST and RISK clusters are weighted more than BENEFIT and
OPPORTUNITY, with the reverse case shown in the bottom panel, representing a
'buoyant' scenario. In either case, the highest preference for “Assign Levy”
remains. Only the ranking of the other two policies is reversed when an additive
approach is used. This suggests the superiority of placing a levy on bank-led flows
is robust [see also Azis and Shin (
2013
)].
9.5
Summary
The global financial crisis and the eurozone crisis made many analysts question the
virtue of financial liberalization and integration. These qualms coincide with
dramatic changes in the global economy and economic thinking, particularly
about the role of capital flows. Adding to the mix is growing income inequality in
developed and developing countries alike. For a region where integration has been
intensifying, where massive capital inflows came in response to easy money and
low interest rates in advanced economies, and where income disparity is rising
despite rapid recovery and strong growth, Asia is studied by taking a more balanced
view of integration.
