Asia-Pacific Economies Beyond the Aftershock

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This article was downloaded by: [Tulane University]On: 11 October 2014, At: 08:28Publisher: RoutledgeInforma Ltd Registered in England and Wales Registered Number: 1072954 Registeredoffice: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UKJournal of Asia-Pacific BusinessPublication details, including instructions for authors andsubscription information: Economies Beyond theAftershockRiad AjamiPublished online: 30 Nov 2009.To cite this article: Riad Ajami (2009) Asia-Pacific Economies Beyond the Aftershock, Journal of Asia-Pacific Business, 10:4, 267-269, DOI: 10.1080/10599230903355583To link to this article: SCROLL DOWN FOR ARTICLETaylor & Francis makes every effort to ensure the accuracy of all the information (theContent) contained in the publications on our platform. However, Taylor & Francis,our agents, and our licensors make no representations or warranties whatsoever as tothe accuracy, completeness, or suitability for any purpose of the Content. Any opinionsand views expressed in this publication are the opinions and views of the authors,and are not the views of or endorsed by Taylor & Francis. The accuracy of the Contentshould not be relied upon and should be independently verified with primary sourcesof information. Taylor and Francis shall not be liable for any losses, actions, claims,proceedings, demands, costs, expenses, damages, and other liabilities whatsoever orhowsoever caused arising directly or indirectly in connection with, in relation to or arisingout of the use of the Content.This article may be used for research, teaching, and private study purposes. Anysubstantial or systematic reproduction, redistribution, reselling, loan, sub-licensing,systematic supply, or distribution in any form to anyone is expressly forbidden. Terms &Conditions of access and use can be found at of Asia-Pacific Business, 10:267269, 2009Copyright Taylor & Francis Group, LLC ISSN: 1059-9231 print/1528-6940 onlineDOI: 10.1080/10599230903355583WAPB1059-92311528-6940Journal of Asia-Pacific Business, Vol. 10, No. 4, October 2009: pp. 00Journal of Asia-Pacific BusinessEDITORIALAsia-Pacific EconomiesR. AjamiAsia-Pacific Economies Beyond the AftershockRIAD AJAMIWinds of change are blowing across Asia-Pacific economies. The growthrate that was based on exports has been reassessed, and in the crisis after-shock facing the global economy, China and India seem to be weatheringthe storm, whereas U.S. recovery is, at best, tentative.There are signs that the economic recovery across Asia-Pacific econ-omies is sustainable. For example, the Shanghai stock market wasthe best performing market across the region in 2009. Similar metrics ofstock market growth are also evident within the Indian economy.Though the double-digit gross domestic product (GDP) growth rates thatChina and India encountered this past decade have not completelyreturned, its not unusual to see a rate of 7% to 8% across theregion. Higher growth rates are estimated to return beginning in 2010,particularly in India and China, and, to a lesser degree, in Korea andSingapore.Not only are the economic growth rates likely to last, but they will helpAsia-Pacific economies transition to a new growth model in the nearfuturea model that is not only export led. Internal consumer marketgrowth in India and China is also likely to be sustainable. Asian householdbehavior is central to the sustainability of domestic growth, and with an esti-mated 400 million consumers in China and India, this growth could lead tocollateral growth for U.S. exports to the area.The potential longevity of this internal market development will helpcreate further opportunities for enterprise formation within Asian econo-mies, thus encouraging changes in industry structure through market-based mechanisms. Chinas high trade surplus was the result of growth inexports to the United States; however, with high saving rates of Chineseand Indian citizenry, some of these savings are likely to be channeled intofurther domestic consumption. Having said that, Asian economies arelikely to continue to run significant trade surpluses with the United States,and Asian consumption growth will combat the slack created as U.S. con-sumers scale back their consumption.Downloaded by [Tulane University] at 08:28 11 October 2014 268 R. AjamiManaging the trade relationships between the United States and China islikely to be challenging. One example is the imposition of tariffs on Chinesetire exports to the United States, which is likely to cloud U.S. trade relationsin the medium-short term. Bringing China to account for its strategy ofexporting tires within the World Trade Organization framework is central tothe AmericanChina relationship. Moreover, this relationship needs to beassessed carefully if China is not to retaliate against the United States.Chinas share of growth in the U.S. tire import market has grown from 5% to17%. That is significant growth and could potentially affect U.S. workers inthe tire industry.The current U.S. administration needs to navigate that relationship withcare and exactness given the intricate web of economic and financial rela-tions between the two countries. In the final analysis, that relationship willbe sorted out within the framework of trade mediation processes and couldlead to a better understanding of the trade relations with China and ourother Asian trade partners.In this issue of Journal of Asia-Pacific Business we have four articlesfrom outstanding scholars. First, we have Abirami Sriskandarajah andAnoma Ariyawardana from the Department of Agricultural Economics andBusiness Management at University of Peradeniya in Sri Lanka. Their article,titled Market Orientation in a Sample of Food and Beverage ProcessingFirms in the Western Province, Sri Lanka, investigates the market orienta-tion strategy of firms in the Sri Lanka Western Province food and beverageindustry. Second, from the Universiti Putra Malaysia is Fadzlan Sufian withthe article Determinants of Bank Profitability in a Developing Economy:Empirical Evidence from the China Banking Sector. The article discusseswhat determines profitability in Chinese banking. Results of the study sug-gest size, credit risk, and capitalization are positively related to bank profit-ability and liquidity, overhead costs, and network embeddedness arenegatively related.Third, Protecting Intellectual Property Rights: The Special Case ofChina was written by Alan Zimmerman, Professor of International Busi-ness at City University of New York and Peggy E. Chaudhry, AssociateProfessor of International Business at Villanova University. ProtectingIntellectual Property Rights says that along with economic growth hascome counterfeit production and distribution growth in China. The arti-cle also discusses Chinas current enforcement of copyright laws. Thelast article, International Linkages Among Stock Markets of Malaysia andits Major Trading Partners, by Bakri Abdul Karim, Faculty of Economicsand Business at Universiti Malaysia Sarawak, and M. Shabri ABD. Majidfrom the International Islamic University of Malaysia, discusses the short-and long-run dynamic causal linkages between Malaysia and its majortrading partners between 1992 and 2008. The stronger the trade tiesamong the countries, the higher the degree of comovements in theirDownloaded by [Tulane University] at 08:28 11 October 2014 Asia-Pacific Economies 269stock markets. In a way, the articles examine the effects of changeacross Asia-Pacific economies.I would like to thank our anonymous reviewers, without whose effortsour publication would not be possible, as well as our managing editor CydCraddock. The support of the Center for Global Business at Wright StateUniversity is also acknowledged. Also for this issue we have added our edi-torial team a very competent research assistant, Chelsey Levingston.Downloaded by [Tulane University] at 08:28 11 October 2014