Articles

The Role of Relationship between Money Supply and Exports in the Context of Economic Development through Increasing the Resilience of Foreign Exchange Reserves: Evidence from Selected Asian Countries

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The importance of building foreign exchange reserve performance is the main requirement in safeguarding the economy in the global order from potential risks and threats originating from the external sector. This has become an important discussion in recent times, but several previous studies have not answered the urgency in building sustainable economic resilience, especially in countries that have economic experience with economic shocks caused by potential risks originating from the external sector. Ordinary-Least Square (OLS) analysis chosen to prove impact of financial stability and international trade on the growth and resilience of foreign exchange reserves as external liquidity for several countries in Asia during 1990 – 2020.

The results of this research show that in the long term, both the money supply variable and exports as an independent variable have a positive and significant influence in increasing the resilience of the external liquidity performance of selected Southeast Asian countries. Our policy recommendations emphasize the importance of maintaining the resilience of foreign exchange reserves as external liquidity in order to increase economic resilience in the global economic arena. The government should provide the main focus in increasing policies by increasing the role of the external sector itself through international cooperation.

Human Development and Government Expenditure in Asian Countries: An Empirical Study

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This study examines the impact of public spending on human development in Asian countries, considering both investment and current spending. The empirical method is a system-GMM, using a dataset of 35 Asian countries collected from 2005 to 2014 by the Asian Development Bank (ADB) and the United Nations Development Programme (UNDP). The findings indicated that government spending, both investment and current spending, had effects on the human development index, but these effects are not linear. Depending on the type of expenditure, the detected threshold effect is U-shape or inverted U-shape. According to this study, government spending could adversely impact human growth if the optimal expenditure thresholds are broken. These findings have significant implications for enhancing the effectiveness of public expenditure to improve the human development index. This study also provides meaningful lessons that are especially pertinent for Asian countries, including Vietnam.