General Information

Organizing Units:     Asian Economics Centre, Department of Economics, University of Melbourne
Department of Economics, Copenhagen Business School
Kiel Institute for the World Economy
Organizers: Sisira K. Jayasuriya, Department of Economics, University of Melbourne
Murray C. Kemp, Macquarie University, Sydney
Bjarne S. Jensen, Copenhagen Business School
Gernot Klepper, Kiel Institute for the World Economy

The 12th DEGIT Conference will be held at the University of Melbourne, Melbourne, Australia on June 29-30, 2007. The peer reviewed accepted presentations include papers on a wide range of topics in international economics including determinants, patterns and implications of international trade, investment and migration in a growing world economy, growth implications of China, and international trade related macroeconomic imbalances.

The conference will honour the distinguished contributions of Professor Max Corden, alumni of the University of Melbourne, who will turn 80 in 2007.

Keynote speakers in DEGIT XII, Melbourne (2007) include:

This conference is a sequel to eleven previous conferences with the same theme held in Denmark (1996), Hong Kong (1997), Taiwan (1998), Tilburg (1999), Rome (2000), Vienna (2001), Cologne (2002), Helsinki (2003), Reykjavik (2004), Mexico City (2005) and Jerusalem (2006).

For further details on the conference (including registration) please contact:

Ms Persefoni Gouletsas
Department of Economics
University of Melbourne
Victoria, Australia 3010

Ph: +61 3 8344 7621 Fax: +61 3 8344 6899


Deadline for registrations: June 8, 2007


A subset of the papers will be considered for publication in a special issue of Pacific Economic Review, subject to the usual review process and approval by the Editorial Board.

The conference fee is USD$200, if the payment is received by May 1. After this date, the fee is USD$250.
A refund of 70% will be available up to June 8, 2007. No refunds will be available after this date.


  Plenary Sessions Venue: Wood Theatre, Economics and Commerce Building
Friday, June 29
8:30 - 9:00Registration
9:00 - 9:05Introductory Remarks: Sisira Jayasuriya, Director, Asian Economics Centre, University of Melbourne
9:05 - 9:20Welcome: Peter McPhee, Acting Vice Chancellor, University of Melbourne
9:20 - 9:30Response: Bjarne S. Jensen, University of Southern Denmark / Copenhagen Business School
9:30 - 10:15Plenary Session 1 - Keynote Address
 Max Corden: The International Current Account Imbalances: What is the Problem?
 Chair: John Freebairn
10:15 - 10:30Tea/Coffee
10:30 - 12:00  Plenary Session 2 – Keynote Addresses
 Charles Horioka: Aging and Saving
 Henryk Kierzkowski: Outsourcing and Trade Imbalances: The U.S. - China Case
 Chair: Nilss Olekalns
12:00 - 13:00Lunch
13:00 - 15:00Parallel Sessions 1-2
15:00 - 15:30Tea/Coffee
15:30 - 17:00Plenary Session 3 - Max Corden’s Contributions to Economic Theory and Policy
 Peter Lloyd: International Trade Theory and Policy
 Peter Warr: Dutch Disease and Income Distribution
 Tony Makin: Current Account Imbalances
 Bjarne S. Jensen: Growth Modeling
 Harry Clarke: Immigration
 Ian McDonald: Sticky wages and Unemployment
 Chair: John Creedy
18:30 for 19:00  Conference Dinner – University House, Main Dining Room
Saturday, 30 June
9:00 - 10:30Plenary Session 3 – Keynote Speeches
 Peter Lloyd: Global Economic Integration
 Bjarne S. Jensen: Production Functions and Growth Theory - von Thünen and Solow
 Chair: Ian McDonald (To be confirmed)
10:30 - 10:45Tea/Coffee
10:45 - 12:30Parallel Sessions –
12:30 - 13:30Lunch
13:30 - 15:30Parallel Sessions –
15:30 - 16:00Tea/Coffee
16:00 - 17:00Plenary Session 4
 Policy Round Table: Emerging Issues in the Global Economy: Climate Change and Economic Growth
 Introduction to issues: John Freebairn
 Panel: TBA
 Chair: Bjarne Jensen
17:00 - 17:30Closing Session

Parallel Sessions

Friday, June 29

Parallel Session 1.1: Determinants of Growth
Time: 13:00 – 15:00
Venue: Prest Theatre
Chair: Martin Paldam

James AngMonash University, AustraliaAre Financial Sector Policies Effective in Deeping the Malaysian Financial System
Hakan Naim Ardor
Siir Yilmaz
Fahriye Ozturk
University of Gazi, Ankara, TurkeyThe Relationship between Financial Development and Economic Growth: The Case of Turkey
Nils Herger
Roland Hodler
Michael Lobsiger
University of Berne, Switzerland
The University of Melbourne
University of Berne, Switzerland
What determines Financial Development? Culture, Institutions, or Trade


Parallel Session 1.2: Technology, Trade and Growth
Time: 13:00 – 15:00
Venue: Commerce Theatre 1
Chair: Russell Hillberry 

Kurt HafnerIHF, Bavarian State InstituteEconomic Development and Technology Diffusion
Gilles KolédaErasme, Ecole Centrale Paris, FranceA Two-countries Two-R&D-sectors Model of Growth and Trade
Testsugen HaruyamaKobe UniversityTechnological Leaders and Followers in a World Economy
Gilles KolédaErasme, Ecole Centrale Paris, FranceNorthern and Southern Patent Novelty Requirement Harmonization, Growth and Trade


Parallel Session 1.3: Chinese Economic Growth and Exchange Rate Policy
Time: 13:00 – 15:00
Venue: Commerce Theatre 3
Chair: Guay Lim

Yuwen DaiThe University of Melbourne, AustraliaMacro Regime and Economic Growth in China
Tony MakinGriffith Business School, Griffith University, AustraliaChina's Rapid Growth, Yuan Misalignment and Global Imbalances
Jinzhao ChenUniversity of Paris X-Nanterre, FranceBehavior Equilibrium Exchange Rate and Misalignment of Renminbi: A Recent Empirical Study
Rod TyersAustralian National University, AustraliaChina's Economic Growth and its Real Exchange Rate


Saturday, June 30

Parallel Session 2.1.1: International Trade and Labour Markets
Time: 10:45 – 12:30
Venue: Commerce Theatre 1
Chair: Peter Warr

Montserrat Vilalta-BufiUniversitat de Barcelona, SpainLabor mobility and Inter-industry Wage Variation
Xinpeng XuFaculty of Business, Hong Kong Polytechnic University, Hong KongTerms of Trade Shocks and Endogenous Search Unemployment: A Two-sector Model with Non-Traded Goods
Alfons PalangkarayaMIAESR, The University of Melbourne, AustraliaTrade Liberalisation, Exit, and Output and Employment Adjustments of Australian Manufacturing Establishments
Elissaios Papyrakis
Sebastian Hess
Pieter van Beukering
University of East Anglia, UK
University of Amsterdam, Holland
A Development Curse: Formal vs. Informal Activities in Resource-dependent Economies


Parallel Session 2.1.2: International Labour Migration
Time: 10:45 – 12:30
Venue: Prest Theatre
Chair: Harry Clarke

Rod TyersAustralian National University, AustraliaThe Global Economic Implications of Freer Skilled Migration
Alvin P. AngUniversity of Santo Tomas, ManilaWorkers’ Remittances and Economic Growth in the Philippines
Ben DolmanAustralian Government Productivity Commission, AustraliaPatterns of Migration, Trade and Foreign Direct Investment across OECD Countries


Parallel Session 2.1.3: Financial Development
Time: 10:45 – 12:30
Venue: Commerce Theatre 3
Chair: Roland Holder

Martin Paldam
Erich Gundlach
University of Aarhus, Denmark
Kiel Institute for the World Economy, Germany
Two Views on Institutional Development: The Grand Transition vs the Primacy of Institutions
Sambit Bhattacharyya
Steve Dowrick
RMIT, Melbourne, Australia Australian National University, Canberra, AustraliaInstitutions and Trade: Competitors or Complements in Economic Development?
Creina DayAustralian National University, Canberra, AustraliaPopulation and Endogenous Growth
Supriyo DeUniversity of Sydney, AustraliaSoftware Production, Human Capital and Endogenous Growth: Theoretical Analysis and Empirical Evidence from India


Parallel Session 2.1.4: Macroeconomics of Savings and Growth
Time: 10:45 – 12:30
Venue: B06
Chair: Bjarne Jensen

Ross Guest
Ian McDonald
Griffith University, Australia
The University of Melbourne, Australia
Other-regarding Uzawa Preferences and Living Standard Catch-up
Santiago Acosta OrmaecheaUniversity of Warwick, UKA Small Open Economy Model with Currency Mismactches and a Financial Accelerator Mechanism
Hayat KhanLaTrobe University, AustraliaPrivate Intergenerational Transfers and Their Ability to Alleviate the Fiscal Burden of Ageing


12:30 – 13:30 Lunch

Parallel Session 2.2.1: Quantitative Analysis of Trade and Growth
Time: 13:30 – 15:30
Venue: Prest Theatre
Chair: Rod Tyres

Volker NitschFU Berlin, GermanyDie Another Day: Duration in German Import Trade
Russell HillberryDepartment of Economics, The University of Melbourne, AustraliaStructural Estimation and Solution of International Trade Models with Heterogeneous Firms
Peter WarrAustralian National University, AustraliaPetroleum Import Prices and Poverty: A General Equilibrium Analysis for Lao PDR
Suwannee Arunsawadiwong
Elissaios Papyrakis
Osiris Parcero
School of Development, Norwich
University of St. Andrews, Scotland
A Stochastic Frontier Estimation of the Resource Curse across US States


Parallel Session 2.2.2: International Trade and Growth in Developing Countries
Time: 13:30 – 15:30
Venue: Commerce Theatre 1
Chair: Ross Guest

Tobias BidlingmaierRuhr Uni BochumInternational Trade and Economic Growth in Developing Countries
Leong Chee KianNanyang University, SingaporeA Tale of Two Countries: Openness and Growth in China and India
ME Biyase
L. Boinga-Bonga
University of Johannesburg, South AfricaSouth Africa’s Growth Paradox
Yogi VidyattamaAustralian National University, Canberra, AustraliaThe Determinants of Provincial Growth in Indonesia During 1983-2003


Parallel Session 2.2.3: FDI and Multinational Firms
Time: 13.30 – 15.30
Venue: Commerce Theatre 3
Chair: Tetsugen Haruyama

Witada AnukoonwattakaThammasat University, ThailandTrade Liberalization and Vertical Integration of a Multinational: A Theoretical Model and Empirical Evidence from Outsourcing of Toyota, Southeast Asia
Wang Xun
Luo Ting
University Shijiazhuang, ChinaEntry Strategies, Welfare Analysis and Firms’ Behaviors
Yi-Hui ChiangNational Chiao Tung University, Hsinchu, TaiwanA Dynamic Growth Model for Flows of Foreign Direct Investment
Della TemenggungAustralian National University, AustraliaProductivity Spillovers from Foreign Direct Investment: Indonesian Manufacturing Industry’s Experience 1975-2000