Assistant Professor of Economics Chun-Yu Ho published his research as a working paper of Asian Development Bank Institute (ADBI), which was established to provide intellectual input for policy makers in ADB’s member countries in 1997 and conducts research with a focus on medium- to long-term development issues of strategic importance that affects Asia. Before publishing the working paper, Chun-Yu presented his research, Financial Deepening and Innovation Efficiency: The Role of Political Institutions at the conference of Escaping the Middle Income Trap at ADBI, and discussed the research with economists from academic and policy institutions.
Chun-Yu's research examines how political democratization affects the financing of innovation. “Although there is evidence documenting the positive impacts of financial markets in promoting innovation, we do not know whether such impacts depend on political democracy,” said Ho. Chun-Yu and his co-authors develop a novel empirical strategy to address this important issue and currently conclude that financial markets promote innovation only for countries with political institutions that are sufficiently democratic. “By promoting political participation and competition, democratic political institutions limit the power of the state to control and repress the financial system, and thereby generate a more efficient and transparent financial markets,” said Ho. Further, Ho added, “Such financial markets are more capable to finance risky investments and promote innovation.”
"Asian economies such as Japan, Korea, Singapore and Taiwan developed into high-income economies with high innovative capacities after World War II. However, other Asian economies appear to suffer from the symptoms of the middle-income trap," said Ho. Chun-Yu's research would provide policy implications on how developing countries can sustain their economic growth by growing their knowledge economies. “My research highlights the importance of political democratization in growing knowledge economy, which is a key driver of economic growth.” said Ho. His research also points out that such beneficial effects of political democratization is mainly driven by liberalizing the executive recruitment process.
Chun-Yu research focuses on industrial organization, banking and economic development. His interest in the financial liberalization in China began with his doctoral dissertation at Boston University. Chun-Yu received his doctoral degree from Boston University in 2009. He joined the faculty of the Department of Economics at UAlbany in 2016 after serving as a faculty member at Georgia Institute of Technology and Shanghai Jiao Tong University. He also held visiting positions at Bank of Finland, the Chinese University of Hong Kong and Hong Kong Institute of Monetary Research. He is currently serving as an associate editor for Singapore Economic Review, an international peer-reviewed scholarly journal. At UAlbany, Chun-Yu teaches Industrial Organization for undergraduate students, in which he uses antitrust cases over the last century to illustrate how the development of economic theory informs public policy.
See the ADBI Working Paper No. 694 at https://www.adb.org/publications/financial-deepening-and-innovation-efficiency for the working paper of Professor Chun-Yu Ho
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