nep-sea New Economics Papers
on South East Asia
Issue of 2005‒07‒03
four papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Court Delay in Developing Countries with Special References to China By Qing-Yun Jiang
  2. Road development, economic growth, and poverty reduction in China By Fan, Shenggen; Chan-Kang, Connie
  3. "Innovation Versus Diffusion: Determinants of Productivity Growth Among Japanese Firms" By Kiyohiko G. Nishimura; Takanobu Nakajima; Kozo Kiyota
  4. "Role of Local Communities in Economic Development: A Survey Focusing on the Export Industries in Nineteenth Century Japan"(in Japanese) By Tetsuji Okazaki; Esuke Taniyama; Masaki Nakabayashi

  1. By: Qing-Yun Jiang
    Abstract: The judiciary in developing countries is troubled with various problems. Specifically, court delays, backlogs and uncertainty associated with unexpected outcomes have diminished the quality of justice and leads to loss of confidence of the general public in judiciary. Court delay is always coupled with impartiality, corruption and low quality of judgment, etc. The reform program needs to address the major causes of the deterioration in the quality of court services and address the root political, economic causes of an inefficient and inequitable judiciary and not simply deal with its symptoms. Like many other judiciaries in developing countries, court delay is also a problem facing the jurisdiction in Chinese courts, especially in appeal and retrial procedure. Based on empirical study, this paper will also illustrate the major causes of court delay as well as difficulties of law enforcement in Chinese jurisdiction. In particular, some special references are made to the retrial procedure and the roll of the Trial Committee in the course of jurisdiction, as well as accessibility to the courts.
    Keywords: jurisdiction, duration of the court, retrial, the Trial Committee, enforcement of judgments,
  2. By: Fan, Shenggen; Chan-Kang, Connie
    Abstract: "Since 1985, the Chinese government has given high priority to building roads, particularly high-quality roads that connect industrial centers. This report evaluates the contribution roads have made to poverty reduction and economic growth in China over the last two decades. It disaggregates road infrastructure into different classes to account for differences in their quality, and then estimates the impact of road investments on overall economic growth, agricultural growth, urban growth, urban poverty reduction, and rural poverty reduction. The report makes the case for a greater focus on low-quality and rural roads in future infrastructure investment strategies in China. It does so by showing how investing in low-quality and rural roads will generate larger marginal returns, raise more people out of poverty per yuan invested, and reduce regional development disparity more sharply than investing in high-quality roads. The study's findings will have considerable implications for China's infrastructure policy." Authors' Abstract
    Keywords: Human capital ,
    Date: 2005
  3. By: Kiyohiko G. Nishimura (Policy Board, Bank of Japan); Takanobu Nakajima (Faculty of Business and Commerce, Keio University); Kozo Kiyota (Faculty of Business Administration, Yokohama National University)
    Abstract: This paper presents a model of firm-level productivity growth that distinguishes between innovation and technology diffusion, and then applies the model to a large-scale data set of Japanese manufacturing and non-manufacturing firms between 1994 and 2000. We find both innovation and diffusion are important factors in firm-level productivity growth. Results also suggest that innovation comes not only directly from R&D activities, but also indirectly from patent purchases and imports. Previously, patent purchases and imports were considered as sources of technology diffusion rather than innovation. In fact, we find patent purchases are more effective in this regard than R&D expenditure.
    Date: 2005–06
  4. By: Tetsuji Okazaki (Faculty of Economics, University of Tokyo); Esuke Taniyama (Graduate School of Economics, Osaka University); Masaki Nakabayashi (Faculty of Economics, Osaka University)
    Abstract: In this paper we survey the literature on the role of communities in the development of a market economy in Japan. The role of communities has long been explored implicitly as well as explicitly in the literature on the Japanese economic history. In this survey we focus on the export industries in the early stage of the modern economic development. In the late 19th century, when the traditional legal and private institutions which had governed transactions, collapsed, and at the same time the modern institutions were still underdeveloped, it was highly possible that problems due to information asymmetry between sellers and buyers were serious. In fact, we can find many evidences of moral hazard and adverse selection in the documents of this period. On the other hand, since just after the opening up of the international trade in 1858, large amount of products including silk and tea, were exported to foreign countries. This implies some mechanisms worked to resolve the problems stemming from information asymmetry. In the case of silk industry, private associations based on local communities, prevented from moral hazard and adverse selection by establishing brands, which, in turn, were protected by the local government. This case suggests that a market economy was complementary with local communities, and that the function of local communities, in turn, was complemented by the role of local governments.
    Date: 2005–06

This nep-sea issue is ©2005 by Kavita Iyengar. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.