nep-sea New Economics Papers
on South East Asia
Issue of 2007‒04‒21
eleven papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Regional and Outward Economic Integration in South-East Asia By Enzo Weber
  3. Growth and Convergence of Sugarcare Industries in Southeast Asia By Landiyanto, Erlangga Agustino; Wardaya, Wirya
  4. Pathways Out of Poverty During an Economic Crisis: An Empirical Assessment of Rural Indonesia By Neil McCulloch; C. Peter Timmer; Julian Weisbrod
  5. Local Firms in Latecomer Developing Countries amidst China's Rise -The case of Vietnam's motorcycle industry- By Fujita, Mai
  6. Media Coverage & Charitable Giving After the 2004 Tsunami By Philip Brown; Jessica Minty
  7. Does sending farmers back to school have an impact? a spatial econometric approach By Satoshi Yamazaki; Budy P. Resosudarmo
  9. Determinants of Credit Participation and Its Impact on Household Consumption: Evidence From Rural Vietnam By Cuong H. Nguyen
  10. Why are Americans Addicted to Baseball? An Empirical Analysis of Fandom in Korea and the U.S. By Trenton Smith; Young H. Lee
  11. Source of output growth in small and medium scale enterprises in Malaysia By Jajri, Idris; Ismail, Rahmah

  1. By: Enzo Weber
    Abstract: The subject of this paper tackles questions of macroeconomic integration of the South-East Asian countries South Korea, Singapore and Taiwan. Economically, the analysis is based on notions of stochastic long-run convergence and business cycle synchrony in the GDPs. According tests for cointegration and common serial correlation features reveal a high degree of coherence in long-run growth and medium-run fluctuations. This allows extracting a common stochastic growth trend and a common business cycle. Further analysis shows, both of these components are subject to stronger influences from the US than from Japan. Convergence towards these matured economies conspicuously appears since the 1990s.
    Keywords: Real Convergence, Cointegration, Common Cycles, South-East Asia.
    JEL: E32 F15 C32
    Date: 2007–04
  2. By: Jong-Wha Lee; Warwick J. McKibbin
    Abstract: Since the 1997-98 financial crisis, many East Asian economies have experienced permanent declines of domestic investment and output growth, mainly resulting from the increase in financial risk and decrease in the return on investment. The investment decline in East Asia, outside of China, combined with the falling in public and private savings in the United States, has contributed to recent surges in global current account imbalances. The reduction of global current account imbalances requires adjustment policies to raise domestic investment in East Asia, such as expansion of public infrastructure investment and an increase in R&D and human capital investment. Continuous structural reforms in the corporate and financial sectors are also required to lower financial risk and improve investment efficiency. Simulations with a global general equilibrium model support the positive role of the investment increase or strong productivity related growth in reducing current account surpluses in East Asia. Nevertheless, a discal adjustment in the United States turns out to be more effective in reducing the US current account deficit and thereby correcting global imbalance.
    Date: 2006–10
  3. By: Landiyanto, Erlangga Agustino; Wardaya, Wirya
    Abstract: This paper analysis growth and convergence on sugarcane industry in southeast Asia countries. Important questions in this paper are whether the growth of sugar cane in Southeast Asia a convergence or divergence over time and to what extent economic integration influences the development and policy of countries. To answer the question, in this paper done by GLS techniques analysis and used the distribution of the logarithmic sugar cane’s output data characteristics. Data in this paper published at the country level by FAOSTAT. Countries data which produce sugar cane in Southeast Asia are: Indonesia, Malaysia, Thailand, Cambodia, Laos, Myanmar, The Philippines, and Vietnam. This countries are Cross section identifiers in panel data which time series data set in analysis is 1961-2000. In empirical result, B - convergence both basic variable and equation with dummy the regression equation indicate that these variables do have effects in addition to convergence and speed of convergence. The results also strengthen the hypothesis that when σ - convergence are accounted.
    Keywords: Konvergensi; Pertumbuhan; Tebu
    JEL: O47 Q17 Q18
    Date: 2005–02
  4. By: Neil McCulloch; C. Peter Timmer; Julian Weisbrod
    Abstract: Most poor people in developing countries still live in rural areas and are primarily engaged in low productivity farming activities. Thus pathways out of poverty are likely to be strongly connected to productivity increases in the rural economy, whether they are realised in farming, rural non-farm enterprises or via rural-urban migration. We use cross-sectional data from the Central Statistical Board (BPS) for 1993 and 2002, as well as a panel data set from the Indonesia Family Life Survey (IFLS) for 1993 and 2000, to show which pathways out of poverty were most successful over this period. Our findings suggest that increased engagement of farmers in rural non-farm enterprises is an important route out of rural poverty, but that most of the rural agricultural poor that exit poverty still do so while remaining rural and agricultural. Thus changes in agricultural prices, wages and productivity still play a critical role in moving people out of poverty.
    Keywords: Poverty dynamics, non-farm sector, micro-growth regression
    JEL: O12 O13 O18 O53 R11
  5. By: Fujita, Mai
    Abstract: This paper examines the impact of China’s recent rise on the development of local firms in latecomer developing countries. Based on a detailed analysis of Vietnam’s motorcycle industry, the paper argues that China’s impact may go beyond what a trade analysis suggests. Indeed, China’s rise induced a dynamic transformation in the structure of value chains within Vietnam’s motorcycle industry, bringing about far-reaching consequences on the development and upgrading trajectories of local firms. The implications of the case study for the wider “global value chain†approach is also discussed.
    Keywords: Global value chain, Motorcycle industry, Vietnam, China, Upgrading, Motorcycles
    JEL: F23 L22 L62
    Date: 2007–03
  6. By: Philip Brown; Jessica Minty
    Abstract: Media coverage of humanitarian crises is widely believed to influence charitable giving, yet this assertion has received little empirical scrutiny. Using Internet donations after the 2004 tsunami as a case study, we show that media coverage of disasters has a dramatic impact on donations to relief agencies, with an additional minute of nightly news coverage increasing donations by 0.036 standard deviations from the mean, or 13.2% of the average daily donation for the typical relief agency. Similarly, an additional 700-word story in the New York Times or Wall Street Journal raises donations by 18.2% of the daily average. These results are robust to controls for the timing of news coverage and tax considerations. We repeat the analysis using instrumental variables to account for endogeneity bias, and the estimates are unchanged. However, we also find that the effect of news coverage varies considerably by relief agency.
    Keywords: Charitable giving; Media; Disasters; Tsunami; Southeast Asia
    JEL: O19 L31 L82
    Date: 2006–12–01
  7. By: Satoshi Yamazaki; Budy P. Resosudarmo
    Abstract: The Farmer Field School (FFS) is an intensive training program providing farmers with science based knowledge and practices, including integrated pest management (IPM). Recently there has been intensive debate as to whether or not this kind of training has any significant impact. Most case studies argue that the impact, in terms of a farmer’s ability to reduce the use or pesticides while increasing yields, is significant. However, studies conducted by Feder et al., using a household panel data set for Indonesia, could not confirm that this is the case. This paper utilizes Feder et al.’s data set and applies a modified model specification and a spatial econometric technique to re-evaluate whether or not the FFS induces better performances among farmers enrolled in the program and also among their neighbors, who are expected to receive some spillover knowledge from the FFS alumna.
    Keywords: agricultural economics, spatial econometrics, economic development
    JEL: Q12 C59 O13
    Date: 2007
  8. By: Manolis Syllignakis; Georgios Kouretas
    Abstract: This paper examines the short- and long-term relationships between seven Central Eastern European (CEE) stock markets and two developed stock markets, namely the German market and the US market. Application of the Gonzalo and Granger (1995) methodology indicates that the examined stock markets are partially integrated, while there is also evidence that the five stock markets in the central Europe (Czech Republic, Hungary, Poland, Slovenia and Slovakia) together with the German and the US stock markets have a significant common permanent component, which drives this system of stock exchanges in the long run. Contrary, the Estonian and Romania markets are segmented. A DCC model indicates that the short – term interdependencies between the CEE stock markets and the developed stock markets have strengthened during the Asian and Russian crises but since then (except for the Czech Republic, Hungary, Poland) they returned almost to their initial (relatively low) levels. Moreover, significantly increased volatility is observed during the Russian crisis period for all the markets under enquiry.
    Keywords: Central Eastern European equity markets, Market Integration, Common trends, DCC, SWARCH-L.
    JEL: G15 C12 C32 F36
    Date: 2006–07–01
  9. By: Cuong H. Nguyen
    Abstract: This paper analyses the Vietnam's rural credit market to understand the determinants of credit choices and to measure impacts of borrowing activities on borrower's consumption in the 1992-1998 period. There are three main results. First, there exists uniform access to formal credit among rural households in Vietnam. Households' financial activity is found to be determined by household size and agricultural work rather than education or distance from the commune to the nearest bank branch. Education level seems to have an inverse U-shape effect on credit taking possibility; the least and the most educated households borrow least. Second, there is evidence of money lenders being crowded out by formal institutions via competition. Finally, we apply fix-effected regression and propensity score matching estimation on cross-sectional and panel data to assess impact of credit taking on household consumption. Our study demonstrates that formal credit positively affects borrowers' consumption while informal finance has mixed results.
    Keywords: rural credit, credit participation, Vietnam
    JEL: O12 O16 O17
    Date: 2007
  10. By: Trenton Smith; Young H. Lee (School of Economic Sciences, Washington State University)
    Abstract: Theories of rational addiction posit that certain habit -forming goods "characterized by an increasing marginal utility of consumption "generate predictable dynamic patterns of consumer behavior. It has been suggested that attendance at sporting events represents an example of such a good, as evidenced by the pricing strategies of commercial sports interests. In this essay, we provide new evidence in support of rational addiction for the case of Major League Baseball, but fail to find such support in data from the Korean Professional Baseball League. We then review the scientific literature on sports fans from the perspective of human behavioral ecology and propose a theory of endogenous habit formation among sports fans that could explain our findings.
    Keywords: Attendance Demand, Habit Formation, Baseball Addiction, Fan Psychology, Testosterone
    JEL: C32 D83 L83
    Date: 2006–05
  11. By: Jajri, Idris; Ismail, Rahmah
    Abstract: Small and medium scale enterprises (SMEs) play an important role in the Malaysian industrial development. SMEs comprise of more than 90 per cent of the total manufacturing establishments, contributing about 40 per cent of the total employments and 30 per cent of the total fixed assets in this sector. However, SMEs’ value added is very much lower than that of the large scale. A low productivity of physical inputs or factors efficiency may be attributed to low level of value added. In general the benefit gained from technological advancement and human resource development varies for different size and types of industry. Consequently, this leads to productivity differences of their physical inputs and quality of inputs. This paper aims to address this issue using data from the Manufacturing Industries Survey conducted by the Department of Statistics of Malaysia. The analysis will look at the source of output growth in different types of SMEs sub-industries.
    Keywords: Growth; total factor productivity; manufacturing sector
    JEL: O30
    Date: 2007–01

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