nep-sea New Economics Papers
on South East Asia
Issue of 2008‒11‒25
nine papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Biological versus foster children education : the old-age support motive as a catch-up determinant ? Some evidence from Indonesia. By Karine Marazyan
  2. Analysing the implication of the EU 20-10-20 targets for world vegetable oil production By Gay, Stephan Hubertus; Mueller, Marc; Santuccio, Federica
  3. Industrial Policies in Developing Countries: History and Perspectives By Michele Di Maio
  4. Could carbon payments be a solution to deforestation? Empirical evidence from Indonesia By Seeberg-Elverfeldt, Christina; Schwarze, Stefan; Zeller, Manfred
  5. China and the Manufacturing Exports of Other Developing Countries By Gordon H. Hanson; Raymond Robertson
  6. Ethnic food preferences in the Spanish market By Camarena, D.M.; Sanjuan, A.I.
  7. An Assessment of the Impact of Strategic Alliances in Food Processing on the Technical Efficiency of Housewives Groups in Thailand By Nonthakot, Phanin; Fleming, Euan; Villano, Renato
  8. Impact of exchange rate shock on prices of imports and exports By Duasa, Jarita
  9. Global Migration of the Highly Skilled: A Tentative and Quantitative Approach By Dunnewijk, Theo

  1. By: Karine Marazyan (Centre d'Economie de la Sorbonne)
    Abstract: This paper aims at explaining differences in education among foster-children and between foster and biological children in developing countries. Foster-children whose biological parents are alive may provide old-age support for both their host and biological parents. Therefore foster-children have lower returns to education than biological children and should receive less human capital investment in household where both types of children live together. However, in households where foster-children are alone, host parents will over-invest in their education to ensure that the expected old-age support will equal a minimum amount to survive. Using data from Indonesia, we provide some evidence supporting our hypothesis.
    Keywords: Household structure, child fostering, sibling rivalry.
    JEL: I2 J1 O1
    Date: 2008–07
  2. By: Gay, Stephan Hubertus; Mueller, Marc; Santuccio, Federica
    Abstract: The European Commission proposes a minimum of 10 % biofuels in the total transport fuel use by 2020. The new 10% minimum target in 2020 is combined with the existing regulation, which fixes the target at 5.75% in 2010. This paper will in particular investigates how a full implementation of the 20- 10-20 targets would affect production and trade of oil plants in the EU and its main trade partners on this commodity markets, particularly Malaysia and Indonesia. The global general equilibrium model GLOBE is used to carry out the policy scenarios and to assess the effects on oil palm plantation area in Malaysia and Indonesia. The results show that the increased EU bio-diesel target will not significantly influence the expansion of palm oil production in Indonesia and Malaysia.
    Keywords: Crop Production/Industries, International Relations/Trade, Resource /Energy Economics and Policy,
    Date: 2008
  3. By: Michele Di Maio (Università di Macerata)
    Abstract: <div style="line-height: normal"><span style="font-size: 10pt"><div style="line-height: normal"><span style="font-size: 10pt">This paper presents a historical and empirical account of the role played by government</span></div><div style="line-height: normal"><span style="font-size: 10pt">intervention in the form of industrial policies in spurring development and growth in</span></div><div style="line-height: normal"><span style="font-size: 10pt">developing countries in the last fifty years. Adopting the taxonomy proposed in Cimoli et</span></div><div style="line-height: normal"><span style="font-size: 10pt">alt. (2008), it describes the set of industrial policies implemented since the end of WWII</span></div><div style="line-height: normal"><span style="font-size: 10pt">to today in a number of developing countries. Which are the characteristics of successful</span></div><div style="line-height: normal"><span style="font-size: 10pt">industrial policies? Are there industrial policies, among the ones that have worked in the</span></div><div style="line-height: normal"><span style="font-size: 10pt">past, which can be also useful in the present context? Is there a fit-all recipe, or the high</span></div><div style="line-height: normal"><span style="font-size: 10pt">degree of country heterogeneity makes impossible to identify any general effective industrial</span></div><div style="line-height: normal"><span style="font-size: 10pt">policy? These are some of the questions this papers tries to suggest some answers.</span></div></span></div>
    Keywords: Industrial policy,Developing Countries,East Asia,Latin America
    JEL: O1 O11
    Date: 2008–10
  4. By: Seeberg-Elverfeldt, Christina; Schwarze, Stefan; Zeller, Manfred
    Abstract: Up to 25 percent of all anthropogenic greenhouse gas emissions are caused by deforestation, and Indonesia is the third largest emitter worldwide due to land use change and deforestation. On the island of Sulawesi in the vicinity of the Lore Lindu National Park, smallholders contribute to conversion processes at the forest margin as a result of their agricultural practices. Specifically the area dedicated to cocoa plantations has increased from zero in 1979 to nearly 18,000 hectares in 2001. Some of these plots have been established inside the 220,000 hectares of the National Park. An intensification process is observed with a consequent reduction of the shade tree density. This study focuses on the impact of carbon sequestration payments for forest management systems on smallholder households. The level of incentives is determined which motivates farmers to desist from further deforestation and land use intensification activities. Household behaviour and resource allocation is analysed with a comparative static linear programming model. As these models prove to be a reliable tool for policy analysis, the output can indicate the adjustments in resource allocation and land use shifts when introducing compensation payments. The data was collected in a household survey in six villages around the Lore Lindu National Park. Four household categories were identified according to their dominant agroforestry systems. With carbon credit prices up to ‚̳2 tCO2e-1 an incentive can be provided for the majority of the households to adopt the more sustainable shade intensive agroforestry systems. The results show that with current carbon prices the deforestation activities of the majority of households could be stopped. A win-win situation seems to appear, whereby, when targeting only the shade intensive agroforestry systems with carbon payments, the poorest households economically benefit the most, the vicious circle of deforestation can be interrupted and land use systems with high environmental benefits are promoted.
    Keywords: Payments for Environmental Services, Avoided Deforestation, Linear Programming, Resource /Energy Economics and Policy,
    Date: 2008
  5. By: Gordon H. Hanson; Raymond Robertson
    Abstract: In this paper, we examine the impact of China's growth on developing countries that specialize in manufacturing. Over 2000-2005, manufacturing accounted for 32% of China's GDP and 89% of its merchandise exports, making it more specialized in the sector than any other large developing economy. Using the gravity model of trade, we decompose bilateral trade into components associated with demand conditions in importing countries, supply conditions in exporting countries, and bilateral trade costs. We identify 10 developing economies for which manufacturing represents more than 75% of merchandise exports (Hungary, Malaysia, Mexico, Pakistan, the Philippines, Poland, Romania, Sri Lanka, Thailand, and Turkey), which are in theory the countries most exposed to the adverse consequences of China's export growth. Our results suggest that had China's export supply capacity been constant over the 1995-2005 period, demand for exports would have been 0.8% to 1.6% higher in the 10 countries studied. Thus, even for the developing countries most specialized in export manufacturing, China's expansion has represented only a modest negative shock.
    JEL: F15
    Date: 2008–11
  6. By: Camarena, D.M.; Sanjuan, A.I.
    Abstract: A labelled choice experiment is conducted in order to investigate preferences of Spanish consumers towards ethnic cuisines. In particular, the three best known cuisines, Mexican, Arab and Asian, are considered, across three consumption situations: restaurant, take-away and at home. Wald statistics are applied in order to assess the differential marginal utilities of ethnic food in alternative consumption situations, and the appropriateness of considering a linear effect in price.
    Keywords: choice experiment, ethnic food, consumers, Food Consumption/Nutrition/Food Safety,
    Date: 2008
  7. By: Nonthakot, Phanin; Fleming, Euan; Villano, Renato
    Abstract: The cottage food processing industry in Thailand comprises mainly small-scale enterprises such as the €بousewives groups€٠that consist of a number of housewives who combine their food processing activities in a particular district or village. The effects of various factors on the performance of these housewives groups is assessed using survey data to estimate a stochastic input distance model. Our results show that membership of vertical strategic alliances at a high level is associated with higher levels of technical efficiency. Other factors positively influencing technical efficiency within these groups are the level of experience of group members, the ratio of workers to total members, government support, the community base of the group as opposed to private ownership, and the availability of funds to invest in business activities that have been derived from savings activities by group members. The ability of housewives groups to exploit cost complementarities by combining fruit and vegetable processing activities is tested by estimating scope and diversification economies for fruit and vegetable processed outputs. While diversification economies were found to exist, the more rigorous test for scope economies did not support their existence.
    Keywords: Housewives group, scope economies, strategic alliance, Agribusiness,
    Date: 2008
  8. By: Duasa, Jarita
    Abstract: This study examines the significant impact of exchange rate shock on prices of Malaysian imports and exports. In methodology, the study adopts vector error correction (VECM) model using monthly data of nominal exchange rates, money supply, prices of imports and prices of exports covering the period of M1:1999 to M12:2006. For further analysis, we adopt an innovation accounting by simulating variance decompositions (VDC) and impulse response functions (IRF). VDC and IRF serve as tools for evaluating the dynamic interactions and strength of causal relations among variables in the system. In fact, IRF is used to calculate the exchange rate pass-through on import prices and export prices. The findings indicate that, while the exchange rate shock is significantly affect the fluctuation of import prices, the degree of pass-through is incomplete.
    Keywords: Import prices; Export prices; VECM; Impulse Response; Variance Decomposition.
    JEL: E30 C22 F31
    Date: 2008
  9. By: Dunnewijk, Theo (UNU-MERIT)
    Abstract: Migration in a globalising world is on the increase, especially migration of the highly skilled. It is quite natural that given certain possibilities, people look for opportunities and chances to improve their lives. Especially when the better educated leave their country in large quantities to try their chances abroad it was labelled in the 1960's as "brain drain" stressing the negative welfare impact on the countries of origin (European at that time). However not always is the impact of migration negative for the country of origin and therefore "brain drain" turned into "brain gain" when it was seen from another perspective. Indeed destination as well as origin countries may profit from migrating highly skilled people. The road in the middle is called "brain strain" emphasising that out migration can be either positive or negative for the origin countries. A synthesis has been found in perceiving migration of the highly skilled in the more neutral phrase "brain circulation". Brain circulation perceives migration of the highly skilled not as an end in itself but as the start of a circular process in which everyone might be better off: in this view the knowledge worker in the age of globalisation turns into a real cosmopolite. Despite an enormous literature on migration it is impossible to draw a systematic global quantitative picture of migration of the highly skilled. Therefore discussions in terms of brain drain, brain strain or brain circulation are either theoretical or end unresolved. Empirically only a part of the picture can be drawn with the help of data on South-North migration of the highly skilled. Data on other directions of migration like South-South and North- South is not systematically covered by the international statistical institutes. Given this situation it is the aim of this paper to include as many as possible countries in the data on migration of the highly skilled in order to illustrate the major effects related to migration for human capital in origin as well as destination regions. This is possible by using UNESCO data on international students; this source facilitates estimations of the missing migration flows. The results show that countries like Russian Federation, South Africa, Ukraine, Malaysia, Jordan and Saudi Arabia are, apart from the traditional immigration countries also important destination countries for highly skilled migrants.
    Keywords: Migration, Diaspora, Highly Skilled Migrants, International Mobility, Internationally Mobile Students
    JEL: F22 J61 O15
    Date: 2008

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