nep-sea New Economics Papers
on South East Asia
Issue of 2008‒12‒14
five papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Forest History and the Great Divergence: China, Japan and the West By Osamu Saito
  2. Interactions between monetary policy and exchange rate in inflation targeting emerging countries: the case of three East Asian countries By Sek, Siok Kun
  3. Analysis of United States and European Union Import Demand for Shrimp By Poudel, Pawan; Keithly, Walter Jr.
  4. The sources of long-term economic growth in Indonesia, 1880-2007 By Pierre van der Eng
  5. Accounting for (In)Efficiency in the Estimation of Time-Varying Returns to Scale By Shaik, Saleem

  1. By: Osamu Saito
    Abstract: This paper surveys changing interrelationships between man and the earth's forest cover over the past several centuries. The focus is on the interplay between population increase, deforestation and afforestation at both ends of Eurasia. By looking at three numerical indicators-percentage forested, per capita forest resources and the population elasticity of deforestation, Japan is compared with Lingnan, south China, and the East Asians with two European countries, England and France. Based on the East-West comparisons and on somewhat more detailed intra-Asian comparisons between China and Japan with respect to market linkages and the role of the state, the paper examines the proposition made by Ken Pomeranz that although both ends of Eurasia were ecologically constrained at the end of the early modern period, East Asia's pressure on forest resources was eprobably not much worsef than in the West.
    Date: 2008–10
  2. By: Sek, Siok Kun
    Abstract: This paper investigates empirically how the reaction of monetary policy to exchange rate has changed after the adoption of inflation targeting regime in three East Asian countries. Using a structural VAR and single equation methods, this study shows that the reactions of monetary policy to exchange rate shocks as well as CPI (demand shocks) and output (supply shocks) have declined under the inflation targeting environment. The policy function reacts weakly to the exchange rate movements before and after the financial crisis of 1997 in two out of the three countries.
    Keywords: exchange rate; inflation targeting; policy reaction function
    JEL: E58 E52 F41
    Date: 2008
  3. By: Poudel, Pawan; Keithly, Walter Jr.
    Abstract: Based on 1990-2004 quarterly data, U.S. and E.U. demand for imported shrimp by alternative supply sources was examined within an Almost Ideal Demand System framework. For the United States, supply sources included Central America, South America, and Asia. Supply sources for the European Union included Asia, South America, and Rest of World. All own-price elasticities for the U.S. system were found to be elastic while all own-price elasticities associated with the E.U. system were found to be inelastic. With few notable exceptions, estimated cross-price elasticities suggest substitution among import sources. Finally, shrimp of Asian origin were found to be highly expenditure elastic in the US market while shrimp of South American origin were found to be the same in the European market.
    Keywords: Demand and Price Analysis,
    Date: 2008
  4. By: Pierre van der Eng
    Abstract: This paper initiates discussion about the contribution of Total Factor Productivity (TFP) growth to Indonesia’s long-term economic growth. It presents new time series estimates of GDP, capital stock and education-adjusted employment, and offers a growth accounting approach that estimates the contribution of conventional factor inputs to GDP growth during 1880-2007. For most of the period, the growth of employment, educational attainment and particularly capital stock explained almost all of long-term output growth, and TFP growth was marginal. During the key growth periods 1900-29 and 1967-97, TFP growth was on balance negative, respectively marginally positive. However, the contribution of TFP growth was substantial during some sub-periods, particularly 1933-41, 1951-61, 1967-73 and 2000-07. Each of these followed a major economic downturn that slowed capital stock growth and required a more efficient use of productive resources, assisted by changes in economic policy and institutions that enhanced productivity and efficiency.
    JEL: N15 O11 O47 O53
    Date: 2008–12
  5. By: Shaik, Saleem
    Abstract: This paper has a two-fold contribution. First, it examines the importance of accounting for (in)efficiency in the estimation of primal production function on the input elasticities, technical change, and calculation of returns to scale. Second, it applies a variant of the rolling regression technique to identify time-varying input elasticities, technical change, and return to scale. Empirical application to the Asian agriculture sector using Food and Agricultural Organization data from 1961-2005 indicates returns to scale are underestimated by the traditional pooled and panel models. Further, the time-varying estimates of input elasticities, technical change, and returns to scale indicate variations with each additional year of information.
    Keywords: Asian agriculture sector, time-varying input elasticities, technical change, and returns to scale, pooled, two-way random effect, stochastic frontier analysis, 1961-2005., Agribusiness,
    Date: 2008–10

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