nep-sea New Economics Papers
on South East Asia
Issue of 2009‒10‒03
seven papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Can Second-Generation Endogenous Growth Models Explain The Productivity Trends and Knowledge Production In the Asian Miracle Economies? By Ang, James; Madsen, Jakob
  2. Global rebalancing in a three-country model By Engler, Philipp
  3. Does Democracy Explain Gender Differentials in Education? By Arusha Cooray;
  4. Criss-crossing globalization : uphill flows of skill-intensive goods and foreign direct investment By Mattoo, Aaditya; Subramanian, Arvind
  5. Measuring subjective wellbeing in Bangaladesh, Ethiopia, Peru and Thailand using a personal life goal satisfaction approach By Copestake, James; Camfield, L
  6. New FInanciers and the Environment: Ten Perspectives on How Financial Institutions can Protect the Enviornment By International Rivers Network IRN

  1. By: Ang, James; Madsen, Jakob
    Abstract: Using data for six Asian miracle economies over the period from 1953 to 2006, this paper examines the extent to which growth has been driven by R&D and tests which second-generation endogenous growth model is most consistent with the data. The results give strong support to Schumpeterian growth theory but only limited support to semi-endogenous growth theory. Furthermore, it is shown that R&D has played a key role for growth in the Asian miracle economies.
    Keywords: Schumpeterian growth; semi-endogenous growth; Asian growth miracle
    JEL: O30 O40
    Date: 2009
  2. By: Engler, Philipp
    Abstract: This paper extends the model of Engler et al. (2007) on the adjustment of the US current account to a three-country world economy. This allows an analysis of the differential impact of a reversal of the US current account on Europe and Asia. In particular, the outcomes under different exchange rate policies are analysed. The main finding is that large factor re-allocations from non-tradables to tradables will be necessary in the US. The direction of factor re-allocation in Asia depends on whether the Bretton-Woods-II regime of unilaterally fixed or manipulated exchange rates in Asia is continued. If this is the case, the tradables sector and the current account surplus will continue to grow even when the US deficit closes. The flip side of this result is that Europe will face a huge real appreciation and an enormous current account deficit. With floating exchange rates worldwide, the impact on Europe will be limited while Asia´s tradables sector will shrink.
    Keywords: Global imbalances,US current account deficit,dollar adjustment,sectoral adjustment
    JEL: E2 F32 F41
    Date: 2009
  3. By: Arusha Cooray;
    Abstract: This study shows that despite a strong empirical association between gender differentials in enrolment ratios and democracy, that democracy alone does not explain gender differentials in education in Africa and Asia. The results indicate that income, employment in agriculture, religious heterogeneity and colonialism also help explain the under-representation of girls in education in these regions. Countries in which the duration of suffrage has been longer, tend to perform better on average in terms of gender equality in education.
    JEL: O11 O15 O43 O57
    Date: 2009–08
  4. By: Mattoo, Aaditya; Subramanian, Arvind
    Abstract: This paper documents an unusual and possibly significant phenomenon: the export of skills, embodied in goods, services or capital from poorer to richer countries. The authors first present a set of stylized facts. Then, using a measure that combines the sophistication of a country’s exports with the average income level of destination countries, they show that the performance of a number of developing countries - notably China, Mexico and South Africa - matches that of much more advanced countries - such as Japan, Spain and the United States. The authors create a new combined dataset on foreign direct investment (covering greenfield investment as well as mergers and acquisitions). The analysis shows that flows of foreign direct investment to developed countries from developing countries - like Brazil, India, Malaysia and South Africa - as a share of their GDP, are as large as flows from developed countries - like Japan, Korea and the United States. The authors suggest that it is not just the composition of exports but their destination that matters. In both cross-sectional and panel regressions, with a range of controls, a measure of uphill flows of sophisticated goods is significantly associated with better growth performance. These results suggest the need for a deeper analysis of whether the benefits of development might derive not from deifying comparative advantage but from defying it.
    Keywords: Economic Theory&Research,Debt Markets,Emerging Markets,Investment and Investment Climate,Trade Policy
    Date: 2009–09–01
  5. By: Copestake, James; Camfield, L
    Abstract: The paper sets out an approach to assessing people's wellbeing that focuses on their perceived attainment of life goals. Section 1 explains the motivation for seeking new ways of measuring subjective wellbeing in developing countries. Section 2 briefly reviews relevant literature and process of designing the data collection instrument (referred to as the WeDQoL). Sections 3 and 4 present illustrative empirical findings from its use in Bangladesh, Ethiopia, Peru and Thailand. Section 5 concludes that much scope remains for developing new tools, like the WeDQoL, usefully to inform public policy in developing countries.
    Date: 2009–02
  6. By: International Rivers Network IRN
    Abstract: This new report discusses the experience with environmental standards and how it can be useful for new financiers. It contains ten papers written by experts from civil society, financial institutions and academia. The authors present case studies of overseas projects funded by Chinese, Indian and Thai financiers, and analyze the experience with environmental standards which could be applied by these financiers.
    Keywords: financiers, financial instituions, academia, china, india, chinese, indian, Thai, environmental standards, civil society, hydropower development, dams, Social, Socially Responsible Investment, Thailand, Environmental
    Date: 2009
  7. By: Kühl Teles, Vladimir; Zaidan, Marta
    Abstract: The goal of this paper is to evaluate the validity of the Taylor principle for inflation control in 12 developing countries that use inflationtargeting regimes: Brazil, Chile, Colombia, Hungary, Israel, Mexico,Peru, Philippines, Poland, South Africa, Thailand and Turkey. The test is based on a state-space model to determine when each country hasfollowed the principle; then a threshold unit root test is used to verify if the stationarity of the deviation of the expected inflation from itstarget depends on compliance with the Taylor principle. The results show that such compliance leads to the stationarity of the deviation of the expected inflation from its target in all cases. Furthermore, in mostcases, non-compliance with the Taylor principle leads to nonstationary deviation of the expected inflation.
    Date: 2009–08–26

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