nep-sea New Economics Papers
on South East Asia
Issue of 2009‒11‒07
nine papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Perspectives on East-Asian Monetary Integration By Fabio Masini
  2. Why have CO2 emissions increased in the transport sector in Asia ? underlying factors and policy options By Timilsina, Govinda R.; Shrestha, Ashish
  3. Fiscal Stimulus, Agricultural Growth and Poverty in Asia and the Pacific Region: Evidence from Panel Data By Raghav Gaiha; Katsushi S. Imai; Ganesh Thapa; Woojin Kang
  4. Production Networks and Trade Patterns:East Asia in a Global Context By Prema-chandra Athukorala
  5. Why the West Became Rich before China and Why China Has Been Catching Up with the West since 1949: nother Explanation of the “Great Divergence” and “Great Convergence” Stories By Vladimir Popov
  6. Openness and Technological Innovation in East Asia: Have They Increased the Demand for Skills? By Almeida, Rita K.
  7. Mapping Islamic Evolutionary in the Context of Social Justice and Poverty: A Complexity Approach By Hardiansyah, Suteja
  8. Working In a Regulated Occupation in Canada: An Immigrant - Native-Born Comparison By Girard, Magali; Smith, Michael
  9. The Gender Gap in Early Career in Mongolia By Pastore, Francesco

  1. By: Fabio Masini (Department of Public Institutions, Economics and Society, University of Rome)
    Abstract: Increasing trade interdependence among East-Asian countries suggests the urge to design some monetary arrangement to stabilize the macroeconomic framework of an extremely heterogeneously growing area. The paper reviews the literature and analyses several directions of East-Asian integration process, especially in relation to the European model. We argue that a more comprehensive economic and political world-scenario should be considered and a multi-speed policy approach should be implemented in the area. Around the pivotal role of China, a wide agreement should be reached for an Asian single-currency, which might be rapidly issued and provide a reference target for other East-Asian countries.
    Keywords: trade, East-Asian countries, East-Asian integration process, European model, Asian singlecurrency
    JEL: F33 F59
    Date: 2009–05
  2. By: Timilsina, Govinda R.; Shrestha, Ashish
    Abstract: Rapidly increasing emissions of carbon dioxide from the transport sector, particularly in urban areas, is a major challenge to sustainable development in developing countries. This study analyzes the factors responsible for transport sector CO2 emissions growth in selected developing Asian countries during 1980-2005. The analysis splits the annual emissions growth into components representing economic development; population growth; shifts in transportation modes; and changes in fuel mix, emission coefficients, and transportation energy intensity. The study also reviews existing government policies to limit CO2 emissions growth, particularly various fiscal and regulatory policy instruments. The study finds that of the six factors considered, three - economic development, population growth, and transportation energy intensity - are responsible for driving up transport sector CO2 emissions in Bangladesh, the Philippines, and Vietnam. In contrast, only economic development and population growth are responsible in the case of China, India, Indonesia, Republic of Korea, Malaysia, Pakistan, Sri Lanka, and Thailand. CO2 emissions exhibit a downward trend in Mongolia due to decreasing transportation energy intensity. The study also finds that some existing policy instruments help reduce transport sector CO2 emissions, although they were not necessarily targeted for this purpose when introduced.
    Keywords: Transport Economics Policy&Planning,Climate Change Mitigation and Green House Gases,Energy Production and Transportation,Climate Change Economics,Transport and Environment
    Date: 2009–10–01
  3. By: Raghav Gaiha; Katsushi S. Imai; Ganesh Thapa; Woojin Kang
    Date: 2009
  4. By: Prema-chandra Athukorala
    Abstract: This paper examines the implications of global production sharing for regional and global trade patterns in East Asia using a new data set culled from the UN trade database. It is found that, while ‘network trade’ has generally grown faster than total world trade in manufacturing, the degree of dependence of East Asia on this new form of international specialisation is proportionately larger than elsewhere in the world. Trade within production networks has certainly strengthened economic interdependence among countries in the region, with China playing a pivotal role as the premier centre of final assembly. However, this, contrary to the popular belief, has not lessened the dependence of export dynamism of these countries on the global economy. The rise of global production sharing has strengthened the case for a global, rather than a regional, approach to trade and investment policymaking.
    Keywords: production sharing, trade patterns, East Asia, China
    JEL: F10 F14 O53
    Date: 2009
  5. By: Vladimir Popov (New Economic School, Moscow)
    Abstract: The goal of this paper is to offer a non-technical interpretation of the “Great Divergence” and “Great Convergence” stories. After reviewing existing explanations in the literature, I offer a different interpretation. Western countries exited the Malthusian trap by destroying traditional institutions, which was associated with an increase in income inequality and even a decrease in life expectancy, but allowed the redistribution of income in favor of savings and investment at the expense of consumption. When the same pattern was imposed on some developing countries (colonialism ?Sub-Saharan Africa (SSA), Latin America (LA), and the Former Soviet Union (FSU)), it resulted in the destruction of traditional institutions, increase in income inequality, and worsening of starting positions for catch-up development. Other developing countries (East Asia (EA), South Asia (SA), and the Middle East and North Africa (MENA countries)) that were less affected by colonialism and managed to retain traditional institutions by the end of the twentieth century found themselves in a better starting position for modern economic growth. The slow-going technical progress finally allowed them to find another exit from the Malthusian trap—increased income that permitted the share of investment in GDP to rise without a major increase in income inequality or decrease in life expectancy. The roots of the impressive long-term performance of China lie in the exceptional continuity of the Chinese civilization—the oldest in the world—that managed to preserve its uniqueness and traditions without major interruptions. It is argued that institutional continuity (East Asia, India, and MENA) is more conducive to growth than attempts to replace existing institutions by allegedly more advanced institutions imported from abroad (Latin America, FSU, and SSA). Like Russia in 1917, China re-established collectivist institutions in 1949 as a response to the failure of Westernization. Unlike Russia after 1991, China in 1979-2009 managed to preserve “Asian values” institutions—priority of community interests over the interests of the individual. However, the rapid increase in income inequality since 1985 could be a sign of weakening of collectivist institutions, which is the single most important threat to the continuation of fast economic growth.
    Date: 2009–10
  6. By: Almeida, Rita K. (World Bank)
    Abstract: This paper asks whether the increased openness and technological innovation in East Asia have contributed to an increased demand for skills in the region. We explore a unique firm level data set across eight countries. Our results strongly support the idea that greater openness and technology adoption have increased the demand for skills, especially in middle income countries. Moreover, while the presence in international markets has been skill enhancing for most middle income countries, this has not been the case for manufacturing firms operating in China and in low-income countries. If international integration in the region intensifies further and technology continues to be skilled biased, policies aimed at mitigating skills shortages in the region should produce continual and persistent increases in skills.
    Keywords: demand for skills, foreign direct investment, exports, firm level data
    JEL: J23 J24 J31 O33
    Date: 2009–10
  7. By: Hardiansyah, Suteja
    Abstract: Why Islamic tradition in Morocco and Indonesia is different? Why Islamic patterns in urban communities such as Jakarta different with Islamic patterns of rural communities? Variation in Islam is an interesting challenge to be answered. Islam, even in aspects substance, namely spirituality, is still a historical thing. The substance of Islam manifested and expressed in public life. When embodied in aspects of life, the manifestation and expression became a tradition. The model Islam as such is the accumulation of tradition, which in this paper called Islamic religiousity (keberislaman). With modeled Islam like this, this paper discusses the dynamics of Islam in the context of social justice and poverty. Will be shown how the Muslim experience of cultural evolution, from simple becomes complex. The conclusion of this paper is that variation is a result of Islam of cultural evolution.
    Keywords: accumulative tradition; meme; cultural evolution; adaptive complex system; complexity paradigm; social justice; poverty; perennial (religio perennis); Islamic tradition
    JEL: Z12 I39 A13 Z0 A14
    Date: 2009–05–15
  8. By: Girard, Magali; Smith, Michael
    Abstract: The number of immigrants working in regulated and unregulated occupations is unknown. A major contribution of this study is that we use Statistics Canada data to classify occupations, across provinces, into regulated and unregulated categories and then to examine the covariates of membership in a regulated occupation. In aggregate, immigrants are not less likely to work in a regulated occupation. Immigrants educated in Asia prove to be much less likely to secure access to a regulated occupation than either the native-born or other immigrants.
    Keywords: Immigration, regulated occupations, place of education, foreign credentials, Canada
    JEL: J24 J61 L50
    Date: 2009–10–24
  9. By: Pastore, Francesco (University of Naples II)
    Abstract: Relatively little is known about the youth labour market in general and about gender differences in Mongolia, one of the fifty poorest countries in the world. This paper addresses the issue by taking advantage of a School to Work Survey (SWTS) on young people aged 15-29 years carried out in 2006. On average, female wages are not lower than those of males. However, women have a much higher average educational level than men: in fact, although not statistically significant among teenagers (15-19), the conditional gender gap becomes significant and sizeable for the over-20. The Juhn, Murphy and Pierce (1993) decomposition confirms that, if wages were paid equally, women should have 11.7% more considering only their educational advantage and overall 22% more, a substantial gap for the low earnings of Mongolians.
    Keywords: school-to-work transitions, earnings equations, decomposition analysis, gender wage gap, Asia, Mongolia
    JEL: I21 J13 J24 J31 J62 P30 R23
    Date: 2009–10

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