nep-sea New Economics Papers
on South East Asia
Issue of 2009‒11‒21
fifteen papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Should Asian Countries Adopt Gm Crops Despite Trade Regulations By Guillaume Gruère
  2. Drivers of Globalization: An Evolutionary Perspective on Firm-State Relations in the Asian Newly Industrialized Economies By Henry Wai-chung Yeung
  3. Protect or Retreat - How Should Kalimantan Deal with Rising Sea Levels Caused by Climate Change? By Akhmad R. Saidy; Yusuf Azis
  4. The Effects of Risk and Shocks on School Progression in Rural Indonesia By Christopher M Gilbert; Francesca Modena
  5. Track Record of Financial Institutions in Assisting the Poor in Asia By Richard L Meyer
  6. Urban youth bulges and social disorder : an empirical study of Asian and Sub-Saharan African cities By Urdal, Henrik; Hoelscher, Kristian
  7. Assessing the systemic risk of a heterogeneous portfolio of banks during the recent financial crisis By Xin Huang; Hao Zhou; Haibin Zhu
  8. The Chinese Aid System By Carol Lancaster
  9. Did easy money in the dollar bloc fuel the global commodity boom? By Christopher Erceg; Luca Guerrieri; Steven B. Kamin
  10. Environmental Consequences of and Pollution Control Options for "Tra" Fish Production in Thotnot District, Cantho City, Vietnam By Vo Thi Lang; Ky Quang Vinh; Ngo Thi Thanh Truc
  11. Pollution Control Options for Handicraft Villages: The Case of Duong Lieu Village in the Red River Delta, Vietnam By Nguyen Mau Dung
  12. Fish Farm Pollution - A Study of Clean-up Options in Vietnam By Vo Thi Lang; Ky Quang Vinh; Ngo Thi Thanh Truc
  13. Helping Handicraft Villages Cleanup - An Assessment of Pollution Control Options in Vietnam By Nguyen Mau Dung
  14. Economic Potential of Renewable Energy in Vietnam's Power Sector By Nhan Thanh Nguyen; Minh Ha-Duong
  15. On Fair Pricing of Emission-Related Derivatives By Juri Hinz; Alex Novikov

  1. By: Guillaume Gruère
    Abstract: This brief summarizes a study evaluating the potential economic effects of introducing genetically modified (GM) food crops in India, Bangladesh, Indonesia, and the Philippines in the presence of trade regulations. [IFPRI Brief No.13]
    Keywords: genetically modified, GM, food crops, India, Bangladesh, Indonesia, Philippines, trade regulations, economic effects, TRADE, international trade, productivity gains, commercial, rice, wheat, exports
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ess:wpaper:id:2282&r=sea
  2. By: Henry Wai-chung Yeung
    Abstract: The emergence of firms from the Asian Newly Industrialized Economies (NIEs) in the global economy during the past two decades has been phenomenal. Many pundits have attributed the competitive success of these Asian NIE firms and their home economies to the relentless efforts of the so-called developmental states. They argue that state initiatives such as active industrial policy and financial support have enabled these "national champions" to venture into and compete successfully in the global economy. This statist approach to the globalization of Asian firms and their home economies, however, has unfortunately ignored the complex and dynamic evolutionary nature of firm-state relations within the changing context of economic globalization. Drawing upon an institutional and evolutionary theory of change and adjustments, I aim to explain how the global emergence of Asian firms cannot be simply read off from and explained by their embeddedness in the developmental state. Since the 1990s, these Asian firms have strategically disembedded from state apparatus and successfully reembedded themselves in dynamic global production networks. This shift of strategic partnership of Asian firms from firm-state to firm-firm networks has profound implications for our understanding of the present and future trajectories of regional economies in Asia. It presages the demise of the developmental state as the primary driver of economic change and growth in Asian economies. In developing my conceptualization of changing firm-state relations, this paper draws upon several emerging and interrelated research frontiers in economic geography that call for more theoretical attention to trans-local actors and processes, evolutionary dynamics of change, and institutional contexts.
    Keywords: Firm-state relations, evolutionary dynamics, globalization, selection environment, global production networks
    JEL: L50 O19 P16
    Date: 2009–11
    URL: http://d.repec.org/n?u=RePEc:egu:wpaper:0920&r=sea
  3. By: Akhmad R. Saidy (Faculty of Agriculture Lambung Mangkurat University and Environmental Research Center Lambung Mangkurat University); Yusuf Azis (Faculty of Agriculture Lambung Mangkurat University and Environmental Research Center Lambung Mangkurat University)
    Abstract: Many scientists think that a rise in sea levels caused by global warming will be one of the key future environmental challenges facing many low-lying coastal regions. In Indonesia, there is considerable concern about the impact this problem will have on large areas of reclaimed coastal swampland in South Kalimantan. It is thought that over 150,000 ha of this land, which is currently being farmed for rice and other food crops, are at risk, and that this will jeopardize the livelihoods of many thousands of farmers and their communities. To help decide what the best response to this unfolding crisis is, the study focuses on the province of South Kalimantan which is already experiencing salination of its freshwater due to rises in sea level, especially during the dry season. The study finds that building dikes to protect farmland is the most cost-effective response. It finds that this approach would cost society less than doing nothing and that it is a better option from an economic point of view that relocating farmers to new farmland at a higher altitude.
    Keywords: sea level rise, Indonesia
    Date: 2009–08
    URL: http://d.repec.org/n?u=RePEc:eep:pbrief:pb2009081&r=sea
  4. By: Christopher M Gilbert; Francesca Modena
    Abstract: Many empirical and theoretical studies explore the effects of ex-ante risk and ex-post shocks on child education. While scholars share the opinion that shocks reduce investment in education, there is no general agreement over the effects of uncertainty on child schooling. This work uses the Indonesian Family Life Survey to explore the effects of ex-ante risk and ex-post shocks on school progression in rural Indonesia. We develop a model of household school transition decisions from elementary to junior education and from junior to senior school considering different sources of uncertainty related both to parental and adult income, and under the assumption that withdrawal from school is permanent. In this way, temporary interruptions in child schooling have long term impacts on the child human capital. We show that there is no simple answer to the question of how uncertainty affects schooling decisions. Econometric results suggest that uncertainty about parental income for the time the child may be potentially at school increases the probability of attending junior school while uncertainty about expected earnings from education has a negative and significant effect only for senior school attendance. Finally, positive (negative) income shocks increase (decrease) the probability of attending junior school.
    Date: 2009–11–10
    URL: http://d.repec.org/n?u=RePEc:esx:essedp:679&r=sea
  5. By: Richard L Meyer
    Abstract: A variety of institutional forms of microfinance are being introduced in Asia including by the ADB-and financial institutions pursue different objectives, so it is difficult to assess how well microfinance is actually contributing to poverty alleviation. There is little systematic data available on which to make global or regional generalizations. The objective of this paper is to provide some insights into how well the industry is performing by summarizing and evaluating key studies and data for the region.
    Keywords: asia, microfinance, poverty alleviation, industry, financial institutions, global, regional, ADBI, Financial Sustainability, Vulnerability, drop outs, Policy Makers, Self-sustainability,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ess:wpaper:id:2284&r=sea
  6. By: Urdal, Henrik; Hoelscher, Kristian
    Abstract: By 2050, two-thirds of the world’s population will live in cities, and the greatest growth in urban populations will take place in the least developed countries. This presents many governments with considerable challenges related to urban governance and the provision of services and opportunities to a burgeoning urban population. Among the concerns is that large youth bulges in urban centers could be a source of political instability and violence. Here, we assess this claim empirically using newly collected data on city-level urban social disorder, ranging from non-violent actions, such as demonstrations and strikes, to violent political actions, such as riots, terrorism, and armed conflict. The dataset covers 55 major cities in Asia and Sub-Saharan Africa for 1960-2006. The study also utilizes a new United Nations Population Division dataset on urban populations by age and sex. The study further considers factors that could condition the effect of age structure, in particular the level of informal employment, economic growth, education, and gender imbalances. The analysis finds that large male youth bulges aged 15-24 are not generally associated with increased risks of either violent or non-violent social disturbance. Furthermore, the proxy measures of"youth exclusion"do not seem to increase the risk that large urban male youth bulges are associated with either form of disturbance. However, several other factors that may be associated with higher levels of youth exclusion - notably absence of democratic institutions, low economic growth, and low levels of secondary educational attainment - are significantly and robustly associated with increasing levels of urban social disturbance.
    Keywords: Youth and Governance,Adolescent Health,Population Policies,Urban Housing and Land Settlements,National Urban Development Policies&Strategies
    Date: 2009–11–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:5110&r=sea
  7. By: Xin Huang; Hao Zhou; Haibin Zhu
    Abstract: This paper extends the approach of measuring and stress-testing the systemic risk of a banking sector in Huang, Zhou, and Zhu (2009) to identifying various sources of financial instability and to allocating systemic risk to individual financial institutions. The systemic risk measure, defined as the insurance cost to protect against distressed losses in a banking system, is a risk-neutral concept of capital based on publicly available information that can be appropriately aggregated across different subsets. An application of our methodology to a portfolio of twenty-two major banks in Asia and the Pacific illustrates the dynamics of the spillover effects of the global financial crisis to the region. The increase in the perceived systemic risk, particularly after the failure of Lehman Brothers, was mainly driven by the heightened risk aversion and the squeezed liquidity. The analysis on the marginal contribution of individual banks to the systemic risk suggests that ``too-big-to-fail" is a valid concern from a macroprudential perspective of bank regulation.
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:fip:fedgfe:2009-44&r=sea
  8. By: Carol Lancaster
    Abstract: Questions about Chinese aid—how large it is and how fast it is growing; how decisions are made on how much aid is provided each year; which countries receive it and how much they get; how the aid is managed within the Chinese government and how it is evaluated are explored. The Chinese are clearly set to play a major role in aid-giving worldwide, and the aid-giving governments of Europe, North American and Japan should expand lines of communication and, to the extent possible, collaboration with the Chinese. [CGD Essay].
    Keywords: africa, Asia, Chinese, government, europe, north american, japan, poor countries, china, Health, American aid, africa, Education
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ess:wpaper:id:2278&r=sea
  9. By: Christopher Erceg; Luca Guerrieri; Steven B. Kamin
    Abstract: Among the various explanations for the runup in oil and commodity prices of recent years, one story focuses on the role of monetary policy in the United States and in developing economies. In this view, developing countries that peg their currencies to the dollar were forced to ease their monetary policies after reductions in U.S. interest rates, leading to economic overheating, excess demand for oil and other commodities, and rising commodity prices. We assess that hypothesis using the Federal Reserve staff’s forward-looking, multicountry, dynamic general equilibrium model, SIGMA. We find that even if many developing country currencies were pegged to the dollar, an easing of U.S. monetary policy would lead to only a transitory runup in oil prices. Instead, strong economic growth in many developing economies, as well as shortfalls in oil production, better explain the sustained runup in oil prices observed until earlier this year. Moreover, a closer look at exchange rates and interest rates around the world suggests that the monetary policies of many developing economies, including in East Asia, are less closely influenced by U.S. policies than is frequently assumed.
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:fip:fedgif:979&r=sea
  10. By: Vo Thi Lang (School of Economics and Business Administration, Cantho University); Ky Quang Vinh (School of Economics and Business Administration, Cantho University); Ngo Thi Thanh Truc (School of Economics and Business Administration, Cantho University)
    Abstract: This study from Vietnam looks at the pollution problem caused by fish farming in the Mekong Delta (MD) and assesses a number of treatment options that could bring this pollution down to acceptable levels. The study is the work of a research team led by Ms Vo Thi Lang, from Cantho University in Vietnam. It finds that a trickling-filter system would be the most cost-effective response to this challenge. However such a system would cost farmers more than they currently pay to discharge their polluting wastewater. The study therefore suggests a number of policy options that would encourage fish farmers to reduce the amount of pollution they discharge and help them to meet the necessary clean up costs.
    Keywords: fish production, pollution, Vietnam
    Date: 2009–08
    URL: http://d.repec.org/n?u=RePEc:eep:report:rr2009083&r=sea
  11. By: Nguyen Mau Dung (Department of Economics, Hanoi University of Agriculture)
    Abstract: This study from Vietnam looks at the pollution problem caused by the processing of agricultural products in the Red River Delta. It also assesses the cost-effectiveness of various pollution control options. The study is the work of Nguyen Mau Dung from Hanoi University of Agriculture and Tran Thi Thu Ha from Vietnam University of Forestry. It focuses on a village where 95% of households are engaged in cassava starch processing. It finds that this activity is a significant source of pollution, which is seriously affecting the health of local rivers and local people. The study recommends that a wastewater treatment plant for the whole village is set up and that wastewater fees are collected from households engaged in agro-processing activities. It also recommends that the sewerage system in the village is improved, that households are involved in environmental clean-up work and that steps are taken to encourage cleaner production technologies in the agro-product processing industry. This study is timely and important because processing agricultural products is one of the most important 'handicraft' activities in Vietnam's Red River Delta. This activity provides jobs, improves household incomes and helps alleviate poverty. However, it also generates a huge amount of waste and is a source of serious pollution. Therefore, finding a solution that will cost-effectively clean up the pollution caused by agro-product processing is a vital part of sustainable development in the region.
    Keywords: pollution control, Vietnam
    Date: 2009–09
    URL: http://d.repec.org/n?u=RePEc:eep:report:rr2009091&r=sea
  12. By: Vo Thi Lang (School of Economics and Business Administration, Cantho University); Ky Quang Vinh (School of Economics and Business Administration, Cantho University); Ngo Thi Thanh Truc (School of Economics and Business Administration, Cantho University)
    Abstract: Aquaculture is a thriving industry in the Mekong Delta (MD) of Vietnam. Tra fish are the most popular catfish species bred in the region and they have become an important export item. As such they are an economically valuable product for many MD farmers. However, catfish farming is causing problems for the environment. Waste, especially wastewater, from fish farms is often not treated properly and is dumped into canals, creeks or rivers. This has a negative impact on local communities that rely on river water as their main water source. It also jeopardizes the health of fish and the sustainability of the industry itself. This study looks at this problem and assesses a number of treatment options that could bring pollution down to acceptable levels. The study finds that a trickling-filter systems would be the most cost-effective response to this challenge. However such a system would cost farmers more that they currently pay to discharge their polluting wastewater. The study therefore suggests a anumber of policy options that would encourage fish farmers to reduce the amount of pollution they discharge and help them to meet the necessary clean up costs.
    Keywords: fish farm, pollution, Vietnam
    Date: 2009–08
    URL: http://d.repec.org/n?u=RePEc:eep:pbrief:pb2009083&r=sea
  13. By: Nguyen Mau Dung (Department of Economics, Hanoi University of Agriculture)
    Abstract: Processing agricultural products is of the most important 'handicraft' activities in Vietnam's Red River Delta. It provides jobs, improves household incomes and helps alleviate poverty. However, it also generates a huge amount of waste and is a source of serious pollution. This study analysed the environmental consequences of agro-product processing in the area and assessed the cost-effectiveness of pollution control options. This study looks at a village where most of the households are engaged in cassava starch processing. It finds that this activity is a significant source of pollution, which is seriously affecting the health of local rivers and local people. The study recommends that a wastewater treatment plant for the whole village is set up and that wastewater fees are collected from households engaged in agro-processing activities. It also recommends that the sewerage system in the village be improved, that households are involved in environmental clean-up work and that steps are taken to encourage cleaner production technologies in the agro-product processing industry.
    Keywords: pollution control, Vietnam
    Date: 2009–09
    URL: http://d.repec.org/n?u=RePEc:eep:pbrief:pb2009091&r=sea
  14. By: Nhan Thanh Nguyen (CIRED - Centre international de recherche sur l'environnement et le développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole Nationale des Ponts et Chaussées - Ecole Nationale du Génie Rural des Eaux et Forêts); Minh Ha-Duong (CIRED - Centre international de recherche sur l'environnement et le développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole Nationale des Ponts et Chaussées - Ecole Nationale du Génie Rural des Eaux et Forêts)
    Abstract: A bottom-up Integrated Resource Planning model is used to examine the economic potential of renewable energy in Vietnam's power sector. In a baseline scenario without renewables, coal provides 44% of electricity generated from 2010 to 2030. The use of renewables could reduce that figure to 39%, as well as decrease the sector's cumulative emission of CO2 by 8%, SO2 by 3%, and NOX by 4%. In addition, renewables could avoid installing 4.4 GW in fossil fuel generating capacity, conserve domestic coal, decrease coal and gases imports, improving energy independence and security. Wind could become cost-competitive assuming high but plausible on fossil fuel prices, if the cost of the technology falls to 900 US$/kW.
    Keywords: integrated resource planning; renewable energy; electricity generation
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:hal:journl:halshs-00431250_v1&r=sea
  15. By: Juri Hinz (Department of Mathematics, National University of Singapore); Alex Novikov (Department of Mathematical Sciences, University of Technology, Sydney)
    Abstract: The climate rescue is on the top of many agendas. In this context, emission trading schemes are considered as promising tools. The regulatory framework of an emission trading scheme introduces a market for emission allowances and creates need for risk management by appropriate financial contracts. In this work, we address logical principles underlying their valuation.
    Keywords: environmental risk; emission derivatives
    Date: 2009–08–01
    URL: http://d.repec.org/n?u=RePEc:uts:rpaper:257&r=sea

This nep-sea issue is ©2009 by Kavita Iyengar. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at http://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.