nep-sea New Economics Papers
on South East Asia
Issue of 2010‒06‒04
four papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Exchange rate regime in Asia: From crisis to crisis. By Patnaik, Ila; Shah, Ajay; Sethy, Anmol; Balasubramaniam, Vimal
  2. Education Impact Study: The Global Recession and the Capacity of Colleges and Universities to Serve Vulnerable Populations in Asia By Gerard Postiglione
  3. Prospects for Regional Cooperation between Latin America and the Caribbean Region and the Asia and Pacific Region: Perspective from East Asia By Medalla, Erlinda M.; Balboa , Jenny D.
  4. Cash Crop Choice and Income Dynamics in Rural Areas: Evidence for Post-Crisis Indonesia By Stephan Klasen; Jan Priebe; Robert Rudolf

  1. By: Patnaik, Ila (National Institute of Public Finance and Policy); Shah, Ajay (National Institute of Public Finance and Policy); Sethy, Anmol (National Institute of Public Finance and Policy); Balasubramaniam, Vimal (National Institute of Public Finance and Policy)
    Abstract: Prior to the Asian financial crisis, most Asian exchange rates were de facto pegged to the US Dollar. In the crisis, many economies experienced a brief period of extreme flexibility. A `fear of oating' gave reduced exibility when the crisis subsided, but flexibility after the crisis was greater than that seen prior to the crisis. Contrary to the idea of a durable Bretton Woods II arrangement, Asia then went on to slowly raise flexibility and reduce the role for the US Dollar. When the period from April 2008 to December 2009 is compared against periods of high in flexibility, from January 1991 to November 1991 and October 1995 to March 1997, the increase in flexibility is economically and statistically significant. This paper proposes a new measure of dollar pegging, the "Bretton Woods II score". We find that by this measure Asia has been slowly moving away from a Bretton Woods II arrangement.
    Keywords: Exchange rate regime, Asia, Bretton Woods II hypothesis
    JEL: F31 F33
    Date: 2010–05
  2. By: Gerard Postiglione
    Abstract: This paper reviews the capacity of colleges and universities to serve poor and vulnerable populations during past and present economic shocks. The main argument is that the environment of the global recession—an Asia far more economically integrated than during past economic shocks, with more unified aspirations to be globally competitive and socially responsible—need not delay reforms in higher education. In fact, the global recession is an opportune time for higher education in the Asia and Pacific region to continue reforming governance and administration, access and equity, internal and external efficiency, and regional collaboration. This paper proposes a series of measures to increase the resilience of higher education systems in serving poor and vulnerable populations during the economic recession.
    Keywords: capacity, colleges, universities, economic, vulnerable, populations, global, recession, administration, access, equity, internal, external, efficiency, regional, collaboration, measures, increase, resilience, higher, education, systems
    Date: 2010
  3. By: Medalla, Erlinda M. (Asian Development Bank Institute); Balboa , Jenny D. (Asian Development Bank Institute)
    Abstract: The Asia and Pacific region and Latin American and Caribbean region are two regions divided not only by vast geographic distance, but also by disparities in economics, politics, culture, and history. Most recently, a number of forums explored the possibility of closing such gaps and linking the two regions through various trade and investment initiatives. The opportunities for cooperation abound and could touch on areas that will improve the regional value chain and enhance the innovation and competitiveness of both regions. Interregional cooperation could also help the two regions seek ways to deal with the current global economic crisis through a range of opportunities to stimulate the economy. This paper explores the potential for regional cooperation between the Asia and Pacific region and Latin America and the Caribbean. It also provides some recommendations to enhance the economic partnership of the two regions.
    Keywords: interregional economic cooperation; asia pacific; latin america caribbean
    JEL: F13 F15 F59
    Date: 2010–05–25
  4. By: Stephan Klasen (Georg-August-University Göttingen); Jan Priebe (Georg-August-University Göttingen); Robert Rudolf (Georg-August-University Göttingen)
    Abstract: In this paper we investigate the factors affecting income levels, income growth, and poverty reduction in rural Indonesia following the crisis of 1997/98. We particu- larly investigate the relative roles of non-farm incomes, productivity improvements achieved via changes in crops versus improvements on the same crops, and demographic changes induced by the crisis on income dynamics in rural Indonesia. Using a unique household panel data set for Central Sulawesi that allows us to control for a large set of household and geographical characteristics, household fixed effects as well as endogeneity issues, we find that falling household size and the adoption and intensification of new cash crop varieties can explain a substantial part of the observed post-crisis developments. Moreover, we compare our results to cross-sectional data from SUSENAS, Indonesia\'s large scale national household survey. While the overall determinants of rural incomes are very similar across both data sets, we find that the importance of agricultural self-employed income seems to be higher in Central Sulawesi than in most other parts of Indonesia. Although several factors could explain these differences, lessons from our Central Sulawesi data suggests that unexploited potentials in the production of cash crops in other areas of Indonesia might contribute to these findings.
    Keywords: Crop choice; Income diversification; non-farm sector; rural development; Indonesia
    JEL: I31 Q12 Q15 R13
    Date: 2010–05–26

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