nep-sea New Economics Papers
on South East Asia
Issue of 2013‒03‒30
five papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Village Level Institutional Change and Ethnic Majorities: Evidence from Decentralising Indonesia By Patrick Doupe
  2. The Informal Economy in Monsoon Asia and Melanesia: West New Guinea and the Malay World By John D. Conroy
  3. India’s Trade and Gravity Model: A Static and Dynamic Panel Data By Tripathi, Sabyasachi; Leitão, Nuno Carlos
  4. Bias in the Mean Reversion Estimator in Continuous-Time Gaussian and Lévy Processes By Yong Bao; Aman Ullah; Yun Wang; Jun Yu
  5. Global dynamic timelines for IPRs harmonization against software piracy By Andrés, Antonio R; Asongu , Simplice A

  1. By: Patrick Doupe
    Abstract: This paper studies the variation in village head selection rules across Indonesia using panel data over 1997–2007. The selection of village heads is often thought of as being determined by national level legislation, with elections in villages located in kabupaten and directly appointed village heads for villages within kota. However, existing legislation allows a degree of autonomy by villages to determine their own village's institutional structure. I find that a larger majority of an ethnic group within Indonesian villages is associated with having elected village heads. Further, evidence is found that the changing composition of governments at the district level, as well as changes in village level ethnic majority size is associated with village level institutional change. I argue that the results provide valuable empirical evidence into constitutional change and further evidence on the role of ethnicity in political economy.
    Keywords: constitutional political economy, Indonesia, ethnicity, new institutional economics
    Date: 2013–01–01
  2. By: John D. Conroy
    Abstract: his is the third in a series of papers concerned with the intellectual history of the 'informal economy' and its relevance to current concerns in Papua New Guinea (PNG; the eastern half of the island of New Guinea). Proceeding from the observation that monetized informal economic activity in PNG has been of relatively limited importance, the paper seeks explanations by comparing two stylized constructs, Monsoon Asia (where the informal economy is dynamic) and Melanesia (where it is limited in scope and contribution to livelihoods). Papua (occupying the western half of the island of New Guinea) is seen as a meeting point, or zone of transition, between Monsoon Asia and Melanesia. A long history of 'trading and raiding' on this frontier marked the encounter between ceremonial exchange, as practiced by Melanesians, and the system of tribute imposed on Papuans by Moluccan sultanates. Limited economic specialization and exchange in Melanesia contrasted with the Asian household economy, enmeshed in complex social hierarchies and systems of occupational differentiation. Historically, the Malay Archipelago engaged in a world trading system, into which it drew west New Guinea/Papua over millennia. Travelling peddlers played a key role in the archipelagic trade system, demonstrating the antiquity of the informal economy tradition in the cultures of Monsoon Asia. The paper seeks explanations for the comparative absence of that tradition in Melanesia. Finally, it examines the recent and rapid emergence of an informal economy in Papua, dominated by non-Melanesian immigrants, in the wake of the incorporation of (Dutch) west New Guinea into the Republic of Indonesia in 1963.
    Keywords: Melanesia, Indonesia, West New Guinea, Dutch East Indies, Papua New Guinea, spice trade, pre-modern trade, slavery, informal economy, Van Leur, Meilink-Roelofsz, Alfred Russel Wallace
    JEL: A12 B20 B25 F54 N75 N95 O17 P51 Z10
    Date: 2013–01
  3. By: Tripathi, Sabyasachi; Leitão, Nuno Carlos
    Abstract: This paper examines the India’s trade flows using a gravity model for the period 1998-2012. We selected the following major trade partners: China PRP, United Arab Emirates, United States, Saudi Arab, Switzerland, Singapore, Germany, Hong Kong, Indonesia, Iraq, Japan, Belgium, Kuwait, Korea RP, Nigeria, Australia, United Kingdom, Iran, South Africa, and Qatar. In this research we apply a static and dynamic panel. We find evidence that political globalization and cultural proximity have a positive influence in bilateral trade. We also introduce economic size and common border these proxies confirming a positive impact of bilateral trade. These results show that the gravity model can explain the pattern of bloc’s trade.
    Keywords: Trade, Panel Data, Gravity model; India.
    JEL: C20 C30 F12
    Date: 2013–03
  4. By: Yong Bao (Department of Economics, Purdue University); Aman Ullah (Department of Economics, University of California,); Yun Wang (School of International Trade and Economics, University of International Business and Economics); Jun Yu (Sim Kee Boon Institute for Financial Economics, School of Economics and Lee Kong Chian School of Business, Singapore Management University)
    Abstract: This paper develops the approximate finite-sample bias of the ordinary least squares or quasi max- imum likelihood estimator of the mean reversion parameter in continuous-time Levy processes. For the special case of Gaussian processes, our results reduce to those of Tang and Chen (2009) (when the long-run mean is unknown) and Yu (2012) (when the long-run mean is known). Simulations show that in general the approximate bias works well in capturing the true bias of the mean reversion estimator under difference scenarios. However, when the time span is small and the mean reversion parameter is approaching its lower bound, we nd it more difficult to approximate well the finite-sample bias.
    JEL: C10 C22
    Date: 2013–03
  5. By: Andrés, Antonio R; Asongu , Simplice A
    Abstract: This paper employs a recent methodological innovation on intellectual property rights (IPRs) harmonization to project global timelines for common policies against software piracy. The findings on 99 countries are premised on 15 fundamental characteristics of software piracy based on income-levels (high-income, lower-middle-income, upper-middle-income and low-income), legal-origins (English common-law, French civil-law, German civil-law and, Scandinavian civil-law) and, regional proximity (South Asia, Europe & Central Asia, East Asia & the Pacific, Middle East & North Africa, Latin America & the Caribbean and, Sub-Saharan Africa). The results broadly show that a feasible horizon for the harmonization of blanket policies ranges from 4 to 10 years.
    Keywords: Software piracy; Intellectual property rights; Panel data; Convergence
    JEL: F42 K42 O34 O38 O57
    Date: 2013–01–05

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