nep-sea New Economics Papers
on South East Asia
Issue of 2013‒07‒28
ten papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Vietnam's Industrial Policy By Nguyen, Binh Giang
  2. Civic Organizations in Vietnam’s One-Party State: Supporters of Authoritarian Rule? By Jörg Wischermann
  3. Development Imperatives for the Asian Century By Petri, Peter; Thomas, Vinod
  5. Corporate Effective Tax Rates in Asian Countries By Masaaki Suzuki
  6. Real Estate Valuation, Current Account, and Credit Growth Patterns Before and After the 2008–2009 Crisis By Aizenman, Joshua; Jinjarak, Yothin
  7. Agriculture Plus Plus : growth strategy for Myanmar agriculture By Kudo, Toshihiro; Kumagai, Satoru; Ishido, Hikari
  8. Incentivizing schooling for learning : evidence on the impact of alternative targeting approaches By Barrera-Osorio, Felipe; Filmer, Deon
  9. Impact evaluation of three types of early childhood development interventions in Cambodia By Bouguen, Adrien; Filmer, Deon; Macours, Karen; Naudeau, Sophie
  10. Institutional Quality, Conflict and Aid Dependency By Unbreen Qayyum

  1. By: Nguyen, Binh Giang
    Abstract: An overview of Vietnam's industrial policy
    Keywords: industrial policy, industrial clusters, international production networks, industrial upgrading, maps
    JEL: O21 O25
    Date: 2013–07–18
  2. By: Jörg Wischermann (GIGA German Institute of Global and Area Studies)
    Abstract: Associationalism under authoritarian rule is not automatically a good thing. The empirical findings laid out in this article indicate that authoritarian dispositions and practices are prevalent in all types of Vietnamese civic organizations, at least as far as internal decision-making processes are concerned. As is the case in most countries of Southeast Asia, old as well as new ideas of the state and state traditions have a strong impact on the patterns of authoritarianism found in Vietnamese civic organizations. From the empirical findings, it might be concluded that Vietnamese civic organizations support authoritarian rule – though the extent of such support varies; this has generally been an underresearched question. This pioneering article seeks to stimulate further research by offering new insights into how authoritarian power is exercised in Vietnam by addressing how associations’ activities stabilize rules, how the associated legitimizing effects can be conceptualized and understood in theoretical terms, and what would be a suitable operationalization of the aforementioned concepts.
    Keywords: civil society, authoritarianism, authoritarian rule, Vietnam
    Date: 2013–07
  3. By: Petri, Peter (Brandeis University); Thomas, Vinod (Asian Development Bank)
    Abstract: Evidence-based economic policies—pragmatic policies that work—played a major role in Asia’s success in raising its living standards in the last half century. However, growth prospects are now threatened by rising income inequality and environmental degradation if Asia continues on its established growth path. Evidence strongly argues for Asia to broaden its development priorities into a triple bottom line: that is, a focus on growth, social inclusion, and environmental sustainability. The paper focuses on how Asia can manage this ambitious goal. Possible resistance from vested interests is to be anticipated, but pursuing this path could bring large overall gains. The paper looks at how Asian governments and their development partners can make a difference in promoting the three policy objectives. Innovations in governance for better accountability, transparency, and feedback will be necessary for achieving these priorities. Societies in Asia and the international community will also need rigorous evidence and analysis to establish the benefits of this strategy and to make informed policy choices. International financial institutions and the donor community can provide financial lubricants for cooperation, as well as knowledge to help governments counter vested interests and champion regional perspectives on transborder issues. Reversing the negative social and environmental trends has to become a real development priority rather than a mere aspiration. Progress is possible on the three bottom-line goals, but it will require focusing Asia’s vaunted methods of learning and innovation to meet the new challenges.
    Keywords: videnced-based policy; governance; institutions; inclusive growth; Kuznets curve; sustainability
    JEL: D62 E02 O19 O44
    Date: 2013–07–19
  4. By: Suhaeniti (International University of University); Sangyub Ryu (International University of University)
    Abstract: By applying Moore (1995) concept of distinctive managerial functions - managing upward, downward, and outward -, this study attempts to understand the impacts of middle-level management functions on organizational performance; and tries to investigate gender impacts on the middle-level management and performance linkages. This study employs Indonesian Family Life Survey 4 (IFLS4) crosssectional data and applies Weighted Least Squares (WLS) method to analyze some hypotheses constructed. The results indicate the significant impacts of managing downward negatively and managing outward positively on organization performance. Meanwhile, managing upward does not give the significant impact on organization performance. On the other hand, gendered managing outward effects on organization performance are strongly positive significant for female managers and strongly negative significant for males. For both male and female managers, managing downward gives significant positive impacts on organization performance, but males' effect is much greater than females. Lastly, the gendered managing upward effect is not significant related with organization performance. Therefore, it can be concluded that public managers need to give more efforts on managing outward by creating more networking to increase the organization performance. In contrast, the principals may need to modify their strategy to manage their subordinates because current managing downward strategy gives negative impacts on the organization performance.
    Keywords: managing upward, managing downward, managing outward, management, gender, performance, school, Indonesia
    Date: 2013–07
  5. By: Masaaki Suzuki (The Research Center for Advanced Policy Studies, Institute of Economic Research, Kyoto University)
    Abstract: This paper aims to (a) calculate Devereux and Griffith’s (2003) forward-looking effective tax rates for 12 Asian countries over a span of 30 years, (b) show the impact of tax holidays on the effective tax rate in Asian countries, and (c) empirically explore the possibility of tax competition among Asian countries. Through relevant analyses, I arrive at three key conclusions. First, while small countries with little rent in domestic markets set their effective tax rates at almost zero, large countries maintain much higher effective tax rates. Second, for countries that have generous capital allowance systems, tax holidays may lead to a rise in not only the effective marginal tax rates (EMTR), but also the effective average tax rates (EATR). Third, some Asian countries may engage in tax competition, at least over the EATR, for a limited period of time. However, while some countries have raised their effective tax rates in recent years, others have continued with tax reductions. These results indicate that the recent tax interactions among Asian countries differ from the simpler interactions seen among the European countries.
    Keywords: Corporate income tax, Effective tax rates, Tax incentives, Tax competition
    JEL: H25 H87
    Date: 2013–07
  6. By: Aizenman, Joshua (Asian Development Bank Institute); Jinjarak, Yothin (Asian Development Bank Institute)
    Abstract: This paper explores the stability of the key conditioning variables accounting for real estate valuation before and after the crisis of 2008–2009, in a panel of 36 countries, for the period of 2005:I–2012:IV, recognizing the incidence of global financial crisis. Our paper validates the robustness of the association between the real estate valuation of lagged current account patterns, both before and after the crisis. The results are supportive of both current account and credit growth channels, with the animal-spirits and momentum channels playing the most important role in the boom and bust of real estate valuation.
    Keywords: current account; real estate; credit supply; global crisis; housing boom
    JEL: F15 F21 F32 R21 R31
    Date: 2013–07–23
  7. By: Kudo, Toshihiro; Kumagai, Satoru; Ishido, Hikari
    Abstract: The development of agriculture is a main pillar of Myanmar’s growth strategies. It is natural for the Myanmar government to prioritize agriculture as a source of economic growth, since it accounted for 36% of GDP, employs a majority of labor force, and generates nearly 30% of exports as of 2010. Although the agricultural share in GDP and employment usually declines as an economy grows, it is not a sunset industry in Myanmar. Methods exist for increasing agriculture’s value added other than the growth of labor and land inputs. The key is to enhance three productivity measures: labor, land, and total productivity. We call this strategy "Agriculture Plus Plus."
    Keywords: Myanmar, Agriculture, Agricultural development, Development policy, Agriculture Plus Plus, Senary Sector of Agriculture, Growth Strategy, Myanmar (Burma)
    JEL: O13 O53 Q10
    Date: 2013–06
  8. By: Barrera-Osorio, Felipe; Filmer, Deon
    Abstract: This paper evaluates a primary school scholarship program in Cambodia with two different targeting mechanisms, one based on poverty level and the other on baseline test scores ("merit"). Both targeting mechanisms increased enrollment and attendance. However, only the merit-based targeting induced positive effects on test scores. The paper shows that the asymmetry of response is unlikely to have been driven by differences between recipients'characteristics. Higher student and family effort among beneficiaries of the merit-based scholarships suggest that the framing of the scholarship mattered for impact. The results suggest that in order to balance equity and efficiency, a two-step targeting approach might be preferable: first, target low-income individuals, and then, among them, target based on merit.
    Keywords: Tertiary Education,Secondary Education,Teaching and Learning,Primary Education,Education For All
    Date: 2013–07–01
  9. By: Bouguen, Adrien; Filmer, Deon; Macours, Karen; Naudeau, Sophie
    Abstract: Scaling up early childhood development services has the potential to increase children's cognitive and socio-emotional development and promote school readiness in a large segment of the population. This study used a randomized controlled trial approach to evaluate three scaled-up programs designed to widen access to early childhood development services: formal preschools, community preschools, and home-based services. The impacts of all three programs fell short of expectations because of two key flaws in how they were scaled up. First, implementation did not receive due attention; as a result, school facilities were not completed as planned, community-based programs were not always established, and low, irregular stipends created difficulties in hiring and retaining teachers. Second, the services that were available were not promoted and thus not used as widely as anticipated. The results imply that the quality of programs supplied is critical, as is attention to the demand side of the problem. The finding that these programs fell short of expectations does not mean that interventions such as these are ineffective. Rather, it indicates that quality and demand require careful attention in attempts to scale up early childhood development interventions, and any problems should be addressed prior to evaluating effectiveness.
    Keywords: Primary Education,Educational Sciences,Education For All,Youth and Governance,Adolescent Health
    Date: 2013–07–01
  10. By: Unbreen Qayyum (Pakistan Institute of Development Economics, Islamabad)
    Abstract: This study attempts to explore the impact of foreign aid on the quality of governance and how conflicts, whether internal or external affect the overall situation. Conflicts affect governance directly by creating instability which adversely affects economic development as investment climate is fouled and output drops leading to fall in revenues. In this vicious cycle governance is left with no funds to improve institutional quality. Annual data from 1984 to 2010 have been used for the Asian developing economies. The results indicate a negative impact from the confluence of foreign aid in a climate of conflicts that leads to institutional deterioration. These results are robust for various alternative specifications.
    Keywords: Official Development Assistance, Governance, Conflict
    JEL: C33 F35 O11 O43 D74
    Date: 2013

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