nep-sea New Economics Papers
on South East Asia
Issue of 2013‒11‒14
five papers chosen by
Kavita Iyengar
Asian Development Bank

  1. The Dynamics of Vietnam Informal Sector: Which Policy Should Be the Best? By Nguyen Dinh Chuc; Tran Thi Bich; La Hai Anh
  2. Economic Impacts of FTAs on Trade in Services: Some empirics in East Asia By ISHIDO Hikari
  3. Food Standards are Good – for Middle-Class Farmers By Henrik Hansen; Neda Trifković
  4. Governance Strategies and Welfare Effects: Vertical Integration and Contracts in the Catfish Sector in Vietnam By Neda Trifković
  5. Dissecting foreign bank lending behavior during the 2008-2009 crisis By Choi, Moon Jung; Gutierrez, Eva; Peria, Maria Soledad Martinez

  1. By: Nguyen Dinh Chuc (CIEM, Vietnam); Tran Thi Bich; La Hai Anh
    Date: 2013
  2. By: ISHIDO Hikari
    Abstract: While so many research reports feature the positive impacts of free trade agreements (FTAs) on liberalization in the services sector, there seems to be no detailed quantitative analysis focusing exclusively on the liberalization of trade in services under the FTAs in the Association of Southeast Asian Nations (ASEAN). This paper makes a first-step analysis on the impact of ASEAN-related FTAs on the Mode 3 (commercial presence)-based trade in services. The first section analyzes the aggregate survey results, featuring the support functions of service firms for manufacturing activities as well as the possible impacts of "intangibility," "scale economy," and "network effect" on the service firms' foreign commercial presence. Then, utilizing a newly constructed firm-level database matched with the Hoekman Index (for measuring the degree of service sector liberalization) through Mode 3 (commercial presence), standard qualitative regression analyses were conducted. Overall, the results reveal some positive correlations between the degree of service trade liberalization in the host country and service firms' commercial presence in that country, hence a policy suggestion to promote service trade liberalization further possibly under the proposed Regional Comprehensive Economic Partnership (RCEP).
    Date: 2013–11
  3. By: Henrik Hansen (Department of Economics, University of Copenhagen); Neda Trifković (Department of Food and Resource Economics, University of Copenhagen)
    Abstract: We estimate the causal effect of food standards on Vietnamese pangasius farmers’ wellbeing measured by per capita consumption expenditure. We estimate both the average effects and the local average treatment effects on poorer and richer farmers by instrumental variable quantile regression. Our results indicate that large returns can be accrued from food standards, but only for the upper middle-class farmers, i.e., those between the 50% and 85% quantiles of the expenditure distribution. Overall, our result points to an exclusionary impact of standards for the poorest farmers while the richest do not apply standards because the added gain is too small.
    Keywords: food standards, pangasius, instrumental variable, quantile regression, Vietnam, Asia
    JEL: Q13 Q18 D02 D13 D31
    Date: 2013–10
  4. By: Neda Trifković (Department of Food and Resource Economics, University of Copenhagen)
    Abstract: Using an original dataset from the Vietnamese catfish sector, we study the impact of vertical coordination options on household welfare and the implications of different stages of vertical coordination for the success of the whole sector. The welfare gain from contract farming and employment on processor-owned estate farms is estimated using a maximum simulated likelihood estimator. Our results show positive welfare effects from participating in contract farming, but not from employment on processor-owned estate farms. The results imply that contract farming presents opportunities for economic growth, but additional effort is required to make the contracts more accessible to smallholders.
    Keywords: vertical coordination, catfish, maximum simulated likelihood, agri-food transformation, Vietnam
    JEL: D02 D31 O17 L14 L24
    Date: 2013–10
  5. By: Choi, Moon Jung; Gutierrez, Eva; Peria, Maria Soledad Martinez
    Abstract: This paper analyzes the lending behavior of foreign-owned banks during the recent global crisis. Using bank-level panel data for countries in Central and Eastern Europe, East Asia, and Latin America, the paper explores the role of affiliate and parent financial characteristics, host location, as well as the impact of parent geographic origin and reach on foreign banks'credit growth. Overall, the analysis finds robust evidence that foreign banks curtailed the growth of credit relative to other banks, independent of the host region. Banks from the United States reduced loan growth less than other parent banks. Neither the global nor regional reach of parent banks influenced the lending growth of foreign affiliates. However, the funding structure of foreign bank affiliates and the capitalization of parent banks do help explain the lending behavior of foreign banks during the global crisis. Although not the focus of the paper, it also finds that government-owned banks played a countercyclical role in all regions.
    Keywords: Banks&Banking Reform,Access to Finance,Debt Markets,Bankruptcy and Resolution of Financial Distress,Financial Intermediation
    Date: 2013–10–01

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