nep-sea New Economics Papers
on South East Asia
Issue of 2014‒04‒11
twenty-six papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Review of Rice Policies in China, Thailand and Vietnam By Sina Xie; Orachos Napasintuwong
  2. Impact of product-related environmental regulations in Asia : descriptive statistics from a survey of firms in Vietnam By Michida, Etsuyo; Nabeshima, Kaoru; Ueki, Yasushi
  3. Estimating the effect of chemical safety standards on firm performance in Malaysia and Vietnam By Otsuki, Tsunehiro; Michida, Etsuyo; Nabeshima, Kaoru; Ueki, Yasushi
  4. The policy impact of product-related environmental regulations in Asia By Michida, Etsuyo
  5. Impact of product-related environmental regulations in Asia : descriptive statistics from a survey of firms in Penang, Malaysia By Michida, Etsuyo; Ueki, Yasushi; Nabeshima, Kaoru
  6. Impact on Asian firms of product-related environmental regulations through global supply chains : a study of firms in Malaysia By Michida, Etsuyo; Ueki, Yasushi; Nabeshima, Kaoru
  7. Industrialisation through State-MNC Partnership: Lessons from the Malaysia’s National Car Project By Prema-chandra Athukorala
  8. Role of laboratories for adapting product-related environmental regulations (PRERs) By Sau Soon, Chen; Mohd Helan, Mohd Helme bin; Ujang, Zunairah; Michida, Etsuyo; Nabeshima, Kaoru
  9. Does Finance Really Matter for the Participation of SMEs in International Trade? Evidence from 8,080 East Asian Firms By Jinjarak, Yothin; Mutuc, Paulo Jose; Wignaraja, Ganeshan
  10. Market structure in the banking sector: Evidence from a developing economy By Matousek, Roman; Nguyen, Thao Ngoc; Stewart, Chris
  11. The price and income elasticities of the top clothing exporters: Evidence from a panel data analysis By Donatella Baiardi; Carluccio Bianchi; Eleonora Lorenzini
  12. Barriers of Early TB Diagnosis among the Poor in Highly Urbanized Areas in the Philippines By Reyes, Krishna; Amores, Juan Carlos
  13. The Sponsored Program of the Philippine National Health Insurance - Analyses of the Actual Coverage and Variations Across Regions and Provinces By Silfverberg, Raymunda R.
  14. Changes in Global Trade Patterns and Women's Employment in Manufacturing: An Analysis Over the Period of Asianization and De-industrialization By Burça Kýzýlýrmak; Emel Memiþ; Þirin Saracoðlu; Ebru Voyvoda
  15. Analysis of the Employed Program of the Philippine Health Insurance Corporation By Silfverberg, Denise Valerie
  16. Analysis of the Individually Paying Program of the Philippine Health Insurance Corporation By Silfverberg, Denise Valerie
  17. Social Capital to Induce a Contribution to Environmental Collective Action in Indonesia: An Experimental Method By Alin Halimatussadiah; Budy P. Resosudarmo; Diah Widyawati
  18. “Economic and Social Progress toward Achieving the Millennium Development Goals (MDGs) and the Prospect in Post MDGs Architecture". By Khaing, Sape Saw
  19. Comprehensive Agrarian Reform Program (CARP): Time to Let Go By Raul V. Fabella
  20. One Mandarin Benefits the Whole Clan: Hometown Favoritism in an Authoritarian Regime By Quoc-Anh Do; Kieu-Trang Nguyen; Anh N. Tran
  21. The Prevalence of Philippine Prescribing, Dispensing, and Use Behavior in Relation to Generic Drugs and their Risk Factors By Wong, John Q.; Baclay, J. Richelcyn M.; Duque, Richelle G.; Roque, Patricia Margarita S.; Serrano, Grace Kathleen T.; Tumlos, Jenina Olivia A.; Ronsing, Aisha-Aziza A.
  22. The Role of Offshore Financial Centers in the Process of Renminbi Internationalization By Cheung, Yin-Wong
  23. The direct and indirect eects of oil shocks on energy related stocks By David C Broadstock; Rui Wang; Dayong Zhang
  24. Land Reform and Productivity: A Quantitative Analysis with Micro Data By Tasso Adamopoulos; Diego Restuccia
  25. History of Law and Economics By Martin Gelter; Kristoffel Grechenig
  26. Rights and Capabilities: Reading the Philippines Magna Carta of Women from the Perspective of the Capabilities Approach By Marina Durano

  1. By: Sina Xie; Orachos Napasintuwong (Department of Agricultural and Resource Economics,Faculty of Economics,Kasetsart University,Thailand)
    Abstract: China, Thailand, and Vietnam are key players in world rice market in terms of production and trade. In the past few decades, rice policies in these three countries have changed significantly resulted in changes in production, exports and influences in the world market. This paper reviews major rice policy reforms in China, Thailand and Vietnam during past five decades. It is observed that although each country has practiced different policies at different periods, with the economic development, individuals and market forces have played more important roles in domestic market while government interventions still exist and it is important for the government to invest in rice breeding technology and infrastructure construction. It was found that China and Vietnam have benefited from farm system reforms, the adoption of hybrid rice and the investment in irrigation while liberalization of rice export premium and provision of credits in 1980s have helped Thailand to become the largest rice exporter.
    Keywords: rice, policy, China, Thailand, Vietnam
    JEL: Q17 Q18
    Date: 2014–03
  2. By: Michida, Etsuyo; Nabeshima, Kaoru; Ueki, Yasushi
    Abstract: This paper summarizes the main results of a unique firm survey conducted in Vietnam in 2011 on product-related environmental regulations (PRERs). The results of this survey are compared with the results of a corresponding survey of firms in Penang, Malaysia (Michida, et al. 2014b). The major findings are as follows. First, adaptation to PRERs involves changes in input procurement and results in market diversification, which potentially alters the structure of supply chains. This finding is consistent with the Malaysian survey result. Second, connections to global supply chains are key to compliance, but this requires firms to meet more stringent customer requirements. Third, government policy can play an important role in assisting firms to comply with PRERs.
    Keywords: Vietnam, Environmental protection, Industrial standards, Foreign investments, International trade, Statistics, Global supply chain, FDI, PRERs (Product-related environmental regulations), REACH, RoHS
    JEL: F18 O14
    Date: 2014–03
  3. By: Otsuki, Tsunehiro; Michida, Etsuyo; Nabeshima, Kaoru; Ueki, Yasushi
    Abstract: This paper uses firm-level data to examine the impact of chemical safety regulations imposed by importing countries such as RoHS and REACH on the production costs and export performance of firms in Malaysia and Vietnam. We find that in addition to the initial setup costs for compliance, EU RoHS and REACH implementation causes firms to incur additional variable production costs by requiring additional labor and capital expenditures of around 12% of the variable costs, respectively. We also find that compliance with RoHS and REACH significantly increases the probability of export. Furthermore, we find that compliance with EU RoHS and REACH helps firms to penetrate into a greater variety of countries. Also, we find that multinational enterprises and firms participating in global value chains generally exhibit better export performance and their costs rise less steeply.
    Keywords: Malaysia, Vietnam, Environmental protection, International trade, Environmental policy, Industrial standards, Costs, Trade, RoHS, REACH cost function, Market access
    JEL: F14 L15 O53
    Date: 2014–03
  4. By: Michida, Etsuyo
    Abstract: This paper focuses on EU chemical regulations, RoHS and REACH, and shows these EU regulations have driven Asian countries to introduce regulations that are similar yet modified versions to the EU regulations. Asia as the world manufacturing center has extensive production networks where parts and components of a final good are traded across borders. We discuss how product-related environmental regulations could impact on firms' activities then show that if Asian countries with complex supply chains introduce different product related chemical regulations without coordinating with neighboring countries, it could work as trade barrier for manufacturing activities in the region.
    Keywords: Asia, Europe, Environmental protection, Manufacturing industries, Industrial standards, Environmental policy, International trade, Product-related environmental regulation, Trade, RoHS, REACH
    JEL: F18 O2
    Date: 2014–03
  5. By: Michida, Etsuyo; Ueki, Yasushi; Nabeshima, Kaoru
    Abstract: This paper summarizes the main results of a unique firm survey conducted in Penang, Malaysia in 2012 on product-related environmental regulations. The results show that firms receiving foreign-direct investment have adapted well to regulations but faced more rejections. Several research questions are addressed and examined by using the survey data. Major findings are as follows. First, adaptation involves changes in input procurement and market diversification, which potentially changes the structure of supply chains. Second, belonging to global supply chains is a key factor in compliance, but this requires firms to meet tougher customer requirements. Third, there is much room for government policy to play a role in assisting firms.
    Keywords: Malaysia, Environmental protection, Environmental policy, Industrial standards, International trade, Global supply chain, FDI, PRERs (Product-related environmental regulations), REACH, RoHS
    JEL: F18 O14
    Date: 2014–03
  6. By: Michida, Etsuyo; Ueki, Yasushi; Nabeshima, Kaoru
    Abstract: This paper sheds light on the important role played by global supply chains in the adaptation to product-related environmental regulations imposed by importing countries, with a focus on chemicals management. By utilizing a unique data collected in Penang, Malaysia, we depict the supply chain structures and how differences among firms in participation to global supply chain link to differences in chemical management. We found that firms belonging to a supply chain are in a better position to comply with these regulations because information and requirements are transmitted through global supply chains. In contrast, those firms that are neither exporters nor a part of a global supply chain lack the knowledge and information channels relevant to chemical management in a product.
    Keywords: Malaysia, Environmental protection, International trade, Industrial standards, Foreign investments, Global supply chain, FDI, Product-related environmental regulation, REACH, RoHS
    JEL: F18 O14
    Date: 2014–03
  7. By: Prema-chandra Athukorala
    Keywords: Automotive industry, Malaysia, multinational enterprise
    JEL: F21 F23 I25 O14 O53
    Date: 2014
  8. By: Sau Soon, Chen; Mohd Helan, Mohd Helme bin; Ujang, Zunairah; Michida, Etsuyo; Nabeshima, Kaoru
    Abstract: This paper examines how a country which has been successful in creating agglomeration of a manufacturing industry has faced various types of product-related environmental regulations. Then the paper shows how the government and testing laboratory have taken measures to adapt to PRERs overseas in response to the needs by firms affected by regulations. In reaction to the introductions of PRERs overseas, Malaysia also has introduced equivalent policies domestically, proving that PRERs have spread to Malaysia.
    Keywords: Malaysia, Environmental policy, Industrial standards, Manufacturing industries, International trade, Trade and the environment, Product-related environmental regulations (PRERs)
    JEL: F18 O2
    Date: 2014–03
  9. By: Jinjarak, Yothin (Asian Development Bank Institute); Mutuc, Paulo Jose (Asian Development Bank Institute); Wignaraja, Ganeshan (Asian Development Bank Institute)
    Abstract: This paper studies factors associated with firm participation in export markets, focusing primarily on firm size and access to credit, based on a survey sample comprising observations of 8,080 small and medium enterprises (SMEs) (with fewer than 100 employees) and non-SME firms in developing East Asian countries across sectors. The main findings suggest the interdependent relationships between export participation, firm size, and access to credit. SMEs participating in export markets tend to gain more access to credit, while potential scale economies (firm sizes) of SMEs are positively associated with participation in export markets. The estimation results also point to the supportive influences of foreign ownership, worker education, and production certification on export participation, and the positive effects of financial certification, managerial experience, and collateral/loan value on access to credit for SMEs.
    Keywords: small and medium enterprises; sme; international trade; export markets
    JEL: D22 E44 F14 L16 O14
    Date: 2014–03–31
  10. By: Matousek, Roman (Sussex University, UK); Nguyen, Thao Ngoc (Nottingham Trent University, UK); Stewart, Chris (Kingston University London)
    Abstract: This paper examines the market structure of Vietnam’s banking system from 1999 to 2009 using the non-structural (Panzar-Rosse) model. We consider a more comprehensive range of specifications, in terms of a greater number of environmental covariates and different dependent variables, than in previous applications of this model. Further, this is the first study that uses lagged input prices (to avoid endogeneity) and excludes assets (to avoid specification bias) in such a study of the Vietnamese banking system. We find that the Vietnamese banking system operates in monopolistic competition with non-state owned commercial banks behaving more competitively than state owned commercial banks.
    Keywords: Banking; performance; Non-structural model; Vietnam
    JEL: G21
    Date: 2013–05–31
  11. By: Donatella Baiardi (Department of Economics, Quantitative Methods and Business Strategies, University of Milano-Bicocca); Carluccio Bianchi (Department of Economics and Management, University of Pavia); Eleonora Lorenzini (Department of Economics and Management, University of Pavia)
    Abstract: This paper studies the main export function features of twelve top clothing exporters (China, Hong Kong, France, Germany, India, Indonesia, Italy, Netherlands, Spain, Turkey, UK and USA) in the period between 1992 and 2011. Price and income elasticities are estimated for each country using a panel data approach, after controlling for nonstationarity, cointegration and Granger causality. Rolling regressions are also performed, and show the existence of elasticities instability over time. The analysis suggests that most advanced countries, including Hong Kong, changed their position in the clothing global value chain towards an “organisational” role. China confirms its leadership in clothing exports although its rising price elasticity sounds a warning with regard to future prospects.
    Keywords: Clothing exports, Price and income elasticities, Parameter stability, Panel data analysis Quality, Panel Granger causality
    JEL: F14 C23 L67
    Date: 2014–03
  12. By: Reyes, Krishna; Amores, Juan Carlos
    Abstract: Over the last decade, there was a significant drop in mortality and morbidity cases attributed to tuberculosis (TB). The high TB Case Detection (CDR) and Treatment Success Rates (TSR) may have underpinned the decreasing prevalence. Despite these successes, TB still appears to be a major health problem in the country. Disturbingly, the rate of decrease in the mortality and morbidity is not fast enough. This makes the country`s MDG goal targets on TB eradication shaky. The Philippines is also in the list of 27 countries with the highest burden of TB. To further augment case detection rate and early diagnosis, this study aims to qualitatively explore the barriers to diagnosis among the poor highly urbanized population, one of the identified high-risk population groups. Using focus group discussions of TB patients with delayed diagnosis conducted in three highly urbanized cities in the Philippines, namely, Metro Manila, Cebu, and Davao, the researchers investigated and explored wide range of factors that hinder patients to seek health care despite the presence of triggering factors among urban poor. Results suggest sociocultural, financial, and health system factors are identified as important barriers. These factors ascertain the findings identified in most developing countries. This study hopes to augment the prevention and control program of the Department of Health and Philippine Health Insurance Corporation to increase awareness and health-seeking behavior.
    Keywords: poverty, Philippines, tuberculosis, TBDOTS, early diagnosis, case detection rate, highly urbanized population
    Date: 2014
  13. By: Silfverberg, Raymunda R.
    Abstract: This study established the breadth of socialized Philippine health insurance, known as the PhilHealth Sponsored Program. It examined the extent of coverage relative to its target "poor" population, how much coverage rates varied across provinces and the factors likely to explain variation. PhilHealth Sponsored Program appeared to have attained universal coverage over the targeted "poor" population at the national level for the year 2011. However, universal coverage was not true in all regions or provinces. Majority of provinces experienced mild to extreme leakages in the program. Several demand and supply variables identified to have strong statistical significance in explaining variations were age-groups, education, LGUs` real per capita income, health expenditures, governance style, accessibility to PHIC support offices and availability of health professionals, all of which were found to very likely affect undercoverage rates relative to full coverage. Severity of poverty, administrative and political governance, and availability of accredited RHUs and private hospitals provided strong statistical evidence in influencing the levels of leakage vis-a-vis full coverage. Effects of most variables conformed to expectations. Results of the study point to a number of research issues that can be undertaken and some policy recommendations addressed to the national agencies and local government implementers and financiers for the PhilHealth Sponsored Program.
    Keywords: Philippines, PhilHealth Sponsored Program, universal coverage, national health insurance, regional/provincial PhilHealth coverage, NHTS-PR data, Good Governance Index (GGI)
    Date: 2014
  14. By: Burça Kýzýlýrmak (Ankara University); Emel Memiþ (Ankara University); Þirin Saracoðlu (Middle East Technical University); Ebru Voyvoda (Middle East Technical University)
    Abstract: The purpose of this study is to explore the employment effects of changes in manufacturing output resulting from changes in trade patterns over the period 1995-2006. For 30 countries (21 OECD and 9 non-OECD countries) we estimate the changes in embodied labor content due to trade using the factor-content analysis by breaking up the sources of these changes between the trade with the North, the South and China. We also decompose changes in employment into its components as changes within and across sectors. Our results present a net negative impact of trade on total employment in 30 countries over the period of analysis (despite employment gains in 17 countries). In all countries (except for Philippines and Republic of Korea) trade with China has a negative impact on total employment with a stronger negative effect on women’s employment. Employment losses in the South due to surge in imports from China are coupled with declining exports to the North as many countries in the North shift their imports to emerging economies in Asia. Decomposition results indicate that decline in the share of women’s employment is mainly due to shifts between sectors rather than within sector changes. Changes in women’s employment are stil highly dependent on the movements in ‘traditional’ manufacturing sectors including food, textiles and wearing apparel.
    Keywords: North-South trade; decomposition analysis; factor content analysis; gender bias.
    Date: 2014
  15. By: Silfverberg, Denise Valerie
    Abstract: The Employed Program of the Philippine Health Insurance Corporation (PhilHealth) caters to those in the formal sector. Included are those in the government and private sectors with a formal employer-employee relationship. Coverage levels for both the government and private sectors are promising with regional averages of 74 percent and 71 percent, respectively; and provincial averages of 80 percent and 75 percent, respectively. For the private sector, certain sectors were found to be more prone to undercoverage. For the government sector, no clear pattern was found to explain the causes of variation between provinces. This is likely due to the absence of casual and contractual employees in the model. The findings for both sectors are possible propositions on how targeting should be implemented to address the gaps that exist in what is supposed to be a mandatory scheme.
    Keywords: health care financing, Philippines, social health insurance, universal coverage, formal sector, employed program
    Date: 2014
  16. By: Silfverberg, Denise Valerie
    Abstract: The Individually Paying Program (IPP) is the voluntary component of the Philippines` social health insurance program. The program caters to those in the informal sector and those without a formal employer-employee relationship. Coverage levels for the IPP were found to be considerably low with a regional average of 57 percent and a provincial average of 53 percent. Massive variation between provinces was found. Four important factors were identified when looking into said variation. First, availability and accessibility is an issue. Second, substitution effect between private and public facilities was observed. Third, income levels do not appear to be a factor in determining the level of insurance coverage. Lastly, the size of certain sectors had a significant effect on the coverage levels observed in the province. Although there is a need to corroborate the findings with an individual-level analysis, these results are good indicators to start with in order to address the lack of coverage in the voluntary program of PhilHealth.
    Keywords: health care financing, Philippines, social health insurance, universal coverage, informal sector, voluntary program
    Date: 2014
  17. By: Alin Halimatussadiah; Budy P. Resosudarmo; Diah Widyawati
    Abstract: Social capital is considered to be an important factor in economic development. It is argued that it generates a flow of (economic) benefits through collective action, by reducing free riding and increasing individual contribution. This study examines whether social capital increases individual contribution in a collective action situation. Using a classroom experiment, two games are played in a sequential manner: a trust game to measure level of trust–as a proxy for social capital–and a public goods game to measure individual contribution to collective action. In the public goods game, we apply some treatments to look at the impact of partial disclosure of a group member’s behaviour in the trust game on contributions in the public goods game. In general, the result shows that the level of social capital positively impacts individual contribution to collective action. However, we found no significant evidence to support the impact of partial disclosure of a group member's behaviour in the trust game on contributions in the public goods game.
    Keywords: Social Capital, Collective Action, Trust Game, Public Goods Game
    JEL: A14 C91 C92
    Date: 2014
  18. By: Khaing, Sape Saw
    Abstract: Where the Myanmar is with regards to the MDG goals and targets? Progress by which Myanmar is moving towards the MDGs
    Keywords: Millennium Development Goals (MDGs)
    JEL: O10
    Date: 2014–03–18
  19. By: Raul V. Fabella (School of Economics, University of the Philippines Diliman)
    Abstract: This paper revisits the record of CARP over the quarter century of its existence. By 2014, 5.05 million of the 5.37m hectares of the targeted agricultural land shall have been distributed. As a program for land asset equity, it shall have accomplished 99% of its target, whopper of a success for a government program. As a program to advance the economic welfare of farmers, it has accomplished the opposite of its stated goals. Productivity has fallen drastically in coconut and sugar and poverty incidence among agrarian reform beneficiaries in agrarian reform communities stood at 54% in 2011 higher than for farmers in general. CARP and CARPER has created a new class of people: the landed poor. The paper then explores the many design and implementation flaws that has brought this sad result among which are: CARP’s illegalization of the market for land assets (Section 27) sending Coasean bargains underground and the 5-hectare land ownership ceiling leading to the demise of the legal rural financial market and the flight of private capital. It is time to shift from land equity to farm efficiency. The paper argues for the return of the market in rural production: let productive farmers legally cultivate 10 or more hectares as the market dictates; let PSE-registered firms legally operate agro-industrial farms without land ceiling. Poverty reduction requires the shift of resources and manpower from informal to formal sectors. CARP has done the opposite. To echo the architect of the great Chinese Economic Miracle, Deng Xiaoping: It is time to stop redistributing poverty!
    Keywords: CARP, agrarian reform, agriculture, Coase Theorem, Philippines
    Date: 2014–02
  20. By: Quoc-Anh Do (Département d'économie); Kieu-Trang Nguyen (London School of Economics); Anh N. Tran (Indiana University Bloomington)
    Abstract: Although patronage politics in democracies has been studied extensively, it is less understood in undemocratic regimes, where a large proportion of the world's population resides. To fill this gap, our paper studies how government officials in authoritarian Vietnam direct public resources toward their hometowns. We manually collect an exhaustive panel dataset of political promotions of officials from 2000 to 2010 and estimate their impact on public infrastructure in their rural hometowns. We obtain three main results. First, promotions of officials improve a wide range of infrastructure in their hometowns, including roads, markets, schools, radio stations, clean water and irrigation. This favoritism is pervasive among officials across different ranks, even among those without budget authority, suggesting informal channels of influence. Second, in contrast to pork-barrel politics in democratic parliaments, elected legislators have no power to exercise favoritism. Third, only home communes receive favors, while larger and more politically important home districts do not. This suggests that favoritism is likely motivated by officials’ social preferences for their hometowns rather than by political considerations.
    Date: 2013–03
  21. By: Wong, John Q.; Baclay, J. Richelcyn M.; Duque, Richelle G.; Roque, Patricia Margarita S.; Serrano, Grace Kathleen T.; Tumlos, Jenina Olivia A.; Ronsing, Aisha-Aziza A.
    Abstract: This study was designed to address the issue of compliance of physicians and drugstores to the provisions of Generics Act of 1988. Furthermore, it aims to explore the awareness of consumers on generic medicines to explain current trends and practices in drug prescribing, dispensing, and use. The study utilized a cross-sectional design. It is a descriptive study that assessed four variables: generic drug prescription, generic drug substitution/dispensing, price menu cards, and use of generic drugs. The country was divided into six zones, namely: North Luzon, South Luzon, NCR, Visayas, Mindanao, and ARMM. Stratified cluster random sampling was used to identify which provinces and cities would be included in the study. Data collection techniques used include the following: a survey of consumers coming out of a drugstore (a total of 1,160 respondents), key informant interview of 30 physicians, and focus group discussion with 6 to 11 patients/watchers per zone. The survey revealed that five out of six drugs were written with generic names, with doctors in the public sector prescribing generics significantly more often than those in the private sector. Factors that positively affect generics prescribing behavior are patient`s welfare, compliance, patient`s financial situation, and fear of punishment. Quality concerns, lack of regulation by FDA, poor recall, patient`s preference, and personal experience are factors that negatively affect generics prescribing behavior. Less than half of the consumers were offered with generic alternatives, and even less number of consumers actually asked for the alternative. There is preference for branded medicines over generics. The consumers more likely to purchase generic medicines consulted a public facility, knew the requirement to write generic name, and was influenced by friends and relatives. Because there is already high compliance from drug prescribers, government efforts should now focus on the drugstores and consumers. Drugstore compliance should be regularly monitored, and consumers empowered on their right to know alternatives. Bioequivalence tests should be done to finally put an end to concerns on the quality of generic medicines.
    Keywords: Philippines, generics, prescribing, dispensing, drug use, social marketing, cross-sectional survey
    Date: 2014
  22. By: Cheung, Yin-Wong (Asian Development Bank Institute)
    Abstract: The People’s Republic of China (PRC) has been quite aggressive recently in promoting the international use of its currency, the renminbi. Historical experience suggests that an active offshore market is essential for a global currency. Indeed, anecdotal evidence affirms the role of offshore markets in pushing the renminbi currency to the world. One should not, however, overplay the contribution of offshore markets. While offshore markets offer the opportunities to experiment with the global use of the currency, the overseas acceptance of the renminbi is ultimately determined by both internal and external economic forces, and geopolitical factors. With its relatively small size, the offshore renminbi is not likely to pressure the PRC and alter its financial liberalization policy. A well-organized offshore renminbi market will complement the PRC’s renminbi internationalization policy, but it is not possible to raise the currency’s global status beyond the level justified by its economic and political attributes.
    Keywords: renminbi; yuan; international monetary policy; currency internationalization; offshore currency market; onshore currency market; foreign exchange; financial centers
    JEL: F33
    Date: 2014–04–06
  23. By: David C Broadstock (TIERS, Southwestern University of Finance and Economics, China and Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey, UK.); Rui Wang (TIERS, Southwestern University of Finance and Economics, China); Dayong Zhang (TIERS, Southwestern University of Finance and Economics, China)
    Abstract: We attempt to consolidate (at least in part) the vast literature on oil shocks and stock returns by decomposing the influence of oil shocks into two channels of effect: ‘direct’ and ‘indirect’. Using a simple empirical asset pricing model it is shown that oil shocks can affect stocks not only directly, but also indirectly through general market risk (which is shown to be due in part to oil shocks), or put another way that additional oil price risk exposure is embedded in the traditional market beta. As far as is known, this is the first paper explicitly quantifying both effects together. By doing so we offer a more complete picture of when and how oil shocks impact stock returns, thus allowing investors to make more informed responses to oil shocks. The results are illustrated using daily data from all (active) listed energy related stock portfolios in the Asia Pacific Region, and are robust to structural instability and the specification of oil-shock used.
    Keywords: Oil Prices, Energy Related Stocks, Threshold GARCH, Asset Pricing, Structural Break.
    JEL: G12 G15
    Date: 2014–04
  24. By: Tasso Adamopoulos; Diego Restuccia
    Abstract: We assess the effects of a major land-policy change on farm size and agricultural productivity using a quantitative model and micro-level data. We study the 1988 land reform in the Philippines that imposed a ceiling on land holdings and severely restricted the transferability of the redistributed farm lands. We study this reform in the context of an industry model of agriculture with a non-degenerate distribution of farm sizes featuring an occupation decision and a technology choice of farm operators. In this model, a land reform reduces agricultural productivity not only by reallocating resources from large/high productivity farms to existing small/low productivity farms (misallocation effect), but also by distorting farmers' occupation and technology adoption decisions (selection effect). The model, calibrated to pre-reform farm-level data in the Philippines, implies that on impact the land reform reduces average farm size by 34 percent and agricultural productivity by 17 percent. The government assignment of land and the ban on its transfer are key for the magnitude of the results since a market allocation of the above-ceiling land produces only 1/3 of the size and productivity effects. These results emphasize the potential role of land market efficiency for misallocation and productivity in the agricultural sector.
    Keywords: agriculture, misallocation, within-farm productivity, land reform.
    JEL: O11 O14 O4
    Date: 2014–04–04
  25. By: Martin Gelter (Fordham University School of Law); Kristoffel Grechenig (Max Planck Institute for Research on Collective Goods & Amsterdam Center for Law & Economics (ACLE))
    Abstract: The roots of law & economics lie in late 19th century continental Europe. However, this early movement did not persist, having been cut off in the 1930s. After World War II, modern law & economics was (re-)invented in the United States and subsequently grew into a major field of research at U.S. law schools. In continental Europe, law & economics was re-imported as a discipline within economics, driven by economists interested in legal issues rather than by legal scholars. Hence, the European discourse was more strongly influenced by formal analysis, using mathematical models. Today, research in the U.S., Europe, and in other countries around the world, including Latin America and Asia, uses formal, empirical, and intuitive methods. New subfields, such as behavioral law & economics and experimental law & economics, have grown in the U.S. and in Europe during the past two decades.
    Date: 2014–04
  26. By: Marina Durano (School of Economics, University of the Philippines Diliman)
    Abstract: The Magna Carta of Women (R.A. 7910) is the Philippines comprehensive women’s human rights law. The Magna Carta of Women is found to be consistent with Rawlsian notions of justice, particularly when it undertakes inequality evaluation in primary goods. Identity-based inequality evaluation is also present in the Magna Carta of Women as implied in its definition of discrimination and marginalization. With the state as the primary duty bearer, the Magna Carta of Women gives prominence to an instrumental view of agency since participation is mediated through state mechanisms and institutions. The Magna Carta of Women fails to acknowledge the contributions of care work and the implications of the gendered division of labor. The capabilities approach highlights the challenges attached to these observations. Where human rights are viewed as ethical demands, the MCW succeeds in giving attention to aspects of women’s lives that require state support.
    Keywords: gender equality, law and economics, human rights, capabilities
    JEL: K3 J16 K00 D63 I31
    Date: 2014–04

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