nep-sea New Economics Papers
on South East Asia
Issue of 2014‒08‒20
thirty-one papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Viet Nam Urban Development Sector Assessment, Strategy, and Roadmap By Asian Development Bank (ADB); ; ;
  2. Asia Bond Monitor March 2013 Issue By Asian Development Bank (ADB); ; ;
  4. Beyond Factory Asia: Fuelling Growth in a Changing World By Asian Development Bank (ADB); ; ;
  5. Asia: The Road to Becoming a Knowledge Economy: Game of Catch Up or Game Changers? By Asian Development Bank (ADB); ; ;
  6. Strengthening Capacity of Developing Member Countries for Managing Credit Enhancement Products (Phase 2) By Asian Development Bank (ADB); ; ;
  7. Asian Monetary Integration : A Japanese Perspective By Masahiro Kawai
  8. ADB Cooperation with Civil Society Annual Report 2010 By Asian Development Bank (ADB); ; ;
  9. Higher Education in Dynamics Asia No. 3: Counting the Cost: Financing Asian Higher Education for Inclusive Growth By Asian Development Bank (ADB); ; ;
  10. Assessment of Public Private Partnerships (PPP) in Cambodia: Constraints and Opportunities By Asian Development Bank (ADB); ; ;
  11. Green Growth, Resources and Resilience Environmental Sustainability in Asia and the Pacific By Asian Development Bank (ADB); ; ;
  12. Higher Education in Dynamic Asia No. 7: Administration and Governance of Higher Education in Asia: Patterns and Implications By Asian Development Bank (ADB); ; ;
  13. Higher Education in Dynamic Asia No. 4: ACCESS WITHOUT EQUITY? Finding a Better Balance in Higher Education in Asia By Asian Development Bank (ADB); ; ;
  14. Addressing Climate Change and Migration in Asia and the Pacific By Asian Development Bank (ADB); ; ;
  15. Adaptation to Climate Change: The Case of A Combined Cycle Power Plant By Asian Development Bank (ADB); ; ;
  16. Indonesia: Water Supply and Sanitation Sector Assessment, Strategy and Road Map By Asian Development Bank (ADB); ; ;
  17. The Saemaul Undong Movement in the Republic of Korea: Sharing Knowledge on Community-Driven Development By Asian Development Bank (ADB); ; ;
  18. The Road to ASEAN Financial Integration: A Combined Study on Assessing the Financial Landscape and Formulating Milestones for Monetary and Financial Integration in ASEAN By Asian Development Bank (ADB); ; ;
  19. Regional Cooperation and Integration: Experiences in Asia and the Pacific By Asian Development Bank (ADB); ; ;
  20. Comparaison de l'efficacité et l'efficience des Banques islamiques et conventionnels: cas de l'Indonésie By Jaouadi, Said; Ben Jazia, Rachida; Ziedi, Azza
  21. Philippines: Water Supply and Sanitation Sector Assessment, Strategy, and Road Map By Asian Development Bank (ADB); ; ;
  22. Poverty-growth-Inequality Triangle: The Case of Indonesia By Sumarto, Sudarno; de Silva, Indunil
  23. Assessment of Microinsurance as Emerging Microfinance Service for the Poor: The Case of the Philippines By Asian Development Bank (ADB); ; ;
  24. The Analysis Of Factors That Influence Relative Efficiency Of General Banks After The Implementation Of Indonesia Banking Architecture By Bertha Elizabeth; Nanny Dewi; Aldrin Herwany
  25. The effect of land fragmentation on labor allocation and the economic diversity of farm households: The case of Vietnam By Nguyen, Huy
  26. The Determinants Of Commercial Bank Profitability In Indonesia By Arief Putranto; Aldrin Herwany; Erman Sumirat
  27. Does oil price uncertainty transmit to the Thai stock market? By Jiranyakul, Komain
  28. Performance of Islamic Banks across the world: an empirical analysis over the period 2001-2008 By Sandrine KABLAN; Ouidad YOUSFI
  29. Risk Taking Behavior and Capital Adequacy in a Mixed Banking System: New Evidence from Malaysia using Dynamic OLS and Two-step Dynamic System GMM Estimators By Abdul Wahab, Hishamuddin; Rosly, Saiful Azhar; Masih, Abul Mansur M.
  30. Education Transfers, expenditures and child labour supply in Indonesia: An evaluationof impacts and flypaper effects By Sumarto, Sudarno; de Silva, Indunil
  31. Managing Regional Public Goods for Health: Community-Based Dengue Vector Control By Asian Development Bank (ADB); ; ;

  1. By: Asian Development Bank (ADB); (Southeast Asia Department, ADB); ;
    Abstract: This urban development sector assessment, strategy, and road map (ASR) documents the strategic investment priorities of the Government of Viet Nam and the Asian Development Bank. The ASR has identified three priority areas: (i) development of corridor cities and towns to contribute to the transformation of regional transport corridors in the Greater Mekong Subregion into full-fledged economic corridors, (ii) development of secondary cities and towns as regional economic hubs to foster balanced regional development and to strengthen rural–urban links, and (iii) integrated transit-oriented development to reduce environmental pollution and traffic congestion.
    Keywords: adb, asian development bank, asdb, asia, pacific, poverty asia, vietnam population, vietnam gdp, viet nam, urbanization, urban residents, migration, traffic, transportation, urban transport, urban development, wastewater, drainage systems, congestion, roadmap, hanoi, Ho Chi Minh, da nang, metropolis, hai pong
    Date: 2012–08
  2. By: Asian Development Bank (ADB); (Office of Regional Economic Integration Department, ADB); ;
    Abstract: This publication reviews recent developments in East Asian local currency bond markets along with the outlook, risks, and policy options. It covers the 10 members of the Association of Southeast Asian Nations plus the People’s Republic of China; Hong Kong, China; and the Republic of Korea.
    Keywords: east asia outlook, east asia economy, east asia bonds, LCY bond market, asean plus 3, asean + 3, asia bonds, government bonds, corporate bonds, interest rates, asia currency, asia investment, asia capital flows
    Date: 2013–03
  3. By: Asian Development Bank (ADB); (Southeast Asia Department, ADB); ;
    Abstract: The Asian Development Bank (ADB) is preparing sector assessments, strategies, and road maps (ASRs) to help align future ADB support with the needs and strategies of developing member countries and other development partners. ASRs are working documents that help inform the development of country partnership strategies. This transport sector ASR highlights development issues, needs, and strategic assistance priorities of the Government of the Philippines and ADB, with a focus on roads and intermodal integration, governance and institutional capacity, urban transport, and private sector provision of infrastructure. It highlights sector performance, priority development constraints, the government’s strategy and plans, other development partner support, lessons learned from past ADB support, and possible future ADB assistance including knowledge support and investments. The report serves as a basis for further dialogue on how ADB and the government can work together to tackle the challenges of managing transport sector development in the Philippines in the coming years.
    Keywords: adb, asian development bank, asdb, asia, pacific, poverty asia, highways, philippines economy, urban transport, railways, ports, water transport, country assessment, indicators, adb assistance, road safety, philippines roads, philippines transportation, philippines gdp, philippine trains, philippines population
    Date: 2012–10
  4. By: Asian Development Bank (ADB); (Office of Regional Economic Integration, ADB); ;
    Abstract: Asia’s phenomenal growth over the past few decades has been driven by the rise of Factory Asia. However, the global financial crisis and uncertain growth prospects in the United States and the eurozone have dampened demand for Asian exports. At the same time, rising wages threaten to erode the cost advantage that the region once had, managing supply chains has become more complex, and new technologies are transforming manufacturing. How can regional economies move beyond Factory Asia? What strategies can Asian economies pursue to meet these challenges? This monograph will examine a range of policy, institutional, legal, and regulatory issues relating to reforms that will drive Asia’s economic and social transformation in its quest for a new Factory Asia model.
    Keywords: factory asia, economic growth, economic cycle, manufacturing, small medium enterprises, sme, economic transformation, economic evolution, service sector, social transformation, value chain, value-added products, south-south cooperation, environmentally sustainable growth
    Date: 2013–04
  5. By: Asian Development Bank (ADB); (Regional and Sustainable Development Department, ADB); ;
    Abstract: This paper provides initial insights from an ongoing ADB study “Asia’s Knowledge Economies: Next Policy Agenda”. It assesses the current state of knowledge based economies (KBEs) in a number of developing Asian countries compared to selected advanced countries in Asia and elsewhere. It identifies gaps that developing Asia must fill to catch up with advanced countries. At the same time, it also highlights game-changing trends that put developing Asia in an advantageous position to move faster toward the global knowledge frontier.
    Date: 2013–05
  6. By: Asian Development Bank (ADB); (Private Sector Operations Department, ADB); ;
    Abstract: This technical assistance project was designed to familiarize policy makers in the developing member countries of the Asian Development Bank (ADB) with credit enhancement products (CEPs), including guarantees, available from ADB, export credit agencies, other multilateral development banks, and the private market. CEPs are used by inventors, exporters, and financial institutions to mitigate risks and are an effective tool to mobilize private capital for investment and trade. CEPs support both sovereign and nonsovereign projects. This technical assistance is consistent with ADB’s Strategy 2020, which support private sector investment and development, and commercial cofinancing.
    Keywords: investments, debt financing, risk mitigation, private investments, credit enhancement products, cep, public private partnerships, ppp, cofinancing, capacity development, mongolia, china, prc, indonesia, viet nam, vietnam, cambodia, papua new guinea, png, philippines, sri lanka, ceylon, technical assistance project
    Date: 2012–10
  7. By: Masahiro Kawai (Asian Development Bank Institute (ADBI))
    Abstract: This paper discusses Japan’s strategy for Asian monetary integration. It argues that Japan faces three major policy challenges when promoting intraregional exchange rate stability. First, there must be some convergence of exchange rate regimes in East Asia, and the most realistic option is for the region’s emerging economies to adopt similar managed floating regimes—rather than a peg to an external currency. This requires major emerging economies—particularly the People’s Republic of China (PRC)—to move to a more flexible regime vis-à-vis the US dollar. Second, given the limited degree of the yen’s internationalization and the lack of the renminbi’s (or the prospect of its rapid) full convertibility, it is in the interest of East Asia to create a regional monetary anchor through a combination of some form of national inflation targeting and a currency basket system. Emerging economies in the region need to find a suitable currency basket for their exchange rate target, such as a special drawing rights-plus (SDR+) currency basket—i.e., a basket of the SDR and emerging East Asian currencies. Third, if the creation of a stable regional monetary zone is desirable, the region must have a country or countries assuming a leadership role in this endeavor. There is no question that Japan and the PRC are such potential leaders, and the two countries need to collaborate closely with each other. To assume a leadership role, together with the PRC, in creating a stable monetary zone in Asia, Japan needs to make significant efforts at the national and regional levels and further strengthen financial cooperation. Practical steps that Japan could take include (i) restoring sustained economic growth through Abenomics; (ii) transforming Tokyo into a globally competitive international financial center; (iii) further strengthening regional economic and financial surveillance (Economic Review and Policy Dialogue and ASEAN+3 Macroeconomic Research Office) and regional financial safety nets (Chiang Mai Initiative Multilateralization) and creation of an Asian currency unit index; and (iv) launching serious policy discussions focusing on exchange rate issues to achieve intraregional exchange rate stability.
    Keywords: Asian monetary integration, Japan, currency, exchange rate regime, East Asia, SDR, currency basket, monetary zone, PRC, Chiang Mai
    JEL: F31 F32 F33 F42
    Date: 2014–04
  8. By: Asian Development Bank (ADB); (Regional and Sustainable Development Department, ADB); ;
    Abstract: Civil society organizations, including nongovernment organizations (NGOs), are important stakeholders of the Asian Development Bank (ADB). The ADB Cooperation with Civil Society Annual Report 2010 presents an overview of the year’s work in cooperating with civil society organizations, including NGOs, in country and regional programming work, project operations, as well as in policy and strategy development. Through ADB’s NGO and Civil Society Center, ADB is strengthening its partnership with civil society to further increase its contribution to development effectiveness.
    Keywords: adb, asian development bank, asdb, asia, pacific, poverty asia, non government organizations, ngos, civil society, civil society organizations, csos, people's organizations, annual reports, adb operations, adb projects
    Date: 2012–04
  9. By: Asian Development Bank (ADB); (Regional and Sustainable Development Department, ADB); ;
    Abstract: Higher education (HE) systems in Asia have expanded rapidly over the past decade. This includes the rise of private HE institutions (HEIs) and privatization of public sector HEIs. This HE massification has stretched the capacity of governments and agencies to address the cost, financing, equity, and quality implications of expansion. This publication reviews the key aspects of HE costs and financing, considering Asia’s framework on inclusive growth from the perspective of disadvantaged students such as the poor, women, ethnic minorities, and students from rural areas.
    Keywords: adb, asian development bank, asdb, asia, pacific, poverty asia, education, higher education, college, education institutions, hei, tertiary education, higher education systems, education financing, financing, students, primary schooling, secondary education, fees, university fees, student loans, enrollment, dropout
    Date: 2012–03
  10. By: Asian Development Bank (ADB); (Southeast Asia Department, ADB); ;
    Abstract: This report is a diagnostic assessment of the readiness of Cambodia to develop and manage public–private partnerships (PPPs). It was prepared jointly with the Agence Française de Développement (AFD), and it is part of a series of studies being prepared by the Southeast Asia Department of the Asian Development Bank (ADB). The study sets out the development strategy context for PPPs, reviews the enabling environment, and provides a gap analysis of current arrangements relative to international best practices. The analysis considers arrangements that can be put in place at the national and subnational levels, and identifies areas where AFD and ADB could provide assistance. The preparation of this assessment is an integral part of ADB’s planning process to ensure coordination between the government’s priorities and those of ADB, especially as regards ADB’s Strategy 2020 and the PPP Operational Plan.
    Keywords: adb, asian development bank, asdb, asia, pacific, poverty asia, ppp, public-private partnerships, private sector, diagnostic assessment, country partnership strategy, adb operations, adb partnerships, cambodia, cam, ppp-related operations, french development agency
    Date: 2012–07
  11. By: Asian Development Bank (ADB); (Regional and Sustainable Development Department, ADB); ;
    Abstract: This report—Green Growth, Resources, and Resilience—describes an evolving policy landscape characterized by a changing economic reality, rising demand for resources, increasingly apparent impacts of environmental and climate change, and increased risk and uncertainty. The report provides new insights into Asian and Pacific resource use trends and outlines key actions, including reforming economic incentives and promoting more inclusive and adaptive governance approaches, that governments can pursue to help bring economic growth strategies in closer alignment with the objective of sustainable development. It also provides examples of strategies for improving resilience to help deal with the increasing levels of risk faced by societies and economies. The report is the product of a combined effort by three institutions: the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), the Asian Development Bank (ADB) and the United Nations Environment Programme (UNEP). It is the sixth in a series of reports prepared by ESCAP for successive Ministerial Conferences on Environment and Development in Asia and the Pacific, and is the third in ADB’s Asian Environment Outlook series. It is also in line with the mandate of UNEP to keep the state of the environment under review. The report provides timely support to policymakers and other stakeholders as they prepare for the 2012 United Nations Conference on Sustainable Development (Rio +20) and as they continue work to address persistent and emerging challenges on their way to more sustainable development.
    Keywords: adb, asian development bank, asdb, asia, pacific, poverty asia, environment, sustainable development, environmental sustainability, natural resources, environmental resources, use of natural resource, environmental resilience
    Date: 2012–02
  12. By: Asian Development Bank (ADB); (Regional and Sustainable Development Department, ADB); ;
    Abstract: Asian countries, despite differences in their higher education (HE) systems and in their political and social structures, increasingly see the HE sector as a strategic lever for long-term sustainable development. Transforming the HE sector will depend very much on the capability of both national agencies and HE institutions to work together in creating more alignment, lessening tension, and achieving a balanced and efficient governance system for HE. This publication provides a timely analysis of administration and governance of HE and presents ecommendations to improve this field in Asia.
    Keywords: adb, asian development bank, asdb asia, pacific, poverty asia, higher education, university, college, education challenges, governance, university policies, academic freedom, public service institutions, financing, students, primary schooling, secondary education, fees, university fees, student loans, enrollment
    Date: 2012–05
  13. By: Asian Development Bank (ADB); (Regional and Sustainable Development Department, ADB); ;
    Abstract: In Asia, the demand for higher education (HE) is on a relentless course in the near and medium term as reflected in current levels of participation. Governments planning to respond to this growth should have policy options to balance costs, sustainability, and ensuring fair and equitable access to HE, including to underrepresented segments of the society. This publication makes a strong case for shifting the development agenda from narrow perspective of access to widening participation and for strengthening inclusiveness in HE in Asia. It also discusses extensively developments in the use and potential of information and communication technologies in the delivery of HE.
    Keywords: adb, asian development bank, asdb, asia, pacific, poverty asia, education, university, college, higher education, communication technologies, financing, students, primary schooling, secondary education, fees, university fees, student loans, enrollment, dropout, degree, education demand
    Date: 2012–04
  14. By: Asian Development Bank (ADB); (Regional and Sustainable Development Department, ADB); ;
    Abstract: Climate change will increase the frequency of extreme weather events, making more geographic places inhospitable to human habitation and secure livelihoods. This report presents a detailed picture of the potential impacts of climate change on migration in Asia and the Pacific. It draws upon a wealth of research to provide policy makers with informed analysis of an emerging phenomenon requiring urgent attention by governments and the international community. The report also suggests that climate-induced migration should be seen not only as a threat to human well-being but also as a potential tool to promote human adaptation to climate change.
    Keywords: adb, asian development bank, asdb, asia, pacific, poverty asia, climate change, climate change adaptation, climate change mitigation, migration, climate change induced migration, climate change effect on migration
    Date: 2012–03
  15. By: Asian Development Bank (ADB); (Regional and Sustainable Development Department, ADB); ;
    Abstract: This report aims to demonstrate how a rapid climate change impact assessment can be used to identify the possible impacts of climate change on a thermal power investment project. For this demonstration, the O MON IV Combined Cycle Power Station Project in Southern Viet Nam is used for illustrative purposes.
    Keywords: adb, asian development bank, asdb, asia, pacific, poverty asia, climate change, climate change impacts, climate impact assessment, climate change threats, climate change adaptation, energy, power plants, combined cycle power plants, energy projects, climate change impact assessments, power stations, energy investments
    Date: 2012–06
  16. By: Asian Development Bank (ADB); (Southeast Asia Department, ADB); ;
    Abstract: Access to improved water supply and sanitation results in economic development and poverty reduction, ensures food safety and better livelihoods, preserves the environment, reduces health burden, and empowers communities and provides opportunities for women. The Asian Development Bank (ADB) has prepared a sector assessment, strategy, and road map for the water supply and sanitation sector in Indonesia. Aside from a current assessment, the document outlines key ADB initiatives to reduce water supply shortages and improve sanitation. The main urban thrusts of ADB’s investments program are expansion of in sewer system in the main Indonesian cities and a return to the water supply sector. These investment programs are supported by a comprehensive technical assistance program, namely: (i) assisting BAPPENAS with preparing the water supply and sanitation sector provisions of the new National Medium-Term Development Plan (RPJM 2015–2019); (ii) establishing water operator partnerships focused on improving the performance of water companies; and (iii) directly assisting selected water companies to improve their financial situation. In rural areas, investment in the water supply and sanitation sector is incorporated in projects that are focused on improving general infrastructure.
    Keywords: water supply, indonesia gdp, road map, water sanitation, waste reduction, sanitation facilities, groundwater, water pollution, sewerage systems, indonesia population, urban population, waterborne diseases, public health, safety, economic growth, economic strategies, natural resources
    Date: 2012–12
  17. By: Asian Development Bank (ADB); (Regional and Sustainable Development Department, ADB); ;
    Abstract: The Saemaul Undong movement was a community-driven development program of the Republic of Korea in the 1970s. The movement contributed to improved community wellbeing in rural communities through agricultural production, household income, village life, communal empowerment and regeneration, and women’s participation.This report examines the strengths and weaknesses of the movement along with contributing factors, including institutional arrangements, leadership influence, gender consideration, ideological guidance, and financing. It also reviews existing studies and government data on the movement, and presents excerpts from interviews with key persons engaged in the movement and useful lessons for implementing community-driven development initiatives in developing countries.
    Keywords: adb, asian development bank, asdb, asia, pacific, poverty asia, community development, community services, community driven development, poverty reduction projects, community empowerment, community empowerment activity cycle, common service facilities, adb projects, republic of korea, korea
    Date: 2012–06
  18. By: Asian Development Bank (ADB); (Office of Regional Economic Integration Department, ADB); ;
    Abstract: This paper provides a summary assessment of the Association of Southeast Asian Nations (ASEAN) on the state of financial integration in the region, with inputs from the Asian Development Bank regional technical assistance project Combined Studies on Assessing the Financial Landscape and Formulating Milestones for Monetary and Financial Integration in ASEAN. Information on the financial integration milestones blueprint that will lay out a comprehensive program to achieve ASEAN financial integration by 2015, as well as the recommended institutional and policy reforms to be implemented in 2011–2020 are discussed here.
    Keywords: asean, asean economic community, aec, yung chul park, trade, free movement of goods, services, investment, labor, capital flow, monetary integration, financial integration, single market, crossborder trade, customs, economic integration, economic cooperation, free trade agreements, fta
    Date: 2013–03
  19. By: Asian Development Bank (ADB); (Office of Regional Economic Integration, ADB); ;
    Abstract: Over the past 2 decades, the Asian Development Bank (ADB) and its developing member countries have worked together to promote regional cooperation and integration (RCI). Evolving economic conditions continually pose new challenges to RCI efforts. In March 2012, about 160 representatives from Asia and the Pacific met to share their RCI experiences and discuss strategies for deepening RCI in the region. This summary of the conference features the discussions and presentations including information on major RCI programs. It aims to improve understanding of RCI and help guide future strategies within the region.
    Keywords: regional cooperation, regionalism, sustainability, transport corridors, energy, climate change, trade facilitation, regional financial integration, rfi, gms programs, greater mekong subregion, kunming, china conference, subregional programs, integration strategies, sasec, carec, economic corridors, regional cooperation transport, regional cooperation trade, trade facilitation
    Date: 2013–03
  20. By: Jaouadi, Said; Ben Jazia, Rachida; Ziedi, Azza
    Abstract: This study investigates the comparison between Islamic and conventional Indonesian banks and that by applying an approach called Efficiency - effectiveness in order to elucidate the determinants of performance of the Indonesian banking sector while placing identify factors that affect their profits. The history of conventional banks in Indonesia is very easy comparison with the Indonesian Islamic banks. The Islamic banking industry in Indonesia is in its infancy a slightly reduced number of banks active in this sector and achieves such a performance. This paper is based on monthly data of the banking sector in Indonesia dating from March 2010 to July 2011 collected on annual reports of the Indonesian central bank. A multiple regression is applied to judge the effectiveness and efficiency of conventional and Islamic banks in Indonesia. In making a connection between the results for conventional and Islamic banking sector, it turned out that they operate in manner linen to be effective and efficient, which leads us to value the contribution of economic and financial Islamic banking in terms of financial stability and sustainable development.
    Keywords: Islamic Finance, Conventional Finance, Efficiency – effectiveness approach, Multiple Regressions
    JEL: F21 G21
    Date: 2011–04–12
  21. By: Asian Development Bank (ADB); (Southeast Asia Department, ADB); ;
    Abstract: The report presents a current assessment of the Philippines’ water supply and sanitation sector, and the strategic investment priorities of the Government of the Philippines and Asian Development Bank (ADB) regarding it. In particular, the report highlights the sector’s past performance, the current constraints facing its development, and the Government’s plans and strategies for future development of the sector. The report also reviews ADB’s overall experience with the sector, as well as the support and experience of other development partners. The sector road map presented in the report outlines key ADB initiatives for reducing water supply shortages and improving sanitation in urban areas. For 2013, these initiatives include preparation of loans for financing (i) the Water District Development Sector Project, (ii) the Urban Water and Sanitation Sector Project, (iii) the Angat Water Transmission Improvement Project, and (iv) future technical assistance and lending activities to be discussed with the Government that may include a sector project for water utilities administered by local government units and other agencies.
    Keywords: water supply, philippines gdp, philippine economy, road map, water sanitation, waste reduction, sanitation facilities, groundwater, water shortage, sewerage systems, urban population, waterborne diseases, public health, safety, philippine population
    Date: 2013–01
  22. By: Sumarto, Sudarno; de Silva, Indunil
    Abstract: This paper decomposes changes in poverty into growth and redistribution components, and employs several pro-poor growth concepts and indices to explore the growth, poverty and inequality nexus in Indonesia over the period 2002-2012. We find a ‘trickle-down’ situation, which the poor have received proportionately less benefits from growth than the non-poor. All pro-poor measures suggest that economic growth in Indonesia was particularly beneficial for those located at the top of the distribution. Regression-based decompositions suggest that variation in expenditure by education characteristics that persist after controlling for other factors to account for around two-fifths of total household expenditure inequality in Indonesia. If poverty reduction is one of the principal objectives of the Indonesian government, it is essential that policies designed to spur growth also take into account the possible impact of growth on inequality. These findings indicate the importance of a set of super pro-poor policies. Namely, policies that increase school enrolment and achievement, effective family planning programmes to reduce the birth rate and dependency load within poor households, facilitating urban-rural migration and labour mobility, connect leading and lagging regions and granting priorities for specific cohorts (such as children, elderly, illiterate, informal workers and agricultural households) in targeted interventions will serve to simultaneously stem rising inequality and accelerate the pace of economic growth and poverty reduction.
    Keywords: Key Words: Growth, poverty, inequality, pro-poor, decomposition
    JEL: I3 I32
    Date: 2013–12–01
  23. By: Asian Development Bank (ADB); (Southeast Asia Department, ADB); ;
    Abstract: The Asian Development Bank (ADB) has been one of the few active partners for microfinance development in the Philippines. It has contributed to the growth of formal microfinance activities, including expanding the outreach of diversified formal financial services to poor clients at the most affordable costs. The risk of making poor clients worse off because of unexpected events gave rise to the formation of ADB’s intervention focusing on microinsurance development. This report provides the initial sector assessment on emerging microinsurance activities and hopefully guidance on the way forward.
    Keywords: microinsurance, microfinance, credit,  low-income people, climate change, natural disasters, premiums , caps, microfinance institutions, financial services, coverage, risks, health insurance, disability insurance, crop insurance, cattle insurance, banks, cooperatives
    Date: 2013–03
  24. By: Bertha Elizabeth (Department of Management and Business, Padjadjaran University); Nanny Dewi (Department of Management and Business, Padjadjaran University); Aldrin Herwany (Department of Management and Business, Padjadjaran University)
    Abstract: One of implementations that is done by Bank Indonesia to reach the vision of Arsitektur Perbankan Indonesia (API) is by determining anchor bank criteria and good performance bank criteria. Those criterias are determined from various aspects such as some ratios that consist of CAR, NPL, LDR, ROA, and the banking assets. These determinations are expected to be an encouragement for banks in Indonesia to improve the banking efficiency. The measurement and the efficiency analysis are done by implementing Data Envelopment Analysis (DEA) method through the approach of efficiency intermediation that is oriented toward output. This efficiency value will be the dependent variable in analysing the next regression that is done by applying the tobit regression. The independent variables that are applied in the regression are CAR, NPL, LDR, ROA, asset, SBI rate, inflation, and the Rupiah exchange toward Dollar. This research involves 108 conventional banks during 2004-2011 in Indonesia. The result of the efficiency measurement showed that Indonesia banking is not efficient in doing its function as the financial intermediator. The hypothesis testing result from tobit regression showed that the variables that influence the bank efficiency with 5% signification are CAR, NPL, the exchange rate, SBI rate, and inflation. Macro variables has bigger and more significant influence toward the intermediation efficiency compared with micro variables. Among micro variables CAR, LDR, NPL, ROA, and total asset, only CAR and NPL have significant influence in affecting intermediation efficiency. It happens because the measurement that is used in efficiency inputs ouputs are partial finance ratio where banks can manage it, so that the real bank performance can not reflected well.
    Keywords: Efficiency, Data Envelopment Analysis, Tobbit, and Indonesia Banking Architecture
    JEL: M0
    Date: 2012–12
  25. By: Nguyen, Huy
    Abstract: This paper investigates the impacts of land fragmentation on economic diversity of farm households in Vietnam. To develop the empirical analysis, a model is presented in which the estimated impact of land fragmentation on economic diversification allows for non-neutral technical change. The paper tests the theoretical predictions of this model by providing empirical evidence of the impact of land fragmentation on farm and nonfarm outcomes such as labour supply, profits, labour intensity and productivity. By using different methods aimed at verifying and checking the consistency of the results, we find that land consolidation may reduce farm labour supply, labour intensity, and improve farm profits and productivity. Similarly, it may release more farm labour to nonfarm sectors and increase nonfarm profits. The empirical results also show that factor-biased technical change plays an important role in explaining the impact of agricultural technical change on economic diversification in Vietnam.
    Keywords: Agricultural technical change, land fragmentation, land consolidation, labour allocation, and elasticity of substitution, nonfarm sectors, and economic diversification
    JEL: D13 J2 Q15
    Date: 2014–07–29
  26. By: Arief Putranto (Department of Management and Business, Padjadjaran University); Aldrin Herwany (Department of Management and Business, Padjadjaran University); Erman Sumirat (Department of Management and Business, Padjadjaran University)
    Abstract: This thesis seeks to examine the determinants of bank profitability in Indonesia. The sample used is a panel data of 25 publicly traded Indonesian commercial banks in 2007-2012 period. This research used Return on Assets (ROA) and Return on Equity (ROE) as proxies of profitability and analyze how variables from three categories that is internal, external, and market share variable affects them. We found some intriguing findings from this study, namely, the effect of CAR that we found to be negative towards profitability,which indicated that the capitals of Indonesian banks are beyond their optimal level. Then we found that Loan to Deposit ratio and Market Share of Credit, contrary to common sense, also demonstrated a negative effect, which appears to be caused by the 2008-2010 Global Financial Crisis. Last, we also found that Inflation positively affect profitability, which seemingly caused by a demand-pull type of inflation.
    Keywords: Return on Assets, Return on Equity, Loan to Deposit Ratio, Credit Market Share
    JEL: M0
    Date: 2012–12
  27. By: Jiranyakul, Komain
    Abstract: This study investigates the impact of oil price volatility (uncertainty) on the Stock Exchange of Thailand. Monthly data from May 1987 to December 2013 are applied to the two-stage procedure. In the first step, a bivariate generalized autoregressive conditional heteroskedastic (GARCH) model is estimated to obtain the volatility series of stock market index and oil price. In the second step, the pairwise Granger causality tests are performed to determine the direction of volatility transmission between oil to stock markets. It is found that movement in real oil price does not adversely affect real stock market return, but stock price volatility does affect real stock return. In addition, there exists a positive one-directional volatility transmission running from oil to stock market. It is also found that oil price movement and its uncertainty adversely affect two main sub-index returns. These important findings give some implications for risk management and policy measures.
    Keywords: Real stock price, real oil price, volatility transmission, emerging markets
    JEL: C22 G15 Q40
    Date: 2014–06
  28. By: Sandrine KABLAN; Ouidad YOUSFI
    Abstract: Our study aims at analyzing Islamic bank efficiency over the period 2001-2008. We found that they were efficient at 92%. The level of efficiency could however vary according to the region where they operate. Asia displays the highest score with 96%. Indeed, country like Malaysia made reforms in order to allow these banks to better cope with the existing financial system, display the highest scores. On the contrary countries with Islamic banking system do not necessarily display efficiency scores superior to the average. The subprime crisis seems to have impacted those banks indirectly. And market power and profitability have a positive impact on Islamic banks efficiency, while it is the contrary for their size. The latter implies that they do not benefit from scale economy, may be because of the specificity of Islamic financial products.
    Keywords: Islamic Finance, Islamic Banks, performance, efficiency, stochastic frontier analysis.
    JEL: G21 G24 G15
    Date: 2014–07–24
  29. By: Abdul Wahab, Hishamuddin; Rosly, Saiful Azhar; Masih, Abul Mansur M.
    Abstract: The financial and banking crises around the world have prompted the regulators to revise, among others, the capital level of the banks to deal with the excessive risks taken by the banks, both conventional and Islamic. This study is the first attempt to investigate the relationship between risky assets and capital level in a mixed banking system applying the panel VECM and dynamic GMM estimators. The Malaysian mixed banking system is used as a case study taking panel data covering the period from December 2006 to October 2013. Our statistical results based on dynamic OLS (DOLS) tend to indicate that there is a positive relationship between the capital ratio (CAR) and risk weighted asset ratio (RWA) in the long run and also, the causality analysis based on panel VECM and two-step dynamic System GMM tends to indicate unidirectional causality in that the RWA is positively driven by CAR. Our results appear to suggest that higher capital buffer (excess capital above regulatory capital requirement) might have opened up more space for bank managers to taking risky positions while assisted by increasing domestic demand for credit facilities under favorable economic condition of Malaysia. In other words, high capital growth and capital buffer provides an extra cushion for Malaysian banks to pursue relatively riskier financing activities. For the full-fledge Islamic banks (IB) and Islamic bank subsidiaries (IBS), the existence of a cointegrating relationship between RWA and CAR suggests that the way the managers of Islamic banks behave towards risky assets follows the conventional practice.
    Keywords: Risk-taking, DOLS, Panel VECM, two-step dynamic System GMM
    JEL: C58 G21 G28
    Date: 2014–06–29
  30. By: Sumarto, Sudarno; de Silva, Indunil
    Abstract: In this paper we investigate how the receipt of educational transfers, scholarships and related assistance programmes affects the labour supply of children and the marginal spending behaviour of households on children’s educational goods. We use a nationally representative household survey of unusual scope and richness from Indonesia. We found strong evidence of educational cash transfers and related assistance programmes significantly decreasing the time spent by children on income-generating activities in Indonesia. Households receiving educational transfers, scholarships and assistance were also found to spend more at the margin on voluntary educational goods. These results were stronger on children living in poor families. The findings of this study lend support to the growing view in the literature that educational transfers, scholarships and related assistance can actually have a positive impact on economic development by increasing the level of investment in human capital. Our results are particularly relevant for understanding the role of cash transfers and education assistance in middle-income countries, where enrolment rates are already at satisfactory levels, but the challenge is to keep post-primary students in school. Finally, the principle message that emerges from the study is: there are quantitatively non-negligible, average gains from educational transfers and support programmes on household education spending and child labour, especially for the poor.
    Keywords: Cash transfers, child labour, education expenditure, flypaper effect.
    JEL: I2 I24 I28
    Date: 2013–12–04
  31. By: Asian Development Bank (ADB); (Southeast Asia Department, ADB); ;
    Abstract: The threat from dengue has grown dramatically. The World Health Organization estimates that there may be up to 100 million infections each year worldwide. Approximately 500,000 people are hospitalized, and many thousands die because of dengue each year. Controlling mosquitoes is the only available dengue prevention strategy, but dengue control activities tend to be limited to responses to outbreaks. This report documents a promising, feasible, low-cost measure for controlling Aedes aegypti mosquitoes, the primary household-associated dengue vector. The intervention involved encouraging local communities in Cambodia and the Lao People’s Democratic Republic to use small fish called guppies to devour mosquito larvae in household water containers; this was accompanied by intense communication activities. The result was significant reductions in the number of containers with mosquito larvae and of mosquito pupae per person. The approach is being considered for expansion to other areas of Cambodia and the Lao People’s Democratic Republic and is also being taken to countries in the South Pacific, with a view to assessing its wider suitability.
    Keywords: cambodia, lao pdr, laos, dengue, dengue fever, dengue prevention, hemorrhagic fever, aedes aegypti, dengue epidemic, vector control, health, integrated vector strategy, epidemiology, mosquito, larvae, pupae, guppy fish, tropical disease, water sanitation, climate change
    Date: 2013–09

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