nep-sea New Economics Papers
on South East Asia
Issue of 2014‒11‒22
twenty-one papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Climate Change, Trade, and Competitiveness: Climate Trade Performance of India, SAARC and Asia Pacific Region By Dinda, Soumyananda
  2. Asian Economic Integration Monitor - April 2014 By Asian Development Bank (ADB); ; ;
  3. Fiscal Policy and Inclusive Growth in Latin America: Lessons for Asia By Lee, Sang-Hyop; Park, Donghyun
  4. Comovement of East and West Stock Market Indexes By Yusoff, Yuzlizawati; Masih, Mansur
  5. ADB-OECD Study on Enhancing Financial Accessibility for SMEs: Lessons from Recent Crises By Asian Development Bank (ADB); ; ;
  6. Crop diversification, economic performance and household’s behaviours Evidence from Vietnam By Nguyen, Huy
  7. Services Trade Restrictiveness Index (STRI): Telecommunication Services By Hildegunn Kyvik Nordås; Massimo Geloso Grosso; Frédéric Gonzales; Iza Lejárraga; Molly Lesher; Sébastien Miroudot; Asako Ueno; Dorothée Rouzet
  8. Integration and Comovement of Developed and Emerging Islamic Stock Markets: A Case Study of Malaysia By Naseri, Marjan; Masih, Mansur
  9. Benefit in the wake of disaster: Long-run effects of earthquakes on welfare in rural Indonesia By Jérémie Gignoux; Marta Menendez
  10. Services Trade Restrictiveness Index (STRI): Audio-visual Services By Hildegunn Kyvik Nordås; Iza Lejárraga; Sébastien Miroudot; Frederic Gonzales; Massimo Geloso Grosso; Dorothée Rouzet; Asako Ueno
  11. Wages, Human Capital, and the Allocation of Labor across Sectors By Todd Schoellman; Berthold Herrendorf
  12. ADB Brief 20: A Safe Space for Humanity: The Nexus of Food, Water, Energy and Climate By Asian Development Bank (ADB); ; ;
  13. Former Foreign Affiliates: Cast Out and Outperformed? By Beata Javorcik; Steven Poelhekke
  14. From Third World to First--What's Next? Singapore's Obligations to the Rest of the World From a Human Rights Perspective By Risse, Mathias
  15. The Relationship between Exchange Rates and Islamic Indices in Malaysia FTSE Market: A Wavelet Based Approach By Ayub, Aishaton; Masih, Mansur
  16. Is urban food demand in the Philippines different from China? By Tomoki Fujii
  17. Myanmar: 2014 Article IV Consultation-Staff Report; Press Release; and Statement by the Executive Director for Myanmar By International Monetary Fund. Asia and Pacific Dept
  18. Asian Leadership for New Development Bank By Swamy, Vighneswara
  19. Capital Flows and Capital Account Management in Selected Asian Economies By Sen Gupta, Abhijit; Sengupta, Rajeswari
  20. Mutual Funds and Information Diffusion: The Role of Country-Level Governance By Chunmei Lin; Massimo Massa; Hong Zhang
  21. Heterogeneity in the Importance of English-Speaking Ability in Determination of Employment Status by Demographic Subgroups in the United States By Afful, Efua Amoonua

  1. By: Dinda, Soumyananda
    Abstract: This paper examines trade performance of climate friendly goods using some trade indices for India and other Asian countries during 2002 - 2008. Climate friendly goods (CFG) are those goods which have less harmful to environment. Paper identifies India’s performance in CFG trade with other Asian nations. Most of the countries in Asia are importers of climate friendly goods and technologies. The Comparative advantage analyses indicate that Hong Kong, China, and Japan have comparative advantage in the production of CFG goods and are net exporters of such products. The competitiveness measures also show that China, Hong Kong and Japan, and Asia Pacific region are major exporter of CFG during 2002-2008. Competitiveness of India, China and South Korea has improved in 2008. Pakistan, Sri-Lanka, and India prefer to trade in CFG regionally and have shown interest in production and trade of clean coal technologies (CCT). SAARC countries have developed expertise in the production of CCT. India and Pakistan enjoy comparative advantage in CCT trade. Few regions have comparative advantage in Solar Photovoltaic Systems (SPVS) and Energy Efficient Lighting (EEL). China is performing better than other in EEL. Japan, China, Malaysia and Macao show good in 2008 for SPVS. Japan, Philippines, China, Hong Kong and South Korea have a comparative advantage in production of other climate friendly items in 2008.
    Keywords: Competitiveness, trade performance, Climate friendly goods, CFG, Clean Coal Technology, CCT, Energy Efficient Lighting, EEL, Solar Photovoltaic System, SPVS, Wind Energy, Wind Technology, Asia, India, SAARC, ASEAN, Asia Pacific, Japan, China, Sri Lanka, Pakistan, Thailand, Malaysia, Macao, Hong Kong, South Korea, RCA, cleaner technology, climate trade
    JEL: C1 C13 F1 F14 F18 O1 O11 O14 Q2 Q27 Q5 Q56
    Date: 2011–04–18
  2. By: Asian Development Bank (ADB); (Office of Regional Economic Integration, ADB); ;
    Abstract: The Asian Economic Integration Monitor is a semiannual review of Asia’s regional economic cooperation and integration. It covers the 48 regional members of the Asian Development Bank. This issue includes Theme Chapter: Insuring Against Asia’s Natural Catastrophes.
    Keywords: ASEAN Economic Community, ASEAN+3. Economic development, Economic integration, FDI, Free Trade Agreement, Intraregional bank lending, Labor mobility, Macroeconomic interdependence, Regional cooperation, Regional public goods Regionalism, Subregional cooperation, Trade facilitation
    Date: 2014–04
  3. By: Lee, Sang-Hyop (University of Hawaii at Manoa); Park, Donghyun (Asian Development Bank)
    Abstract: Broadly speaking, developing Asia and Latin America are at similar income and development levels. Relative to the advanced economies, economic growth and development are much more urgent priorities for both, yet Latin America has significantly more experience in using fiscal policy to tackle inequality and to promote inclusive growth. Therefore, its greater experience with inclusive fiscal policy can offer valuable lessons for developing Asia in its new-found quest to leverage public spending and taxation to spread the benefits of growth to the broader population. While the Latin American experience has general implications for Asia, of particular interest is its generally successful experience with conditional cash transfer (CCT) programs. Overall, the evidence suggests that CCT programs can be an effective tool for inclusive growth in Asia, too. However, CCTs are not a panacea for poverty and inequality, and the ingredients for their success in Asia may differ from those in Latin America.
    Keywords: fiscal policy in Latin America; conditional cash transfer; social protection
    JEL: H50 H53 I38
    Date: 2014–10–28
  4. By: Yusoff, Yuzlizawati; Masih, Mansur
    Abstract: Determination of diversification strategies by investors depends on the nature and magnitude of the relationships existing between different stock markets. Therefore, it is important for international investors to understand the relationship among various markets in order to diversify risk and derive high return. In a co-movement analysis a consideration that is being looked upon is the distinction between the short and the long term investor, who have different term objectives. Wavelets were used to assess the comovement and interactions of East and West stock index, namely; FBKLCI (Malaysia), FSSTI (Singapore), INDU (Indonesia), HIS (Hong Kong) and JCI (New York). The findings suggest that most of the indexes investigated in this study through the wavelet coherency shows that high coherency exists among them on the daily time scale of 32 to 512 days band. A negative correlation between them was also found among the markets, which shows a tendency in the correlation coefficients to move downwards with the timescale, except for the very long-run. In addition, it is also observed that there exists a linear relationship between the wavelet variance and wavelet timescale. The variance for most of the indexes decreases as the wavelet timescale increases. The cross correlation analysis showed that the short and medium term fluctuations for the indexes are more closely related compared to those over the long term.
    Keywords: comovement of international stocks, wavelet analysis (CWT and MODWT)
    JEL: C22 C58 G11 G15
    Date: 2014–08–28
  5. By: Asian Development Bank (ADB); (Office of Regional Economic Integration, ADB); ;
    Abstract: The report takes a comparative look at ADB and OECD experiences, and aims to identify promising policy solutions for creating an SME base that is resilient to crisis, from a viewpoint of access to finance, and which can help drive growth and development.
    Keywords: Small and medium-sized enterprises, SME finance, Financial Inclusion, SME loans, SME equity markets, SME capital markets, SME access to finance, SME definition, SMEs in Asia and Pacific, Trade finance
    Date: 2014–04
  6. By: Nguyen, Huy
    Abstract: This study examines economic performances and household’s behaviours in multiple crops farming in Vietnam. Smallholder farming systems in Vietnam is being transformed by integration between cash cropping and main food cropping operations. This transformation into diversified farming systems can affect the economies of scope, technical efficiency, and performances of farms. By using the approach of input distance function, we find the first evidence of both scale and scope economies that have important economic performance implications. There is an existence of substantial technical inefficiency in multiple crops farming, which implies that there may be opportunities to expand crop outputs by eliminating technical inefficiency. Enhancing education and further land reforms are main technical efficiency shifters. We also find the complementarity evidence between family labour and other inputs, except hired labour. Thus, policies that lead to more incentives to invest in crop faming activities should focus on the reduction of input costs.
    Keywords: crop diversification, input distance function, elasticity of substitution, stochastic frontier, and technical efficiency
    JEL: D13 O3 O33
    Date: 2014–09–30
  7. By: Hildegunn Kyvik Nordås; Massimo Geloso Grosso; Frédéric Gonzales; Iza Lejárraga; Molly Lesher; Sébastien Miroudot; Asako Ueno; Dorothée Rouzet
    Abstract: This paper presents the services trade restrictiveness indices (STRIs) for telecommunications. The STRIs are composite indices taking values between zero and one, zero representing an open market and one a market completely closed to foreign services providers. The indices are calculated for 40 countries, the 34 OECD members and Brazil, China, India, Indonesia, Russia and South Africa. The STRIs capture de jure restrictions. This report presents the first vintage of indicators for telecommunications and captures regulations in force in 2013. The scores range between 0.06 and 0.61, with a sample average of 0.22. Barriers to competition, reflecting inadequate regulation of incumbents with significant market power, and state ownership in some countries make the largest contribution to the index value, followed by restrictions on foreign entry. The paper presents the list of measures included in the indices, the scoring and weighting system for calculating the indices and an analysis of the results.
    Keywords: telecommunications, services trade, services trade restrictions, regulation
    JEL: F13 F14 K33 L96
    Date: 2014–11–04
  8. By: Naseri, Marjan; Masih, Mansur
    Abstract: This paper attempts to analyse the extent of financial integration of two developed (the U.S. and Japan) and two emerging Islamic stock markets (China and India) with the Malaysian Islamic stock market in order for the Malaysian financial traders to make decision about their portfolio diversification, risk management and asset allocation. Despite the growing interest in Islamic finance, there are few empirical studies investigating integration of Islamic stock markets. As a result there is a certain gap in the literature pertaining to this area of research. By applying recent related techniques, this paper examines the correlations among these Islamic stock markets in a timevariant manner to indicate the degree of financial integration among them. It is found that Strong financial integration exists between the Chinese and Malaysian Islamic stock markets. Furthermore, the study suggests that in the long run, investors in Malaysia could gain by diversifying their portfolios in Japan and in the short run the US market is a better option to consider. Overall, the developed Islamic stock markets are better for the Malaysian financial traders rather than the emerging markets.
    Keywords: International Portfolio Diversification, Dynamic Conditional Correlation (DCC), Multivariate GARCH, Islamic Stock Indices, Financial Integration, CWT, MODWT, Wavelet Coherence
    JEL: C22 C58 G11 G15
    Date: 2014–08–22
  9. By: Jérémie Gignoux (Paris School of Economics, INRA, Paris, France); Marta Menendez (PSL, Université Paris-Dauphine, LEDa, IRD UMR DIAL, Paris, France)
    Abstract: We examine the long-term effects on individual economic outcomes of a set of earthquakes – numerous, large, but mostly not extreme – that occurred in rural Indonesia since 1985. Using longitudinal individual-level data from large-scale household surveys, together with precise measures of local ground tremors obtained from a US Geological Survey database, we identify the effects of earthquakes, exploiting the quasi-random spatial and temporal nature of their distribution. Affected individuals experience short-term economic losses but recover in the medium-run (after two to five years), and even exhibit income and welfare gains in the long term (six to twelve years). The stocks of productive assets, notably in farms, get reconstituted and public infrastructures are improved, seemingly partly through external aid, allowing productivity to recover. These findings tend to discount the presence of poverty traps, and exhibit the potential long-term benefits from well-designed post-disaster interventions in context where disasters primarily affect physical assets. _________________________________ Nous examinons les effets économiques à long terme d’une série de tremblements de terre - nombreux, importants, mais pas dévastateurs- ayant eu lieu en Indonésie rurale depuis 1985. A partir des données individuelles longitudinales provenant d’enquêtes ménages largement représentatives, ainsi que des mesures précises de l’intensité des tremblements de terre calculées à partir de la base de données US Geological Survey, nous identifions les effets des tremblements de terre en exploitant leurs variations spatiales et temporelles quasi-aléatoires. Les individus ayant subi les tremblements accusent des pertes économiques à court terme, mais les compensent à moyen terme (après une période de deux à cinq ans), et présentent même des gains économiques à long terme (de six à douze ans). Les stocks de biens de production, notamment dans les exploitations agricoles, sont reconstitués et les infrastructures publiques améliorées, apparemment en partie grâce à l'aide extérieure, ce qui permet de rétablir les niveaux de productivité. Ces résultats tendent à rejeter la présence de trappes de pauvreté, et révèlent les bénéfices potentiels à long terme d'interventions post-catastrophe bien conçues dans un contexte où les catastrophes affectent principalement les actifs physiques.
    Keywords: Natural disasters, earthquakes, rural Indonesia, long-term effects, welfare, aid and reconstruction, Catastrophes naturelles, tremblements de terre, Indonésie rural, effets à long terme, bien-être, aide et reconstruction.
    JEL: I30 L26 O10 Q54
    Date: 2014–10
  10. By: Hildegunn Kyvik Nordås; Iza Lejárraga; Sébastien Miroudot; Frederic Gonzales; Massimo Geloso Grosso; Dorothée Rouzet; Asako Ueno
    Abstract: This paper presents the services trade restrictiveness indices (STRIs) for motion pictures, television and broadcasting and sound recording. The STRIs are composite indices taking values between zero and one, zero representing an open market and one a market completely closed to foreign services providers. The indices are calculated for 40 countries, the 34 OECD members and Brazil, China, India, Indonesia, Russia and South Africa. The STRIs capture de jure restrictions. This report presents the first vintage of indicators for audio-visual services and captures regulations in force in 2013. The scores range between 0.06 and 0.72 for motion pictures, 0.07 to 0.78 for television and broadcasting, and between 0.05 and 0.37 for sound recording. The sample averages are 0.18 for motion pictures, 0.28 for television and broadcasting and 0.16 for sound recording. Limitations on foreign entry, including foreign equity limits contribute to about two thirds of the index values in television and broadcasting. In motion pictures screen quotas contribute to the indices in many of the countries with scores above average. Sound recording, i.e. music, is the most open of the three audio-visual services sectors where limitations on movement of people account for more than 40% of the index value. The paper presents the list of measures included in the indices, the scoring and weighting system for calculating the indices and an analysis of the results.
    Keywords: services trade, copyrights, motion pictures, sound recording, services trade restrictions, regulation, television broadcasting
    JEL: F13 F14 K33 L82
    Date: 2014–11–04
  11. By: Todd Schoellman (Arizona State University); Berthold Herrendorf (Arizona State University)
    Abstract: We document for nine countries ranging from rich (Canada, U.S.) to poor (India, Indonesia) that average wages are higher in non–agriculture than in agriculture. We measure sectoral human capital and find that it accounts for the entire wage gap in the U.S. and most of the wage gaps elsewhere. We develop a multi–sector model that explains these finding if: (i) Mincer returns to schooling are equal in both sectors; (ii) more able workers sort into non–agriculture; (iii) distortions to the allocation of labor between sectors are negligible in the U.S. and small elsewhere.
    Date: 2014
  12. By: Asian Development Bank (ADB); (Regional and Sustainable Development Department, ADB); ;
    Abstract: The 20th Century saw major human triggered transitions that cumulatively are threatening the safety of the habitat for humans on planet earth. Population, resources, and the rapid accumulation of wealth all are intertwined in the 5 major transitions from the past to our new global future. These major transitions are: first, the “urban population transition;” second, the“ nutrition transition;” third, the “climate transition;” fourth, the “energy transition;” and, fifth, the “agricultural transition.” This policy brief focuses on the most salient problems arising from these global transitions that can be ameliorated by specific policy instruments in the short term.
    Keywords: adb, asian development bank, asdb, asia, pacific, poverty asia, food, water, energy, climate, land, agriculture, food-water-energy nexus, humanity, planet earth, urban population transition, nutrition transition, climate transition, energy transition, agricultural transition, adb brief 20, peter rogers, samuel daines
    Date: 2014–05
  13. By: Beata Javorcik (University of Oxford, United Kingdom); Steven Poelhekke (VU University Amsterdam, the Netherlands)
    Abstract: The literature has documented a positive effect of foreign ownership on firm performance. But is this effect due to a one-time knowledge transfer or does it rely on continuous injections of knowledge? To shed light on this question we focus on divestments, that is, foreign affiliates that are sold to local owners. To establish a causal effect of the ownership change we combine a difference-in-differences approach with propensity score matching. We use plant-level panel data from the Indonesian Census of Manufacturing covering the period 1990-2009. We consider 157 cases of divestment, where a large set of plant characteristics is available two years before and three years after the ownership change and for which observationally similar control plants exist. The results indicate that divestment is associated with a drop in total factor productivity accompanied by a dec line in output, markups as well as export and import intensity. The findings are consistent with the benefits of foreign ownership being driven by continuous supply of headquarter services from the foreign parent.
    Keywords: divestment, foreign direct investment, Indonesia and productivity
    JEL: F23
    Date: 2014–07–24
  14. By: Risse, Mathias (Harvard University)
    Abstract: In the last half a century, Singapore has gone through truly astonishing transformations. It has now arguably come of age as a First World country, as captured by the title of a recent book by the Founding Father of modern Singapore, Mr. Lee Kuan Yew. But First World countries are normally taken to have substantial obligations towards the less advanced parts of the world. In this respect, what are Singapore's obligations? We will also revisit Singapore's relationship with the human rights movement. [This is the text of speech the author gave in his capacity as NUSS Visiting Professor at the Lee Kuan Yew School of Public Policy at the National University of Singapore. The speech was given on October 7, 2013 in the Kent Ridge Guild House of the National University of Singapore Society.]
    Date: 2014–02
  15. By: Ayub, Aishaton; Masih, Mansur
    Abstract: The issue of relationship between exchange rate and stock market is still not conclusive even though many studies have been done and the results are mixed. There is no theoretical consensus on the relationship between stock prices and exchange rates. Thus, this paper aims to examine the relationship between exchange rate and Islamic stock return in Malaysia FTSE market and identify the direction of causation between these two variables by using a time scale decomposition analysis based on the theory of wavelets. In particular, we apply the maximum overlap discrete wavelet transform (MODWT), wavelet variance, wavelet correlation and cross-correlations to analyze the association as well as the lead/lag relationship between the two series at different time scales. The findings based on the time-scale decomposition analysis indicate that the relationship between stock returns and exchange rate is not fixed over different time scales and, in particular, the stock returns are leading exchange rate at the shortest scales, i.e. at scales corresponding to periods of 2-4 days. However, in scales with 8-16 days and 64 days and longer, the stock returns and exchange rate mainly lead each other indicating a bidirectional relationship. Such a result accords quite well with the conventional wisdom which suggests that the investors with longer term horizons are likely to be linked with the macroeconomic fundamentals in their investment activity.
    Keywords: Multi-scale approach, interest rate, exchange rate, Islamic Indices in Malaysia FTSE market, wavelet transform (MODWT), wavelet variance, wavelet cross-correlation, Granger causality
    JEL: C22 C58 E44 G15
    Date: 2013–08–24
  16. By: Tomoki Fujii (School of Economics, Singapore Management University, Singapore, 178903)
    Abstract: It is essential to understand the consumption pattern of food and how it changes over time to formulate sound economic policies as well as marketing and pricing strategies. In this study, we estimate the Quadratic Almost Ideal Demand System with six rounds of the Family Income Expenditure Survey exploiting the conditional linearity of the demand system. We find that the Filipino diet has become westernized and that the changes in urban food demand elsticities are qualitatively similar to those in urban China, especially for meat, fruits, and vegetables. We also offer some policy and business implications.
    Keywords: demand system; elasticity; generalized least-squares; iterated linear least-squares
    Date: 2014–10
  17. By: International Monetary Fund. Asia and Pacific Dept
    Abstract: KEY ISSUES Context: The authorities continue to make progress on their far-reaching political and economic reform program. Key economic reform priorities are being realized. However, macroeconomic and financial risks are building, and capacity constraints are slowing institutional reform. Constitutional amendments are being considered ahead of the 2015 elections, and peace negotiations are continuing despite religious and ethnic tensions. Macroeconomic situation and outlook: Growth is accelerating, with average growth projected around 8¼ percent in the next few years, and inflation should remain broadly stable. After depreciating in 2013, the exchange rate has stabilized. The external current account has widened despite improved export performance but rising capital account inflows should enable Central Bank of Myanmar (CBM)’s international reserves to grow rapidly from their current low levels. Monetary aggregates are growing at double-digit rates. The underlying fiscal deficit in 2013/14 is estimated at 3 percent of GDP and is forecast to widen to around 5½ percent of GDP in 2014/15, but should decline below 5 percent of GDP in the medium term. However, off budget operations could increase the deficit. Risks also arise from capacity constraints and thin fiscal and external buffers. Medium- and long-term prospects: Economic prospects remain strong. Myanmar’s long-run growth potential is estimated at around 7 percent, in line with peer countries’ experience, but sound institutional and policy frameworks need to be built to realize this. Key policy recommendations: Macroeconomic policy challenges are likely to intensify in the short term. Monetary policy tools need to be more aggressively deployed, and mechanisms established to transfer public sector foreign exchange earnings automatically to the CBM. The regulatory framework for the banking sector needs to be urgently upgraded and supervision strengthened, particularly as foreign banks will soon enter. Tax policy and administration should aim at simplifying the system and preparing for the introduction of a value-added tax (VAT). Technical assistance (TA): Capacity building will be crucial to achieve policy objectives. The IMF continues to provide intensive TA in key areas, including in a wide range of CBM operations, tax policy and administration, public financial management and statistics.
    Keywords: Article IV consultation reports;Economic growth;Fiscal policy;Budget deficits;Financial sector;Bank supervision;Multiple currency practices;Economic indicators;Debt sustainability analysis;Staff Reports;Press releases;Myanmar;
    Date: 2014–10–06
  18. By: Swamy, Vighneswara
    Abstract: The emergence of New Development Bank (NDB) on the global horizon, though beginning of a new international economic order, has indeed brought into focus several issues on to the debating table. This article provides a useful discussion on the different dimensions associated with the emerging entity.
    Keywords: Economic Development, multilateral economic cooperation, Bank, Growth
    JEL: F55 O1 O43
    Date: 2014
  19. By: Sen Gupta, Abhijit; Sengupta, Rajeswari
    Abstract: Gross capital inflows and outflows to and from emerging market economies (EMEs) have witnessed a significant increase since early 2000s. This rapid increase in the volume of flows accompanied by sharp swings in volatility has amplified the complexity of macroeconomic management in EMEs. While capital inflows provide additional financing for productive investment and offer avenues for risk diversification, unbridled flows could also exacerbate financial instability.In this paper we focus on the evolution of capital flows in a few select emerging Asian economies, and analyze surge and stop episodes as well as changes in the composition of flows across these episodes. We also provide a comprehensive description of the capital account management policies adopted by the host countries and evaluate the efficacy of these measures by analyzing whether they achieved the desired goals.This kind of an analysis is highly relevant especially a time when EMEs around the world are about to face the repercussions of a potential Quantitative Easing (QE) tapering by the US or launch of fresh QE measures by the Euro-zone, either of which could once again heighten the volatility of cross-border capital flows thereby posing renewed macroeconomic challenges for major EMEs.
    Keywords: Capital flows, Exchange market pressure, Impossible Trinity, Sterilized intervention, Capital controls, Global financial crisis.
    JEL: F32 F36 F41
    Date: 2014–09–29
  20. By: Chunmei Lin (Erasmus University Rotterdam); Massimo Massa (INSEAD, France); Hong Zhang (INSEAD, France, and Tsinghua University, Singapore)
    Abstract: We hypothesize that poor country-level governance, which makes public information less reliable, induces fund managers to increase their use of semi-public information. Utilizing data from international mutual funds and stocks over the 2000-2009 period, we find that semi-public information-related stock rebalancing can be five times higher in countries with the worst quality of governance than in countries with the best. The use of semi-public information increases price informativeness but also increases information asymmetry and reduces stock liquidity. It also intensifies the price impact and liquidity crunch during the recent global financial crisis. This paper was accepted for publication in the Review of Financial Studies .
    Keywords: Mutual Funds, Information Diffusion, Country-Level Governance, Semi-public Information,Liquidity
    JEL: G15
    Date: 2014–07–01
  21. By: Afful, Efua Amoonua
    Abstract: Previous literature indicates that language skills are an important determinant of success in the labor market. Using data from the 2012 American Community Survey (ACS) 1-year sample, this paper shows that there is heterogeneity in the importance of English-speaking ability by gender, race and education. I find that improvement in proficiency generates higher employment benefits for females than males possibly due to the industry distribution of employment by gender. Women and Asians are more likely to be employed at each successively higher level of speaking proficiency with diminishing returns. Enhancement of proficiency increases the odds of employment to a certain degree, beyond which the odds fall for males, Whites, Blacks, other races and individuals with high school education or less. Among individuals with high school education or less, the odds of employment are very low irrespective of level of language proficiency. Individuals with some college but no degree or higher experience consistent increases in odds of employment as English-speaking ability improves. For proficiency in speaking English to yield substantial employment benefits, one must attain moderate to high educational qualifications.
    Keywords: Employment, International Labor Mobility, Immigrant Assimilation
    JEL: J60 J61
    Date: 2013–12

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