nep-sea New Economics Papers
on South East Asia
Issue of 2015‒01‒31
thirty-two papers chosen by
Kavita Iyengar
Asian Development Bank

  1. State of the Coral Triangle: Indonesia By Asian Development Bank (ADB) ; ; ;
  2. Regional State of the Coral Triangle: Coral Triangle Marine Resources: Their Status, Economies, and Management By Asian Development Bank (ADB) ; ; ;
  3. Social health insurance improves women’s healthcare use: Evidence from Indonesia By Samarakoon, Shanika ; Parinduri, Rasyad
  4. The Progress of Paperless Trade in Asia and the Pacific: Enabling International Supply Chain Integration By Ha, Sung Heun ; Lim, Sang Won
  5. An Islamic Vision Development Based Indicators in Analysing the Islamic Banks Performance: Evidence from Malaysia, Indonesia and selected GCC Countries By Ngalim, Siti Manisah ; Ismail, Abdul Ghafar
  6. State of the Coral Triangle: Malaysia By Asian Development Bank (ADB) ; ; ;
  7. Small Share of the Islamic Banks in Indonesia, Supply-side Problems? By Kariastanto, Bayu
  8. Central Mekong Delta Region Connectivity Project: Rapid Climate Change Threat and Vulnerability Assessment By Asian Development Bank (ADB) ; ; ;
  9. Oil Palm Boom and Land-Use Dynamics in Indonesia: The Role of Policies and Socioeconomic Factors By Gatto, Marcel ; Wollni, Meike ; Qaim, Matin
  11. Land use strategies for sustainable rural development under revenue uncertainty: A case from Indonesia By Djanibekov, Utkur ; Villamor, Grace B.
  12. Spillovers of US unconventional monetary policy to Asia: the role of long-term interest rates By Ken Miyajima ; Madhusudan Mohanty ; James Yetman
  13. A Comprehensive Philippine Government Strategy on the Competitiveness of the Services Sector By Serafica, Ramonette B.
  14. Tuberculosis and Diabetes Mellitus Control and Care: A Rapid Situational Analysis for Planning a Coordinated Program Response By Serrano, Grace Kathleen T. ; Baja, Emmanuel S. ; Lansang, Mary Ann D. ; Alejandria, Marissa M. ; Castillo-Carandang, Nina ; Itable, Jill R.
  15. Reconnaissance Study on the Implementation of Case-Based Payments By Dalmacion, Godofreda ; Juban, Noel R. ; Zordilla, Zenith
  16. The Value of Policies to Conserve Native Pollinating Bees in Northern Thailand – A Discrete Choice Experiment By Narjes, Manuel ; Lippert, Christian
  17. Review and Assessment of Programs Offered by State Universities and Colleges By Manasan, Rosario G. ; Parel, Danileen Kristel C.
  18. Assessing the Feasibility of Public-Private Partnerships in Health in the Philippines By Banzon, Eduardo P. ; Lucero, J.A. ; Ho, B.L. ; Puyat, M.E. ; Factor, P.A. ; Young, F.J.
  19. Asia-Pacific Integration with China vs. the United States: Examining trade patterns under heterogeneous agricultural sectors By Heerman, Kari E.R. ; Arita, Shawn ; Gopinath, Munisamy
  20. Formative Evaluation of the DOH`s Complete Treatment Pack (Compack) Program By Batangan, Dennis B.
  21. Diagnostic Report on the Bus Transport Sector By Briones, Roehlano M. ; Gundaya, Debbie M. ; Domingo, Sonny N.
  22. Distinguishing Constraints on Financial Inclusion and Their Impact on GDP and Inequality By Era Dabla-Norris ; Yan Ji ; Robert M. Townsend ; D. Filiz Unsal
  23. Measuring the Value of Islamic Banks By Ismail, Abdul Ghafar ; Akbar, Sjaiful ; Ngalim, Siti Manisah
  24. Old-Age Financial Protection in Malaysia: Challenges and Options By Holzmann, Robert
  25. Price and Quality Changes in Outsiders of Regional Trade Agreements By Toshiyuki Matsuura ; Kazunobu Hayakawa ; Nuttawut LAKSANAPANYAKUL ; Yuta Watabe
  26. Feasibility of Supplemental Funds from the Private Sector for Catastrophic Illness Financing By Juban, Noel R. ; Reverente, Benito Jr. R. ; Santos, Maria Socorro S.D.
  27. Market Efficiency in Asian and Australasian Stock Markets: A Fresh Look at the Evidence By Jae Kim ; Hristos Doucouliagos ; Hendrix College
  28. Are Thai consumers willing to pay for food safety labels? Choice experiment on fresh produce By Wongprawmas, Rungsaran ; Canavari, Maurizio ; Waisarayutt, Chutima
  29. Analysis of Catastrophic Health Financing by Key Institutions By Caballes, Alvin B.
  30. A good news or bad news has greater impact on the Vietnamese stock market? By Nguyen Van, Phuong
  31. Stories from Around the Globe: Financing Catastrophic Health Expenditures in Selected Countries By Dela Cruz, Anna Mae D. ; Nuevo, Christian Edward L. ; Haw, Nel Jason L. ; Tang, Vincent Anthony S.
  32. Manufacturing Matters...but It’s the Jobs That Count By Felipe, Jesus ; Mehta, Aashish ; Rhee, Changyong

  1. By: Asian Development Bank (ADB) ; (Southeast Asia Department, ADB ); ;
    Abstract: Indonesia is the largest archipelagic state in the world, and its coral reefs are the most extensive in Southeast Asia. Its coastal communities are home to at least 300 ethnic groups, all of which depend heavily on coastal and marine resources for food and income. Unfortunately, pollution from human activity and overexploitation of the country’s fisheries, put Indonesia at risk in food security and vulnerability to climate change. Policy makers, resource managers, and coastal community residents require accurate, complete, and timely information to successfully address these threats. This report assesses Indonesia’s coastal ecosystems, particularly their exploited resources. It describes the threats to these ecosystems, and explains the country’s plans to ensure their future sustainable use.
    Keywords: Coral Triangle, Marine environment, Marine fisheries, Indonesia
    Date: 2014–05
  2. By: Asian Development Bank (ADB) ; (Southeast Asia Department, ADB ); ;
    Abstract: The Regional State of the Coral Triangle summarizes the status of marine resources in the Coral Triangle. The first report of its type, it provides baseline data against which sustainable development can be measured. The countries that make up this ecologically diverse area— Indonesia, Malaysia, the Philippines, Papua New Guinea, Solomon Islands, and Timor-Leste—have committed to maintain the ecological integrity of coral reefs and the marine species that inhabit them, and improve the affordability, availability, quality, and safety of food they provide. This report describes their plan for achieving these objectives, which also requires addressing population growth, the demand for fish, and the pace of coastal development in the Coral Triangle.
    Keywords: Marine resources, Marine environment, Coral Triangle, Indonesia, Malaysia, Papua New Guinea, Philippines, Solomon Islands, Timor-Leste
    Date: 2014–05
  3. By: Samarakoon, Shanika ; Parinduri, Rasyad
    Abstract: To improve the poor’s access to healthcare services, the Indonesian government introduced Askeskin, a subsidized social health insurance for the poor. We examine the effects of this social health insurance on women’s use of healthcare—maternal, preventive, and curative healthcare—services. Using propensity- score- and difference-in-differences matching strategies, we find the insurance increases the use of public facilities for maternal healthcare, discourages the use of midwives’ services, and increases the use of contraception; it does not seem to increase the use of preventive and curative care, however.
    Keywords: Social health Insurance; maternal healthcare; women’s preventive and curative healthcare; Indonesia; South East Asia
    JEL: I11 I12 I13 I15
    Date: 2015–01
  4. By: Ha, Sung Heun (Korea Trade Network (KTNET) ); Lim, Sang Won (Trade Facilitation Unit, Trade and Investment Division, UNESCAP )
    Abstract: This paper discusses on how to facilitate paperless trade for international supply chain integration in the Asia and Pacific region. The paper defines paperless trade and describes how paperless trade can improve efficiency of international supply chain, including its economic benefits. Based on the review of paperless trade initiatives and assessment of paperless trade readiness of countries in the Asia and Pacific region, the paper identifies five critical challenges in facilitating cross-border paperless trade: use of common international standards, harmonization of different legal frameworks, capacity gaps among the parties, cooperation between the public and private sectors, and lack of coordination mechanisms for cross-border data exchanges. For each challenge, the paper describes its nature and possible measures for alleviating it. In its annexes, the paper also provides implementation cases of cross-border paperless trade in the Asia and Pacific region, namely Pan Asian e-Commerce Alliance (PAA) and electronic Certificate of Origin between the Republic of Korea and Taipei,China.
    Keywords: Paperless trade; international supply chain integration; trade facilitation
    JEL: F15 F19
    Date: 2014–10–01
  5. By: Ngalim, Siti Manisah ; Ismail, Abdul Ghafar (The Islamic Research and Teaching Institute (IRTI) )
    Abstract: The current evaluation of Islamic Banks performance uses the conventional measurs, which is not unacceptable as the current Islamic Banks’ structure is mainly equal of its conventional counterparts in the sense that they are developed in the frame of business entity, thus businessbased performance such as profitability becomes the main concern. However, the fact that an Islamic Bank is governed and guided by Islamic Law, necessitates a deeper and more careful understanding of the purpose of the law itself. This subject should never be neglected, as the Sharia, itself exists for a bigger purpose than merely guidelines or a statement of what is allowed and what is prohibited. The theory of the purpose of law or maqasid al-Shari’ah as first proposed and structured by al-Juwaini, has patched the path towards understanding thus better implementation of Islam as it should to capture and achieve its higher intent, the real well-being of human in this world (al-falah fid-dunya) and the hereafter (al-falah fil-aakhirah). This study learns from Schumpeterian Finance-Growth Theory vis-à-vis the Development in the light of Maqasid al-Shari’ah by Chapra (2008) to: first, highlight the Islamic-based Finance-Development Theory that focuses on development in the light of Maqasid al-Shari’ah. It then analyses its Islamicvision- development-based (IVDB) performance of Islamic banks in achieving al-falah as a complement to its business-based measurement. The analysis will be based on annual reports of 20 Islamic banks in major continent of players in Islamic Finance namely Malaysia, Indonesia and selected GCC countries. The result is anticipated to give a new breath in measuring performance of Islamic financial institution, in this case Islamic banks and highlight the Islamic vision of its function and how far it has fulfilled the vision.
    Keywords: Islamic banks; financial performance; maqasid al sharia; economic development
    Date: 2015–01–19
  6. By: Asian Development Bank (ADB) ; (Southeast Asia Department, ADB ); ;
    Abstract: Malaysia has made a firm commitment to sustainable management and conservation of its coastal and marine resources, helping formulate and implement the Sulu–Sulawesi Marine Ecoregion Initiative and the Coral Triangle Initiative. Rapid economic growth, uncontrolled tourism development, unregulated fishing, and unsustainable use of marine resources have depleted the country’s fish stocks, lost nearly 36% of its mangrove forests, and increased the number of endangered species. Despite impressive national economic gains, Malaysia’s fishers remain poor. This report assesses Malaysia’s coastal ecosystems and summarizes the country’s plans in (i) rehabilitating marine protected areas, (ii) protecting threatened and endangered species, (iii) adapting to the negative 0impacts of climate change, and (iv) responding to the need for financially sustainable, community-based initiatives.
    Keywords: Coral Triangle, Marine environment, Marine fisheries, Malaysia
    Date: 2014–05
  7. By: Kariastanto, Bayu
    Abstract: About 21 years after establishment of the first Islamic banks in Indonesia, the share of Islamic banks is still small. About 86 percent Indonesian are Muslim, yet the asset share of Indonesian Islamic banks is only about 4 percent. Since Islamic scholars unanimously argue that bank interests are prohibited, we could expect that asset share of Islamic bank in Muslim-majority country is at least equal with Muslim share in the total population because all Muslims should choose Islamic banks over conventional banks. In this paper, we want to investigate what is the cause of small share of Islamic banks in Indonesia. To be more precise, whether it is caused by non-technical factor or it is caused by supply-side problems such as poor Islamic bank services or lower Islamic bank returns, or to be more extreme, it may be caused by people do not recognize Islamic banks. Using demand estimation model and elasticity exercises, we find that costumers appear to group separately Islamic and conventional banks, meaning that there is recognition and market segmentation. However, Islamic banks do not have greater market power compare to conventional banks. We argue that supply-side problems such as high services fee and low bank returns are not the reason why the market share of Islamic banks is so low. We also argue that non-technical factors such as the early-mover advantages and lack Muslim awareness may become the reasons. We also find that Islamic banks will not be able to effectively increase their market share by competing in price.
    Keywords: Islamic bank, small asset share, faith, supply side problem, partial equilibrium
    JEL: G02 G11 G21
    Date: 2013–07–10
  8. By: Asian Development Bank (ADB) ; (Regional and Sustainable Development Department, ADB ); ;
    Abstract: The Central Mekong Delta Region Connectivity Project aims to enhance connectivity across provinces of southern Viet Nam and Ho Chi Minh City. It includes two major bridges, a 15-kilometer road connecting the two bridges, and approach roads. Given the high exposure of the Mekong Delta to severe flooding, a climate risk and vulnerability assessment was conducted to assess the vulnerability of the project to climate change. The assessment report provides a better understanding of climate change threats to the project infrastructure. It also provides project stakeholders with information necessary for consensus building for the adoption of a robust approach to responding to climate change. The study illustrates that a constrained time frame and limited resources may not be significant impediments to the undertaking of climate risk vulnerability assessments, which can provide valuable information at the project design stage to increase the climate resilience of large investment projects.
    Keywords: adb, asian development bank, asdb, asia, pacific, poverty asia, central mekong delta, climate change adaptation mekong area, climate change mekong region, mekong river floodplain, mekong basin flooding, climate change vulnerability mekong area, adb connectivity project
    Date: 2014–06
  9. By: Gatto, Marcel ; Wollni, Meike ; Qaim, Matin
    Abstract: We investigate land-use dynamics in Jambi, Sumatra, one of the hotspots of Indonesia’ recent oil palm boom. Data from a structured village survey are used to analyze the role of socioeconomic and policy factors. Oil palm is partly grown on large plantations, but smallholders are also involved significantly. We find that, in spite of significant oil palm expansion, rubber remains the dominant crop. Most of the oil palm growth takes place on previous fallow and rubber land. Oil palm has not been a major driver of deforestation. Much of the forest in Jambi was cleared more than 20 years ago, and rubber was an established cash crop long before the oil palm boom started. However, oil palm growth occurs in locations with ongoing logging activities, so indirect effects on deforestation are likely. The government’s transmigration program of the 1980s and 1990s was instrumental for the start and spread of oil palm in Jambi. Some autochthonous villages have adopted oil palm, but adoption started later compared to migrants from Java, and it happens at a slower pace. While the transmigration program benefited many of the participating families, it has contributed to the risk of unequal socioeconomic developments in Jambi.
    Keywords: oil palm, land-use change, deforestation, socioeconomic factors, Indonesia, government policy, Land Economics/Use,
    Date: 2014–08
  10. By: Durand-Morat, Alvaro ; Chavez, Eddie ; Wailes, Eric
    Abstract: Genetically-modified (GM) rice is an important technology surrounded with controversy and uncertainty, hence it warrants more in-depth analysis. While GM rice is considered by its supporters as having promising potential, many still remain passionately against its use. This study assesses the impacts of GM rice commercialization on the global rice market. We use the Arkansas Global Rice Model (AGRM) and the RICEFLOW model to provide stochastic and dynamic analyses. Scenarios of adoption, diffusion and acceptance of Bt (Bacillus thuringiensis) rice by Bangladesh, China, Indonesia, Nigeria, and the Philippines are compared against baseline projections. The results focus on world trade, world and domestic prices, resource savings, domestic production, consumption, and stocks. Bt rice adoption has the potential to significantly impact the global and national rice economies. Total rice trade, international price, and domestic prices decline as global rice production, consumption, and stocks expand.
    Keywords: GM rice, food security, technology change, Agricultural and Food Policy, Demand and Price Analysis, Environmental Economics and Policy, Political Economy, Research and Development/Tech Change/Emerging Technologies, Q16, Q55,
    Date: 2015
  11. By: Djanibekov, Utkur ; Villamor, Grace B.
    Abstract: We investigated the economic attractiveness of different land uses and possible payments for carbon in rubber monoculture and agroforest, and biodiversity in agroforest under revenue uncertainty in Jambi, Indonesia. A multi-period programming with Monte Carlo simulation and Brownian motion were used. Findings showed that farm incomes would substantially vary, and to mitigate uncertainty the farmland would be diversified. Further increase in carbon prices would result in enhancing the area of rubber monoculture and would lead to possible trade-off in agrobiodiversity. When the payments for ecosystem services are targeted for agroforest then its returns would increase and reduce farm income variability.
    Keywords: Payments for ecosystem services, revenue risk, trade-offs, Land Economics/Use, Risk and Uncertainty,
    Date: 2014–08
  12. By: Ken Miyajima ; Madhusudan Mohanty ; James Yetman
    Abstract: This paper reviews the role of long-term interest rates in international monetary transmission and related policy challenges in the wake of exceptionally easy US monetary policy. It employs a panel VAR model to examine the impact of a very low US term premium on relatively small open Asian economies. The results show that unconventional US monetary policy spills over to Asia mainly through low domestic bond yields and rapid growth of domestic bank credit. Financial integration does not appear to reduce the control of national monetary authorities over short-term policy rates. However, it does compromise control over long-term rates that are key determinants of economic activity. In light of the results, the paper reviews potential policy options to deal with volatile term and risk premiums.
    Keywords: Asian economies, international monetary transmission, long term interest rates, monetary policy, risk premium
    Date: 2014–12
  13. By: Serafica, Ramonette B.
    Abstract: There is now broad consensus that the Philippines should aim to have a globally competitive services sector. Applying Porter`s framework on creating national competitive advantage (the diamond), this paper presents a comprehensive government strategy recognizing that it has an important albeit partial role in attaining the national vision for services. Moreover, it emphasizes that the proper role for government policy toward industry is to stimulate dynamism and upgrading. The strategy covers four interdependent sets of policies that influence national advantage, namely, policies to enhance a country`s position in the factors of production relevant to the industry, policies that raise the quality of domestic demand necessary for constant upgrading, policies to ensure the presence of supporting and related industries, and policies to influence competitive behavior through firm strategy, structure, and rivalry.
    Keywords: Philippines, services, competitive advantage, Porter`s diamond
    Date: 2015
  14. By: Serrano, Grace Kathleen T. ; Baja, Emmanuel S. ; Lansang, Mary Ann D. ; Alejandria, Marissa M. ; Castillo-Carandang, Nina ; Itable, Jill R.
    Abstract: Tuberculosis (TB) remains one of the leading killers among bacterial diseases worldwide. In the Philippines, the prevalence of culture-positive TB is estimated to be 5 per 1000 and that for sputum smear-positive pulmonary TB is 2 per 1000 based on the 2007 National Prevalence Survey. In addition, the prevalence of metabolic syndrome among Filipinos is 5 percent or approximately 5 million people have diabetes (DM) in the Philippines. With the Philippines being endemic for TB, compounded by an upward trend of DM, there is a need to jointly address this tandem disease interaction. This study aims to mount a coordinated response to TB/DM with the following expectations: 1) improve the case detection rate for TB, 2) facilitate early management among patients, and 3) prevent a significant number of severe disease and deaths. Mixed methods are used to achieve the objectives including a systematic review and gray literature to estimate the magnitude of co-morbidity with TB and DM, records review specifically medical records on clinical charts of patients, cross-sectional survey on knowledge, attitudes, and practices of health care providers on TB/DM screening and care, focus group discussions comprising of program managers and technical advisors of the National Tuberculosis Program, and costing exercise on bidirectional screening of TB in diabetic patients and vice versa. Given the government`s commitment to the nationwide control of TB, the underexplored frontier of TB among diabetic patients can be among the stretch goals toward increased case detection, management and prevention efforts. Likewise, the increasing prevalence of diabetes in the country and the associated risk of TB transmission in a TB-endemic population suggest the need for raising awareness on the need for TB screening. However, there is a body of programmatic and operational research questions to answer before an integrated approach to bidirectional screening can actually be implemented.
    Keywords: Philippines, diabetes mellitus, tuberculosis, coordinated program response
    Date: 2014
  15. By: Dalmacion, Godofreda ; Juban, Noel R. ; Zordilla, Zenith
    Abstract: To improve PhilHealth`s benefits framework, enhance hospital services, and achieve one of the Universal Health Care`s thrusts, greater financial protection, the case-based payment (CBP) scheme was implemented in 2011. CBP is a provider payment scheme initially implemented with rates for the 23 most common medical and surgical cases. This study investigates what has happened with CBP after its nationwide implementation through the perspectives of the following stakeholders, such as PhilHealth, administrators of health facilities, and health care providers. This also concerns operational aspects of the implementation not an assessment whether CBP helped achieve Universal Health Coverage for the Philippines. The approach used in this study is a mix of qualitative methods including desk review of the legal framework of health financing, administrative orders related to CBP, key informant interviews, and survey on health care providers. Areas of implementation were thematically grouped into four categories based on the results of interviews and survey, namely: 1) administration and system, 2) human resources, 3) medical integrity, and 4) financing. Overall, CBP needs improvement on the turnaround time for reimbursements to both health providers and hospitals, electronic updating of claims, membership directory, and physicians` accreditation statuses, shifting of policies from different implementing agencies, transparency, and impact evaluation processes for health outcomes.
    Keywords: Philippines, PhilHealth, case-based payment, financial protection
    Date: 2014
  16. By: Narjes, Manuel ; Lippert, Christian
    Abstract: This study attempts at estimating, with a discrete choice experiment, the preference of longan (Dimocarpus longan) farmers for changes in the population of native bees and for three (widely recognized) strategies to conserve them in Chiang Mai Province, Thailand. Thereby, the part-worth utilities of these policy attributes were estimated with a conditional logit model, indicating a positive contribution, ceteris paribus, of the analyzed policy elements to the probability of a conservation policy profile being chosen. The inclusion of a cost attribute allowed the calculation of willingness to pay estimates. Significant taste heterogeneity was also identified within a mixed logit model.
    Keywords: Native Bee Conservation, Crop Pollination, Northern Thailand, Discrete Choice, Environmental Economics and Policy,
    Date: 2014–08
  17. By: Manasan, Rosario G. ; Parel, Danileen Kristel C.
    Abstract: The importance of tertiary education in promoting human development and improving the economy`s competitiveness has already been realized. However, state universities and colleges (SUCs) have always faced issues such as the quality of education, management and financial systems, and access, despite considerable funding support provided by the government. This study, which is an extension of a previous work to include all SUCs in the Philippines, aims to (i) review and assess the programs being offered by SUCs vis-a-vis their mandates, the courses being offered by other SUCs in the region, and the quality of graduates produced; and (ii) recommend courses of action to improve the relevance and quality of course offerings of the SUCs. A review of the mandates of the SUCs in the Philippines indicates that the mandates of a number of SUCs are fairly broad to start with. Beyond this, the charters of most SUCs allow them to offer programs outside of their core mandates. Given the broad mandates of SUCs, it is not surprising that there is substantial duplication in their program offerings relative to those of private higher education institutions (PHEIs) and other SUCs in the same region where they operate. Moreover, high rates of program duplication appeared to be associated by an increase in the number of programs offered by SUCs during the period. At the same time, the quality of instruction in Philippine higher education has remained stagnant at a low level over the years. Although SUCs perform better than PHEIs in over 84 percent of professional board examinations (PBEs), SUCs have been able to improve their advantage further relative to PHEIs in the last seven years in about 31 percent of the PBEs where SUCs have an edge over PHEIs, but the lead that SUCs used to enjoy in the early part of the period has been eroded in over 69 percent of these PBEs. More worrisome is the preponderance of SUCs/PHEIs with zero passing rates in many PBEs in 2004-2011. Furthermore, closer scrutiny of SUCs` passing rate in PBEs indicate that a good number of them post passing rates that are well below the national average passing rate year after year. Given these findings, it is recommended that (i) the Commission on Higher Education (CHED) enforces more vigorously its policy of closing existing programs of SUCs and PHEIs alike where these HEIs` performance is under par year after year; (ii) the CHED ensures that SUC program offerings comply with its policies, standards, and guidelines; (iii) the CHED weighs the advantages/disadvantages of centralization over decentralization with respect to the monitoring of SUCs; (iv) the CHED regional director becomes a regular member of the SUC Board; (v) the normative funding formula is adjusted so that SUCs do not get an additional subsidy from the national government for the additional enrollment resulting from their offering popular programs (i.e., SUCs may be allowed to offer popular programs provided they meet CHED standards and shoulder the full cost of doing so); and (vi) in order to uplift the overall quality of instruction, the more effective measures, such as faculty development and facilities upgrading, be considered.
    Keywords: Philippines, state universities and colleges (SUCs), private higher education institutions (PHEIs), program offerings, mandates, duplication, board exam, passing rates, quality, budget
    Date: 2014
  18. By: Banzon, Eduardo P. ; Lucero, J.A. ; Ho, B.L. ; Puyat, M.E. ; Factor, P.A. ; Young, F.J.
    Abstract: The government has decided to utilize the public-private partnership (PPP) program to help improve access to quality hospitals and health care facilities. This paper looks into the feasibility of implementing PPPs in the health sector. Review of literature, key informant interviews, and focus group discussions were conducted for the study. The Philippine hospital system was reviewed using five performance criteria, namely, improved health care access, equity, and quality, operating with maximum efficiency, and ensuring sustainability followed by the development of an assessment framework; the application of the said framework; and policy and program implementation recommendations for health PPPs. In order to improve the feasibility of PPPs in the health sector, it is recommended that the government use public-private investment partnerships as the definition for health PPPs, encourage public policy discussions on PPP and its relation to socioeconomic development, and develop a comprehensive communications program for PPPs. It needs to rectify shortcomings in previous PPPs and ensure absolute transparency and accountability in the entire PPP process. There is a need to amend the legal framework to ensure coherence of health PPPs. It should conduct joint capacity-building initiatives and develop and enforce an evidence-based decisionmaking process for PPPs. It needs to strengthen implementation of monitoring and evaluation and utilize the health system indicators in evaluation of PPPs. Finally, it should ensure universal PhilHealth membership to attract private sector.
    Keywords: Philippines, health, public-private partnership (PPP), public-private investment partnerships, public-private interactions
    Date: 2014
  19. By: Heerman, Kari E.R. ; Arita, Shawn ; Gopinath, Munisamy
    Abstract: This article compares the effects on global agricultural trade patterns of Asia-Pacific regional economic integration led by the United States versus that by China. Our analysis employs a Eaton-Kortum type model in which agricultural producers have access to technology with heterogeneous productivity. Unlike the standard Eaton-Kortum model, product specific-productivity is linked to a country’s land and climate characteristics and trade costs are product-specific. We derive a structural relationship between the probability a country has comparative advantage in a given export market for an individual agricultural product and the bilateral costs of trading that product controlling for the product-specific unit costs of production from a general equilibrium framework. We specify the relationship as a random coefficients logit model to estimate a country-specific distribution of trade costs and productivity across agricultural products. We use these estimated distributions to explore the set of bilateral relationships from which Asia-Pacific integration is likely to generate the largest shifts in agricultural trade patterns.
    Keywords: Asia-Pacific integration, agricultural trade, free trade agreements, Agricultural and Food Policy, International Relations/Trade,
    Date: 2015–11
  20. By: Batangan, Dennis B.
    Abstract: The Complete Treatment Pack (COMPACK) program is a medicine access program designed to reach the poorest of the poor with complete treatment regimens for the top most common diseases in the country. The program aims to address the increasing morbidity and mortality due to these common diseases and high out-of-pocket spending in medicines and health services for majority of Filipinos. COMPACK also aims to expand the choices and ensure access and availability of affordable quality generics to other segments of the population otherwise not included in the Pantawid Pamilyang Pilipino Program (4Ps) of the national government. This study is a formative evaluation of the Department of Health (DOH) COMPACK program which also aims to analyze its impact of the access to medicines program. The study utilized qualitative and quantitative research methods. The qualitative methods included key informant interviews, focus group discussions, and records review. The quantitative method included a survey done to determine the knowledge and attitude of the beneficiaries on the COMPACK program. The results of the qualitative study showed that the introduction of the COMPACK program flowed from the DOH regional offices to the local government units (LGUs) and that there were variable LGU processes for program adoption, integration to work programs and monitoring. The COMPACK medicines logistics management system however ensures that the medicines are delivered directly to the LGUs. The implementation of the COMPACK program depended a lot on the support of the LGU, capacity and efficiency of the rural health unit (RHU) staff, management skills of the LGU and RHU in weaving the COMPACK program into the existing programs and their working relationship with the DOH.
    Keywords: Philippines, medicine access program, Complete Treatment Pack program, access to essential medicines, pharmaceutical access and management, health benefits of conditional cash transfer beneficiaries, demand-side health benefits
    Date: 2014
  21. By: Briones, Roehlano M. ; Gundaya, Debbie M. ; Domingo, Sonny N.
    Abstract: The bus transport sector evolved from a highly regulated and concentrated market with a handful of players in the 1970s to a more liberalized albeit still regulated market with hundreds of small operators. Major reforms in bus transport regulation were carried out in the early 1990s and 2000s among which were more liberal policy and a supposed moratorium on new franchises. The current market operates under a complicated regime where regulation and enforcement is shared by several agencies. Market inefficiencies manifest in too many operators and buses, and indiscipline in the road adding to traffic congestion problems in the Metro. The fragmented nature of both the sector`s regulatory and supply side impedes synchronization among stakeholders and incurs huge costs to industry operators and the riding public.
    Keywords: competition policy, Philippines, bus transport sector, congestion cost, transport policy
    Date: 2015
  22. By: Era Dabla-Norris ; Yan Ji ; Robert M. Townsend ; D. Filiz Unsal
    Abstract: We develop a micro-founded general equilibrium model with heterogeneous agents to identify pertinent constraints to financial inclusion. We evaluate quantitatively the policy impacts of relaxing each of these constraints separately, and in combination, on GDP and inequality. We focus on three dimensions of financial inclusion: access (determined by the size of participation costs), depth (determined by the size of collateral constraints resulting from limited commitment), and intermediation efficiency (determined by the size of interest rate spreads and default possibilities due to costly monitoring). We take the model to firm-level data from the World Bank Enterprise Survey and World Development Indicators for six countries at varying degrees of economic development – three low income countries (Uganda, Kenya, Mozambique), and three emerging market countries (Malaysia, the Philippines, and Egypt). The results suggest that alleviating different financial frictions have a differential impact across countries, with country-specific characteristics playing a central role in determining the linkages and trade-offs among inclusion, GDP, inequality, and the distribution of gains and losses.
    JEL: C54 E23 E44 E69 O11 O16 O57
    Date: 2015–01
  23. By: Ismail, Abdul Ghafar (The Islamic Research and Teaching Institute (IRTI) ); Akbar, Sjaiful (The Islamic Research and Teaching Institute (IRTI) ); Ngalim, Siti Manisah (The Islamic Research and Teaching Institute (IRTI) )
    Abstract: This study tries to measure the effect of risk sharing in adding value to Islamic banks. In particular, this study is important to accurately gauging the impact of Islamic banking sector on the real economy. The adoption of risk sharing modes of contracts by Islamic bank as intermediary would leads to the fairness in serving the interest of community as a whole and is expected to promote value creation to the depositors, shareholders and eventually to the economy. In analysing the value added or wealth created by Islamic banks, we will use the Annual Reports of Islamic banks in Malaysia from 2008-2012. Our analysis will focus on main hypothesis, i.e., risk sharing create more value added and equitable distribution of wealth. Our finding shows that the adoption of risk sharing would lead to the fairness in serving the interest of community as a whole and is expected to promote value creation to the depositors, shareholders and eventually to the economy. The treatment on non-performing financing and investment risk allowance might change the distribution of wealth. Financial reporting based on contract might produce a more transparent distribution of wealth.
    Keywords: risk sharing; Islamic banks; value added; wealth distribution; economic development
    Date: 2015–01–19
  24. By: Holzmann, Robert (University of Malaya )
    Abstract: This policy paper presents key findings and suggestions on Malaysia's old-age financial protection system within the context of the country's broader social security framework. The trademark policy approach focusing on job creation instead of expanding social security programs served the country well to move it quickly to a high-middle income level. But to join the club of high-income countries in a sustainable manner may require the country to review its approach to social security, including the way old-age income support is provided, and to address the main current weaknesses: fragmentation across economic sectors, lack of an enabling political environment, incomplete benefit coverage, low mandated savings level, and inadequate disbursement options given the challenges of projected population aging and socioeconomic shifts. To address the old-age financial protection challenge, the paper outlines two key options for Malaysia's Employees Provident Fund, the country's central pension pillar: (i) moving from a mere retirement savings investment fund to a fully-fledged pension fund that offers some minimum annuities; or (ii) more radically, moving the benefits toward a Non-Financial Defined Contribution scheme with the fund's resources used as its major reserve fund. Whatever approach is considered, the reform discourse would benefit from changes in the overall governance structure of social security and from a comprehensive research agenda that offers an evidence based decision making.
    Keywords: Employees Provident Fund, social security, reform options, annuities
    JEL: H55 O16 J14
    Date: 2015–01
  25. By: Toshiyuki Matsuura ; Kazunobu Hayakawa ; Nuttawut LAKSANAPANYAKUL ; Yuta Watabe
    Abstract: Countries excluded from a regional trade agreement face disadvantages in tariffs when exporting to member countries. In this context, previous studies found that such excluded countries, i.e., outsiders, lower their export prices. In contrast, this study aims to examine not only prices but also the quality of outsiders' exports. Specifically, we first estimate the quality of products exported from each country to Thailand under certain tariff schemes. In addition to our estimates on cross-price elasticity, we use this measure to compute the potential magnitude of trade diversion for outsiders. Then, we investigate the relationship between this trade diversion and changes in the quality of exports from outsiders. Consequently, we found that only outsiders exporting higher quality products exhibited a greater improvement in quality to decrease the negative effect of tariff disadvantages. Length: 22 pages
    Date: 2014–10
  26. By: Juban, Noel R. ; Reverente, Benito Jr. R. ; Santos, Maria Socorro S.D.
    Abstract: Catastrophic illnesses can push a household into poverty by causing unmanageable, or catastrophic, expenditures for their treatment or management. Kalusugan Pangkalahatan aims to provide financial risk protection for the poor. Hence, insurance coverage for catastrophic illnesses need to be strengthened. However, the scope of the PhilHealth Z benefits, which was developed to protect Filipinos affected with certain medical conditions from financial catastrophe, are limited. This report provides an analysis of the feasibility of supplemental funds from the private sector, specifically from health maintenance organizations (HMOs) and self-insured companies, for the Z benefits program. Key informant interviews were conducted with representatives of PhilHealth, HMOs, and self-insured companies to determine the constraints, prospects, and requirements to implement a supplemental fund. Results were analyzed thematically. Establishing a supplemental fund from the private sector for catastrophic illness financing is currently not feasible. The supplemental fund can be lodged in PhilHealth or outsourced to HMOs. However, managing a supplemental fund would require operational, institutional, and legal changes to be made by PhilHealth. On the other hand, better regulation of the HMO industry is also required. Regardless of how the supplemental fund will be managed and implemented, it is imperative to conduct studies on the incidence and costing of catastrophic illnesses first to make the supplemental fund viable.
    Keywords: health maintenance organizations, Philippines, catastrophic illness financing, supplemental insurance, private health insurance
    Date: 2014
  27. By: Jae Kim ; Hristos Doucouliagos ; Hendrix College
    Abstract: Market efficiency is an important feature of successful financial markets. The aim of this paper is to analyze the available evidence on the efficient market hypothesis (EMH). Meta-regression analysis is applied to 1,560 estimates of the Variance Ratio test of the efficiency of Asian and Australasian stock markets. We test if there is evidence of violation of the EMH and we also explain the heterogeneity in the reported test results. Our meta-regression analysis specifically accommodates the possibility of publication selection in favor of accepting the null hypothesis of market efficiency. We find that Asian stock markets are, on average, not informationally efficient. However, market efficiency has improved over time and market capitalization and economic freedom influences stock market efficiency; more developed and less regulated stock markets are more efficient.
    Keywords: Random walk, meta-regression, efficient market hypothesis
    JEL: G10 G14
    Date: 2014–11–06
  28. By: Wongprawmas, Rungsaran ; Canavari, Maurizio ; Waisarayutt, Chutima
    Abstract: Thai government introduced a food safety label (Q mark) to help consumers recognizing produce with higher level of safety assurance. Producers and retailers are sceptical on whether Thai consumers place value on it, thus they are reluctant to apply to obtain certification and label. This study aims to estimate the value Thai consumers place on food safety labels for fresh produce using a discrete choice experiment approach and a mixed logit (RPL) model. A sample of 350 Thai consumers was surveyed in Bangkok in 2013. Thai consumers are willing- to-pay a premium price for food safety labelled produce over unlabelled ones.
    Keywords: food safety label, stated choice experiment, mixed logit, fresh produce, Thailand, Consumer/Household Economics,
    Date: 2014–08
  29. By: Caballes, Alvin B.
    Abstract: Financial protection of patients is considered a key component of health systems, and has been a consistent policy goal of the Department of Health. Of paramount importance in this regard are catastrophic health expenditures, which can severely restrict the access to much-needed services, contribute to (further) impoverishment, or result in both, for the affected patients and families. This study was undertaken to determine the institutional mechanisms for addressing these expenditures, and develop a framework to improve the existing arrangements. Focus group discussions (FGDs) and consultations were conducted for this study. Based on the inputs from the FGDs, the following recommendations are made: (1) A new definition of catastrophic health expenditures is proposed thus: "The situation applies when a patient’s condition requires medical interventions which are life or limb saving and determined to be clinically appropriate and cost effective, but attendant expenses are beyond the actual means of the patient (or family) at the time of need, whether due to time or resource constraints"; (2) The burden of financial support will be assigned to specific agencies, depending on care requirements (e.g., facilities to absorb costs of urgent care to be subsequently reimbursed by third-party payers; PhilHealth and PCSO to attend to intensive care; and PhilHealth and DSWD to finance chronic care); and (3) A dedicated unit will be established to further develop relevant policies and strategies for the integrated financing of catastrophic health expenditures.
    Keywords: Philippines, universal health care (UHC), catastrophic health expenditure, financial risk protection
    Date: 2014
  30. By: Nguyen Van, Phuong
    Abstract: The arrival of news plays an extremely important role in the stock market because it mainly drives the movement of the stock market. In this paper, therefore, we would like to investigate how the Vietnamese stock market responses to the arrival of news via applying the AR – EGARCH in Mean model. Our research result indicates that the arrival of bad news has a greater impact on the conditional volatility than the arrival of good news does. We also found that there exists a positive tradeoff between the stock market returns and conditional volatility in the Vietnamese stock market.
    Keywords: The Vietnamese stock market, unit root, ARCH effect, volatility.
    JEL: G00 G10
    Date: 2015–01–09
  31. By: Dela Cruz, Anna Mae D. ; Nuevo, Christian Edward L. ; Haw, Nel Jason L. ; Tang, Vincent Anthony S.
    Abstract: This study reviews literature on financing catastrophic health expenditures in selected countries to describe and synthesize the strategies of relatively successful health financing schemes. It begins with a review of basic concepts and definitions to set the stage for later discussions. This is followed by a country selection process, where countries were selected based on their income level, health outcomes, coverage outcomes, cost effectiveness, and the availability of information on their health financing strategies. Low-income, lower middle-income, and upper middle-income countries were selected, each one having above average outcomes and cost effectiveness relative to other countries within the same income level. The availability of information further limited the selection to three countries--Kyrgyz Republic, Sri Lanka, and Thailand--on which a desk review was conducted. The study presents the stories of each country and the common themes that emerged. The stories reveal that the causes behind catastrophic payments, specifically high out-of-pocket payments, vary, thus the strategies for addressing them also do. Health financing schemes were either set for the whole population or formulated to fit specific segments. All three countries increased the amount of funding available for health care, and did so mostly through taxation. Benefits are comprehensive, covering preventive, inpatient, and outpatient care with drugs and medicines. Payment methods were generally designed to use the available funds in a cost-effective manner by strengthening preventive primary care, and incentivizing efficiency in tertiary care facilities. Beyond that, change management factors that were common to most or all of the countries were: crises that created an impetus for change; strong public demand and participation; a political system that empowers the populace and creates political incentives for reform; commitment to a comprehensive, cohesive, and appropriate strategy; grit and responsiveness throughout the implementation period; monitoring and evaluation; and rapid but phased implementation.
    Keywords: health, health financing, catastrophic health financing, out-of-pocket expenditure
    Date: 2014
  32. By: Felipe, Jesus (Asian Development Bank ); Mehta, Aashish (University of California-Santa Barbara ); Rhee, Changyong (International Monetary Fund )
    Abstract: This paper asks, first, whether today’s developing economies can achieve high-income status without first building large manufacturing sectors. We find that practically every economy that enjoys a high income today experienced a manufacturing employment share in excess of 18%–20% sometime since the 1970s. Manufacturing output share thresholds are much poorer predictors of rich-country status than their employment counterparts. This motivates us to ask whether it is becoming more difficult to sustain high levels of manufacturing activity. We find that the maximum expected employment share for a typical developing economy has fallen to around 13%–15%, and that deindustrialization in employment sets in at much lower income per capita levels of $8,000–$9,000, than it once did. Neither manufacturing output shares, nor the level of income at which they decline have fallen as obviously. These results are consistent with the idea that industrialization in employment terms has been more important for eventual prosperity than has industrialization in output terms; and that high manufacturing employment shares are becoming more difficult to sustain as incomes rise. This suggests that the path to prosperity through industrialization may have become more difficult.
    Keywords: industrialization; inverted U-shape; manufacturing
    JEL: O14
    Date: 2014–11–01

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