nep-sea New Economics Papers
on South East Asia
Issue of 2015‒08‒30
25 papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Education in Southeast Asia: Investments, Achievements, and Returns By Phan, Diep; Coxhead, Ian
  2. The challenge of increasing and diversifying Argentina's exports in Asia: tariff restrictions By Kathia Michalczewsky
  3. Trade Finance: A Catalyst for Asian Growth By Lopez, Claude
  4. Lucky Countries? Internal and External Sources of Southeast Asian Growth By Phung, Tracy; Coxhead, Ian; Lian, Chang
  5. Political-Security, Economy, and Culture within the Dynamics of Geopolitics and Migration: On Philippine Territory and the Filipino People By John X. LAMBINO
  6. Human Security in Practice: The Philippine Experience(s) from the Perspective of Different Stakeholders By Atienza, Maria Ela L.
  7. Perception on Human Security: Indonesian View By Alexandra, Lina A.
  8. Achieving Universal Coverage; Lessons from the Experience of Other Countries for National Health Insurance Implementation in Indonesia By Misnaniarti, Misnaniarti; Ayuningtyas, Dumilah
  9. Female Labor Force Participation in Asia: Lessons from the Nordics By KINOSHITA Yuko; GUO Fang
  10. The Concept of Human Security in Vietnam By Dung, Pham Lan; Lan, Nguyen Ngoc
  11. Bank charter value, systemic risk and credit reporting systems: Evidence from the Asia-Pacific region By Wahyoe Soedarmono; Romora Edward Sitorus; Amine Tarazi
  12. Human Security in Practice in Thailand By Jumnianpol, Surangrut; Nuangjamnong, Nithi
  13. Imported Inputs in Indonesia’s Product Development By Lili Yan ING; Chandra Tri PUTRA
  14. The Effect of Disability and Gender on Returns to the Investment in Education: A Case from Metro Manilla of the Philippines By Lamichhane, Kamal; Watanabe, Takayuki
  15. Exchange Rate Regimes and Persistence of Inflation in Thailand By Jiranyakul, Komain
  16. Growth, green capital and public policies By Pierre-André Jouvet; Julien Wolfersberger
  17. Global poverty estimates based on 2011 purchasing power parity: Where should the new poverty line be drawn? By Nanak Kakwani; Hyun H. Son
  18. Chronic Poverty in Rural Cambodia: Quality of Growth for Whom? By Tsuruga, Ippei
  19. Investing in Higher Education, and Its Potential Impact on Research and Development for Technological Upgrading, Innovation, and Competitiveness By Robin SAKAMOTO
  20. Convergence of Aid Models in Emerging Donors?Learning Processes, Norms and Identities, and Recipients By Kondoh, Hisahiro
  21. Singapore’s Participation in Global Value Chains: Perspectives of Trade in Value-Added By Mun-Heng TOH
  22. Minimum wage through the looking glass By Kenn Ariga
  23. Banks and the World's Major Banking Centers, 2010 By Choi, Sang Rim; Park, Daekeun; Tschoegl, Adrian E.
  24. Human Security in Cambodia: Far From Over By Sovachana, Pou; Beban, Alice
  25. Second Liens and the Holdup Problem in Mortgage Renegotiation By Agarwal, Sumit; Amromin, Gene; Ben-David, Itzhak; Chomsisengphet, Souphala; Zhang, Yan

  1. By: Phan, Diep (Beloit College); Coxhead, Ian (University of WI)
    Abstract: Education and economic growth are highly complementary, especially in middle-income economies. In this chapter we review the performance and prospects for education in developing Southeast Asian countries. The prior Northeast Asian experience underlines the importance of investing in human capital ahead of growth in demand. Other than in Singapore, Southeast Asia's record is much less bright in this regard. In most of the region, shortages of qualified skilled workers threaten to impede transitions through middle income. The one exception is the Philippines, a remittance-oriented economy where growth in the supply of skills has long exceeded expansion of domestic demand. We begin with a brief summary of basic data on educational achievement, public funding and access. We then present more detailed discussions on two contemporary issues: the influence of rapidly changing economic conditions on returns to educational investments, especially as the region's economy becomes more closely integrated in Asian and global production systems; and the potential impediments to human capital accumulation posed by limited demand for education. Demand is constrained by opportunity cost, and in some cases by distortions in the market for capital, a factor complementary with skills. We conclude with a brief assessment of the regional outlook for human capital growth and implications for economic development and policy.
    Date: 2014–07
  2. By: Kathia Michalczewsky (LAMIH - Laboratoire d'automatique et de mécanique industrielles et humaines - CNRS - Université de Valenciennes et du Hainaut-Cambresis)
    Abstract: Argentina’s exports had a period of strong expansion during 2003-2008, in a context of high dynamism of world trade, stimulated by Asian economies -especially China-. Agricultural products were the ones that grew the most to these partners. But after the rebound of the crisis, the international context changed. Asian stimulus has desaccelerated and the prices of the commodities have started to fall, consequently Argentina’s exports have not been able to come back to the track of expansion that had before de crisis. In this new scenery, Argentina’s government created the Programa de Aumento y Diversificación de Exportaciones (PADEX), a plan aimed to improve the quantitative and qualitative performance of the country’s exports. The objective of this paper is to analyze if there is any tariff barriers that could block the possibilities of expand exports of a group of products –selected by measuring Argentina’s comparative advantage- to the selected partners. The results show important opportunities of rising exports of products like animal food, milk and cream, malt extract, tobacco, crustaceans and mollusks. Only a few countries of the group analyzed present relevant tariff barriers for these products. The countries with higher tariffs for Argentinian products are China, Korea and India. Philippines, Indonesia, Malaysia, Vietnam and, to a lesser extent, Thailand, show greater opportunities for Argentinian products.
    Abstract: Las exportaciones de Argentina tuvieron una etapa de fuerte expansión entre 2003 y 2008 en un contexto de alto dinamismo del comercio mundial, impulsadas especialmente por las economías asiáticas y en particular China. Las ventas de mayor crecimiento en ese período a esos destinos fueron los productos agropecuarios. Sin embargo, luego del rebote poscrisis el contexto internacional cambió. El estímulo de Asia se desaceleró y los precios de los productos básicos comenzaron a disminuir, consecuentemente las exportaciones Argentina no lograron retomar la senda de expansión de la etapa previa. En este nuevo escenario el gobierno argentino puso en marcha el Programa de Aumento y Diversificación de Exportaciones (PADEX) que buscar mejorar el desempeño de las ventas externas tanto en términos cuantitativos como cualitativos. El presente trabajo busca analizar si existen barreras arancelarias que podrían limitar las posibilidades de incrementar los envíos a un grupo de países asiáticos seleccionados, de un conjunto de productos en los que Argentina presenta ventajas comparativas. Los resultados muestran importantes oportunidades de expansión de las exportaciones de productos como alimentos para animales, leche y crema, extracto de malta, tabaco y crustáceos y moluscos; donde solo algunos países de la muestra presentan protección arancelaria relevante. Las economías con mayores niveles tarifarios para los productos argentinos son China, Corea e India; mientras que Filipinas, Indonesia, Malasia, Vietnam, y en menor medida Tailandia, muestran oportunidades de acceso a sus mercados con bajos aranceles.
    Date: 2015–04–29
  3. By: Lopez, Claude
    Abstract: This report first assesses the state of trade finance market in Asia, then it identifies the latest trend. Finally it provides a synopsis of the necessary steps that will help sustain trade growth in emerging Asia and insure its impact on GDP growth. The key points are as follows: (i) the impact of trade liberalization on countries ‘growth is very short lives in absence of financial deregulations, (ii) trade in Asian countries relies heavily on letters of credit (L/Cs) which leaves a lot of unmet credit needs, especially for SMEs, (iii) several alternatives are slowly emerging, from banks (factoring, supply chain finance), but also from non- banks (Global and Regional Value chains and inter-firm trade credit), (iv) on the investors’ side, trade receivable assets (via securitization or direct investment) is considered as an possibly attractive alternative due to new financial regulation and low interest rate, (v) trade receivable assets offer attractive alpha yield opportunities, consistent returns, low volatility, “real Economy” investment and lower defaults rates than any other interest based asset class, and a behavior uncorrelated to the market. Policy recommendations to help expanding lenders and investors/capital pool: streamlining the trade finance process, uniformisation of international regulations, strengthening of the institutions helping to mitigate risk, dematerialization of the process (use of technology)
    Keywords: trade finance, securitization,
    JEL: F1 F13 F3
    Date: 2015
  4. By: Phung, Tracy (University of WI); Coxhead, Ian (University of WI); Lian, Chang (University of WI)
    Abstract: For several decades, the economies of Southeast Asia have experienced average per capita GDP growth rates second only to China, and much higher than any other major world region. In this study we examine the sources of this growth. We ask whether countries of this region follow a common growth path relative to the rest of the developing world. We pay particular attention to two prominent features of virtually every Asian regional growth narrative--openness to international trade and factor flows, and spillovers from growth booms in large regional economies like Japan and China--which have not received adequate attention in previous quantitative growth analyses. Our results show that rapid income growth in Northeast Asia had significant spillover effects on Southeast Asian growth, and that these effects were significantly larger than for other developing regions. But within the region, growth outcomes have been differentiated in part by the degree of openness to international trade and factor flows. Thus, while the good luck of geographic proximity to the booming economies of Northeast Asia has been important, good policies also matter.
    Date: 2014–07
  5. By: John X. LAMBINO
    Abstract: The paper considers the interaction of the dual elements of the nation-state: territory and people. Particularly, it discusses the interaction of geopolitics and migration, i.e. the non-mobile territory and the mobile people, from the perspectives of political-security, economy, and culture, and how the interactions influence government policy focusing on the case of the Philippines.The paper ferrets-out the major factors in the geopolitical transformation of the Philippine Is-lands into the westernmost frontier of the United States, and how this geopolitical transformation created a migratory linkage from the Philippine Islands to the United States. The paper shows how migratory movements shaped the geopolitics of East Asia or Western Pacific before World War II by pointing out the following. One: The westward expansion of the American people ini-tially changed the geopolitical conditions in the American continent, and eventually changed the geopolitical make-up in the Western Pacific. Two: The migration of Filipinos to the United States was a key factor in the granting of Philippine independence, thereby reshaping the geopo-litical conditions in the Western Pacific region.The paper shows that the geopolitical transformation of the Philippine Islands came with the im-plantation of American culture and English language. The paper discusses how this cultural as-pect has functioned in terms of a migratory linkage by looking at the current migratory pattern of Filipinos. The paper then shows how the economic agreement the Philippines signed with the United States in 1946 to attain independence eventually led to the establishment of a migratory system as the Philippine government adopted of a labor export policy in the 1970s. The paper further shows the importance of remittances from overseas Filipinos to the Philippine economy.The paper elaborates and discusses how the political-security policies undertaken by the Philip-pines have been deeply influenced by both its geopolitical circumstance and the current situation of Filipino migration. Finally, the paper points out that the large presence of Filipinos overseas and the country’s dependence to their remittances are a cause of weakness for the Philippine state in maintaining a credible foreign and security policy.
    Keywords: Geopolitics in East Asia; Filipino Migration; Nation-state
    JEL: J61 F51 F52
    Date: 2015–08
  6. By: Atienza, Maria Ela L.
    Abstract: This paper explores how human security is viewed in the Philippines. The research collects and maps out perspectives and interpretations of human security among key stakeholders in the Philippines, namely academics, government officials and agencies, civil society groups, and local communities. The research methods employed are: review of academic literature, relevant policy documents, position papers, etc.; face-to-face or online interviews with different stakeholders; and focus group discussions with some local communities. The following are the major questions: (1) How do stakeholders and their institutions understand human security as a concept? (2) What are the different threats or risks to human security in the Philippines and the region? How can these be addressed or are these already being addressed? Who can address these risks and threats? (3) Has the concept of human security been mainstreamed in government and society? What are the future prospects of promoting the practice of human security in the country? Based on the study, there is an acknowledgement among different sectors in the Philippines of the importance of the human security concept, despite diverse understanding across sectors, in dealing with various threats and vulnerabilities faced by various groups in the Philippines. However, the concept itself needs further clarification and contextualization in the local setting to be better understood and used by a larger group of people. Currently, the concept is used by a limited group of people, mostly academics and some civil society groups. While there should be efforts to further clarify the concept, there should be efforts as well to make it understandable to more people, particularly those vulnerable to security threats and risks.
    Date: 2015–03–30
  7. By: Alexandra, Lina A.
    Abstract: Two decades after its inception in the Human Development Report 1994, the Human Security (HS) concept has gained certain traction among the policymakers as well as the civil society. Some stakeholders have welcomed the concept as a useful tool for elevating some issues that posed significant challenges to the security of the individuals within a country or more than a country at the same time. But some others consider the concept as too broad and all-encompassing, which needs more clarification in terms of its application, to take up some issues as security concerns. Therefore, it is timely to check the understanding on this HS so far and to what extent the concept has been considered suitable and useful to deal with challenges that may be considered as new or non- traditional security concerns. This paper aims to elaborate on the perception of different stakeholders on HS in Indonesia. The perception covers aspects such as definition of HS in relation to three basic elements, i.e., freedom from want, freedom from fear, and freedom to live in dignity; priority issues; protection and empowerment; and cross-border characteristics. It also examines sovereignty and the involvement of military instrument questions in dealing with issues that fall under the HS discussion. The study is based on in-depth interviews with different stakeholders that included policymakers (high-rank officials), ex-military officers, academics, and non-governmental organization activists. The paper is divided into three sections. The first section begins with an introduction of the HS concept, the research methodology, and some results of a survey by the Center for Strategic and International Studies (CSIS) on the perception of HS among the society. The second section broadly examines several acts/regulations that contain elements related to HS. It is interesting to note that while many regulations have been enacted to ensure freedom from want, freedom from fear, and freedom to live in dignity, none of the regulations actually include the word “Human Security.” This somehow may reflect a level of hesitancy among the policymakers to fully embrace the concept and use it as a policy tool, due to some perceptions on the intentions behind the delivery of the HS concept and in what direction that concept is heading to. These different perceptions of HS are then elaborated in the third section. Finally, it is hoped that this elaboration may provide a better knowledge of how the HS concept is being perceived in Indonesia.
    Date: 2015–03–30
  8. By: Misnaniarti, Misnaniarti; Ayuningtyas, Dumilah
    Abstract: Indonesia is not the only country that will lead to universal coverage. Several countries took an initiative to develop social security, through Universal Health Coverage (UHC) to achieve health insurance and welfare for all residents. Even, some countries have already reached universal health coverage since a few years ago. The purpose of this paper is to assess the achievement of universal coverage of the health insurance implementation in several countries. In general, some countries require considerable time to achieve universal coverage. Mechanisms and stages that need attention is on the univeral registration aspects that cover the entire population, progressive and continuous funding sources, comprehensive benefits package, the expansion of gradual coverage for diseases that can cause catastrophic expenditure, increasing capacity and mobilizing supporting resource. National Health Insurance policy in some countries can improve access to care, utilization and quality of quality health services to all citizens. Indonesia is expected to learn from the experience of other countries to achieve UHC, so that the projection of the entire population of Indonesia to have health insurance in 2019 will be reached soon.
    Keywords: Social Health Insurance, Health Policy, Universal Coverage
    JEL: H30
    Date: 2015–02
  9. By: KINOSHITA Yuko; GUO Fang
    Abstract: Both Japan and Korea are trying to boost female labor force participation (FLFP) as they face the challenges of a rapidly aging population. Though FLFP has generally been on a rising trend, the female labor force in both countries is skewed towards non-regular employment despite women's high education levels. This paper empirically examines what helps Japan and Korea to increase FLFP by type (i.e., regular vs. non-regular employment), using the structural vector autoregression (SVAR) model. In so doing, we compare these two Asian countries with two Nordic countries: Norway and Finland. The main findings are: (i) child cash allowances tend to reduce the proportion of regular female employment in Japan and Korea, (ii) the persistent gender wage gap encourages more non-regular employment, (iii) a greater proportion of regular female employment is associated with higher fertility, and (iv) there is a need for more public spending on childcare for ages 6-11 in Japan and Korea to help women continue to work.
    Date: 2015–08
  10. By: Dung, Pham Lan; Lan, Nguyen Ngoc
    Abstract: Human security is a concept that has caught the attention of governments and scholars around the world, despite having emerged only fairly recently. In most countries, however, the level of understanding of the concept and its related issues remains low. This study aims to determine how the concept of human security is understood in Vietnam. It begins with a review of the law and policies relating to human security in Vietnam. This review shows that the human security concept has not been acknowledged or regulated in any official documents of the State. The constituent elements of human security, however, can be distilled from legislation even though the connection to it is not explicitly made. A literature review pertaining to this issue also demonstrates that within the epistemic community, human security is not a common topic of discussion. Only a few authors have attempted to analyze it in the context of Vietnam. Finally, the findings gathered from interviews conducted with representatives from five sectors, including the government, epistemic community, civil societies, media, and private business, help provide a more accurate picture regarding the level of awareness of human security issues in Vietnam. In general, the interviewees were not familiar with the concept itself, but were able to quickly link it, and threats to human security, to different aspects of their lives. The research has also found that there is a high expectation that the government will assume a leading role in protecting and promoting human security in Vietnam.
    Date: 2015–03–30
  11. By: Wahyoe Soedarmono (Universitas Siswa Bangsa Internasional, Faculty of Business / Sampoerna School of Business); Romora Edward Sitorus (Universitas Siswa Bangsa Internasional, Faculty of Business / Sampoerna School of Business); Amine Tarazi (LAPE - Laboratoire d'Analyse et de Prospective Economique - UNILIM - Université de Limoges - IR SHS UNILIM - Institut Sciences de l'Homme et de la Société)
    Abstract: From a sample of publicly-traded banks in the Asia-Pacific region over the 1998-2012 period, we document that banks with higher charter value are able to insulate themselves from systemic risk by acquiring more capital. Nevertheless, we find that the self-disciplining role of bank charter value is more pronounced for countries with lower depth of credit information sharing. Our results also show that in countries with lower quality of private credit bureaus, higher charter value enhances capitalization, and alleviates systemic risk in banking. Overall, these findings suggest that higher bank charter value might be detrimental to systemic stability for countries where the credit reporting system is of better quality.
    Date: 2015–07–01
  12. By: Jumnianpol, Surangrut; Nuangjamnong, Nithi
    Abstract: The paper aims to examine the discursive practice of human security in Thailand both in terms of concept and operationalization. It particularly focuses on the questions of why and how Thai policymakers have imported and embraced the concept of human security in the Thai polity, as well as how they perceive values and challenges related to human security issues. By reviewing the literature and interviewing nine key informants from the government, non-government, and academic sectors, the paper contends that the positions of the Thai state on human security issues are Janus-faced. While seemingly mainstreaming human security issues, both by promoting the discourse abroad and by establishing a human security ministry, there is also a flipside to the process. Apart from the reductionist view of human security simply as social security for vulnerable groups the concept of “human security” is always secondary to ‘state’ or ‘national’ security. As a result, the Thai style of human security contains only a loose substance of the original and human security is still in the dark shadow of state security. Finally, the paper reveals that the discrepancy between the ideals and practices of human security in Thailand is ascribable to the vagueness of the concept in the eyes of policy stakeholders, the gap between policy architects and policy implementers, and the de-politicization of the concept.
    Date: 2015–03–30
  13. By: Lili Yan ING (Economic Research Institute for ASEAN and East Asia and University of Indonesia); Chandra Tri PUTRA (The Australian National University)
    Abstract: The paper argues that reductions in input tariffs will increase value added via product variety and quality. Using Indonesia’s firm and product level data from 2000 to 2010, the findings show that a reduction of one percent in input tariffs will increase value added by 0.2 percent, not only via its interaction with importing firms, but also with exporting firms that use imported products as their inputs. A onepercent reduction in input tariffs will increase product variety and quality by 3.5 percent and 1.5 percent, respectively. Exporting firms tend to have a higher value added than the average of all firms, and they also tend to have increased variety and higher quality of products. Foreign firms also tend to have a relatively higher value added than the general average, but they do not necessarily have increased product variety and higher quality.
    Keywords: : Indonesia, tariff, imported input, product variety, product quality
    JEL: F12 F13 L16 O14 O19 O24
    Date: 2015–08
  14. By: Lamichhane, Kamal; Watanabe, Takayuki
    Abstract: In this paper, we investigate the effect of gender on returns to the investment in education for men and women with disabilities in Metro Manila of the Philippines. By using a unique dataset of persons with hearing, physical and visual impairments, we employ three methodological strategies on earning functions, including continuous and discontinuous functions and quantile regression to reveal the effects of gender within disabilities. Our estimation suggests that women with disabilities face several disadvantages in the labor markets of the Philippines where gender equality in general is observed for women without disabilities. After controlling for a sample selection to account for endogenous labor participation, as well as endogeneity of schooling decisions, the estimated rate of returns to education is very high, ranging from 24.9 to 38.4%. However, when classifying each disability dummy variable for each gender, the effect of double disadvantage (gender and disability) is observable. Additionally, checking the possibility of nonlinear schooling returns, we also find that the effect of disability for women is more severe than for their male counterparts. From these findings, we cannot reject the possibility that obtaining a diploma serves signaling as their ability level for women with disabilities.
    Keywords: disability , gender , returns to education , labor market participation , earning functions , Philippines
    Date: 2015–04–01
  15. By: Jiranyakul, Komain
    Abstract: This study explored the degree of inflation persistence in Thailand using both monthly headline and sectoral CPI indices during the 1985-2012 period. The results showed that the degree of inflation persistence for the headline inflation did not exist under the fixed exchange rate regime, even though some sectoral inflation series exhibited persistence. Under the floating regime, the headline inflation persistence was low, but various sectoral inflation rates showed low to moderate persistence. Therefore, inflation persistence for the entire sample period was caused by the switch from fixed to floating regime. Furthermore, there seemed to be no monetary accommodation of inflation persistence under the floating regime. Based upon the results from this study, inflation targeting implemented in May 2000 to combat inflation might not fully reduce inflation to the target of price stability.
    Keywords: Inflation persistence, exchange rate regimes, monetary policy, inflation targeting
    JEL: C22 E31
    Date: 2015–08
  16. By: Pierre-André Jouvet (EconomiX, University of Paris Ouest, France); Julien Wolfersberger (Laboratoire d'Economie Forestière, INRA - AgroParisTech)
    Abstract: We study sustainable growth in an economy with natural land endowments, specifically forests, and the need for public policies to quantify the financial value of green capital, measured by forests. Exhaustible primary forests are first depleted for agriculture and production, until a switch occurs to the renewable secondary forests. The introduction of REDD+ in the economy reduces agricultural expansion, since the social planner invests in green capital, at the expense of the physical one. We show that the optimal REDD+ national strategy highly depends on the development stage of the recipient economy. In the end, we prove our findings by calibrating our model to Indonesia and illustrate recommendations for public policies.
    Keywords: Deforestation; Development; Forest Transition; Green capital; Growth
    JEL: Q15 Q23 Q32 Q56
    Date: 2015–06
  17. By: Nanak Kakwani; Hyun H. Son
    Abstract: This paper calculates a new global poverty line based on 2011 PPP. It moves away from the World Bank’s method of anchoring a single global poverty line on the national poverty lines of the poorest countries. To calculate a new global poverty line based on 2011 PPP, the paper proposes the use of equivalent poverty lines. Each country has a different equivalent poverty line. The paper demonstrates that there is no single poverty line in 2011 PPP that is equivalent to \$1.25 in 2005 PPP. Single poverty lines vary for each region since countries have experienced different inflation rates and have different PPP conversion rates between 2005 and 2011. To calculate a single poverty line in 2011 PPP, the paper measures the weighted average of equivalent poverty lines of 66 countries in Asia and Sub-Saharan Africa with weights proportional to their populations. The corresponding poverty line is calculated at \$1.78 in 2011 PPP. Using the proposed global poverty line of \$1.78 in 2011 PPP, the number of poor is reduced by 58.06 million with the reduction largely occurring in Asia.
    Date: 2015–08
  18. By: Tsuruga, Ippei
    Abstract: With the post-2015 era approaching, debates surrounding poverty have seriously started to consider what makes for quality growth in order to eliminate extreme poverty, rather than just reduce it. Zero poverty cannot be realised without tackling chronic poverty. However, due to lack of data and evidence, poverty-reduction policies hardly consider the particular situations and characteristics of the chronically poor. In order to fill such research gaps, this paper examines the trends and characteristics of chronic poverty in rural Cambodia between 2004 and 2010. Applying a blend of nationally representative qualitative (participatory poverty assessment) and quantitative sources (household survey), I primarily estimate chronic poverty headcount rates, based on criteria defined by the poor. Surprisingly, despite the excellent progress in economic development, the chronic poverty headcount ratio barely improved from 11 percent. The result implies that rapid economic growth has successfully raised the consumption of chronically poor households, but had done little to help them accumulate productive assets and human capital to break a vicious cycle of poverty. Structural constraints are identified in their demographic and socioeconomic characteristics, including: limited asset ownership, low human development, female heads of household, high child dependency, fewer economically active members, small household size, and many young members. From a policy perspective, one striking finding is that consumption measurements based on the current national poverty line cannot be used to identify a majority of the chronic poor. This is not merely a matter of different measurement applications, because the chronically poor identified in this study are just as deprived as the consumption-based poor in some other attributes like human development. The evidence suggests that poverty reduction programs should take into consideration the multidimensional criteria identified here to avoid leaving the chronically poor behind in the country’s development. This policy implication is particularly important for targeting mechanisms of social protection instruments implemented under the National Social Protection Strategy, which are key measures in ending poverty in Cambodia.
    Keywords: chronic poverty , combining methods , social protection , targeting , Cambodia
    Date: 2015–04–01
  19. By: Robin SAKAMOTO (Kyorin University)
    Abstract: The aim of this paper is to review the state of higher education development in ASEAN and formulate how research and development should proceed post 2015 to ensure technological upgrading, innovation and competitiveness.
    Keywords: Higher Education, Research and Development, Innovation
    Date: 2015–08
  20. By: Kondoh, Hisahiro
    Abstract: This paper analyses aid models of emerging economies in terms of their orientation to the OECD Development Assistance Committee (DAC) aid model. This paper first provides a short literature review. After summarizing the DAC aid model, several hypotheses to account for the convergence process of aid models are considered, followed by a discussion of how recipient perceptions of desirable aid may also work indirectly to promote both the convergence and divergence of aid models. In addition, this paper considers the hypothesis that the convergence and divergence of aid models may be promoted and inhibited by a donor’s learning of other models as well as predominant norms and identities, which are shared by major aid-related stakeholders. Secondly, this paper provides a brief overview of some characteristics of individual donors such as China, India, South Africa and South Korea and Arab countries. Arab donors have created an Islamic aid model, China utilizes an emerging superpower aid model, South Africa advocates a Southern hybrid aid model, and South Korea has established an Asian DAC aid model. While China and India have kept their distance from the DAC aid model, the aid models of South Africa and Arab donors have incorporated elements of the DAC aid model, with the Korean aid model introducing it most completely. Thirdly, the paper will explore how the perceptions of recipients, donor learning from other donors, and the norms and identities of emerging donors may influence different levels of convergence of aid models. In terms of recipient perceptions, Chinese aid has generally been appreciated partially because the approach is distinct from the DAC aid model. South Africa has neighboring countries that are cautious about the asymmetric relationship and trade dependency on South Africa. To ease their concerns, South Africa incorporated elements of the DAC aid model, while offering some kind of assistance through the Southern African Customs Union (SACU) and DBSA. Donor learning of other models is relevant to South Africa and South Korea. Identities and norms of donors are quite influential in building and re-building the aid models. China has a ‘superpower identity’ and Arab donors have a ‘religious identity’; these outstanding identities and norms underlie their unique aid models, which potentially challenge the established international aid regime. Unlike ‘norm-makers’ in China, middle powers in the South and North, as ‘norm-takers’, follow international aid regimes, regardless of the difference in convergence levels. South Africa balances the DAC aid model with African solidarity, while South Korea, as a full member of DAC, may promote strong convergence.
    Keywords: international aid regime , DAC , convergence , aid models , norms and identities
    Date: 2015–07–15
  21. By: Mun-Heng TOH (National University of Singapore)
    Abstract: This paper reviews the cluster-based development strategy adopted in Singapore. That strategy has enabled Singapore to be plugged into global value chains (GVAs) to benefit from inflows of foreign investment and participation in international trade. The OECD-WTO Trade in Value-Added (TiVA) database was made public recently and has been mostly used in studies relating to trade policies and GVCs. This paper makes use of information and indicators of GVC participation from the TiVA database with specific reference to Singapore. New concepts and the implications of trade in value-added are appraised to provide new perspectives of, and prospects for, continued sustainable growth of Singapore’s economy.
    Keywords: global value chain, trade in value-added, cluster development, agglomeration, foreign direct investment
    JEL: F14 F24 O19 O24
    Date: 2015–07
  22. By: Kenn Ariga (Institute of Economic Research, Kyoto University)
    Abstract: We investigate impacts of two major increases in minimum wage of Thailand in 2012, and 2013. In spite of the large increase in average wage induced by the hike, the e¤ect on employment is positive. Given that roughly 40% of daily wage samples are less than the minimum, we build and estimate a model that incorpo- rate (minimum wage) compliance decision. We use the switching regressions to estimate the gap in wages between above and below minimum wage. This gap is sizable and statistically signi…cant for daily wage, but small and statistically insigni…cant for monthly wage. When the employer's probability for compliance is included in the employment probability of individuals, we …nd that the higher compliance rate positively in- fluence the employment probability. These …ndings strongly suggest that the minimum wage hike in 2012~13 induced north-eastward shift of the equilibrium along the labor supply schedule. In the last part of the analysis, we o¤er a va- riety of circumstantial evidence in support of tacit collusion among large scale employers in setting daily wages.
    Keywords: minimum wage, minimum wage compliance, Thailand
    JEL: J31 J38 J42
    Date: 2015–08
  23. By: Choi, Sang Rim (Hanyang University); Park, Daekeun (Hanyang University); Tschoegl, Adrian E. (University of PA)
    Abstract: We update three earlier articles on the determinants of interpenetration of financial centers by banks by adding the year 2010 to our analyses for 1970 and 1980, 1990, and 2000. In addition, we also re-estimate our model to include data for Beijing/Shanghai, and add those emerging centers for 2010. First, the number of banks in our data and the number of their offices in other centers has fallen by 46% and 24% since peaking in 1990. Second, even so our matrix saw less turbulence than in the prior two decades as density and number of presences in other centers per bank increased. Third, London had regained the first place from New York. Tokyo remains in fifth place after Hong Kong and Singapore. Once one includes Beijing/Shanghai, the Chinese centers now rank first and Tokyo sixth. Fourth, Paris and Frankfurt/Hamburg have regained some centrality. Fifth, our gravity model approach continues to model the data well, with distance between centers continuing to depress interpenetration between centers as it did in 2000. Lastly, the primary effect of introducing Beijing/Shanghai as a center has increased the importance of interpenetration as banks from Beijing and Shanghai are going to centers from which banks are coming to Beijing and Shanghai.
    Date: 2014–10
  24. By: Sovachana, Pou; Beban, Alice
    Abstract: The concept of human security is based on the fundamental principles of ‘freedom from fear’ and ‘freedom from want’ through the 1994 Human Development Report of the United Nations Development Programme (UNDP).1 It argues for a shift from a state-centric view of security to one that focuses on the security of every individual. Human Security is about protection and empowerment of the individual. It tackles general threats to human existence and finds ways to overcome these threats, recognizing that the state itself can at times be a threat to its own people. This report aims to understand how the internationally minted notions of human security and insecurity are perceived and interpreted by Cambodian people, and what suggestions people may offer for mitigating threats to human security. We conducted interviews and focus groups with people in diverse sectors including government, academics, civil society, rural and urban communities, media, students, and Buddhist monks. Our research suggests that when we replace the discourse of security in Cambodia with the concept of human security, it opens new conversations toward understanding and responsiveness to human rights and human development.2 We argue that the connected, multi-dimensional insecurities in Cambodia can be revealed through taking a broad approach to human security that recognizes ‘freedom from fear’, ‘freedom from want’, and ‘freedom to live in dignity’ as inter-related in ways that may be contradictory. Currently much of the debate about the referent of security is too focused on either protection or empowerment; the voices of our research participants lead us to suggest that security comes from communication and dialogue between government and communities, and the importance of ‘cooperative leadership’.
    Date: 2015–03–26
  25. By: Agarwal, Sumit (National University of Singapore); Amromin, Gene (Federal Reserve Bank of Chicago); Ben-David, Itzhak (OH State University); Chomsisengphet, Souphala (US Office of the Comptroller of the Currency); Zhang, Yan (US Office of the Comptroller of the Currency)
    Abstract: Loss mitigation actions (e.g., liquidation or renegotiation) for delinquent mortgages might be hampered by the conflicting goals of claim holders with different levels of seniority. Although similar agency problems arise in corporate bankruptcies, the mortgage market is unique because in a large share of cases junior claimants, in their role as servicers, exercise operational control over loss mitigation actions on mortgages owned by senior claimants. We show that servicers are less likely to act on the first lien mortgage owned by investors when they themselves own the second lien claim secured by the same property. When they do act, such servicers' choices are skewed towards actions that maximize the value of their junior claims, favoring modification over liquidation and short sales and deeds-in-lieu over foreclosures. We also show that such servicers find it more difficult to avoid taking actions on second lien loans when first liens are modified and that they do not modify their second lien loans on more concessionary terms. We show that these actions transfer wealth from first to second liens and moderately increase borrower welfare.
    JEL: G21
    Date: 2014–02

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