nep-sea New Economics Papers
on South East Asia
Issue of 2016‒05‒21
forty papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Integrated Internal-External Shariah Audit Model: A Proposal towards the Enhancement of Shariah Assurance Practices in Islamic Financial Institutions By Shafii, Zurina; Abidin, Ahmad Zainal; Salleh, Supiah
  2. Socioeconomic Inequity in Excessive Weight in Indonesia By Aizawa, Toshiaki; Helble, Matthias
  3. Quality of Life among Elderly in Elderly Clubs of Three Southern Border Provinces of Thailand By Paiboon Chaosuansreecharoen; Kannika Ruangdej Chaosuansreecharoen
  4. Impact of the Integrated Pest Management Program on the Indonesian Economy By Budy P. Resosudarmo
  5. Power Grid Interconnections in East Asia: Investment in Several Key Projects Are Well Justified By LI YANFEI
  6. Fatwa as an Authority in Secular Courts of Malaysia By Mohd Kamel Mat Salleh; Mohd Al Adib Samuri; Mohd Izhar Ariff Mohd Kashim
  7. Asia Bond Monitor September 2015 By Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB)
  8. Travel Behaviors of Thai and Foreign Tourists Traveling to Surat Thani Province By Chuleewan Praneetham; KONGSAK THATHONG; NONGNAPAS THIENGKAMOL
  9. Higher Education Policies in Promoting ASEAN Community: The case of Myanmar By Koolchalee Chongcharoen; Ratana Daungkaew
  10. The Economic Valuation of Mangroves: A Manual for Researchers By Camille Bann
  11. Fossil Fuel Subsidies in Indonesia: Trends, Impacts, and Reforms By Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB)
  12. Organophosphate and Carbamate Residual Levels in Vegetables of Trang Municipality By Kannika Ruangdej Chaosuansreecharoen; Patjamai Dumtip
  13. Coordination Issues in Thailand's Broiler Value Chain By Voeun, Soma; Griffith, Garry
  14. Agent-Based Model for River-Side Land-living: Portrait of Bandung Indonesian Cikapundung Park Case Study By Situngkir, Hokky
  15. Estimating the Constant Elasticity of Substitution Function of Rice Production.The case of Vietnam in 2012. By BUI, LINH; HOANG, HUYEN; BUI, HANG
  16. Economy and Environment: Case Studies in Vietnam By Herminia Francisco; David Glover
  17. ASEAN Economic Community: what model for labour mobility?1 By Daniel Rais
  18. Economic Impacts of Artificial Reefs: The Case of Fisher Households in Peninsular Malaysia By Shaufique Sidique; Kusairi Mohd Noh; Gazi Md Nurul Islam; Aswani Farhana Mohd Noh
  19. Lessons from enterprise reforms in China and Vietnam By Alberto, Gabriele
  20. Trick of the light? The U.S. economy, global growth, and international risks in perspective. A speech at the Lee Kuan Yew School of Public Policy and U.S. Embassy Speaker Series, Singapore, Singapore, March 29, 2016 By Williams, John C.
  21. Different countries same partners: Experimental Evidence on PTA Partner Country Choice from Costa Rica, Nicaragua and Vietnam By Daniel Rais
  22. What Role Can Traditional Irrigation Play in Rural Development? A Study from Northern Thailand By Arriya Mungsunti
  23. The Role of China, Japan, and Korea in Machinery Production Networks By OBASHI Ayako; KIMURA Fukunari
  24. The Effect of Halal Requirement Practices on Organization Performance among Food Manufactures in Malaysia By Baharudin Othman; Sharifudin Md. Shaarani; Arsiah Bahron
  26. Status Goods: Experimental Evidence from Platinum Credit Cards By Gautam Rao; Leonardo Bursztyn; Stefano Fiorin; Bruno Ferman; Martin Kanz
  27. How to Best Phase Out Non-optimal Subsidies: The Case of Indonesia's Fuel Subsidy By Rimawan Pradiptyo; Gumilang Aryo Sahadewo
  28. How to Make Shrimp Fishing More Sustainable: A Study from Thailand By Kunlayanee Pornpinatepong; Pathomwat Chantarasap; Jumtip Seneerattaprayul; Wittawat Hemtanon; Papitchaya Saelim
  29. Regional Transport Infrastructure: Mapping Projects to Bridge South Asia and Southeast Asia By Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB)
  30. Greening the Leather Tanning Industry - A Study from Vietnam By Le Ha Thanh
  31. How Can Vietnam Adapt to Flooding and Climate Change? A Cost-Benefit Analysis By Bui Dung The; Bui Duc Tinh
  32. Assessing Natural Capital: The Case of Sogod Bay, Philippines By Ma. Salome B. Bulayog; Humberto R. Montes, Jr; Suzette B. Lina; Teofanes A. Patindol; Adelfa C. Diola; Eliza D. Espinosa; Analyn M. Mazo; Julissah C. Evangelio; Art Russel R. Flandez; Marianne A. Gesultura; Ris Menoel R. Modina
  33. Trust in trade: The causal role of social trust on individual trade preferences By Daniel Rais
  34. The long-term impact of war on health By Michael Palmer; Cuong Nguyen; Sophie Mitra; Daniel Mont; Nora Groce
  35. Post-EPIRA Impacts of Electric Power Industry Competition Policies By Navarro, Adoracion M.; Detros, Keith C.; dela Cruz, Kirsten J.
  36. Decison-making for maritime innovation investments: The significance of cost benefit and cost effectiveness analysis By GIULIANO, Genevieve; KNATZ, Geraldine; HUDSON, Nathan; SYS, Christa; VANELSLANDER, Thierry; CARLAN, Valentin
  37. Housing Policies in Hong Kong, China and the People’s Republic of China By Jing Li, Victor
  38. Using Market Mechanisms to Improve Fishery Production - A Case Study from Thailand By Kunlayanee Pornpinatepong
  39. The Impact of Improving Capital Stock on the Utilization of Local Health Services: Preliminary Findings on the Evaluation of the Health Facilities Enhancement Program By Picazo, Oscar F.; Dela Cruz, Nina Ashley O.; Ortiz, Danica Aisa P.; Pantig, Ida Marie T.; Aldeon, Melanie P.; Tanghal, Juan Alfonso O.
  40. Can Free Trade Be Clean Trade? By Rafaelita M. Aldaba; Caesar Cororaton

  1. By: Shafii, Zurina (Universiti Sains Islam Malaysia, Nilai, Malaysia.); Abidin, Ahmad Zainal (RHB Investment Bank); Salleh, Supiah (Universiti Sains Islam Malaysia, Nilai, Malaysia.)
    Abstract: Shariah Governance and audit is one of the vital elements of corporation as it promotes principles of accountability, transparency and Shariah assurance of IFIs to the stakeholders. In addition to the clear structure of the organs of Shariah governance namely the Board of Directors, Shariah Committee and the Management, an Islamic Financial Institution (IFI) must ensure the Shariah compliance function to be carried out through the Shariah review and Shariah audit functions. The studies conducted on the practice of Shariah review and audit in the jurisdictions adopting Islamic finance revealed that both functions are conducted inconsistently. Many jurisdictions are yet to offer independent Shariah assurance as they only managed to perform Shariah review function. Shariah review serves as compliance function that provide review to the management on the state of IFIs’ Shariah compliance. Shariah audit, on the other hand, is an independent exercise that aims to examine the effectiveness of the internal control for Shariah compliance within the organization. Both of the functions serve as the Shariah assurance mechanisms that ensure robust practice of Shariah-compliant activities. This study identifies the practice of Shariah audit among GCC countries, namely Bahrain, Saudi Arabia, Kuwait, UAE and Qatar and in Islamic Development Bank’s member countries where Islamic finance is adopted as part of the mainstream finance, i.e. Sudan, Pakistan, Indonesia and Malaysia. Upon identifying the practice of Shariah assurance mechanisms, this study develops a model for Shariah audit that integrates the internal and external Shariah audit function. This study identifies the scope of Shariah audit that is to be performed by internal Shariah auditors and external Shariah auditors. In order to formulate the integrated internalexternal Shariah audit model, this study qualitatively analyses the arguably the most comprehensive guideline on Shariah governance Framework issued by Bank Negara Malaysia in 2010 and other guidelines issued in jurisdictions practicing Islamic finance that forms guiding principles for Shariah audit conduct. For the external Shariah audit function, the study refers to the standards that are applicable to Islamic financial transactions issued by the International Financial Reporting Standard (IFRS). This study is useful for policymaking in the jurisdictions that offer Islamic finance, with relation to Shariah assurance mechanisms, especially on policies related to Shariah audit conduct. The integrated model of internal-external Shariah audit will promote efficiency and effectiveness of Shariah audit practice in IFIs.
    Keywords: Shariah assurance; Shariah audit; Integrated Shariah audit model
    JEL: M41 M42
    Date: 2015–05–18
  2. By: Aizawa, Toshiaki (Asian Development Bank Institute); Helble, Matthias (Asian Development Bank Institute)
    Abstract: Exploiting the Indonesian Family Life Survey, this paper studies the transition of socioeconomic related disparity of excess weight, including overweight and obesity, from 1993 to 2014. First, we show that the proportions of overweight and obese people in Indonesia increased rapidly during the time period and that poorer income groups exhibited the strongest growth of excess weight. Using the concentration index we find that prevalence of overweight and obesity affected increasingly poorer segments of Indonesian society. Third, decomposing the concentration index of excess weight in 2000 and 2014 for both sexes, our results suggest that most parts of the concentration index can be explained by the unequal distribution of living standards, sanitary conditions, the possession of vehicles, and home appliances. Finally, decomposing the change in the concentration index of excess weight from 2000 to 2014, we show that a large part of the change can be explained by the decrease in inequality in living standards, and improved sanitary conditions and better availability of home appliances in poorer households.
    Keywords: Obesity prevalence; socioeconomic disparity; Indonesian Family Life Survey
    JEL: I14 I15 I18 I24
    Date: 2016–05–15
  3. By: Paiboon Chaosuansreecharoen (Sirindhorn College of Public Health, Trang); Kannika Ruangdej Chaosuansreecharoen (Sirindhorn College of Public Health, Trang)
    Abstract: Aim: This study aimed to measure the quality of life (QoL) among elderly in strong elderly club of three southern border provinces and to identify its some determinant factors.Background: The insurgence of violence in three southern border provinces of Thailand that began in January 2004 is directly or indirectly affecting the lives of up to a million elderly living in Narathiwat, Pattani, and Yala. The violence included bomb attacks and daily killings of state officials and local villagers. Currently, the violence has increased in complexity, frequency and severity. Thai Government is concerned with providing for sustained social welfare for the aging population. The government implemented a policy of elderly club in all sub-districts, places where older persons in the local area can gather and enjoy social activities. Thus, it is believed that the elderly club is one strategy to improve well-being among elderly living in three southern border provinces. Methods: This was cross-sectional survey of a random sample of members of strong elderly club in three southern border provinces. The constructively QoL was measured on economic, social, environmental, health, and attitudinal domain. The study participants were interviewed at their elderly clubs. Descriptive statistics were used in this study. The analytical procedure of stepwise multiple regressions were conducted to predict QoL determinant.Findings: The results revealed that elderly who were member of the strong elderly club in three southern border provinces showed high level of QoL (Economic domain = 54.4%, Social domain = 76.8%, Environmental domain = 97.6%, Health domain = 69.6%, Attitudinal domain = 94.4% and Total QoL = 86.8%). The stepwise multiple regression analysis indicated that the best fit model included six predictors of frequency of elderly club participation, having money saving, social capital on social network component, life satisfaction and happiness, feeling of safety from violence and age. All six predictors could explain 59.9% of the variance of QoL. Of the six predictor variables, a stepwise multiple regression analysis indicated that frequency elderly club participation was most strongly related to QoL. Age was negative associated with QoL.Implications: The result has shown that active members have higher QoL than non-active members. Thus, the community must recognize the value of nurturing the well-being of the elderly in order to maintain an active club that enhances the quality of life of the elderly in the three southern border provinces.
    Keywords: Quality of Life, Elderly Club, Three Southern Border Provinces of Thailand
    JEL: I00
  4. By: Budy P. Resosudarmo (Australian National University)
    Abstract: The excessive use of pesticides in Indonesia during the 1970s and 1980s caused serious environmental problems, such as acute and chronic human pesticide poisoning, animal poisoning, the contamination of agricultural products, the destruction of both beneficial natural parasites and pest predators, and pesticide resistance in pests. To overcome these environmental problems, the Indonesian government implemented an integrated pest management (IPM) program from 1991 to 1999. During that time, the program was able to help farmers reduce the use of pesticides by approximately 56% and increase yields by approximately 10%. However, economic literature that analyzes the impact of the IPM program on household incomes and national economic performance is very limited. The general objective of this research is to analyze the impact of the IPM program in food crops on the Indonesian economy and household incomes for different socioeconomic groups.
    Keywords: Integrated Pest Management, Indonesia
    Date: 2016–04
  5. By: LI YANFEI (Economic Research Institute for ASEAN and East Asia (ERIA))
    Abstract: The recent ERIA report on 'Effective Power Infrastructure Investment through Power Grid Interconnections in East Asia' aims to support existing initiatives--the ASEAN Power Grid and Greater Mekong Subregion Power Master Plan--by quantitatively showing the possible economic and environmental benefits of such power grid interconnections. The study team selected specific candidate routes of cross-border transmission lines for further examination. They carried out the preliminary project planning and per kilowatt-hour cost estimation for the selected cross-border lines. The estimated results indicate that although these are capital-intensive projects, attainable benefits seem to be large enough to justify the investment well.
    Date: 2016–01
  6. By: Mohd Kamel Mat Salleh (National University of Malaysia); Mohd Al Adib Samuri (National University of Malaysia); Mohd Izhar Ariff Mohd Kashim (National University of Malaysia)
    Abstract: Fatwa has been recognized as one of the sources of Islamic law in Malaysia. Fatwa issued by a Mufti's office becomes a reference to the Shariah court on any unresolved disputes and legal issues. Accordingly, the position of fatwa in civil court (a secular court) is called into question as there are many cases that refer to the fatwa ruling in such court. The extent of fatwa and views of mufti as authority in the Malaysian civil court has yet been explored as scope of discussion by many scholars. Thus, this article is a discussion on position of fatwa authority in the ruling of civil courts. This study was conducted using document analysis method on court cases to determine whether the views of mufti and fatwa being issued were really taken as reference and authoritative in the Malaysian civil court. The study found that secular court refers to fatwa in some cases and fatwa does affect the decision of the court ruling. However, in some other cases, the court did not refer to the fatwa ruling despite the availability of relevant fatwa. This study is important not only to reflect the position of fatwa as an authoritative source of law in the judicial system in Malaysia but also the influence of fatwa over the secular civil court.
    Keywords: Mufti, fatwa authority, civil court, expert evidence
  7. By: Asian Development Bank (ADB); Asian Development Bank (ADB) (Economic Research and Regional Cooperation Department, ADB); Asian Development Bank (ADB) (Economic Research and Regional Cooperation Department, ADB); Asian Development Bank (ADB)
    Abstract: This publication reviews recent developments in East Asian local currency bond markets along with the outlook, risks, and policy options. It covers the 10 members of the Association of Southeast Asian Nations plus the People’s Republic of China; Hong Kong, China; and the Republic of Korea.
    Keywords: bonds, local currency, foreign currency, bond yields, emerging East Asia, bonds outstanding, bond issuance, bond market, foreign investor holdings, People’s Republic of China, Hong Kong, China, Indonesia, Republic of Korea, Malaysia, Philippines, Singapore, Thailand, Viet Nam, credit spreads, government bonds, corporate bonds, treasury bonds, Islamic bonds, sukuk, shari’ah, principle, Federal Reserve, Islamic financial markets
    Date: 2015–09
  8. By: Chuleewan Praneetham (Suratthani Rajabhat University); KONGSAK THATHONG (Khon Kaen University); NONGNAPAS THIENGKAMOL (Mahasarakham University)
    Abstract: Increasing of tourists’ number has impact on the tourism economy and the change in the structure of the local economy and society. Therefore, the purpose of this research was to study travel behaviors of Thai and foreign tourists traveling to Surat Thani Province, Thailand, in order to be guideline for the tourism planning and development in the province, which can lead to effectiveness of tourism strategy and marketing to suit the needs of tourists and targets group. There were 798 samples in total. The data collection tool was the questionnaires. The frequency, percentage, mean, and standard deviation were used to analyze the data. The study found that tourists between the ages of 21 and 30, who had graduated with a bachelor’s degree, and worked in private business or company, mostly chose to travel to Koh Samui, Koh Phangan, and Koh Tao, respectively. Most of them chose to travel with family and friends with the aim of natural attraction. The findings revealed that most of tourists received information from the internet, friends telling and television, respectively. Time of spending was less than one week and travel cost was between 1,001- 2,000 Baht (between USD 30 - 62) per day. Moreover, the findings found that most of tourists were satisfied in transport quality at good level. However, travel cost, accommodation quality, accommodation cost, and security conditions were found at moderate levels. The overall satisfaction of the visit to Surat Thani province was at good level.
    Keywords: Travel, Behavior, Tourists, Surat Thani
    JEL: Z00
  9. By: Koolchalee Chongcharoen (Sukhothai Thammatirat Open University); Ratana Daungkaew (Sukhothai Thammatirat Open University)
    Abstract: The purposes of this paper were to present a general overview of the background of Myanmar higher education, the higher education policy formulation, and the faced challenges related to its higher educational policies for promoting ASEAN community. In order to achieve the purposes, two research methods; documentary research and in-depth interviews were employed. The purposive random sampling was used to select the participants. The key informants were the executives in higher educational policy setting and the stakeholders. The data were analyzed by content analysis. The study demonstrated that higher institutions in Myanmar have been under the supervision of 13 ministries and are allocated budgets by Ministry of Education. At the same time, the universities are concerned with their own governance, administration, and respective ministries. The findings showed that the policy development process of the higher education has gradually transition from the highly centralized to be the part of the participation of many relevant groups from educational stakeholders. The research also revealed the faced challenges related to Myanmar higher educational policies for promoting ASEAN community. The major challenges were concern with student equity, access, autonomy and choices; language; information technology and facilities; human resource; financial; research; and quality assurance and credit transfer.
    Keywords: higher education policy; ASEAN community; Myanmar
  10. By: Camille Bann (Cambodia)
    Abstract: This manual on the Economic Valuation of Mangroves has been compiled and developed from a number of sources as an aid to researchers in Southeast Asia involved in the evaluation of mangrove ecosystems. A companion EEPSEA manual 'The Economic Valuation of Alternative Tropical Forest Land Use Options' (Bann, 1997) contains a more detailed theoretical discussion of the issues and valuation approaches presented here, and should be referred to by the user as appropriate. The manual was originally developed as an aid to Cambodian researchers in the execution of an EEPSEA-Pioneered study of Koh Kong mangrove, Cambodia. (The report resulting from that study is available as an EEPSEA Research Report.) Special thanks are due to Jack Ruitenbeek for careful comments on an earlier draft. The main components of this Manual are: an introduction to the values of, and threats to, mangrove ecosystems (Chapter 1); a theoretical introduction to valuation of the environment (Chapter 2); a methodology for the economic assessment of mangrove management options (Chapters 3-9); a qualitative discussion of the possible impacts associated with common development options for mangrove ecosystems (Chapter 10); and, two case-study examples from Asia (Chapter 11).
    Keywords: Economic valuation,mangrove
    Date: 2016–03
  11. By: Asian Development Bank (ADB); Asian Development Bank (ADB) (Economic Research and Regional Cooperation Department, ADB); Asian Development Bank (ADB) (Economic Research and Regional Cooperation Department, ADB); Asian Development Bank (ADB)
    Abstract: Subsidized energy is provided to all Indonesian citizens as a public service obligation. This study measures the size of fossil fuel subsidies such as underpricing of petroleum products and electricity, tax exemptions, and subsidized credit; examines the potential economic, energy, and environmental impacts of reducing them; and discusses options for social safety nets to mitigate the impacts of the reforms. It shows that the short-term adverse impacts of subsidy reform turn positive in the long term as households and industry respond to changing market realities by adjusting energy demand, supply, and production capacity. Policy options for sustainable energy use are provided to aid policymakers in their current subsidy reform process.
    Keywords: indonesia, fossil fuel, energy, fossil fuel subsidies, greenhouse gas emissions, energy use, economic impacts, social programs, developing asia
    Date: 2015–10
  12. By: Kannika Ruangdej Chaosuansreecharoen (Sirindhorn College of Public Health, Trang); Patjamai Dumtip (Sirindhorn College of Public Health, Trang)
    Abstract: This experimental research design aimed to study residual levels of organophosphate and carbamate in 360 samples of a vegetable widely consumed in Trang Municipality, located in southern province of Thailand. Three kinds of vegetables were most eaten vegetables, organic vegetables and locally grown vegetables. 190 samples of the most eaten vegetables included cilantro, kale, Chinese cabbage, cabbage, cauliflower, chili, spring onion, celery, yard long bean, cucumber, tomato, lettuce, egg plant, Thai egg plant, Chinese morning glory, white radish, devil’s fig, asparagus, lemon. 50 samples of the organic vegetables included Chinese morning glory, Chinese cabbage, kale, cabbage and yard long bean. 120 samples of the locally grown vegetables included morning glory, curry leaf, Liang vegetable, star gooseberry, Thai basil, chili, Gotu kola, bird lettuce, bitter bean, fresh pod color (red yard long bean). The most eaten vegetables were collected from 3 wholesale markets and 200 grams for each vegetable was randomly collected from 3 areas (top, bottom and middle). The organic and locally grown vegetables were collected from 3 retail sale markets and 200 gram for each vegetable was randomly collected from 3 areas (top, bottom and middle). The residual level of organophosphate and carbamate was examined with GPO-M kit of Medical Science Department, Ministry of Public Health. The samples were collected during April – July 2015.The results revealed that unsafe level (cholinesterase inhibitor level of 50-70%) of organophosphate and carbamate were found in most eat eaten vegetables 79 samples (41.58%) from 190 samples. Kinds of vegetables found pesticide residuals included cilantro, kale, Chinese cabbage, cabbage, cauliflower, chili, celery, spring onion, yard long bean, cucumber, tomato, Thai egg plant, white radish and lemon. All organic and locally grown vegetables were found safe residual level of organophosphate and carbamate. Based on the results of this study, public health authorities should encourage consumer to eat organic or locally grown vegetables and should properly wash vegetable before cooking. In addition, gardeners should be aware of the dangers of chemical pesticides for good quality and food safety of Thai vegetables. Meanwhile, authorities should work proactively to advise the use of chemical pesticides correctly and monitored continuously among gardeners throughout the country.
    Keywords: Organophosphate and Carbamate residues, most eaten vegetables, organic vegetables, locally grown vegetables
    JEL: I19
  13. By: Voeun, Soma; Griffith, Garry
    Abstract: Poultry production (predominately broilers) is the most important livestock industry in Thailand. It is the major source of meat and generates substantial employment and income. There are a number of different production systems ranging from modern integrated commercial systems to smallholder production systems. However, the Thai poultry value chain, in general, suffers from several major issues or constraints affecting value chain coordination. These problems include reduced availability and rising prices of feedgrains, poor infrastructure, and food safety issues. For feedgrains, more research into more productive crops and alternative crops is likely to help. Regarding social and physical infrastructure, the government could usefully play a greater role in building more road networks, setting up power grids and securing water sources. Finally, food safety concerns can be resolved by upgrading the value chain to closed production systems, focussing on biosecurity measures and compartmentalization.
    Keywords: Livestock Production/Industries,
    Date: 2016
  14. By: Situngkir, Hokky
    Abstract: A city park has been built from the organic urban settlement in the Cikapundung River, Bandung, Indonesia. While the aim for the development is the revitalization of the river for being unhealthy from the waste coming from the settlement. A study on how Indonesian people, in general, treating water source, like river, lake, and ocean is revisited. Throwing waste into the river has actually become paradox with the collective mental understanding about water among Indonesians. Two scenarios of agent-based simulation is presented, to see the dynamics of organic settlement and life of the city park after being opened for public. The simulation is delivered upon the imagery of landscape taken from the satellite and drone. While experience for presented problems gives insights, the computational social laboratory also awaits for further theoretical explorations and endeavors to sharpen good policymaking.
    Keywords: agent-based model, computational social science, settlement, slum, river, water, waste management, indonesia
    JEL: C63 C88 I31 Q1 Q25 Q53 Q57 R28 Z13 Z18
    Date: 2016–04–07
    Abstract: Vietnamese rice production has achieved remarkable success over last decades. By the land and market reforms, known as “Doi Moi”, in which there were noticeable changes in policies such as land and production system were transformed from collective to individual contract system in 1980s, the process of legally privatization of farm properties, huge investment in irrigation system, Vietnam made progress in rice production. The country not only ensured its domestic demand but also started exporting rice and gradually became the second largest exporter in the world. An estimate of the constant elasticity of substitution function (CES) for Vietnam’s rice production is essential for the government to design effective policy on agricultural production. This study makes the first attempt to estimate the nested CES model for Vietnam rice production in 2012. The paper finds that the elasticity of substitution of Vietnam's nested CES model lies between 0.44 to 0.46. The results indicate that the weak substitutability between land and the nest (labor, capital) in the nested CES model. The paper also provides empirical evidence that the nested CES structure in which capital with land are nested inputs and labor plays a role as the third input is rejected. This suggests that it is impossible to take labor as the substitutable factor for land and capital. The findings would partly contribute to design the Vietnam’s effective policies on rice production with the appropriate allocation of inputs factors in order to achieve the optimal output.
    Keywords: Constant Elasticity of substitution, Levenberg-Marquardt method, Vietnam, rice production.
    JEL: C1 C5 C8 O1 O13 Q15 Q18
    Date: 2015–12
  16. By: Herminia Francisco (EEPSEA, Singapore); David Glover (EEPSEA, Singapore)
    Abstract: This research program was managed by the Environmental Economics Unit of the Faculty of Economics, National University, Ho Chi flinh City. This document is the product of that research program. However, this book signifies something more - the EEF'SEA and the Vietnam government's shared efforts for capacity building and strengthening of environmental economics research in Vietnam. This is our first step in environmental economics, a new field for the country. I hope it provides a helpful reference for methodologies and case studies that may be used in training and policymaking for government officials and others working in environmental management.
    Keywords: environment, case study, vietnam
    Date: 2016–04
  17. By: Daniel Rais
    Abstract: The Community Blueprint foresees the achievement of a free movement regime for skilled labour, mobility of selected categories of people associated mainly with trade in services and investment. Labour migration policies for other types of workers are not part of the regional integration framework. The agenda on services trade mobility, institutionalized at the multilateral level by the 1995 WTO General Agreement on Trade in Services under the so-called ‘mode 4’ temporary movement of service providers, has taken shape in other regions of the world as well. For instance, in North America (NAFTA), Europe (EU), or South America (MERCOSUR), servicesrelated mobility provisions have coupled with other, more comprehensive, regional policies to migration (e.g. free movement of people in the EU, residence and work rights for all citizens of MERCOSUR and associated countries, etc.). Assessing the current context on labour migration within ASEAN and drawing on mobility models employed by other regional units, the study discusses the prospects for deeper labour market cooperation in Southeast Asia.
    Date: 2014–12–18
  18. By: Shaufique Sidique (Institute of Agricultural and Food Policy Studies, Universiti Putra Malaysia); Kusairi Mohd Noh (Universiti Putra Malaysia); Gazi Md Nurul Islam (Universiti Putra Malaysia); Aswani Farhana Mohd Noh (Universiti Putra Malaysia)
    Keywords: Artificial Reefs,Peninsular Malaysia
    Date: 2016–03
  19. By: Alberto, Gabriele
    Abstract: This paper surveys a few key features of SOE reforms in China and Vietnam, focusing particularly on the evolution of ownership structures and on the relative weight of market regulatory mechanisms, and discusses their general implications for socialist development. It tentatively concludes that some broad principles informing and constraining any feasible socialist-oriented economic strategy can indeed be identified.
    Keywords: China Vietnam Socialism SOE Development
    JEL: P2 P23 P26 P31
    Date: 2016–04–29
  20. By: Williams, John C. (Federal Reserve Bank of San Francisco)
    Abstract: Speech at the Lee Kuan Yew School of Public Policy and U.S. Embassy Speaker Series, Singapore, Singapore, March 29, 2016
    Date: 2016–03–29
  21. By: Daniel Rais
    Abstract: Preferential trade agreements (PTAs) are the most rapidly growing form of trade liberalization in the global economy, and many of these agreements involve developing countries. In contrast to trade liberalization via the World Trade Organization (WTO), PTAs discriminate among member countries raising the question which countries are preferred partners. Existing research analyzes partner country choices for PTAs at the macro (country) level. Even though public opinion is important in trade policy-making for normative and analytical reasons, we know very little about what types of countries citizens prefer for PTAs. We develop several hypotheses to that end, drawing on macro-level trade theories and micro-level evidence from advanced industrialized countries, and test them based on original data from Costa Rica, Nicaragua, and Vietnam. To account for the multidimensionality of PTA partner choice, we use conjoint experiments embedded in three national surveys. The results show that, despite differing country contexts, citizens in all three countries opt for similar PTA partners. We also find that cultural and political factors matter more than economic factors. Respondents prefer PTAs with culturally similar countries, whereas economic size and geographic distance are of lesser importance. One of the most surprising findings is, however, that people in all three countries, even in the poorest and most rapidly growing of the three countries (Vietnam), which is also the only autocratic country in the sample, prefer trade with countries that are democratic and have high environmental and labor standards. We also show that popular preferences line up well with the actual set of PTA partners of Costa Rica and Nicaragua, but less so in the case of Vietnam.
    Date: 2014–07–08
  22. By: Arriya Mungsunti (Charles Stuart University)
    Keywords: traditional irrigation, rural development, Thailand
    Date: 2016–04
  23. By: OBASHI Ayako (University of Wisconsin and Keio University); KIMURA Fukunari (Keio Univeristy and Economic Research Institute for ASEAN and East Asia)
    Abstract: China, Japan, and Korea have been the three largest players in East Asian machinery production networks. This paper employs a new method of analysing finely disaggregated international trade data that applies the concept of zero trade flows, least-traded goods, and intensive/extensive margins of trade growth and scrutinises changes in the roles of China, Japan, and Korea in machinery production networks between 2007 and 2013. We find, first, that China became a dominant player in global machinery production networks in terms of both export values and the diversity and density of product-destination pairs. Second, the growth of Korea as machinery parts and components supplier was also salient and Korea’s dependency on China rose sharply. Third, Japan continued to stagnate and machinery production links between Korea and Japan weakened substantially.Length: 33 pages.
    Keywords: zero trade; intensive and extensive margins; least-traded goods; productdestination pairs; machinery industry; parts and components trade
    JEL: F14 F23
    Date: 2016–03
  24. By: Baharudin Othman (Faculty of Business, Economics and Accountancy, Universiti Malaysia Sabah); Sharifudin Md. Shaarani (Faculty of Food Science and Nutrition, Universiti Malaysia Sabah); Arsiah Bahron (Faculty of Business, Economics and Accountancy, Universiti Malaysia Sabah)
    Abstract: Halal management has grown rapidly including the production process and halal verification. Therefore, the aim of this study focused on the effects of halal practices on the organizational performance in Malaysian halal food industry. In this study, the halal requirement elements consisted of halal and thoyyib, internal process, halal assurance, and staff as the predictor of organizational performance. This study used a self-administered questionnaire with closed-ended questions. The questionnaire was distributed to multinational companies and small and medium enterprises (SME) in which 620 were applicable for analysis. The respondents were among the halal committee members in the respective companies. The data was analyzed using SPSS Version 21. The results showed that halal requirement practices have a positive relation to the dependent variables. Moreover, only halal and thoyyib aspects (β = 0.319, p
    Keywords: halal, halal requirement practices, organizational performance.
  25. By: Ros Zam Zam Sapian (National University of Malaysia)
    Abstract: This study examines the impact of foreign equity flows on market return volatility using a unique data set comprising of an aggregate daily trades data by two classes of foreign investors namely institutional and retail investors in an emerging market equity exchange, Bursa Malaysia between October 2009 and February 2015. Specifically, the aims of this study are i) to explore whether foreign equity flows have an effect on market return volatility, ii) to identify which classes of equity flows have an effect on market return volatility and iii) to identify what types of equity trades have an effect on market return volatility. This study employs VAR Granger Causality test and VAR Variance Decomposition to explore the impact of foreign equity flows on market return volatility. The findings of this study reveal that foreign equity flows do influence market return volatility with the value of trades affect market return volatility more than the quantity of trades. Institutional net flows have a bigger impact on market return volatility as compared to the retail net flows. While both the institutional buy and sell trades have an impact on market return volatility, only the retail buy trades have positive relationships with market return volatility. The institutional sell trades appear to explain more the variations in market return volatility than the institutional buy trades. On the contrary, the retail buy trades have more impact on market return volatility than the retail sell trades. The roles of the retail buy trades tend to diminish whereas the retail sell trades become more prominent with the longer time horizon. Similarly, the roles of the institutional buy and sell trades also show significant positive impact on market return volatility overtime. The findings of this study also demonstrate that innovations to foreign equity flows account for a small percentage variation of fluctuation in market return volatility. Thus, there are other factors may also influence the market return volatility.
    Keywords: Foreign equity flows, market return volatility, emerging equity market, institutional and retail investors, buy and sell trades, granger causality, variance decomposition
    JEL: G11
  26. By: Gautam Rao; Leonardo Bursztyn; Stefano Fiorin; Bruno Ferman; Martin Kanz
    Abstract: Economists have long hypothesized that social status considerations are a powerful driver of consumption choices (Veblen 1899). But empirically identifying status goods is difficult, since status components of consumption are confounded by unobserved instrumental utility. We work with a large bank in Indonesia to market their widely-recognized platinum credit cards, typically restricted to high-income customers, to a marginally eligible population of customers. In a control group, customers are offered all the financial services and benefits of the platinum card, but as an included upgrade on their existing nondescript credit card. In two treatment groups, customers are instead offered the platinum card itself. We find that demand for the platinum card is substantially higher than demand for the instrumental benefits, providing evidence of the importance of image considerations. We provide evidence that the demand for the platinum card appears to be driven substantially by social image concerns, rather than self image or identity. We find that it is the less-rich (middle-class) individuals in the sample who show a demand for the social image aspect of the platinum card, rather than the very rich. An analysis of the utilization of the credit cards reveals that platinum card holders are causally more likely to use the card in social situations such as restaurants, bars and clubs, where the card may be visible to others. In contrast, there are no effects on more private uses of the card, such as online purchases. Finally, we provide evidence of "fashion cycles" in the marketing of elite credit cards, consistent with models of status goods (Pesendorfer 1995).
    Date: 2016–05
  27. By: Rimawan Pradiptyo (Faculty of Economics and Business, Universitas Gadjah Mada); Gumilang Aryo Sahadewo (Faculty of Economics and Business, Universitas Gadjah Mada)
    Keywords: subsidy, Indonesia, fuel
    Date: 2016–04
  28. By: Kunlayanee Pornpinatepong (Department of Economics, Prince of Songkla University); Pathomwat Chantarasap (Prince of Songkla University); Jumtip Seneerattaprayul (Prince of Songkla University); Wittawat Hemtanon (Prince of Songkla University); Papitchaya Saelim (Prince of Songkla University)
    Keywords: Shrim Fishing, Sustainable, Thailand
    Date: 2016–04
  29. By: Asian Development Bank (ADB); Asian Development Bank (ADB) (Economic Research and Regional Cooperation Department, ADB); Asian Development Bank (ADB) (Economic Research and Regional Cooperation Department, ADB); Asian Development Bank (ADB)
    Abstract: This ADB Brief by Peter Morgan, Mike Plummer, and Ganeshan Wignaraja examines the critical role of regional transport infrastructure to connect South Asia and Southeast Asia and maps $63 billion worth of road, rail, and port projects.
    Keywords: transport infrastructure, transport corridors, trade, south asia, southeast asia, production networks, supply chains, regional integration, regional markets, asian highway network, trans-asian railway, transport investment
    Date: 2015–09
  30. By: Le Ha Thanh (National Economics University)
    Keywords: Leather industry, Vietnam
    Date: 2016–04
  31. By: Bui Dung The (College of Economics, Hue University); Bui Duc Tinh (College of Economics, Hue University)
    Keywords: Vietnam, flood, adaptation, climate change, cost-benefit
    Date: 2016–04
  32. By: Ma. Salome B. Bulayog (Department of Economics, College of Management and Economics, Visayas State University); Humberto R. Montes, Jr (Visayas State University); Suzette B. Lina (Visayas State University); Teofanes A. Patindol (Visayas State University); Adelfa C. Diola (Visayas State University); Eliza D. Espinosa (Visayas State University); Analyn M. Mazo (Visayas State University); Julissah C. Evangelio (Visayas State University); Art Russel R. Flandez (Visayas State University); Marianne A. Gesultura (Visayas State University); Ris Menoel R. Modina (Visayas State University)
    Keywords: Natural capital, Philippines, Assessment
    Date: 2016–04
  33. By: Daniel Rais
    Abstract: While most explanations of individual trade policy preferences center on the redistributional implications of trade, recent research is particularly interested in the role of non-economic determinants. We join the latter line of research by studying the effect of social trust. Our research breaks new methodological ground by testing the hypothesized causal effect of social trust in a field survey experiment that combines a voluntary contribution game with a survey. The empirical work was carried out in Hanoi, Vietnam. The findings offer robust support for the argument that social trust has a positive causal effect on public support for international trade.
    Date: 2014–07–08
  34. By: Michael Palmer (Melbourne School of Population and Global Health, The University of Melbourne); Cuong Nguyen (Institute of Public Policy and Management, National Economics University); Sophie Mitra (Department of Economics, Fordham University); Daniel Mont (Department of Epidemiology and Population Health, University College London); Nora Groce (Department of Epidemiology and Population Health, University College London)
    Abstract: The toll of warfare is often assessed in the short run and in terms of mortality. Other aspects of health have received limited attention, especially after warfare ends. This paper estimates the impact of exposure to US Air Force bombing during 1965-1975 on the disability status of individuals in Vietnam in 2009. Using national census data and an instrumental variable approach, the paper finds a positive and statistically significant impact of war time bombing exposure on district level disability rates about forty years after the end of the war. A ten percent increase in bombing intensity approximately leads to a one percent increase in the prevalence of severe disability at the district level. Impacts are highest for severe disability and among persons born before 1976. Smaller yet significant positive impacts are observed among persons born after the war. Results suggest that the toll of warfare on health persists decades later.
    Keywords: war, post-conflict, disability, health, Vietnam
    JEL: C4 H7 I1 P2
    Date: 2016–04
  35. By: Navarro, Adoracion M.; Detros, Keith C.; dela Cruz, Kirsten J.
    Abstract: This study evaluates the achievement of the desired outcomes of the competition policies contained in the Electric Power Industry Restructuring Act of 2001 (EPIRA). It traces the evolution of the electric power industry before EPIRA and post-EPIRA. It looks at impacts on the consumers in terms of price affordability and supply reliability, and impact on production efficiency in terms of system loss reduction. In pre-EPIRA, electricity price in the Philippines was already high relative to other countries. Trends show that, in real terms, there was a price uptrend during the transition (2001-2005) toward the start of competition in the generation sector. There was a slight downtrend in the real price of electricity after the introduction of spot electricity trading, but the price of electricity remains high and it has not declined to pre-EPIRA levels. There is a danger that the findings on price trends could provide ammunition to those advocating the repeal of the EPIRA and renationalization of the industry. It must be emphasized, however, that the country has a long history of private sector-led electric power industry. Moreover, the nationalization years were marked by inefficiencies and fiscal problems that were not borne by electricity consumers alone but by the whole country. Thus, calls to repeal EPIRA are ill-advised. What needs to be done is to find ways of improving its implementation. The electricity spot market has to be governed by an independent market operator, regulatory capacity has to be strengthened, and the energy department needs to beef up its planning function.
    Keywords: Philippines, competition, EPIRA, electric power industry, restructuring, electricity price
    Date: 2016
  36. By: GIULIANO, Genevieve; KNATZ, Geraldine; HUDSON, Nathan; SYS, Christa; VANELSLANDER, Thierry; CARLAN, Valentin
    Abstract: Six universities from Europe, Asia and the United States participated in an evaluation of the use of innovation in the port logistics and maritime sector. Led by the BNP Paribas Fortis Chair in Transport, Logistics and Ports from the University of Antwerp, the purpose of the study was to evaluate the decision-making process and adoption of innovation using quantitative tools. This paper focuses on one of those quantitative tools, cost benefit analysis. Seventy-four separate and highly diverse innovation projects undertaken by private businesses were examined to determine if a traditional cost benefit analysis was used as part of their decision-making process. The data showed that no projects performed comprehensive cost benefit analysis, although for some projects limited cost effectiveness data were collected after the innovation was implemented. Cost benefit analysis is both complex and time consuming. It is designed for public sector decision-making, where societal costs and benefits are of concern, and where alternative policy actions are evaluated. If these innovations were implemented mainly as a result of internal decisions, use of cost benefit analysis would not be expected. The data show that 37 (50%) of the innovation projects were undertaken because of external influences, 21 (28.3%) were purely internal company decisions and 16 (21.6%) were influenced by public subsidy. Several types of innovation projects examined in this research project could be candidates for a cost benefit or cost effectiveness assessment. These are projects where environmental benefits and costs can be quantified, or where quantifiable external benefits support public investment in capital costs or in an operating subsidy. It is found that port innovation would benefit from more formalized methods of project assessment.
    Date: 2016–01
  37. By: Jing Li, Victor (Asian Development Bank Institute)
    Abstract: This paper analyzes the housing markets and housing policies in Hong Kong, China and the People’s Republic of China (PRC). Both markets face housing affordability problems due to limited land supply, for which the solutions vary considerably. Hong Kong, China has adopted a railway and property development model, which involves close collaboration between the government and property developers in compact urban areas, while leaving most greenbelts and surrounding islands underdeveloped. Although the PRC has pledged to maintain a minimum level of basic farmland to feed its large population, this target has often been compromised due to local governments’ fiscal constraints and growth concerns.
    Keywords: PRC housing market; Hong Kong; China; housing affordability; housing subsidies
    JEL: H11 H72 P25 P26 R21 R28 R31 R38 R52
    Date: 2016–04–21
  38. By: Kunlayanee Pornpinatepong (Prince Songkhla University, Thailand)
    Abstract: The major objective of this study was to develop appropriate water quality control policies for a sustainable fishery in Southern Songkhla Lake (Southern Lake) so the impact of water pollution on fishery production in the lake was the first consideration. The three major components of this study were: (i) the identification of the situation and trends in fishery production associated with water quality in the lake, using secondary data and statistical analysis, (ii) the evaluation of technological options to improve water quality using secondary data and cost-effectiveness analysis, and (iii) the analysis of proposed policy alternatives for better water quality. In order to identify the current situation and trends in fishery production associated with water quality in Southern Lake, the natural shrimp catch was used as an indicator of water quality deterioration while the water quality composite index (WQCI) was used as the indicator of the relationship between water quality and pollution from various sources.
    Keywords: fishery production, water quality, Thailand
    Date: 2016–04
  39. By: Picazo, Oscar F.; Dela Cruz, Nina Ashley O.; Ortiz, Danica Aisa P.; Pantig, Ida Marie T.; Aldeon, Melanie P.; Tanghal, Juan Alfonso O.
    Abstract: This impact evaluation of the Health Facilities Enhancement Program (HFEP) of the Department of Health provides a preliminary analysis on its effects, particularly on the utilization of local health services, due to the improvement in capital stock. Furthermore, the evaluation attempts to present certain problems and issues encountered in the implementation of the program. The first part of this paper provides a general overview of what an impact evaluation is and gives the sampling frame of the study. Site visits were conducted in 107 hospitals/infirmaries and 159 rural health units/city health offices. These include HFEP-recipient and a few non-HFEP recipient facilities. An overview of facilities that received HFEP grants is then provided, as well as the completion and functionality of HFEP infrastructure projects in visited facilities. In the conduct of the impact evaluation, health service utilization through number of birth deliveries, outpatient consultations, and inpatients was compared in both HFEP and non-HFEP facilities. The aim is to identify trends and patterns in utilization, if there is an increase. Subsequently, bottlenecks in the evaluation were also revealed, particularly in comparing the volume of services before, during, and after HFEP. In connection to this, some analytical challenges concerning confounding factors and some proposed analytical approaches in undertaking an impact evaluation of capital investments are also given. The final part of this paper provides a conclusion on the impact of HFEP in health utilization, and some proposed areas for further study and research.
    Keywords: Philippines, Health Facilities Enhancement Program (HFEP), impact evaluation, health facilities, health infrastructure, medical equipment, health utilization
    Date: 2016
  40. By: Rafaelita M. Aldaba (Philippine Institute for Development Studies, 106 Amorsolo Street, Legaspi Village, Makati City, Philippines.); Caesar Cororaton (Philippine Institute for Development Studies, 106 Amorsolo Street, Legaspi Village, Makati City, Philippines.)
    Keywords: Trade, Philippines
    Date: 2016–04

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