nep-sea New Economics Papers
on South East Asia
Issue of 2016‒06‒09
eighteen papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Water, energy, and food Security in the Asia Pacific Region By Makoto Taniguchi; Naoki Masuhara; Kimberly Burnett
  2. What’s In It for Me? Profiling Opportunity Seeking Customers in Malaysian Islamic Banking By Seck, Ousmane; Ismail, Abdul Ghafar
  3. The Impact of Trade Liberalization on Industrial Pollution: Empirical Evidence from Vietnam By Pham Thai Hung; Bui Anh Tuan; Nguyen The Chinh
  4. Demographic Change and Fiscal Sustainability in Asia By Sang-Hyop Lee; Jungsuk Kim; Donghyun Park
  5. Wage Growth, Landholding and Mechanization in Agriculture Evidence from Indonesia By Yamauchi, Futoshi
  6. Job Performance: Structural Modelling the Relationship of Emotional Intelligence and Transformational Leadership By Nurul Hudani Md. Nawi; Redzuan Ma'rof; Balan Rathakrshnan; Rajiv Gandhi
  7. Protecting Vietnam from Sea Level Rise - An Assessment of Concrete Sea Dyke Options By Vo Thanh Danh
  8. Does Competition Eliminate Discrimination? Evidence from the Commercial Sex Market in Singapore By Huailu Li; Kevin Lang; Kaiwen Leong
  9. Effects of Market Work and Own Household Work on Nutrition Intake of Rural Adults: The Case of Vietnam By Sonoda, Tadashi; Ashok, Mishra; Vu, Thi Bich Lien
  10. The impact of gender equality policies on economic growth By Jinyoung Kim; Jong-Wha Lee; Kwanho Shin
  11. Adaptation of Community and Households to Climate-Related Disaster: The Case of Storm Surge and Flooding Experience in Ormoc and Cabalian Bay, Philippines By Canesio D. Predo
  12. Examining Trends in ICT Statistics: How Does the Philippines Fare in ICT? By Albert, Jose Ramon G.; Serafica, Ramonette B.; Lumbera, Beverly T.
  13. Height and Cognition at Work: Labor Market Productivity in a Low Income Setting By Daniel LaFave; Duncan Thomas
  14. Why Do Economies Enter into Preferential Agreements on Trade in Services? Assessing the Potential for Negotiated Regulatory Convergence in Asian Services Markets By Daniel Rais
  15. Factors Affecting Either the Voluntary Exit or Forced Eviction of Borrowers from Microfinance Loan Networks By Rusiana, Hofner D.; Escalante, Cesar L.
  16. The Effect of Bt Corn Adoption and Risk Aversion on Farmer Investment Decisions By Connor, Lawson Q.; Rejesus, Roderick M.; Yorobe, Jose
  17. Behavioral Polymorphism in Bayesian Games By Raul V. Fabella
  18. Do Losses Bite More than Gains? Evidence from a Panel Quantile Regression Analysis of Subjective Well-being in Japan By Zheng Fang; Yoko Niimi

  1. By: Makoto Taniguchi (Research Department, Research Institute for Humanity and Nature); Naoki Masuhara (Research Department, Research Institute for Humanity and Nature); Kimberly Burnett (University of Hawaii Economic Research Organization, University of Hawaii at Manoa)
    Abstract: Security measures of three resources; water, energy and food are analysed for thirty two countries in the Asia Pacific region, in terms of amounts of the resource, self-production, and diversity of souces of each resource. We find that the Asia Pacific countries contain almost half of the world’s income and population, and are more self-sufficient in food production than the rest of the world, but are less self-sufficient in energy production. The self-production ratio of food within the Asia Pacific region has been decreasing since the 1960’s, though the ratio is still over 100 %. On the other hand, the self-production energy rate within the Asia-Pacific region increased from 82 % in the 1970’s up to 95 % in 2010. Diversity for all the three resources is also analyzed using surface water and groundwater for water sources; hydro power, geothermal power, solar, and biomass for energy; and cereals, vegetable, fruit, meat, and fish for food. We see high diversity of sources of water in the US and the Philippines, and a low diversity of sources of food in the US, Canada, and Indonesia.
    Date: 2015–12
  2. By: Seck, Ousmane (The Islamic Research and Teaching Institute (IRTI)); Ismail, Abdul Ghafar (The Islamic Research and Teaching Institute (IRTI))
    Abstract: This paper aims at analyzing the preferences of Malaysian bank customers with a focus on identifying characteristics of the opportunity seekers, those who only consider the economic benefit of the product offered. We also look at the determinants of consumers preferences for financial products used for resource mobilization, and for financing of business start-ups. We apply asymptotic statistical methods for estimation and comparison of binomial proportions, along with multinomial discrete choice on a survey of 1858 retail consumers, we find that although Muslims are more likely to choose Islamic banks, they are also the most likely customers to be economic value seekers. In addition, our findings support that the growth of Islamic banks in Malaysia is conditional on their ability to attract high-income earners
    Keywords: Islamic Finance; Opportunity seekers; Consumer preferences; Malaysia
    JEL: D14 G21 G23 O16
    Date: 2016–03–01
  3. By: Pham Thai Hung (National Economics University, 207 Giai Phong, Hai Ba Trung Dist, Hanoi, Vietnam); Bui Anh Tuan (National Economics University, 207 Giai Phong, Hai Ba Trung Dist, Hanoi, Vietnam); Nguyen The Chinh (National Economics University, 207 Giai Phong, Hai Ba Trung Dist, Hanoi, Vietnam)
    Abstract: This study assesses the impact of trade liberalization on the environment in Vietnam. In particular it looks at the link between the amount of pollution produced by the country’s manufacturing industries and the degree to which this is affected by trade liberalization policies. The study was carried out by Pham Thai Hung, Bui Anh Tuan and Nguyen The Chinh, from Vietnam’s National Economics University. It finds that trade liberalization in the country exacerbates industrial pollution at both the firm and industry level. This trade-off is worrying as Vietnam has recently become a WTO member and further trade liberalization commitments are now in the pipeline. In light of their findings, the researchers recommend that the environmental impact of any future trade reforms should be carefully considered and that steps should be taken to mitigate any potential negative effects such reforms might have.They suggest that polluting industries should be given priority in any clean-up programme. They highlight key steps which can be taken to help reduce pollution, including the strict enforcement of environmental regulations support to promoting information technology application and technology advancement in the manufacturing sector.
    Keywords: Trade, impact, vietnam, pollution
    Date: 2016–04
  4. By: Sang-Hyop Lee (East-West Center and University of Hawaii at Manoa, Honolulu, USA); Jungsuk Kim (Institute of International and Area Studies, Sogang University, Korea); Donghyun Park (Asian Development Bank, Manila, Philippines)
    Abstract: Changes in the population age structure can have a significant effect on fiscal sustainability since they can affect both government revenues and expenditures. For example, population aging will increase expenditures on the elderly while reducing potential growth and hence revenues. In this paper, we project government revenue, expenditure, and fiscal balance in developing Asia up to 2050. Using a simple stylized model and the National Transfer Accounts (NTA) data set, we simulate the effect of both demographic changes and economic growth. Rapidly aging countries like Korea, Japan, and Taipei, China, are likely to suffer a tangible deterioration of fiscal sustainability under their current tax and expenditure system. On the other hand, rapid economic growth can improve fiscal health in poorer countries with relatively young populations and still-growing working-age populations. Overall, our simulation results indicate that Asia’s population aging will adversely affect its fiscal sustainability, pointing to a need for Asian countries to further examine the impact of demographic shifts on their fiscal health.
    Keywords: Fiscal projection, tax, public spending, fiscal balance, population aging, Asia
    JEL: J11 J14 H20 H50 H62
    Date: 2016–01
  5. By: Yamauchi, Futoshi
    Abstract: This paper examines dynamic patterns of land use, capital investments and wages in agriculture using farm panel data from Indonesia. The empirical analysis shows that with an increase in real wages that prevailed in both agricultural and non-agricultural sectors in rural areas, relatively larger farmers increased the size of operational farm land by renting in land. An increase in real wages has induced the substitution of labor by machines among relatively large farmers. Machines and land are complementary and, consistently, the inverse land-productivity relationship is reversed among relatively large holders.
    Keywords: Wage growth, farm size, mechanization, Indonesia, Agribusiness, Land Economics/Use, Research and Development/Tech Change/Emerging Technologies, J31, Q12, Q15,
    Date: 2015–06
  6. By: Nurul Hudani Md. Nawi (University Malaysia Sabah); Redzuan Ma'rof (Universiti Putra Malaysia); Balan Rathakrshnan (Universiti Malaysia Sabah); Rajiv Gandhi (National Institute of Youth Development)
    Abstract: This study aims to investigate the effects of emotional intelligence and the impact of transformational leadership behaviour towards job performance. Sample of the study was comprised of 306 (Male =132; Female =174) public school personnel as leaders in their respective environments, such as principal, senior administrative assistant, senior assistant student affairs (HEM), senior assistant curriculum, the heads of the four departments set by the Ministry of Education i.e. Heads of Humanities and Religion, Science and Math, English, and Engineering & vocational as well as members of general committee from High Performance Schools (SBT) in Malaysia. Emotional Competence Inventory (ECI), Transformational Leadership Behaviour (Multi-factor leadership questionnaire) (MLQ) and job performance were used to measure EI, transformational leadership and job performance accordingly. The structural equation modelling (SEM, a multivariate technique, via Analysis of Moment Structure (AMOS) computer software version 20.0 was utilised to empirically test and estimate the hypothesised relationship between constructs. Results revealed that emotional intelligence is positively related to transformational leadership behaviour, and transformational leadership behaviour has a significant and positive relationship with job performance. Among the two predictors, transformational leadership was found to have a greater direct impact on job performance and exist direct impact of emotional intelligence was found in this empirical analysis on job performance. On a practical note, the assessment of psychological constructs in school setting e.g.; EQ and leadership behaviour could possibly assist in enhancing the work performances in delivering huge benefits to the society especially in the educational contexts. Finding of the present research can help to improve overall organizational behaviour and productivity resulting in optimum service delivery to the stakeholders within educational system in Malaysia.
    Keywords: Emotional intelligence, personality traits, leadership behaviour, job performance, educator leader.
  7. By: Vo Thanh Danh (Cantho University)
    Keywords: sea level rise, sea dyke, Vietnam
    Date: 2016–04
  8. By: Huailu Li (Fudan University); Kevin Lang (Boston University & NBER); Kaiwen Leong (Nanyang Technological University)
    Abstract: The street sex worker market in Geylang, Singapore is a highly competitive market in which clients can search legally at negligible cost, making it ideal for testing Diamondís hypothesis regarding search and monopoly pricing. As Diamond predicts, price discrimination survives in this market. Despite an excess supply of workers, but consistent with their self-reported attitudes and beliefs, sex workers charge Caucasians (Bangladeshis) more (less), based on perceived willingness to pay, and are more (less) likely to approach and reach an agreement with them. Consistent with taste discrimination, they avoid Indians, charge more and reach an agreement with them less frequently.
    JEL: J7
  9. By: Sonoda, Tadashi; Ashok, Mishra; Vu, Thi Bich Lien
    Keywords: Vietnam, nutrition production functions, less energy expenditure effect, more balanced nutrients effect, market development, Food Consumption/Nutrition/Food Safety,
    Date: 2016
  10. By: Jinyoung Kim; Jong-Wha Lee; Kwanho Shin
    Abstract: This paper introduces a model of gender inequality and economic growth that focuses on the determination of women's time allocation among market production, home production, child rearing, and child education. The theoretical model is based on Agenor (2016), but differs in several important dimensions. The model is calibrated using microlevel data of Asian economies, and numerous policy experiments are conducted to investigate how various aspects of gender inequality are related to the growth performance of the economy. The analysis shows that improving gender equality can contribute significantly to economic growth by changing females' time allocation and promoting accumulation of human capital. We find that if gender inequality is completely removed, aggregate income will be about 6.6% and 14.5% higher than the benchmark economy after one and two generations respectively, while corresponding per capita income will be higher by 30.6% and 71.1% in the hypothetical gender-equality economy. This is because fertility and population decrease as women participate more in the labor market.
    Keywords: gender inequality, economic growth, overlapping generations model, labor market, human capital accumulation
    JEL: E24 E60 J13 J71
    Date: 2016–05
  11. By: Canesio D. Predo (College of Forestry and Natural Resources, University of the Philippines Los Baños, College, Laguna 4031, Philippines)
    Abstract: This study aimed to document the actual experience of the community and households in Ormoc, Leyte and selected municipalities along Cabalian Bay in Southern Leyte to flooding brought about by extreme climatic events and their perception, preparedness, and planned adaptation for the potential threat posed by climate change-induced sea level rise. Primary data collected through survey, key informant interviews, and focus group discussions, and secondary data were used in the study. Interviewed were 141 respondents from Ormoc (60), Hinundayan (62), and St Bernard (19). The respondents were selected using simple random sampling from the list of affected households.
    Keywords: adaptation, climate change, storm, flood, Philippines
    Date: 2016–04
  12. By: Albert, Jose Ramon G.; Serafica, Ramonette B.; Lumbera, Beverly T.
    Abstract: In the past one and a half decades, the world has vastly changed economic transactions, data sharing, and the entire general way of life given the dynamic and innovative landscape brought about by information and communications technologies (ICT). This paper first describes the deluge of digital data known as Big Data and its potentials for generating socioeconomic statistics given issues of veracity and privacy. It also gives a brief history of the Internet in the Philippines and discusses the increased Internet access and usage in the country. Other ICT statistics that describe a host of issues regarding the ICT sector, particularly infrastructure and the policy environment, are also examined. Finally, the paper provides some suggestions on how the country can make its digital dividends more inclusive.
    Keywords: Philippines, information and communications technology (ICT), Internet, digital dividends, Big Data, social media, veracity, privacy
    Date: 2016
  13. By: Daniel LaFave; Duncan Thomas
    Abstract: Taller workers earn more, particularly in lower income settings. It has been argued that adult height is a marker of strength which is rewarded in the labor market, a proxy for cognitive performance or other dimensions of human capital such as school quality, a proxy for health status or a proxy for family background characteristics. As a result, the argument goes, height is rewarded in the labor market because it is an informative signal of worker quality to an employer. It has also been argued that the height premium in the labor market is driven by occupational and sectoral choice. This paper evaluates the relative importance of these mechanisms that potentially underly the link between adult stature and labor market productivity. Drawing on twelve waves of longitudinal survey data collected in rural Central Java, Indonesia, we establish that height predicts hourly earnings after controlling education, multiple indicators of cognitive performance and physical health status, measures of family background, and sectoral and occupational choice. The height premium is large and significant in both the wage and self-empoyed sectors indicating height is not only a signal of worker quality. Since adult stature is largely determined in the first few years of life, we conclude that exposures during this critical period have an enduring impact on labor market productivity.
    JEL: I15 J24 O15
    Date: 2016–05
  14. By: Daniel Rais
    Abstract: Asian Development Review Volume 33, Issue 1 - March 2016:  More than one-third of the World Trade Organization-notified services trade agreements that were in effect between January 2008 and August 2015 involved at least one South or Southeast Asian trading partner. Drawing on Baier and Bergstrand’s (2004) determinants of preferential trade agreements and using the World Bank’s database on the restrictiveness of domestic services regimes (Borchert, Gootiiz, and Mattoo 2012), we examine the potential for negotiated regulatory convergence in Asian services markets. Our results suggest that Asian economies with high levels of preexisting bilateral merchandise trade and wide differences in services regulatory frameworks are more likely candidates for services trade agreement formation. Such results lend support to the hypothesis that the heightened “servicification†of production generates demand for the lowered services input costs resulting from negotiated market openings. Â
    Date: 2016–03–01
  15. By: Rusiana, Hofner D.; Escalante, Cesar L.
    Abstract: This paper seeks to analyse the issue of loan repayment in microfinance institutions and examine the factors that affect the exit of borrowers from microfinance borrowing networks. This paper presents the analysis of the borrower-level data of agricultural microfinance household borrowers in the Philippines from 2000 to 2010. Results show varied set of reasons to explain both the continued, sustained relationship of MFI borrowers with their lenders as well as the strained relationship with some borrowers who were inevitably evicted from the MFI system or had voluntarily exited the system. The study also indicates that MFI borrowers’ poor repayment records and eventual exit from the MFI system are attributed to borrowers’ weaknesses and uncontrollable circumstances.
    Keywords: microfinance, MFI, loans, Agricultural Finance,
    Date: 2016
  16. By: Connor, Lawson Q.; Rejesus, Roderick M.; Yorobe, Jose
    Abstract: Research has shown Bt technology improves mean yield and risk exposure of farmers. This paper investigates whether improvement in risk exposure from adoption of Bt and stacked trait corn has improved farmers’ desire to invest in their farm. Farmer risk perception is an important piece of this response and is modeled here in a framework that incorporates loss aversion as a function of farmer wealth. Results show that single trait Bt farmers had a significant mean yield increase while downside risk reduction was stronger for the stacked variety adopters. Stacked adopters also had greater investment response than other farmers establishing the importance of loss aversion in farming decisions. This paper adds to current research on Bt corn, other ways by which Bt technology may affect farmers and the wider economy. Particularly in developing countries where policies to encourage investment is important, this paper adds tools that help understand how to create such policies more effectively.
    Keywords: Bt corn, Philippines, risk, Crop Production/Industries, Farm Management, Institutional and Behavioral Economics,
    Date: 2016
  17. By: Raul V. Fabella (School of Economics, University of the Philippines Diliman; National Academy of Science and Technology)
    Abstract: J. Harsanyi introduced structural polymorphism in game theory, that is, there are many possible agent types such as “low productivity” or high productivity” with corresponding probability but all operating under one behavioral type, strict rationality. In this paper, we introduce behavioral polymorphism into Bayesian games. The multiplicity of behavioral types have become increasingly recognized and studied. Agents ascribe to each other a probability distribution across the possible types. They then choose the appropriate type as response to the possible type of the others which type determines the choice of strategy. We show in a dimorphic game model with the two types being strict rationality (SR) and utilitarian altruist (UA) that there always is a high enough assignment such that cooperation is the dominant strategy for both players in initially social dilemma games. Thus, the strategy set is endogenous in games with behavioral polymorphism. We argue that the assignment is based on some heuristics such as the counter-parties’ membership in some groups.
    Keywords: behavioral polymorphism; Bayesian games; cooperation; dominant strategy
    JEL: C70 C72
    Date: 2016–05
  18. By: Zheng Fang (School of Humanities and Social Sciences, Nanyang Technological University, 14 Nanyang Drive, 637332, Singapore); Yoko Niimi (Asian Growth Research Institute, 11-4 Ohtemachi, Kokurakita-ku, Kitakyushu, Fukuoka 803-0814, Japan)
    Abstract: This paper conducts an empirical analysis of the distributional effects of the determinants of happiness by applying quantile regression techniques to panel data from the “Preference Parameters Study” of Osaka University, a nationally representative survey conducted in Japan. The key question examined in the paper is whether we observe an asymmetry between the effects of positive and negative changes on individual happiness, and if it exists, whether it is observed uniformly across the happiness distribution. Such an asymmetry is referred to as loss aversion in prospect theory. Loss aversion effects are analyzed with respect to relative income as well as expected future income changes. We find that feeling relatively poor has a greater negative effect on happiness than the positive effect of feeling relatively rich, i.e., losses bite more than gains. However, no evidence for loss aversion is detected with respect to expected future income changes as individual happiness is found to be more sensitive to gains than to losses, though the happiness of the least happy group is found to be affected more by losses than by equivalent gains.
    Keywords: Happiness, Japan, loss aversion, panel quantile regression, subjective well-being
    JEL: I31 C31
    Date: 2015–11

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