nep-sea New Economics Papers
on South East Asia
Issue of 2016‒11‒13
fifteen papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Building Yields, Capacity and Commerce in the Developing World By Dickmann, Richard
  2. Affordable and reliable power for all in Vietnam progress report By Hoai-Son Nguyen; Minh Ha-Duong
  3. The (missing) link between wages and productivity in the Philippines : what role for collective bargaining and the new two-tier wage system? By Serrano, M. R.
  4. Exploration of public spending and agricultural growth. Comparative analysis of Nigerian and Malaysian agricultural growth (1970-2010). By Apata, T.G.; Sanusi, R.A.; Obaisi, A.; Ajani, O.
  5. Opportunity, Challenges and Stamina- An Operational Experience in Indonesia By Jung Lee, Lim
  6. The New Open Regionalism of the Pacific Pumas: The Transpacific Bridge of Latin America into the Asian market By Julio cesar Ramirez Montañez
  7. Asset Prices, Real Exchange Rate and Current Account Fluctuations: Some Structural VAR Evidence for Thailand By Jiranyakul, Komain
  8. Foreign Currency Usage and Perception: Evidence from a Survey on Cambodian Households By ODAJIMA, Ken
  9. Grow Asia: A Multi-Stakeholder Approach to Food Security By Eskesen, Alison
  10. Globalization and school-work choices in an emerging economy: Vietnam By Ian Coxhead; Rashesh Shrestha
  11. ASEAN member countries are becoming large energy consumers and growing participants in the global energy market. Cross-border electricity trade becomes increasingly important particularly in the context of fast-rising energy demand and growing urban population. This paper attempts to set out the common principles, methodologies, institutions, and structure for designing an integrated cross-border electricity market and delivering practical policy implications for ASEAN. To allow cross-border electricity trade, the region will need a target model, common vision, and principles that govern electricity market and grid operation. In the country level, energy prices administratively determined by the government should be shifted to market-oriented pricing mechanism. Integrated electricity market has an enormous potential that can be realised at reasonable costs. When individual countries pursue regional cooperation mechanism to secure their energy supply, investment comes and contributes to optimisation of available energy resources throughout the region. By Tsani Fauziah Rakhmah; Yanfei Li
  12. Dollarization and Enterprise's Behaviors: The Case of Cambodia By AIBA, Daiju
  13. Morning Keynote Session; Visy's Contribution to Food Security By Pratt, Anthony
  14. Some are more equal than others: new estimates of global and regional inequality By Zsolt Darvas
  15. Financial Dollarization: Evidence from a Survey on Branches of Cambodian Financial Institutions By AIBA, Daiju

  1. By: Dickmann, Richard
    Abstract: Asia is a strategic growth area and Bayer has taken a significant role in many publicprivate partnerships, including being a founding member of Grow Asia in Indonesia, with CIMMYT in India, NATESC/MOA in China and a broad coalition of groups in Vietnam. Bayer supports sustainable intensification of agriculture via developing and promoting integrated crop production packages. Its Much More programs deliver substantial benefits for growers and the community. Significant increases in rice yields and income have been demonstrated across Asia and the program has now been extended to coffee, citrus, integrated shrimp production and other crops.
    Keywords: Crop Production/Industries, Food Security and Poverty, International Development,
    Date: 2015–08
  2. By: Hoai-Son Nguyen (CleanED - Clean Energy and Sustainable Development Lab - USTH - Université des Sciences et des Technologies de Hanoi); Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - AgroParisTech - École des Ponts ParisTech (ENPC) - EHESS - École des hautes études en sciences sociales - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement)
    Abstract: This statistical report contribute facts and numbers on the state of access to electricity for all in Vietnam, based on large-scale surveys conducted in the time period 2008-2014. Its theoretical contribution to debates on energy poverty is to account for the human dimension by using an self-reported satisfaction indicator. Surveys asked people if respondents had enough electricity to meet their households needs. We find that in Vietnam, the problem of providing access to clean energy for all is largely solved for now. The fraction of households without access to electricity is below two percent. This represents in the order of a million people. And the fraction of households declaring unsatisfied electricity needs is below three percent. The median level of electricity usage in 2014 was 100 kWh per month per household. An overwhelming majority of households spend less than 6% of their income on electricity, but the effort level is increasing. Highlights In 2014, 97.7 % of households in Vietnam used grid electricity for lighting. In 2014, out of four Vietnamese households, one used less than 50 kWh per month, and another between 50 kWh and 100 kWh. In 2014, 95 % of Vietnamese households devote less than 6.2 % of income to electricity. Between 2010 and 2014, the share of income that Vietnamese households devote to electricity increased by about one third. In 2010, one out of four households in Vietnam declared that their electricity use was insufficient to meet their needs. That ratio dropped under 3 % in 2014. In 2014, half of the households in Vietnam who declared insufficient electricity used less than 22 kWh per month. In 2014, among households using less than 22 kWh per month, only one out of six declared that their needs were not met.
    Keywords: vietnam, electrification, energy poverty
    Date: 2016–10–19
  3. By: Serrano, M. R.
    Abstract: On 28 March 2012, the Philippine Government, through the Regional Tripartite Wages and Productivity Board of Region IV-A, issued Wage Order IVA-15. Its purpose was to further strengthen the policy framework to encourage improvements in productivity, including by enhancing the link between wages and productivity at the enterprise level. This wage order has piloted the implementation of a two-tier wage system in Region IV-A (CALABARZON), which is home to many export-processing and industrial zones. On 1 May 2014, another wage order was issued – Wage Order IVA-16 – clarifying some confusing provisions of the earlier order. This paper explores how the wage order is being implemented two years (2013 to 2014) after its issuance in Region IV-A by examining the various schemes and processes involved in devising various productivity-based pay schemes through case studies of selected companies in the region. It also examines the extent of coverage of the productivity-based pay tier in terms of the number of participating establishments as of 2014.
    Keywords: wages, labour productivity, economic growth, wage structure, trade unionization, collective bargaining, Philippines
    Date: 2016
  4. By: Apata, T.G.; Sanusi, R.A.; Obaisi, A.; Ajani, O.
    Abstract: Public expenditure in the form of budget is making a provision for development for today and in the future. Over the year’s sustainable budget provisions has been a contentious issue in Economic development. Public expenditure is a fiscal instrument that government uses to sustain the economy. The question is “what is to be sustained” and “what is to be developed”. This is the rationale for this study. Literature has revealed that Nigeria and Malaysia are comptemporaries in terms of development in the 1960s, recent findings revealed that Malaysia is advanced in economic development than Nigeria. The study answer two precise questions: policy settings under which public spending contributes to agricultural growth? and public spending mechanisms that have a clearer and longer-lasting influence on agricultural growth? The study aim to establish a link to public spending in Malaysia and provide lessons regarding the level and composition of public spending that can be useful for Nigeria. Secondary data used and sourced from FAOSTAT and International Monetary Fund's Government Finance Statistics (various issues) from 1970 to 2010. Simple version endogenous growth theory adopted. Government expenditures as a percentage of GDP in Nigeria witnessed massive public funding in Agriculture in the 1960s-1980s but decline in 1990s-2010, while Malaysian experienced consistency, both in public funding in agriculture and growth. Malaysia as the better manager in terms of components of growth than Nigeria. Malaysia reflects a clear predominance of productive spending, which is sustained through the decades of analysis, while Nigeria predominance of unproductive spending.
    Keywords: Public spending, growth model, policy, economy development, Nigeria and Malaysia, Consumer/Household Economics, Financial Economics,
    Date: 2016–09
  5. By: Jung Lee, Lim
    Abstract: The alignment of strategy and vision between government and member organisations in PisAgro is an important foundation to achieve market based Thought Leadership via an inclusive model. In practice, however, working across a large group of multi-stakeholders with different ideologies, working cultures and agenda is challenging. As projects progress from simple pilots to scale ups, the complexity of managing these projects increases, adding more pressure on limited management and field resources. In order to ensure scale-up sustainability and addressing project implementation complexities, the inclusive culture of leveraging strengths, expertise and sharing best practices of partners, have to be inculcated. Lastly, in the longer term, there must be continuity of strong leadership in the public and private sectors to drive the food security agenda. At the operational level, there must be stamina to complete the journey, supported by the courage of parent companies and donor organizations to continue to invest in market based opportunities to achieve crop productivity gains, farmer prosperity and environmental sustainability.
    Keywords: Food Consumption/Nutrition/Food Safety, Food Security and Poverty, International Development,
    Date: 2015–08
  6. By: Julio cesar Ramirez Montañez (Universidad Pontificia Bolivariana, Bucaramanga, Colombia)
    Abstract: The central purpose of this document is to present the most relevant aspects of the regional economic integration agreement more ambitious and with best projections in Latin America, as is the undertaken between Mexico, Peru, Chile and Colombia in the framework of the Treaty of the Alliance of the Pacific. These four countries known as the Pumas of the Pacific along the western coast of Latin America have made great strides in recent years and are about to emerge as regional leaders. The central thesis of this article is focused on raising that the geostrategic significance of the Alliance of the Pacific lies the possibility of to be the bridge to Latin America with the Asia Pacific through the implementation of production chains that emerge from the generation and consolidation of relations within the private sector, with the aim of generating value added products and more competitive
    Keywords: Economic Integration, Open Regionalism, Pacific Alliance, Pacific Cougars
    JEL: F41 F41 F41
  7. By: Jiranyakul, Komain
    Abstract: This paper employs quarterly data during 2008Q1 and 2016Q2 to examine the impacts of shocks to asset prices and real exchange rate on the current balance in Thailand. The structural VAR model is used. The results show that the shocks to real effective exchange rate and housing prices can better explain fluctuations in the current account.
    Keywords: Housing prices, stock prices, real exchange rate, current account, structural VAR
    JEL: F31 F32 F40 G10
    Date: 2016–11
  8. By: ODAJIMA, Ken
    Abstract: Cambodia is highly dollarized in terms of macro aggregated figures, such as foreign currency deposit to M2. It is not well known that how households are living in the multi-currency environment. In this paper, the primary objective is to present the real picture of dollarization of households, using survey-based data from October 2014 to January 2015. This survey obtained responses from 2273 sample households from 25 provinces. It is possible to see different aspects of household behavior, such as income, expenditure, saving, borrowing, currency notes usage, potential risks of currency mismatches in the household's budget, and perception and opinions.
    Date: 2016–10
  9. By: Eskesen, Alison
    Abstract: By 2050, a global population of 9 billion will demand 70% more food than is consumed today. Feeding this expanded population nutritiously and sustainably will require substantial improvements to the global food system—one that provides livelihoods for farmers as well as nutritious products for consumers. To achieve on-the-ground improvements, the World Economic Forum launched the Grow Africa and the Grow Asia partnerships. Grow Asia, launched in April 2015, is a partnership among leading companies, national governments and civil society to enable sustainable and inclusive agricultural development in South East Asia. The partnership facilitates multi-stakeholder collaboration to develop the productivity and profitability of smallholder farmers and to improve the environmental sustainability of agriculture.
    Keywords: Agricultural and Food Policy, International Development, International Relations/Trade,
    Date: 2015–08
  10. By: Ian Coxhead; Rashesh Shrestha
    Abstract: This paper examines the effect of increased access to industrial jobs on educational attainment using data from the 2009 Vietnam Census of Population and Housing. Vietnam’s accession to the WTO, concluded in 2006, was the signal for a fourfold increase in foreign direct investment, primarily by firms seeking low-cost blue-collar labor for assembly and light manufacturing. We find that the district-level intensity of jobs in foreign-invested firms has a significant negative association with the likelihood that teenagers will be recorded as being in school, for urban males and females and (to a lesser extent) for rural females. High dropout rates in the hinterlands of booming industrial areas like Ho Chi Minh City are due in part to relatively easy access to industrial labor markets that offer almost no premium for learning acquired in high school. The decision to enter the labor force before completing high school will likely have long-term implications for the individuals themselves, and for aggregate economic growth since competitiveness in the global economy depends on sustained increases in labor productivity.
    Keywords: human capital, schooling, globalization, Vietnam
    JEL: I25 F63
    Date: 2016
  11. By: Tsani Fauziah Rakhmah; Yanfei Li (Economic Research Institute for ASEAN and East Asia (ERIA))
    Keywords: electricity market, operational planning, ASEAN, European Union
    JEL: N75 Q40 Q48
    Date: 2016–10
  12. By: AIBA, Daiju
    Abstract: We investigated the Cambodian enterprises behaviors and its relation with dollarization using survey data. The data was collected in the survey carried out in 2014. We found that, in the case of Cambodia, that not only loans, but revenues, expenditures and price quotations are also highly dollarized. In addition, we found that the extents of dollarization vary across regions, firm size and industries. Furthermore, there was a currency mismatch between the currency compositions of revenues and expenditures. Especially, the mismatch is prominent in firms operating central area, firms of small sizes, or firms classified into the wholesale and retail trade sector. Importantly, we found that most of firms do not recognize the risk of exchange rate changes and do not have hedging strategies, although they cope with more than two currencies in their daily operation.
    Date: 2016–10
  13. By: Pratt, Anthony
    Abstract: Possibly Australia’s greatest contribution to global food security is through the production and export of safe, nutritious, sustainablyproduced food, to meet the rising demand across Asia and beyond. We need to promote, protect and extend Australia’s reputation as a high quality, safe food supplier. Visy supports its food industry customers to do well, which will fuel Australia’s capacity to feed 200 million people directly. We can also help feed a further 800 million with the application of our skills, R&D and business services. Supporting our food customers revitalises the food processing sector and tackles food waste by protecting food from deteriorating, which could double the effective calorie delivery from the current level of agricultural production. Reducing food waste by better packaging that extends food shelf life also adds value to our customers and hence to society. Applying business know-how, in collaborative partnership with researchers and farming practitioners, is an important key to achieving this goal.
    Keywords: Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Food Security and Poverty,
    Date: 2015–08
  14. By: Zsolt Darvas
    Abstract: Access the dataset Global and regional Gini coefficients. Read the Blueprint An anatomy of inclusive growth in Europe. Zsolt Darvas compares four methodologies to estimate the global distribution of income and find that many methods work well, but the method based on two-parameter distributions is more accurate than other methods. This method is simpler, easier to implement and relies on a more internationally-comparable dataset of national income distributions than other approaches used in the literature to calculate the global distribution of income. Zsolt suggests a simulation-based technique to estimate the standard error of the global Gini coefficient. Global income inequality among the citizens of 128 countries gradually declined in 1989-2013, largely due to convergence of income per capita, which was offset by a small degree the increase in within-country inequalities. The standard error of the global Gini coefficient is very small. After 1994, market income inequality in the EU28 was at a level similar to market inequality in other parts of the world, but net inequality (after taxes and transfers) is at a much lower level and it declined between 1994 and 2008, since when it remained relatively stable. Regional income inequality is much higher in Asia, Africa, the Commonwealth of Independent states and Latin America than in the EU28.In Asia, regional inequality has increased recent years, while it declined in the other three non-European regions.
    Date: 2016–11
  15. By: AIBA, Daiju
    Abstract: We conducted a survey on Cambodian financial institutions and collected financial data at bank- and branch-level, in order to reveal the actual situation of dollarization in Cambodian financial institutions. We found that there were differences in shares of FX currency deposit and loans between commercial banks (CBs) and microfinance institutions (MFIs). MFIs are likely to have more local currency in their cash on hand, loans, deposits, and borrowings, while CBs rely mostly on FX currency in intermediation. Furthermore, although it is subtle, it can be observed that the share of local currency in deposits has increased over the period of 2009-2013 in the cases both of CBs and MFIs. It might suggest that there is the potential that local currency deposits can be facilitated. However, commercial banks did not allocate KHR funds, although they had large excess KHR funds in Phnom Penh. Moreover, FX currency shares in MFIs' loans have been increasing despite the increase of KHR currency in their deposits. Finally, we found that there were regional differences in dollarization of deposits and loans. In particular, branches in rural areas tend to extend more local currency loans than in Phnom Penh area.
    Date: 2016–10

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