nep-sea New Economics Papers
on South East Asia
Issue of 2017‒01‒22
24 papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Assessing the Spatial Concentration of Indonesia's Manufacturing Sector: Evidence from Three Decades By Rothenberg, Alexander D.; Bazzi, Samuel; Nataraj, Shanthi; Chari, Amalavoyal V.
  2. Opportunities for Strengthening Agriculture Insurance Programs: Philippine Crop Insurance Corporation and LGU Partnerships By Reyes, Celia M.; Mina, Christian D.; Agbon, Adrian D.; Gloria, Reneli Ann B.
  3. Industri Wisata Halal di Indonesia: Potensi dan Prospek By Jaelani, Aan
  4. Halal tourism industry in Indonesia: Potential and prospects By Jaelani, Aan
  5. The Impact of Legal Minimum Wages on Employment, Income, and Poverty Incidence in the Philippines By Paqueo, Vicente B.; Orbeta, Aniceto Jr. C.; Lanzona, Leonardo A.
  6. Nongovernment Reforestation in the Philippines: Ways Forward By Israel, Danilo C.
  7. Estimation of Vulnerability to Poverty Using a Multilevel Longitudinal Model: Evidence from the Philippines By Mina, Christian D.; Imai, Katsushi S.
  8. Risk Management Practices in Islamic Banking Institutions: A Comparative Study between Nigeria and Malaysia By Muhammad, Aliyu Dahiru
  9. Myanmar's cross-border trade with China : beyond informal trade By Kubo, Koji
  10. Effects of OTT services on consumer's willingness to pay for optical fiber broadband connection in Thailand By Sudtasan, Tatcha; Mitomo, Hitoshi
  11. Understanding Asian investment regime complexity : what to do about it? By Chaisse, Julien; Hamanaka, Shintaro
  12. The Return Motivations of Legal Permanent Migrants: Evidence from Exchange Rate Shocks and Immigrants in Australia By Paolo Abarcar
  13. Evaluation of the Registry Service for Basic Sectors in Agriculture By Reyes, Celia M.; Gloria, Reneli Ann B.
  14. Pantawid Pamilya Pilipino Program: Boon or Bane? By Orbeta, Aniceto Jr. C.; Paqueo, Vicente B.
  15. Relationships between health data, BMI, basic medical skills: some insights from a 2016 Vietnamese medical survey By Quan-Hoang Vuong
  16. Planting Seeds of Self-Defeat: Effects of Unrealistic Regulations on the Caraga Wood Industry and Forest Conservation By Paqueo, Vicente B.; Israel, Danilo C.
  17. Quantifying the Spillovers from China Rebalancing Using a Multi-Sector Ricardian Trade Model By Rui Mano
  18. The Pacific Alliance and its economic impact on regional trade and investment: Evaluation and perspectives By Durán Lima, José Elías; Cracau, Daniel
  19. Eurozone’s Leader and its Followers: Are their Markets Integrated Enough? By Nikolaos Giannellis; Minoas Koukouritakis
  20. Agricultural Insurance Program: Lessons from Different Country Experiences By Reyes, Celia M.; Mina, Christian D.; Agbon, Adrian D.; Gloria, Reneli Ann B.
  21. The Irony of RH Law Critics' Opposition to Comprehensive Sex Education By Abrigo, Michael R.M.; Paqueo, Vicente B.
  22. Beware of the "End Contractualization!" Battle Cry By Paqueo, Vicente B.; Orbeta, Aniceto Jr. C.
  23. Cargo Truck Ban: Bad Timing, Faulty Analysis, Policy Failure By Llanto, Gilberto M.
  24. Food (In)security and the Price of Rice Self-Sufficiency By Briones, Roehlano M.

  1. By: Rothenberg, Alexander D.; Bazzi, Samuel; Nataraj, Shanthi; Chari, Amalavoyal V.
    Abstract: Beyond the role of economic forces, many theories of economic geography emphasize the way politics can shape the spacial configuration of economic activity. We investigate the impact of changes in political regimes on industrial concentration using 30 years of data on Indonesian manufacturers. These data span both the reign of Suharto, one of the strongest central governments in Southeast Asia, and its collapse and the subsequent decentralization of power. Using the canonical measure of Ellison and Glaeser, we show that in the mid 1980s, Indonesia's firms exhibited a similar degree of agglomeration as seen in the United States. Spatial concentration then declined until the 1998 Asian Financial Crisis, and has since begun to rise during the decentralization period. We also measure concentration using the continuous measure developed by Duranton and Overman (2005), and find that the agglomeration exhibited by Indonesian firms is also broadly similar to that documented by Duranton and Overman (2005 ) for the United Kingdom, although localization drops off more gradually in Indonesia than in the United Kingdom. Using this continuous measure of agglomeration, we identify 32 manufacturing clusters in Indonesia, and investigate the correlates of concentration. We find that the most robust drivers of agglomeration have been natural resources and supply chain linkages, especially with respect to explaining long-term changes in spatial concentration.
    Date: 2017–01
  2. By: Reyes, Celia M.; Mina, Christian D.; Agbon, Adrian D.; Gloria, Reneli Ann B.
    Abstract: Providing agricultural insurance to farmers and fisherfolk in the Philippines has been implemented for nearly three decades. While it is agreed that agricultural insurance is crucial in assisting farmers, fisherfolk, and governments in lessening the negative financial impact of natural events, issues of providing premium subsidies and being tied to credit in the Philippines remain to be important policy issues. This paper reviews available information about partnerships between local government units (LGUs) and the Philippine Crop Insurance Corporation. The aim is to look at these innovations that may promote and enhance agricultural insurance in the Philippines. Providing for full premium subsidies and as a form of loan to the farmers was implemented by the LGUs reviewed in this paper. Further study is needed to determine which scheme works best in terms of increasing coverage over the long term and ensuring financial viability.
    Keywords: Philippines, farmers, subsidy, Philippine Crop Insurance Corporation, agricultural insurance, local government units (LGUs), fisherfolk, local government units, financial impact
    Date: 2017
  3. By: Jaelani, Aan
    Abstract: This study confirms that halal tourism is a tourism industry which has contributed to economic growth in Indonesia, although the world economy slows down. In Indonesia, halal tourism has long been grown in the form of a pilgrimage undertaken by people with religious motivation. Along with the development of the global Islamic economy, then this type of tourism is undergoing a metamorphosis that requires a change in modern ranging from attractions, hotels, up to marketing. With the phenomenological approach, this study concludes that halal tourism has become part of the national tourism industry to position Indonesia as a center for halal tourism in the world in the future.
    Keywords: industry, religion tourism, syariah tourism, halal tourism
    JEL: F63 J1 L53 L83 O25 Q26 Z1
    Date: 2017–01–03
  4. By: Jaelani, Aan
    Abstract: This study confirms that halal tourism is a tourism industry which has contributed to economic growth in Indonesia, although the world economy slows down. In Indonesia, halal tourism has long been grown in the form of a pilgrimage undertaken by people with religious motivation. Along with the development of the global Islamic economy, then this type of tourism is undergoing a metamorphosis that requires a change in modern ranging from attractions, hotels, up to marketing. With the phenomenological approach, this study concludes that halal tourism has become part of the national tourism industry to position Indonesia as a center for halal tourism in the world in the future.
    Keywords: industry, religion tourism, syariah tourism, halal tourism
    JEL: F63 J1 L53 L83 O25 Q26 Z1
    Date: 2017–01–07
  5. By: Paqueo, Vicente B.; Orbeta, Aniceto Jr. C.; Lanzona, Leonardo A.
    Abstract: It is commonly believed that mandating higher legal minimum wages (LMWs) is needed to help the poor earn a level of income that would allow them healthy and dignified lives. It is also seen as a tool to protect the weak against exploitation. This popular belief motivates and justifies the recurrent demands for hefty increases in LMW. But what is the empirical evidence behind this? This article seeks to address this question. It finds that in the Philippines, higher LMWs: (i) are likely to reduce the work hours of average workers; (ii) can be disadvantageous against the very groups that LMWs are intended to protect; (iii) decrease the employment probability of the young, inexperienced, less educated, and women laborers; and (iv) tend to ironically reduce average income and raise household poverty rate. These results illustrate how rapid rises in LMWs can be counter-productive and can go against the spirit of equal protection principle of the Constitution. If the goal is to help the poor and protect the weak, then these findings warrant the need to think more deeply and prudently about the use of LMWs and to consider other tools for achieving decent wages.
    Keywords: Philippines, poverty, employment, jobs, minimum wages, labor market policy, legal minimum wages (LMWs), labor
    Date: 2016
  6. By: Israel, Danilo C.
    Abstract: This study reviews and assesses nongovernment reforestation in the Philippines vis-a-vis government and total reforestation using primary and secondary data. The objective is to identify issues and problems related to nongovernment reforestation and recommend actions that can be undertaken to address them. It finds that government reforestation dominates total reforestation, while nongovernment reforestation only has a relatively small contribution in recent years. During the first three years of implementing the National Greening Program, the growth of nongovernment reforestation had been erratic, increasing in 2011 but decreasing in 2012 and 2013. This study asserts that private reforestation--or reforestation conducted by the private sector under no agreement with the government--has been the main driver of nongovernment reforestation at present. However, its full development as an industry has been hindered by various institutional, production, and marketing issues and problems. This study recommends ways to address these problems and issues to move nongovernment reforestation forward.
    Keywords: Philippines, forest, nongovernment reforestation, private reforestation, reforestation laws and policies, National Greening Program
    Date: 2016
  7. By: Mina, Christian D.; Imai, Katsushi S.
    Abstract: Using the panel data for the Philippines in 2003-2009, the paper estimates a three-level random coefficient model to measure household vulnerability and to decompose it into idiosyncratic and covariate components. It corrects heterogeneity bias using Bell and Jones's (2015) "within-between" formulation. A majority of the poor and 18 percent of the nonpoor are found to be vulnerable to unobservable shocks, while both groups of households are more susceptible to idiosyncratic shocks than to covariate shocks. Adequate safety nets should be provided for vulnerable households that lack access to infrastructure, or are larger in size with more dependents and less-educated household heads.
    Keywords: Philippines, poverty, vulnerability, multilevel model, panel data
    Date: 2016
  8. By: Muhammad, Aliyu Dahiru (Department of Economics,International Islamic University)
    Abstract: Increasingly corporate financial institutions are realizing the importance of risk management. This leads to innovation of financial products to mitigate the risk. Islamic banking institutions face similar risks as conventional banking institutions. However, the later has additional Shariah noncompliance risk. The objective of this study is to compare risk management practices in Islamic banking institutions between Nigeria and Malaysia. The study employs survey technique to collect data from the respondents and analyze it using various techniques. Specifically, t-test and analysis of variance as well as multiple regressions were used to analyze the data. Findings show that there is significant differences in terms of understanding risk management and risk assessment and analysis between Nigeria and Malaysia with the later taking the lead. This is due to maturity and robust legal and regulatory framework. However, the result exhibits relative competition in RMP between Nigeria and Malaysia as out of five dimensions three are not significant (RMP, RI, RCM). While Malaysia leads in some aspects of risk management, Nigeria has huge potential to change the landscape of Islamic finance in the country. This implied that risk management processes in Islamic banks require additional legal and regulatory framework to strengthen their existing condition. Further research should focus on the details of risk management techniques employed by Islamic banks in the study area.
    Keywords: Risk Management Practices; Islamic banking; Nigeria; Malaysia
    JEL: G20 G21 G28
    Date: 2016–11–08
  9. By: Kubo, Koji
    Abstract: Myanmar's trade with China is heavily concentrated in cross-border trade through the Yunnan province of China. In this qualitative analysis, we examine factors that yield such a concentration from the viewpoint that trade would be concentrated in the channel where transaction costs are relatively low compared with those in other channels. It is almost certain that weak law enforcement at the border gives rise to informal cross-border trade, which allows traders to save the time and costs for compliance with formal procedures. Apart from informality, unique institutional arrangements have been emerging spontaneously in the border area that can reduce transaction costs in a way compatible with formal trade, thus augmenting cross-border trade. Based on observations of thriving trade at Myanmar's border with China, we draw implications for the country's general trade facilitation measures.
    Keywords: International trade, Informal sector, Myanmar, Cross-border trade, Informal trade, Transaction costs of trade
    JEL: F19 O17 O53
    Date: 2016–12
  10. By: Sudtasan, Tatcha; Mitomo, Hitoshi
    Abstract: Over-the-top (OTT) media and communications services are shifting internet consumption towards the increase of traffic over the internet. Since FTTH provides the highest capacity and speed of the broadband service, this paper attempts to examine the impact of OTT services to consumers to subscribe FTTH as an efficient off-load option from mobile broadband. Main research questions are whether and how OTT services affect and drive consumers to adopt optical fiber broadband. It uses fuzzy data to derive consumer's willingness to pay (WTP) for optical fiber broadband connection. The results of the study indicate that movie over internet service as an OTT service drives people to adopt and be willing to pay more for FTTH connection. The paper also discusses the policy implication on the promotion of optical fiber broadband adoption in Thailand.
    Keywords: Optical fiber,Willingness to pay,OTT services,Fuzzy data
    Date: 2016
  11. By: Chaisse, Julien; Hamanaka, Shintaro
    Abstract: This study examines the evolving international regime for investment. It focuses on the Asian experience, which has not been extensively studied thus far unlike trade agreements. Existing studies mainly focus on the interpretation and application of international investment agreements (IIAs) in which the rules are given. In contrast, this study focuses on the development of rules, including investment protection. The noodle bowl syndrome of IIAs is potentially a serious problem. While trade disputes are state-to-state, an investment dispute involves investors who try to protect their investment using IIAs, such as the well-known case of Philip Morris, which launched proceedings against Australia via an Asian subsidiary using the Hong Kong–Australia Bilateral Investment Treaty. Furthermore, each IIA can conveniently import "better" provisions from other IIAs using its MFN clause, which significantly complicates the interpretation of IIAs. Because three factors affect the magnitude of noodle bowl problems of investment, there are three ways to mitigate the problem. First, the scope of MFNs should be carefully drafted to limit the "mobility" of provisions, e.g., MFN treatment does not apply to investor–state dispute provisions or older IIAs. Second, while investors are mobile and tend to relocate their base to seek convenient IIA protection, there should be some discipline on such relocations. Just to fight against the policy in question, IIAs should not create an incentive for relocation after it is decided. Third, the mobility of countries should be enhanced, which means that countries should be able to accede to IIAs favorable to their investors through accession. An appropriate balance among the "mobility" of these three factors is important.
    Keywords: Foreign investments, International agreements, Investment treaties, BIT, FTA, Noodle bowl, Treaty shopping, Trans-Pacific Partnership (TPP)
    Date: 2017–01
  12. By: Paolo Abarcar
    Abstract: Why do legal permanent migrants return to their home countries? This paper uses exogenous exchange rate shocks arising from the 1997 Asian financial crisis to distinguish between theories of what motivates Australian immigrants to return to their home country.
    Keywords: return migration, immigrants, Australia, exchange rates, Asian financial crisis, migrants, life-cycle migrants
    JEL: F Z
  13. By: Reyes, Celia M.; Gloria, Reneli Ann B.
    Abstract: There are many and varied government programs that target the agriculture and fisheries sector, especially the poor. For more efficient and streamlined program targeting, the Aquino administration has initiated the creation of the Registry Service for Basic Sectors in Agriculture (RSBSA), a list of farmers, farm workers, and fisherfolk in the 75 provinces of the country excluding the Autonomous Region in Muslim Mindanao and the National Capital Region. This is currently used by the Department of Budget and Management to target beneficiaries of various government agencies implementing agricultural support programs, and as a basis for issuing allocated budgets for these programs. This paper finds that there are legitimate agricultural producers that are excluded from the list, leakages, difficulty of the registry to be linked with other government databases, and unclear operational definition of farmer. But despite its shortcomings, the authors find that the RSBSA is useful as a targeting tool; the list just needs to be validated and regularly updated.
    Keywords: Philippines, agricultural insurance, Registry Service for Basic Sectors in Agriculture (RSBSA), program beneficiary targeting, Department of Budget and Management, agricultural credit
    Date: 2017
  14. By: Orbeta, Aniceto Jr. C.; Paqueo, Vicente B.
    Abstract: The Pantawid Pamilyang Pilipino Program has been much maligned and dismissed as a “dole-out” program. Critics have focused on the fact that it provides cash grants directly to poor families, believing it would promote the culture of mendicancy and dependence. Others believe that the grants would just be wasted on vices (perhaps alcohol, cigarettes, even drugs) instead of human capital formation (education and health of the children). Stereotyping of the poor prevented society from providing meaningful support in the past by refusing to understand their situation. It turns out that both of these have been proven unfounded by rigorous program evaluations, showing no impact on work effort of beneficiaries nor on expenditure on vice goods. In addition, data show that the poor do respond correctly to incentives of highlighting the importance of investing in the human capital of their children even if returns from such investments are farther away than what usually is their immediate concern. Given the evidence, should we not let Pantawid Pamilya provide us a more nuanced view about the poor that is empirically based so that we can be more effective in assisting them?
    Keywords: Philippines, conditional cash transfer (CCT) program, Conditional Cash Transfers (CCT), Pantawid Pamilyang Pilipino Program (4Ps), poverty, social assistance, DSWD
    Date: 2016
  15. By: Quan-Hoang Vuong
    Abstract: Does owning a medicine cabinet or having practical first-aid knowledge and skillsat home have any effects on people's attitude towards periodic health examinations (GHEs)? In this study, we analyzed a dataset consisting of 2,068 observations to point out differences in periodic health examinations-taking tendencies between those with and without a family medicine cabinet; as well as between those who know and do not know how to use basic medical equipment. In addition, the factors of age, gender, job and marital status were also documented in relation to body mass index (BMI): the BMI of a Vietnamese person is average by conventional standards (the mean BMI = 20.848, SD = 2.67, CI = 20.73-20.96), and is directly proportional to age (βage=0.019, P
    Keywords: Periodic general health examinations; Medicine Cabinet; Medical Tools; BMI
    JEL: I18
    Date: 2017–01–13
  16. By: Paqueo, Vicente B.; Israel, Danilo C.
    Abstract: Years of rapid and indiscriminate logging of Philippine forests, coupled with little reforestation, have led to more frequent, widespread, and damaging natural disasters, such as floods, landslides, and other environmental damages. With strong political will and noble intentions, President Benigno S. Aquino III issued Executive Order 23 (EO 23) in 2011. This order sought to protect the country's natural forests by imposing a total ban over logging activities and imposing stronger measures against illegal cutting. Unfortunately, EO 23 intensified the rent-seeking behavior among the regulating agencies and has led to damaging unintended economic and social consequences without accomplishing much of its avowed objectives. Moreover, there are other potentially more effective ways of protecting Philippine forests. On this score, would it possible to achieve a win-win strategy where natural forests are effectively protected without paralyzing the wood industry that provides incomes and jobs?
    Keywords: Philippines, deforestation, wood industry, Caraga, forest products, log ban, Executive Order 23, natural forest, illegal logging
    Date: 2016
  17. By: Rui Mano
    Abstract: This paper assesses the spillovers from different facets of China rebalancing using a calibrated Ricardian trade model that includes 41 economies, each consisting of 34 sectors. We find that China’s move up the value chain in particular has the potential for significant spillovers – on the one hand, adversely affecting industrialized economies heavily involved in the Asia value chain, while at the same time generating positive spillovers to lower and middle income countries. The model’s strength lies in endogenously capturing production value chains and international trade of goods across sectors.
    Keywords: Spillovers;China;Demand;Consumption;Economic sectors;International trade;Trade models;Transition economies;Spillovers, China rebalancing, trade channel, sectoral trade
    Date: 2016–11–15
  18. By: Durán Lima, José Elías; Cracau, Daniel
    Abstract: The entry into force of the Additional Protocol of the Framework Agreement of the Pacific Alliance in May 2016 marked an important step towards the regional integration efforts of its four members: Chile, Colombia, Mexico and Peru. In addition to promoting trade and investment linkages among its members, a core objective of the Pacific Alliance —and what distinguishes it from other regional integration efforts in Latin America— is to serve as a platform for economic and commercial integration between Latin America and Asia-Pacific. It is, therefore, of particular interest to evaluate current economic developments taking part in modern Latin America and their impact upon these integration efforts. The data of bilateral flows of trade in goods at the product and sector level, together with the study of trade in services as well as foreign direct investment, reflect the strong links within the Pacific Alliance. It also reveals the potential to further increase its members’ participation in regional and global value chains. The Additional Protocol will serve not only to immediately eliminate tariffs for nearly 95% of intraregional imports, but also to foster economic integration through cumulation of origin and trade facilitation. The Pacific Alliance faces several challenges in the medium-term. First, it must successfully incorporate Costa Rica as a full member, the first accession since the Pacific Alliance was formed. Further, it must clearly define how to fulfill one of its driving forces: to serve as a bridge between Asian and Latin American countries on both sides of the Pacific.
    Date: 2016–12
  19. By: Nikolaos Giannellis (Department of Economics, University of Crete, Greece); Minoas Koukouritakis
    Abstract: The establishment of the European Economic and Monetary Union (EMU) was admittedly a remarkable step in the direction of enhancing economic integration among European countries. The launch of the common currency was expected to lead to price stability, lower transaction costs, stronger intra-euro trade relationships and thus, to higher growth for country-members. This optimistic view is obviously related to McKinnon’s (1963) contribution to the theory of Optimum Currency Areas (OCA). However, a fundamental weakness of the EMU, such as the lack of homogeneity across member-countries, should not be ignored. A number of divergent factors, such as dissimilar national policies (apart from the monetary policy) and different national regulations on goods and labour markets, may increase the possibility of emergence of asymmetric shocks in the Eurozone. On the other hand, this view is related to Mundell’s (1961) original contribution to OCA theory. Having in mind the aforementioned heterogeneity and the resulting asymmetries across countries, academics and policy makers focus on answering the question of whether the EMU achieved its goals. The main reservation in this analysis arises from the presence of asymmetries and the lack of autonomous monetary policy for member-countries. This is because an asymmetric shock could be managed by an exchange rate adjustment. However, in a monetary union, like the EMU, this is not the case. Thus, the main question is whether the common monetary policy (including the exchange rate policy) can achieve higher growth rates and higher economic and financial integration in the Eurozone. De Grauwe (2009) argues that in the first decade of euro’s life and before the debt crisis arises, there is little evidence that the euro caused higher growth rates in the Eurozone. On the other hand, nobody can argue that the euro had negative impacts on growth. However, it is also true that the EMU suffers from significant design weaknesses, which became more evident and stronger during the sovereign debt crisis. What may be indicative of the progress of economic integration among EMU members is that real effective exchange rates deviate among them, thereby implying that their competitive positions have diverged (De Grauwe, 2009, 2010). Northern European countries such as Germany, Austria and the Netherlands, gain in terms of international competitiveness, while competiveness in international trade for Southern European countries, such as Greece, Italy and Spain, has deteriorated. In this context, the present paper aims to find whether economic and financial integration has increased among countries after the creation of the EMU. To be precise, we investigate whether EMU countries as well as selected non-EMU countries are financially integrated with Germany, which is the leading country in the EMU as it has the highest influence on the common monetary policy. We initially expect that the euro has led to integrated commodity and capital markets in the Eurozone because of stronger trade linkages among its member-countries. On the other hand, given the high degree of heterogeneity across countries and the absence of (intra-euro) exchange rate fluctuations, it is doubtful that higher economic integration can be achieved among EMU countries (especially for those that are structurally different from Germany). The existence of economic and financial integration between Germany and the rest of the Eurozone’s countries (and the non-EMU countries) is tested through two well-known international parity relationships, i.e. the Purchasing Power Parity (PPP) and the Uncovered Interest Parity (UIP). The empirical validity of the PPP hypothesis implies that goods markets are integrated, while the validity of the UIP condition implies the existence of capital market integration between countries. A survey on the related empirical literature implies that the introduction of the euro may have failed to increase commodity and financial markets integration among EMU countries. Koedijk et al. (2004) find evidence in favour of the PPP hypothesis within the euro area only when common mean reversion among countries is assumed. Setting Germany as the benchmark country and assuming heterogeneous mean reversion coefficients, their evidence is strengthened only for France, Finland and Spain, while they found no evidence regarding the validity of the PPP between the EMU and major non-EMU countries. Furthermore, Christidou and Panagiotidis (2010) and Wu and Lin (2011) report that the adoption of the euro has weakened the evidence in favor of the PPP. Similarly, Huang and Yang (2015) find that after the launch of the euro, the evidence in favour of the PPP is stronger for non-EMU countries rather than EMU countries. When it comes to capital markets integration (i.e. the UIP hypothesis), Kim et al. (2006) find that the degree of integration among European bond and stock markets has declined after the introduction of the euro. However, the above studies have tested the PPP and UIP hypotheses only as independent parity conditions. This implies that the possibility that deviations from the PPP equilibrium are utilized by investors when forming expectations has been overlooked. Motivated by the seminal papers of Johansen and Juselius (1992) and Juselius (1995), we expect that PPP deviations may interact with UIP deviations. In the present paper, we extend the empirical literature on economic and financial integration in the Eurozone by testing the PPP and the UIP jointly. To the best of our knowledge, we argue that the present paper is the first that tests jointly the PPP and UIP conditions between Germany (as the leading economy of the EMU) and the remaining EMU countries. Another contribution of the paper is that, compared to the majority of the empirical studies in the literature, it uses more accurate price indices. Specifically, we utilise constructed Traded-goods Price Indices (TPI) instead of Consumer Price Indices (CPI) in order to avoid the presence of non-traded goods prices, which biases negatively the empirical validation of the PPP hypothesis. Moreover, we use state-of-the-art time series econometric techniques, which allow the presence of structural breaks in cointegration analysis. Admittedly, the launch of the euro in 1999 and the global financial crisis of 2007 have altered the behaviour of variables under consideration. Hence, these two facts have caused an equal number of structural breaks, which should not be ignored by our analysis. Finally, the use of Germany as a benchmark country allows us to shed more light on Germany’s leading role in the Eurozone. Does the degree of economic integration between Germany and the rest of the Eurozone’s countries allow the characterisation of Germany as the representative EMU country? Given Germany’s domination in the Eurozone, a number of policy-related issues arise for the future of the EMU.
    Keywords: Eurozone,markets integration,PPP,UIP
    JEL: C3 F3 F4
    Date: 2016–09–24
  20. By: Reyes, Celia M.; Mina, Christian D.; Agbon, Adrian D.; Gloria, Reneli Ann B.
    Abstract: While agricultural insurance has long been considered a risk management tool for farmers in both developing and developed economies, policy directions toward sustainability vary across countries. Reviewing the literature provides a comprehensive view of relevant issues, such as objectives of the program, credit access by farmers, program costs, and premium subsidies provided by the national and local governments. This paper provides insights on how agricultural insurance programs from selected developed and developing economies were implemented. Learning from different country experiences, agricultural insurance is important yet costly to implement. Private insurance companies complement with the government-run insurance company to improve coverage rates. Targeting eligible beneficiaries is crucial in the success of a highly subsidized agricultural insurance, especially in developing economies.
    Keywords: Philippines, crop insurance, agricultural insurance, developed economies, developing economies
    Date: 2017
  21. By: Abrigo, Michael R.M.; Paqueo, Vicente B.
    Abstract: Sex-related risks, early sexual experience, and unwanted pregnancies are major concerns of Filipinos. These issues have long been battle grounds for the often rancorous debates about the provisions of the Reproductive Health (RH) Law. In December 2012, Congress approved a comprehensive RH Law that guarantees universal access to services, including age-appropriate health and sexuality education in schools. Critics then raised a public health concern, saying that exposing children to reproductive health care, especially mandatory sexuality education, leads to earlier sexual initiation and higher rates of sexual activity among them. Using the 2008 National Demographic and Health Surveys, this paper analyzes how sex education relates with the sexual behavior of women 15-24 years old. Our analysis of sexual behaviors by young adult females in recent national surveys does not corroborate this claim. Ultimately, it is ironic that their future is being jeopardized by well-meaning opposition to the RH Law, which calls for keeping women better informed about sex-related risks, unwanted pregnancies, their consequences, and ways of avoiding them.
    Keywords: Philippines, health, reproductive health, sexuality education, Reproductive Health Law, sex-related risks
    Date: 2016
  22. By: Paqueo, Vicente B.; Orbeta, Aniceto Jr. C.
    Abstract: In the aftermath of the 2016 election, labor leaders and their political allies pushed for an immediate end to the so-called employment “contractualization”, a policy proposal currently popular with voters and politicians. The idea is for the government to tighten and reduce, if not prohibit, the use of temporary employment contracts (TECs) and job outsourcing. This paper analyzes the policy idea and its potential economic consequences by looking at the roles of TECs and job outsourcing in the functioning of efficient labor markets, the experience of European countries regarding TECs, and Philippine employment data. The study finds that while the policy idea is anchored on good intentions, it can undermine the goal of achieving rapid, inclusive, and sustained economic growth. The realization of this outcome depends on the nature of the policy design actually adopted. On this point, the paper suggests a framework that can be useful in formulating a coherent policy on temporary employment and a strategy for dealing with “endo” practices.
    Keywords: Philippines, employment, jobs, labor market policy, contracts, contractualization, temporary employment contracts (TECs), job outsourcing, endo
    Date: 2016
  23. By: Llanto, Gilberto M.
    Abstract: Everyone has an opinion on how to solve the terrible traffic plaguing Manila every hour of every day. Many people blamed the behemoth cargo trucks plying the roads everyday, inconveniencing thousands of commuters and car drivers by taking up too much space. People across the metropolis rejoiced when the City of Manila declared a truck ban, effectively preventing cargo trucks from crowding the roads. Commuters and passengers collectively felt relieved to have saved a few minutes in their daily journey from home to work. Ultimately, the price of those precious minutes added up to major economic losses reaching billions of pesos. Who could have imagined that things could go wrong?
    Keywords: Philippines, infrastructure, truck ban, port congestion, ports, logistics industry: Manila, economic loss
    Date: 2016
  24. By: Briones, Roehlano M.
    Abstract: The commonly touted solution to achieve food security has always been articulated as achieving self-sufficiency in rice. Since the 1960s, various government regimes have articulated strategies and executed actions to achieve this much-vaunted goal. It has been over half a century, but we have yet to realize this dream. At this point, looking at the hard facts and the numbers, the picture it paints is not pretty. Achieving rice self-sufficiency comes with a price, and let us take a sober look at what it really costs.
    Keywords: Philippines, food security, agriculture, rice production, rice, rice self-sufficiency, farming
    Date: 2016

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