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on South East Asia |
| By: | Kwak , Sungil (Korea Institute for International Economic Policy); Lee , Jae-Ho (Korea Institute for International Economic Policy) |
| Abstract: | Korean Abstract: 글로벌 금융위기를 거치면서 베트남은 성장세의 둔화를 경험했다. 최근 FDI 유입 증가, 양자·다자 FTA의 확대 체결, 아세안경제공동체(AEC) 출범 등 대외경제 환경이 우호적으로 조성되면서 베트남의 성장 잠재력이 주목을 받고 있다. 또한 정치적 안정과 풍부한 저임 노동력, 그리고 1억에 육박하는 인구규모 등 긍정적인 대내여건의 개선은 베트남에 대한 주요 투자국의 관심을 증가시켰고, FDI 유입 또한 크게 증가했다. 특히 2015년에는 사상최대인 145억 달러의 FDI가 유입되었고, 경제성장률은 글로벌 금융위기 이전 수준인 6.68%를 기록했다. 반면에 부정부패, 숙련인력 부족, 국영기업 비효율 등의 부정적인 요소가 상존하고 있다는 점을 고려할 때, 베트남의 사업환경이 긍정적인 것만도 아니다. 국가별 비즈니스 환경을 비교분석하는 Doing Business 평가는 베트남의 비즈니스 환경을 189개국 중에서 90위권 수준으로 평가했다. 다만 최근 들어 투자법 및 노동법의 개정을 통해 투자절차 및 인력고용상의 편의를 개선하면서 베트남의 투자환경이 긍정적으로 변화하고 있다는 점에 주목해야 한다. 따라서 한국기업도 베트남을 전략적인 생산기지로 채택하고 대동남아 투자액의 40% 이상을 투자했다. 향후 베트남에서 주요 투자국과 한국 기업간 경쟁심화가 예상되므로 한국의 대베트남 투자전략에 대한 재점검이 필요한 시점이다. 주요 투자국인 미국과 일본의 대베트남 투자전략 사례를 살펴보고 우리기업에 맞는 투자전략을 재정립할 필요가 있다. English Abstract: Vietnam has taken the spotlight as a representative low-wage production base in Southeast Asia. Recently, very high estimates were made regarding Vietnam’s growth potential due to the favorable economic conditions such as stable inflation, robust economic growth, increase in FDI inflow, multi/bilateral FTAs, AEC(ASEAN Economic Community) and so on. As abundant low-wage workers, political stability, large scale population became positive factors attracting investment to Vietnam, FDI inflow to Vietnam is increasing rapidly. Recently, with Korean companies eyeing Vietnam as a strategic production base, Vietnam has emerged as a major investment destination which accounted for 40% of Korea’s investment to Southeast Asia. Therefore, the time has come to review Korea’s investment strategy to Vietnam, considering the country’s increasing strategic importance. That requires us to make reference to cases of investment strategies of the major investors such as USA and Japan, and revise the investment strategy to suit Korean Companies. Although the Vietnamese economy has been sluggish during the global finance crisis, internal and external economic conditions such as inflation, trade, investment, and industrial structure have improved and economic growth rate returned to the pre-crisis level (6.68%) in 2015. Recent robust economic growth of Vietnam is due to the surge of FDI inflow, which reached an all time high of 14.5 billion USD. In terms of trade, China and USA account for the biggest shares in Vietnam’s trade; yet as the amount of trade between Korea and Vietnam increased, Korea also emerged as the 4th largest export and 2nd largest import destination of Vietnam. Vietnam’s potential as a global production base will only get bigger due to recent favorable internal and external economic condition, but there are a few negative factors as well; such as corruption, lack of skilled workers, and inefficiency of SOE (State Owned Enterprises). According to the Doing Business Index of the World Bank Group, which analyzes the business environment across economies, Vietnam ranked 90th out of 189 economies. Among 10 indicators for business environment analysis, Vietnam scored relatively high in dealing with construction permits, registering property, and acquisition of credit; but low in payment of taxes, protecting minority investors and resolving insolvency. Recently, investment environment of Vietnam has become more favorable due to improvement in FDI and employment terms by the revision of foreign investment laws and labor regulations. |
| Keywords: | Foreign Direct Investment; Economic Cooperation |
| Date: | 2016–09–13 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepre:2016_002&r=sea |
| By: | Thi Nguyet Anh Nguyen (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - UN - Université de Nantes); Thi Hong Hanh Pham (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - UN - Université de Nantes); Thomas Vallée (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - UN - Université de Nantes) |
| Abstract: | The present paper aims to explore the competition in exports among ASEAN +3 members by applying the export similarity index for the disaggregation export data from 1990 to 2014. We also discuss the changes of comparative advantage of ASEAN + 3's exports through the revealed comparative advantage index (RCA) and its relation with similarity index. The results find that export similarity varies among ASEAN+3 member states over the period 1990-2014. Second, we find evidence of several communities of export competition. In particular, four countries, notably Malaysia, Singapore, Japan and Korea, durably show the highest competition level, mainly in the sectors of transistors and telecom equipment. Third, the revealed comparative advantage seems to be the key factor defining the similarity level of exports. Lastly, the revealed comparative advantage analysis allows us to verify the Ricardo's theory and New Trade theory in the context of free trade. |
| Keywords: | trade structure,similarity index,export community,revealed comparative advantage,ASEAN+3 |
| Date: | 2017–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01455139&r=sea |
| By: | KAWABATA Nozomu |
| Abstract: | The purpose of this study is to identify the location of excess capacity in the world iron and steel industry. Excess capacity is a production capacity that is inferior in competition, surviving due to factors other than competitive advantages, under the condition that world production capacity exceeds demand. As a result of analysis, China was found to have the highest scale of excess capacity, while NAFTA (North American Free Trade Agreement) members, Europe, CIS (Commonwealth of Independent States) members, Japan, South Korea, and ASEAN (Association of Southeast Asian Nations) members were found to have a moderate scale of excess capacity. In China, Russia, Ukraine, Japan, and South Korea, excess capacity coexists with large-scale steel exports. However, excess capacity is considered to promote the exports of low value-added steel products only in China, Russia, and Ukraine. The iron and steel industry in China is not necessarily export-oriented, and its capacity utilization rate is not low compared with other regions. However, the production scale in China is outstanding among all economies. As a result, the scale of excess capacity and steel exports are the largest in the world. Moreover, low value-added products occupy a high share in the total iron and steel exports from China. In the cases of Russia and Ukraine, iron and steel industries are export-oriented. Furthermore, compared with China, low-value added products constitute a higher proportion in their export mix. However, the scale of excess capacity and exports are lower than China, in parallel with their production scale. In the cases of Japan and South Korea, iron and steel industries are export-oriented. However, the most exported products are high-grade flat products and high-grade host materials for business partners and subsidiaries abroad. In other words, the steel exports from Japan and South Korea are not commodity-based. An increasing number of construction projects involving steelworks is in progress or being planned worldwide, especially in Asia. Thus, reduction of excess capacity would become difficult. Furthermore, as state-of-the-art technologies will be embodied in newly installed steelworks, the competition for survival in the iron and steel industry will intensify in the future. |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:17026&r=sea |
| By: | Kwon , Yul (Korea Institute for International Economic Policy); Lee , Sang Mi (Korea Institute for International Economic Policy); Yoo , Aila (Korea Institute for International Economic Policy) |
| Abstract: | Korean Abstract: 국제사회의 새로운 개발목표인 Post-2015 개발프레임워크가 채택되면서 전 세계 빈곤인구의 많은 부분을 차지하고 있는 취약국에 대한 관심이 높아지고 있다. SDGs의 경우, 경제 및 사회적으로 소외된 사람들에게 혜택을 제공함으로 달성 가능한 목표 및 세부목표가 다수 있으며, MDGs 보다 도전적인 목표로 평가되고 있기 때문에, 취약국 문제를 잘 해결하는 것이 새로운 개발목표 달성의 핵심이 될 것으로 보인다. 주요공여국은 1990년대부터 취약국 지원의 중요성을 인식하고 별도의 지원 전략을 수립하여 국가협력전략에 반영해 왔으며, 국제사회가 합의한 MDGs 달성에 있어서도 취약국에 대한 지원을 강조해왔다. 그러나 여전히 취약국에 전 세계 빈곤인구의 43%가 집중되어 있으며, 빈곤인구의 비율이 더욱 확대될 것으로 예상되고 있는 바, 평화구축, 국가체재 구축, 인도적 지원 등의 취약국 지원에 많은 정책적 노력이 필요한 상황이다. 최근 국무조정실이 발표한 한국의 2016-2020년 ODA 중점협력국 24개국 중에서 8개 국가가 취약국으로 분류되어 있으며, 이 중 5개국이 아시아 지역에 속해있다. 2015년 말까지 중점협력국에 대한 새로운 국가협력전략이 마련 될 예정이므로, 중점협력국의 상당수를 차지하는 취약국에 대한 협력전략 마련이 필요하다. 이러한 배경에서 본 연구는 취약국의 개념과 기준, 주요 유형과 특징, 국제사회의 취약국 관련 논의 동향을 살펴보았다. 우리나라의 아시아 취약국 정책 및 CPS 수립에 대한 기초자료를 제공하고 시사점을 얻고자 한국 중점협력대상국 중 아시아 지역 취약국이자 최빈국 중 네팔, 미얀마를 대상으로 국제사회 지원 현황과 국제기구 및 선진공여국의 지원 사례, 우리나라의 지원 현황 및 성과를 검토하였다. (후략). English Abstract: As Sustainable Development Goals (SGDs) were adopted in New York in September 2015, attentions on fragile states, where most of people under the poverty line have lived in, have been increased. Because SDGs will more focus on marginalized people in terms of economic and social perspective, it is important to address issues related to fragility in fragile and conflict-affected countries. Major donors have recognized importance of supporting fragile states since 1990 and they have established separate strategies and reflected it into country assistance strategy. They especially emphasized on supporting fragile states in order to achieve Millennium Development Goals (MDGs). However, 43% of the world’s poor now live in countries and economies on the 2015 OECD fragile states list, by 2030, poverty could become increasingly concentrated in fragile states. Therefore, it requires much more effort to reduce poverty and development issues in fragile states such as peace-building, state-building, and humanitarian aid. Prime Minister’s Office of Korea released 24 priority partner countries for 2016-2020 in early 2015. Among them, 8 countries are categorized as a fragile state and 5 out of 8 belong to Asia. Korea plans to establish new Country Partnership Strategy (CPS) for priority partner countries. Because proportion of fragile states among priority partner countries is high, it is necessary to have cooperation strategy for them before establishing CPS. This study will analyze definition, standard, major categorizations and characteristics of fragile states as well as discussions on assistance to fragile states. Especially this research chooses Myanmar and Nepal, which were least developed countries (LDCs) as well as fragile states, for case study to figure out how donors and Korea support them in perspective of fragile states. (The rest omitted). |
| Keywords: | Economic Cooperation; Economic Development; Fragile States; Asia; Nepal; Myanmar |
| Date: | 2015–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepre:2015_011&r=sea |
| By: | Wirasti, Anisha; Widodo, Tri |
| Abstract: | This paper aims to empirically examine the Twin Deficit Hypothesis and Feldstein-Horioka Hypothesis in the case of Indonesia. The cointegration result shows that fiscal imbalances, investment and current account imbalances have a long run relationship. Autoregressive Distributed Lag (ARDL) and Autoregressive Distributed Lag-Error Correction Model (ARDL-ECM) approaches are applied to estimate the long run and short run relationships, respectively. The estimation results show that the fiscal imbalances have a positive impact on the current account imbalances in Indonesia. Meanwhile, investments have a negative impact on the current account. Those results indicate that Twin Deficit Hypothesis and Feldstein-Horioka Hypothesis hold in Indonesia. |
| Keywords: | Twin Deficit Hypothesis, Feldstein-Horioka Hypothesis, ARDL, ECM. |
| JEL: | F30 F32 F42 |
| Date: | 2017–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:77442&r=sea |
| By: | Ngo, Quang Thanh |
| Abstract: | This study examined farmers’ adaptive measures to climate change induced natural shocks through past climate experiences in the Mekong River Delta (Vietnam) from a data set of 330 farmers. Seemingly unrelated regression model was used to identify the determinants of farmers’ adaptive measures. Results showed that male household head, education of the household head, marital status of the household head, production assets, firm size, availability of credit, access to market, temperature and rainfall had significant impacts on choices of adaptation. Results also indicated that past climate experiences was the most important determinant of adaptive measures. Policy messages enhanced access to credit, to markets, and created awareness on climate change. Other policy options could also be suggested, including: strengthening education level of farmers, facilitating cheap technologies, spurring irrigation investment through public - private partner, and supporting the land reform such as farmers’ cooperation in large-scale production. |
| Keywords: | Climate change induced natural shocks, adaptative measures, past climate experiences, Mekong River Delta |
| JEL: | C31 Q12 Q54 |
| Date: | 2016–04–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:78055&r=sea |
| By: | Moon , Jin-Young (Korea Institute for International Economic Policy); Song , Jihei (Korea Institute for International Economic Policy); Lee , Seojin (Korea Institute for International Economic Policy) |
| Abstract: | Korean Abstract: 2015년 9월 개최된 유엔 지속가능정상회의는 재생에너지 활용 확대를 주요 목표로 설정하였으며, 국제사회는 2020년 신기후체제 출범을 앞두고 온실가스 감축목표 이행을 위한 재생에너지 보급을 확대할 것으로 예상된다. 특히 개도국은 경제발전을 가속화하는 동시에 온실가스를 감축하기 위해 재생에너지의 활용을 크게 확대할 예정이다. 재생에너지에 대한 지속적이고 활발한 투자와 재원확보를 위해서는 민간의 참여가 필수적이며 우리나라는 민간기업과 개발금융기관, 국제기구, 공공기관 등과의 다양한 파트너십을 적극적으로 모색하여 효과적인 개도국 재생에너지 사업 추진전략을 수립할 필요가 있다. 본 연구는 우리나라 중점협력국에서의 재생에너지 사업을 확대하기 위한 재원조달 지원방안에 초점을 둔다. 우리나라의 다수 중점협력국이 재생에너지 개발에 적합한 환경조건을 가지고 있음에 주목하고 개도국의 재생에너지 사업에 민간의 참여를 확대하기 위해 제공된 국제 지원 사례를 유형별로 검토한 후, 우리나라의 추진사례를 비교 분석하였다. 분석 결과를 토대로 향후 중점협력국을 대상으로 우리나라의 재생에너지 투자 확대 및 재원조달 지원방안을 제안하였다. 지난 5년간 세계 재생에너지 투자는 점차 선진국에서 개도국으로 이동하고 있다. 이는 에너지 투자의 주요 동인이 되는 현지 에너지 수요와 제도적 기반환경이 중국과 인도, 남아공, 브라질을 중심으로 하는 개도국에서 보다 우호적으로 조성되고 있기 때문이다. 이들 국가는 한편 지난 5년 동안 재생에너지 원자재 R&D 및 정부의 제도적 지원을 통해 재생에너지 시장을 크게 확대했다는 공통점을 갖는다. IRENA의 태양에너지 및 풍력, 지열에너지 잠재력 평가에 따르면 캄보디아와 방글라데시, 파라과이를 제외한 우리나라의 중점협력국 대부분이 두 개 이상의 재생에너지원에 상당한 잠재력을 가진다. 그러나 우리나라 중점협력국 다수는 높은 개발 잠재력에도 불구하고 제도, 시장 성숙도, 인식도 등의 기반환경 부재로 인해 충분한 개발을 이루지 못하고 있다. 베트남, 인도네시아 등의 중점협력국은 현재 법규제, 시장, 인식도 등의 기반환경을 개선하는 과정에 있으며, 따라서 장기적인 시각에서 볼 때 이들 국가에 대해 재생에너지의 활용과 개발 및 투자가 크게 확대될 것으로 예상된다. (후략). English Abstract: At the United Nations Sustainable Development Summit 2015, the Member States unanimously adopted seventeen Sustainable Development Goals. Among them, SDG 7 calls for substantial increase of renewable energy use. In addition, under the UN Framework Convention for Climate Change, individual countries - developed and developing alike – will work to further encourage and disseminate the use of renewable energy in order to meet their commitment on greenhouse gas reduction. Especially for developing countries, renewable energy development will become a key for sustainable growth for they now face a dual challenge of pursuing economic development while reducing greenhouse gas emission. Since participation from various stakeholder is imperative for sustained yet sizable investment, Korea must seek a proactive strategy in pursuing renewable energy projects in developing countries. In doing so, collaborating with various partners, especially the private sector, is extremely important. This study focuses on mobilizing private sector resource for renewable energy projects in Korea’s priority partner countries. While a number of Korea’s priority partners possess considerable potential in renewable energy development, the lack of institutions, market and awareness have hindered development. The study highlights the fact that renewable energy investment is shifting towards the global South and that the main cause of such transition is the favorable regulatory and institutional environment along with significant demand. In several emerging economies with the highest amount of renewable investment - namely, China, India, South Africa and Brazil - such transition was coupled with governments’ support for technology R&D and subsidies. On the other hand, Vietnam and Indonesia are in the process of actively developing a more conducive environment. That is, laws and regulations, market readiness and awareness regarding renewable energy are being developed. Therefore, we expect rapid progress in relevant investment, development and deployment in these countries in terms of renewable energy in the near future. (The rest omitted). |
| Keywords: | Economic Cooperation; Energy Industry; Renewable Energy; ODA; International Cooperation; Sustainable Development |
| Date: | 2015–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepre:2015_012&r=sea |
| By: | Kwak, Sungil (Korea Institute for International Economic Policy); Bae, Chankwon (Korea Institute for International Economic Policy); Cheong , Jae Wan (Korea Institute for International Economic Policy); Lee , Jae-Ho (Korea Institute for International Economic Policy); Shin, Minlee (Korea Institute for International Economic Policy) |
| Abstract: | Southeast Asia still has the potential to attract FDI from Korean firms even though the labor market environment has been changing at a very swift pace as of late. For example, as the increase in FDI improves the total factor productivity of firms operating in Southeast Asia, the wages of workers in this region have accordingly skyrocketed. As income growth led workers in the region to devote greater attention to democracy and human rights. Ongoing changes in Southeast Asia's labor market are likely to have an adverse impact on Korean firms operating in the region, though the extent of the impact will differ across industries, firm sizes, and technology levels. Therefore, we suggest that government policies for FDI should be redirected to support localization efforts of firms operating in Southeast Asia. As these firms operate in foreign countries, they do not create jobs domestically. The existing literature, however, tells us that they positively affect domestic productivity and employment. This provides a reason for governments, including Korea’s, to identify effective policy measures that can support firms to successfully meet challenges and localize in these ever-changing markets of Southeast Asia. |
| Keywords: | Labor Market; Southeast Asia Localization Strategy |
| Date: | 2015–12–04 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepwe:2015_024&r=sea |
| By: | Antonio Angelino (Università degli Studi di Ferrara) |
| Abstract: | The access to human capital results to be a fundamental determinant of growth in LDCs enabling conditions for economic diversification and industrial upgrading. Skilled labour shortages generate detrimental dynamics for enterprise development preventing the spillovers arising from the productive interactions with the foreign agents and obstructing the domestic firms’ capabilities to absorb knowledge and technology. At the same time, the presence of an inadequately skilled workforce is combined to a scarce degree of firms’ responsiveness with respect to learning by exporting mechanisms and exploitation of R&D incentives. In this regards, firms are not likely to face undifferentiated human capital constraints. Indeed, the typology and the severity of the obstacles in terms of inadequately educated workforce are likely to be significantly determined by their observable and unobservable attributes. We implement binary discrete choice models on firms’ subjective assessments to evaluate whether and to what extent the attributes of the firms matter in determining the degree of severity of the human capital constraints. The main results of our study, conducted on about 1000 firms in Vietnam, show that the indirect exporters, the firms investing in R&D and the firms located in urban contexts are more likely to report human capital shortages as a major constraint relative to the rest of the firms. |
| Keywords: | Human capital, Emerging Markets, Industrial Policy, Vietnam, Entrepreneurship |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:cme:wpaper:1701&r=sea |
| By: | Christine Ngoc Ngo; Miao Chi |
| Abstract: | This paper analyses the differentials of productive values in Vietnamese micro, small, and medium enterprises (MSMEs) and how market constraints have hindered their performance. Quantitative analyses suggest substantial differences in value addition among manufacturing MSMEs, and the crucial contribution of technology adoption to their development. We assess MSMEs’ productive value, production organization and performance using qualitative analysis. Our case studies identify market failures hindering MSMEs’ potential; explain their strengths and weaknesses; and assess how the market structure influences their production costs and business strategies. Drawing from these insights, we suggest policy options to strengthen capability and competitiveness of Vietnamese’ MSMEs.Length: 23 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2017-82&r=sea |
| By: | Lee, Il Houng (Korea Institute for International Economic Policy) |
| Abstract: | Two Koreas have been apart for 70 years under very different political regimes and economic systems. A preferable approach for socially stable path of unification would be to allow both Koreas to remain independent states for about 20 years after an agreement is reached on gradual integration. During this period, the government in the North is expected to undertake ambitious economic reform and liberalization similar to that of China and Vietnam a few decades ago, and should aim to attract foreign investment and external assistance on its own account, including from international financial institutions. Labor mobility should be limited. After the initial 20 years of independent development, another 20 years should be allocated for gradual integration centered on labor mobility. Our simulation results show that, in the initial 20 years of independent development, the North's GDP will reach 17 percent of that of the South by 2035, and its GDP per capita will be close to US$13,000. Under a "no labor mobility" scenario, GDP in the North will reach just under 60% of that of the South by 2055, which is similar to the gap between the richest and the poorest provinces in South Korea today, indicating a full merge at that time would not induce a shock to threaten social stability. If North Korea would remain a closed economy without reform, its economic growth will likely trod along at the same 1-2% growth over the next few decades and remain at the bottom of Asian economies in term of GDP size. If it were to open up and implement strong reforms within an agreed integration framework with the South as suggested above, it has the potential to surpass many other Asian economies. The unification would benefit not only the Peninsula, but also all surrounding economies. |
| Keywords: | Unification; North Korea; Integration |
| Date: | 2015–08–05 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepwe:2015_015&r=sea |
| By: | Kyle, Jordan |
| Abstract: | There is an urgent need to phase out global petroleum subsidies, due to the severe strain they impose on government expenditures and on the environment. However, reform efforts are often stymied by popular resistance to subsidy reform. This article examines the role played by local governments in shaping resistance to reforming fiscally and environmentally disastrous fuel subsidies. Shifting from universalaccess social programs, such as fuel subsidies, to targeted programs requires vesting authority with local politicians and bureaucrats, whom the state relies on to identify poor households and to deliver benefits. Where local governments are corrupt, citizens find promises to replace fuel subsidies with targeted spending less credible, and resistance to reform is higher. Using household survey data from Indonesia, this paper finds that corruption in the implementation of targeted transfer programs increases resistance to fuel subsidy reform among the poor citizens who consume the least fuel and who stand to benefit the most from targeted programs. Matching methods are employed to reduce endogeneity concerns. The findings suggest that improving capacity within subnational governments to deliver social programs is important in developing public support for reform. |
| Keywords: | INDONESIA; SOUTH EAST ASIA; SOUTHEAST ASIA; ASIA, petroleum; subsidies; public expenditure; fuels; environment; environmental protection; households; surveys; support measures; reforms; delinquent behavior, fuel subsidies; corruption; service delivery, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1620&r=sea |
| By: | Van Asselt, Joanna; Htoo, Kyan; Dorosh, Paul A. |
| Abstract: | As a result of recent political reforms, Myanmar has the opportunity to enact major policy changes to reinvigorate its agriculture sector. In this context, Myanmar’s rubber sector has the potential to become an even greater source of export earnings and rural household incomes, but there are major challenges related to low rubber productivity and poor rubber quality. Using data from the Mon State Rural Household Survey (MSRHS) conducted from May to June 2015, as well as qualitative data collected from rubber producer focus groups and other interviews with rubber producers, traders, and processors, this paper describes the cost structure of rubber production in Mon State. We then estimate smallholder production costs and the profitability of smallholder rubber production under various alternative yield and price scenarios. The results suggest that if the weaknesses hindering the profitability of the rubber sector are not addressed, the rubber sector will likely stagnate. Moreover, in the absence of a major increase in world prices (substantially above the 2000–2016 average), new rubber investments will not be profitable without major improvements in yield and quality. Further, increasing only yields or only quality, or only improving the institutional environment, will not result in positive returns on investment for smallholders; reforms are needed in all three areas. If these weaknesses are addressed, however, Myanmar’s new investments will be profitable and Myanmar could become an important rubber producer and exporter on the world stage. |
| Keywords: | MYANMAR; BURMA; SOUTHEAST ASIA; ASIA, rubber; agriculture; smallholders; rural communities; households; production; production costs; productivity; yields; prices |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1610&r=sea |
| By: | Vannarith CHHEANG |
| Abstract: | This paper reviews Cambodia's economic development based on flows of foreign direct investment (FDI) and services sector liberalisation. It uses Cambodia's logistics industry as a case study. Services sector liberalisation in Cambodia has been mainly driven by its commitments under the World Trade Organization (WTO) framework and the ASEAN Framework Agreement on Services (AFAS). Logistics is one of the key contributors to economic growth and competitiveness. To improve the logistics sector, Cambodia needs to develop a comprehensive master plan and national council on logistics to overcome the main issues and challenges such as corruption and informal payments, lack of institutional capacity and coordination, low-quality transport infrastructure, weak urban-rural and cross-border transport networks, limited participation of the private sector, lack of skilled human resources, and low public and private investments. Promoting healthy competition in logistics and removing the impediments to investment are vital to improving the quality and coverage of logistics services. |
| Keywords: | Foreign direct investment, logistics, services, liberalisation, ASEAN, WTO |
| JEL: | F21 L80 L90 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2016-39&r=sea |
| By: | Ning, M.; McAleer, M.J. |
| Abstract: | This paper reviews the Thai national character according to Hofstede’s cultural dimension theory and Komin’s nine values cluster (Psychology of the Thai people), analyses the social hierarchy of Thai consumers according to the Luxury 4P Taxonomy (Han et al., 2010), integrates the Theory of Cultural Capital (Bourdieu, 1984), and expounds the features of social class. The global luxury fashion industry has grown significantly in recent years, but much of the research has been limited to conspicuous consumption and social identity. This paper involves religious beliefs that are argued to influence luxury purchasing motives. The purpose of the paper is to develop an analytical framework to aid in understanding luxury fashion consumption in a Buddhist country such as Thailand in order to inform luxury products vendors on how to improve their marketing strategies. |
| Keywords: | Luxury fashion consumption, Purchasing motives, Buddhist beliefs, Marketing strategies, Thailand. |
| JEL: | N35 Z12 |
| Date: | 2016–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:ems:eureir:98655&r=sea |
| By: | ICHIMURA Hidehiko; Xiaoyan LEI; Chulhee LEE; Jinkook LEE; Albert PARK; SAWADA Yasuyuki |
| Abstract: | East Asia is undergoing a rapid demographic transition and "super" aging. As a result of steadily decreasing fertility and increasing life expectancy, the elderly proportion of the population and the old-age dependency ratio are rising across all countries in East Asia, particularly China, Republic of Korea, and Japan. In this paper, we empirically investigate the wellbeing of the elderly in these three countries, using comparable micro-level data from the China Health and Retirement Longitudinal Study (CHARLS), the Korean Longitudinal Study on Aging (KLoSA), and the Japanese Study of Aging and Retirement (JSTAR). Specifically, we examine the depressive symptom scale as a measure of wellbeing and estimate the impact of four broad categories: demographic, economic, family-social, and health. The decomposition and simulation analysis reveals that although much of the difference in mean depression rates among countries can be explained in differences in the characteristics of the elderly in the three countries, there remain significant differences across countries that cannot be explained. In particular, even after accounting for a multitude of factors, the elderly in Korea are more likely to be depressed than in China or Japan. |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:17029&r=sea |
| By: | Douglas, Roger (Roger Douglas Associates); MacCulloch, Robert (University of Auckland) |
| Abstract: | Many nations are seeking to reform their welfare states so that costs to the government can be reduced and the quality of outcomes improved. As a potential way to achieve these aims, there has been a surge of interest in the Singaporean model which features compulsory savings accounts and transparent pricing of health services. It has achieved some of the best health-care outcomes in the world at a cost that is the lowest amongst high income countries. In this paper we show how tax cuts can be designed to help establish compulsory savings accounts so that a publicly funded welfare system can be changed into one that relies more heavily on private funding in a politically feasible way. To our knowledge, showing how both a tax and welfare reform can be jointly designed to enable this transition to occur has not been done before. Our policy reform creates institutions that have features in common with Singaporean ones, especially for health-care. However there are also key differences. We present a new unified approach to the funding of health, retirement and risk-cover (for events like unemployment) through the establishment of a set of compulsory savings accounts. A case study of New Zealand is used as an illustration. The fiscal impact of our proposed reform on the government's current and future budgets is reported, as well as its effect on low, middle and high income individuals. |
| Keywords: | welfare state reform, compulsory savings, taxation |
| JEL: | E21 E6 H20 H55 I1 I38 J65 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp10632&r=sea |
| By: | Alberto Alesina; Caterina Gennaioli; Stefania Lovo |
| Abstract: | This paper shows that the level of deforestation in Indonesia is positively related to the degree of ethnic fractionalization at the district level. To identify a casual relation we exploit the exogenous timing of variations in the level of ethnic heterogeneity due to the creation of new jurisdictions. We provide evidence consistent with a lower control of politicians, through electoral punishment, in more ethnically fragmented districts. Our results bring a new perspective on the political economy of deforestation. They are consistent with the literature on (under) provision of public goods and social capital in ethnically diverse societies and suggest that when the underlying communities are ethnically fractionalized decentralisation can reduce deforestation by delegating powers to more homogeneous communities. |
| Keywords: | Deforestation, Ethnic Diversity, Corruption, Indonesia. |
| JEL: | D73 H0 L73 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:cgs:wpaper:80&r=sea |
| By: | Metaxas, Theodore; Kechagia, Polyxeni |
| Abstract: | International capital flows have a significant social, political and financial impact on the trading countries. These flows are distributed among the geographical regions and as a result over the past decades underdeveloped, developing and transition economies made efforts and proceeded to reforms so as to absorb more foreign capital inflows. A determinant factor of foreign capital inflows is the host country’s political stability. We focus on external conflicts and terrorist attacks, taking into consideration the remarkable increase in total terrorist attacks in recent decades. In addition, we focus on a specific type of foreign capital flows and therefore we study the foreign direct investment (FDI) inflows. We perform a literature review on empirical studies that examined the interaction between FDI and terrorist attacks. The purpose of the essay is to investigate and discuss the correlation between FDI and terrorism in developing economies during the period 1970 – 2015 in the developing Asian countries. We aim at evaluating the impact of terrorism on the FDI inflows in the region. The contribution of the essay refers to the fact that it covers a larger period of time compared to past studies and that it includes both fatalities and injuries occurring from international terrorist attacks. We argue that terrorist attacks have a negative impact on FDI inflows in the region. |
| Keywords: | Foreign Direct Investment, Developing Countries, International Conflicts, Terrorism, Asia |
| JEL: | F21 F51 O53 R11 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:78165&r=sea |
| By: | Duc Anh Dang |
| Abstract: | This paper evaluates the impact of Chinese import penetration on the innovation of Vietnamese manufacturing firms from 2011 to 2015, exploiting variations in import exposure by industry specialization and instrumenting for Chinese import penetration using Chinese global exports. Contrary to the existing literature, the paper finds no systematic evidence that rising imports from China make domestic firms adopt new technologies or innovations in their products. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2017-77&r=sea |
| By: | Ansgar Belke; Irina Dubova; Ulrich Volz |
| Abstract: | This paper explores the extent to which changes to long-term interest rates in major advanced economies have influenced long-term government bond yields in Emerging Asia. To gauge long-term interest spillover effects, the paper uses VAR variance decompositions with high frequency data. Our results reveal that sovereign bond yields in Emerging Asia responded significantly to changes to US and Eurozone bond yields, although the magnitudes were heterogeneous across countries. The magnitude of spillovers varied over time. The pattern of these variations can partially be explained by the implementation of different unconventional monetary policy measures in advanced countries. |
| Keywords: | Long-term interest rates, bond yields, monetary policy spillovers, Emerging Asia |
| JEL: | E52 E58 F42 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:rmn:wpaper:201611&r=sea |
| By: | Ulrich Volz; Ansgar Belke; Irina Dubova (Department of Economics, SOAS, University of London, UK) |
| Abstract: | This paper explores the extent to which changes to long-term interest rates in major advanced economies have influenced long-term government bond yields in Emerging Asia. To gauge long-term interest spillover effects, the paper uses VAR variance decompositions with high frequency data. Our results reveal that sovereign bond yields in Emerging Asia responded significantly to changes to US and Eurozone bond yields, although the magnitudes were heterogeneous across countries. The size of spillovers varied over time. The pattern of these variations can partially be explained by the implementation of different unconventional monetary policy measures in advanced countries. |
| Keywords: | Long-term interest rates, bond yields, monetary policy spillovers, Emerging Asia |
| JEL: | E52 E58 F42 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:soa:wpaper:203&r=sea |
| By: | Ansgar Belke; Irina Dubova; Ulrich Volz |
| Abstract: | This paper explores the extent to which changes to long-term interest rates in major advanced economies have influenced long-term government bond yields in Emerging Asia. To gauge long-term interest spillover effects, the paper uses VAR variance decompositions with high frequency data. Our results reveal that sovereign bond yields in Emerging Asia responded significantly to changes to US and Eurozone bond yields, although the magnitudes were heterogeneous across countries. The size of spillovers varied over time. The pattern of these variations can partially be explained by the implementation of different unconventional monetary policy measures in advanced countries. |
| Keywords: | Long-term interest rates, bond yields, monetary policy spillovers, Emerging Asia |
| JEL: | E52 E58 F42 |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:rmn:wpaper:201702&r=sea |
| By: | MAGNUS ABENG |
| Abstract: | This study focus on the impact of oil price fluctuation on the sector level activities of the stock market in Nigeria. Five industry sectors were examined based on availability of data while included macroeconomic factors were selected guided by economic theory and existing literature. Study results suggest that changes in oil prices significantly affect stock returns of all the sectors, except food beverages and tobacco. Consistent with the findings of McSweeney and Worthington (2007) and Agusman and Deriantino (2008) for the Australian and Indonesian stock markets, respectively, the parameter estimates of market returns for the banking, insurance, food beverages and tobacco, oil and gas and industrial sectors significantly exceeded unity, suggesting a high risk exposure of these sectors vis-à-vis market returns. The food beverages and tobacco and oil and gas sectors exhibit significantly negative sensitivity to exchange rate risk, indicating the debilitating effect of the depreciation of the domestic currency on the returns of these sectors. The implications are enormous. First, the negative response of all sectors to exchange rate movement calls for prudent management of reserves plus informed and timely intervention in the market by the monetary authority to keep the rate stable. Secondly, the insensitivity of the food beverages and tobacco to oil price movement is an indication of the inefficiency instituted by the subsidy on petroleum products that insulate domestic consumption from market fundamentals. Subsidies distort the efficient allocation of resources by the market and in the case of Nigeria abet and aid corruption. Industry studies are very limited for developing countries. most studies are aggregate in analysis and concentrates on advanced economies. Nigeria has a peculiar nature of being crude oil export as well as a importer of refined petroleum products. This study focused on exploring the implications of oil price change on decomposed stock returns in the Nigerian stock exchange. Specifically, the study intend to determine whether oil price uncertainty increases investment risks in industry sectors; determine the magnitude and direction of the impact; and ascertain the existence of spillovers among the selected industry sectors in the market. Structural vector autoregression (SVAR)technique 1. OIL PRICE UNCERTAINTY AFFECT INDUSTRY SECTOR PERFORMANCE 2. MONETARY POLICY IS EQUALLY INFLUENCED 3. MARKET RISK IS DETERMINED |
| Keywords: | Nigeria, Agent-based modeling, Agent-based modeling |
| Date: | 2016–07–04 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:009007:9285&r=sea |
| By: | Bos, Marijke (Tilburg University, School of Economics and Management) |
| Abstract: | This dissertation consists of three chapters in the field of Development Economics. The first chapter examines the saving and investment decisions of self-employed farming households in Indonesia. Using an instrumental variables strategy, with local rainfall as an instrument for farm profit, no evidence was found to confirm that – compared to the more wealthy households - initially poor households have a larger income elasticity of consumption and invest a smaller fraction of savings in productive high-risk assets. In fact, there is no evidence that farmers, poor or rich, invest their farm profits in productive capital. The second chapter examines the incidence of productivity spillovers in India. It is often argued that the positive effects of policies or institutional reforms on the productivity of firms are amplified by spillovers to other firms. Using the externally imposed tariff reductions in the early 1990s as an exogenous source of variation, the chapter tests for spillovers arising from observation, labor mobility and intermediate input use. On average, there is no evidence for TFP spillovers between Indian manufacturing firms after trade liberalization. However, initially productive firms seem to benefit from TFP increases in other highly productive firms located in their vicinity, suggesting that a minimum level of absorptive capacity is necessary for benefiting from spillovers. The third chapter examines whether access to imported intermediate inputs affects product innovation in five developing counties (Bangladesh, Ghana, Kenya, Uganda and Tanzania). There is evidence that the number of newly imported varieties has a significantly positive and sizable impact on product innovations that use new inputs; in particular, innovations for which a new input is an essential feature. Given the large and arguably exogenous expansion of the number of Chinese firms exporting to the five developing countries, the chapter also analyzes the effect of firm-varieties from China on product innovation in the five developing countries. There is evidence in favor of a positive correlation, but a causal relationship cannot be confirmed |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:27562551-d782-4382-ac0e-520991d9260a&r=sea |
| By: | Peter Lloyd (University of Melbourne); Cassey Lee (ISEAS – Yusof Ishak Institute, Singapore) |
| Abstract: | This paper reviews the recent (post-2000) literature which assesses the importance of institutions as a factor determining cross-country differences in growth rates or in the contemporary level of “prosperity”. It first sketches how institutional economics has evolved. It then examines critically the methods of analysis employed in the recent literature. The paper finds that this literature has made a major contribution to the analysis of the causes of economic growth but the relative importance of institutions as a determinant of long-run growth and prosperity is still a wide open question. |
| Keywords: | institutions, policies, long-run performance, instruments |
| JEL: | O43 B52 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:mlb:wpaper:2019&r=sea |
| By: | David Lander (Pennsylvania State University); David Gunawan (University of New South Wales); William E. Griffiths (Department of Economics, University of Melbourne); Duangkamon Chotikapanich (Monash University) |
| Keywords: | dominance probabilities; MCMC; poverty comparisons |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:mlb:wpaper:2023&r=sea |
| By: | Catherine Y. Co; Thu Kim Nguyen; Tung Nhu Nguyen; Que Nguyet Tran |
| Abstract: | We study the exporting and subcontracting decisions, mark-ups, market concentration, and growth of a panel of Vietnamese private micro, small, and medium-sized enterprises. Our main findings are as follows. First, we find that among subcontractors, subcontracting is a supplementary rather than primary activity. Second, there is strong evidence that the propensity to export increases with managers’ or owners’ knowledge of customs law. Third, all else equal, mark-ups are lower for larger micro, small, and medium-sized enterprises. Fourth, there is significant home province bias in the sales of Viet Nam’s micro, small, and medium-sized enterprises. Membership of business associations and having internationally recognized quality certifications attenuate the size of the home market bias. Fifth, a significant number of enterprises did not grow or even contracted in size between 2010 and 2014. Finally, we find no evidence that inspections deter enterprises from expanding beyond their core competencies. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2017-72&r=sea |
| By: | Kim, Young Gui (Korea Institute for International Economic Policy) |
| Abstract: | We analyze Korea's FTA policy based on the outcomes of recent bilateral FTAs, in terms of achieving policy objectives. While many previous studies mainly focused on trade impacts under bilateral FTAs, this study analyzes the overall economic impact of FTAs in terms of growth and welfare, as changes in bilateral trade may affect global trade and the general economy in a variety of ways. In order to analyze the overall effect of FTAs, we adopt the Computable General Equilibrium (CGE) approach. With a CGE model, the macro economic impacts of FTAs can be calculated taking into account the complicated interactions among economic agents and industries. The growth effect in the EU shows the high-est results, followed by 0.9% growth and an additional 0.43% and 0.11%, in the ASEAN and Chile respectively. In addition, by com-paring the overall growth effect of FTA on total economic growth in 2013, the growth impact of FTAs accounted for 1.19% among 3% of total economic growth in Korea. This implies that Korea, as one of the most open economies in the world, could sustain positive growth rates due to FTAs such as the Korea-ASEAN FTA, despite the trade collapse during the global financial crisis. |
| Keywords: | Koreas FTA; CGE; Bilateral Trade |
| Date: | 2015–11–06 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepwe:2015_022&r=sea |
| By: | Kim, Hyuncheol Bryant (Cornell University); Kim, Seonghoon (Singapore Management University); Kim, Thomas T. (Yonsei University) |
| Abstract: | Incentives are essential to promote labor productivity. We implemented a two-stage field experiment to measure effects of career and wage incentives on productivity through self-selection and causal effect channels. First, workers were hired with either career or wage incentives. After employment, a random half of workers with career incentives received wage incentives and a random half of workers with wage incentives received career incentives. We find that career incentives attract higher-performing workers than wage incentives but do not increase productivity for existing workers. Instead, wage incentives increase productivity for existing workers. Observable characteristics are limited in explaining the selection effect. |
| Keywords: | career incentive, wage incentive, internship, self-selection, labor productivity |
| JEL: | J30 O15 M52 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp10644&r=sea |
| By: | Lee , Kwon Hyung (Korea Institute for International Economic Policy); Son , Sung Hyun (Korea Institute for International Economic Policy); Jang , Yun Hee (Korea Institute for International Economic Policy) |
| Abstract: | Korean Abstract: 본 연구의 목적은 이스라엘의 기술창업(hightech startup) 지원정책 및 국제 R&D 협력관계를 살펴보고 우리나라의 혁신기업 창업을 활성화할 수 있는 한-이스라엘간 협력 확대방안을 도출하고자 하는 것이다. 이스라엘의 기술창업 정책은 수석과학관실(OCS: Office of the Chief Scientist)을 중심으로 발전해왔다. 수석과학관실은 이스라엘 창업 정책의 가장 핵심적인 기관으로 정부의 R&D 관련 정책을 총괄하고 있다. 이스라엘 정부는 자국 내 R&D 펀드 조성, 창업 지원 프로그램과 국제 R&D 협력 프로그램 추진을 통해 자국 내외의 창업 생태계 기반을 마련하였다. 지금은 민영화되었지만 수석과학관실의 대표적인 창업 지원 프로그램인 기술인큐베이터(Technological Incubators)와 요즈마 펀드(Yozma fund)를 통해 창업국가의 초석이 마련되었다. 수석과학관실은 요즈마 펀드를 조성하여 창업에 대한 금융 지원을 확대하고 기술인큐베이터 프로그램을 통해 금융과 함께 초기 창업자가 직면할 수 있는 다양한 문제 해결을 지원하여 창업 성공률을 높일 수 있었다. 그리고 창업 생태계(start-up ecosystem)가 어느 정도 조성되고 민간의 참여가 확대되자 공공 부문의 비효율성과 느린 의사결정 문제를 방지하기 위해 요즈마 펀드와 인큐베이터 프로그램의 운영 주체를 민간으로 이관하였다. 이스라엘 정부는 혁신적이고 새로운 기술 및 제품, 서비스의 개발은 위험 부담이 크고 기업이나 국가의 역량을 벗어나는 경우가 있음을 인지하고 다양한 국가들과 양자 및 다자 협력을 통한 연구개발 부문 발전을 추진해 왔다. 특히 미국, 싱가포르, 한국, 캐나다와는 양국간 펀드 조성을 통해 연구개발 협력을 적극적으로 지원하고 있다. 미국, 싱가포르, 한국과의 양국 간 기금 프로그램인 BIRD, SIIRD, KORIL-RDF는 양국 기업 연구개발 비용의 최대 50%를 지원하며 프로젝트의 실패 시 상환 의무를 면제해 줌으로써 양국 기업들이 공동 연구개발 프로젝트에 활발히 참여할 수 있도록 유도하고 있다. 유럽은 이스라엘의 주요 연구개발 파트너로 이스라엘과 유럽의 연구개발 협력 프로그램을 통해 이스라엘 기업들은 세계 시장 진출에 있어 유럽 측 파트너의 네트워크를 이용할 수 있게 되었다. 이스라엘은 유럽의 연구 및 기술개발 분야 주요 프로젝트인 EU 프레임워크 프로그램(FP) 내 유일한 비유럽 국가로 참여 중으로 EU FP 이외에 EU를 비롯한 거의 모든 유럽 국가들과의 협력 프로그램인 EUREKA와 더불어 여러 유럽 국가들과 개별적으로 양자 협정을 체결하고 있다. (후략). English Abstract: The aim of the research is to suggest policy implications for expansion of bilateral cooperation between Korea and Israel with an examination of Israel's hightech startup promotion policies and international R&D cooperation relationship. Israel's hightech startup polices have been developed with Office of the Chief Scientist(OCS) as the center. OCS is the core organization for Israeli startup policies charged with managing Israeli government's R&D related policies including raising R&D fund and promoting programs for startup support and international R&D cooperation. Technological Incubators and Yozma fund, which are representative programs of OCS, lay the foundation for Israel's startup policies. After the start-up ecosystem was settled and private sector's participation increased, OCS transferred the operation of these programs to private sector for preventing public sector's inefficiency and tardy decision making. Considering risks of developing innovative new technologies, products and services, Israeli government operates exclusive organizations and promotes R&D development through bilateral and multilateral cooperation with various countries. Israel particularly established bi-national foundations with the U.S., Singapore, Korea and Canada to provide R&D projects with financial support. Bi-national funds with these countries, which are US-Israel Binational Industrial R&D Foundation(BIRD), Singapore-Israel Industrial R&D Foundation(SIIRD), Korea-Israel Industrial R&D Foundation(KORIL-RDF), Canada-Israel Industrial R&D Foundation(CIIRDF) provide conditional grants up to 50% of R&D expenses for joint project. Furthermore, bi-national funds prompt companies in both countries to participate in joint R&D projects by waiving repayments when the projects fail in commercialization. Europe is Israel's main partner in R&D sector and through Europe's R&D cooperation programs, Israeli companies can utilize European partners' network when they attempt to enter the global market. Israel, as an non-European associate member country, participates in EU Framework Program(FP), which is a main R&D project in Europe. Israel also make bilateral agreements with various European countries in addition to EUREKA, which is an intergovernmental cooperation program of almost all European countries. Based on diverse international cooperation programs, Israel has been able to build global network and Israeli companies, which received the benefits of the programs, have stood as the world's leading corporations. Moreover, these successes create virtuous circle concentrating venture capital on Israeli companies. (The rest omitted). |
| Keywords: | Technology Transfer; Industrial Policy; Technology Foundation; Korea; Israel |
| Date: | 2015–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepre:2015_004&r=sea |
| By: | Ho, Teck-Hua; Chong, Juin Kuan; Xia, Xiaoyu |
| Abstract: | Is there a link between the color of a taxi and how many accidents it has? An analysis of 36 mo of detailed taxi, driver, and accident data (comprising millions of data points) from the largest taxi company in Singapore suggests that there is an explicit link. Yellow taxis had 6.1 fewer accidents per 1,000 taxis per month than blue taxis, a 9% reduction in accident probability. We rule out driver difference as an explanatory variable and empirically show that because yellow taxis are more noticeable than blue taxis—especially when in front of another vehicle, and in street lighting—other drivers can better avoid hitting them, directly reducing the accident rate. This finding can play a significant role when choosing colors for public transportation and may save lives as well as millions of dollars. |
| Keywords: | car color | road safety | data science | transportation science | sensory perception |
| JEL: | R4 R41 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:78154&r=sea |
| By: | Nicolás Hernández Santibáñez (DIM - Departamento de Ingeniera Matematica [Santiago] - Universidad de Chile [Santiago], CEREMADE - CEntre de REcherches en MAthématiques de la DEcision - Université Paris-Dauphine - CNRS - Centre National de la Recherche Scientifique); Dylan Possamaï (CEREMADE - CEntre de REcherches en MAthématiques de la DEcision - Université Paris-Dauphine - CNRS - Centre National de la Recherche Scientifique); Chao Zhou (NUS - National University of Singapore) |
| Abstract: | In this paper, we extend the optimal securitization model of Pagès [41] and Possamaï and Pagès [42] between an investor and a bank to a setting allowing both moral hazard and adverse selection. Following the recent approach to these problems of Cvitanić, Wan and Yang [12], we characterize explicitly and rigorously the so-called credible set of the continuation and temptation values of the bank, and obtain the value function of the investor as well as the optimal contracts through a recursive system of first-order variational inequalities with gradient constraints. We provide a detailed discussion of the properties of the optimal menu of contracts. |
| Keywords: | moral hazard,bank monitoring, securitization, adverse selection, principal-agent problem |
| Date: | 2017–01–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01435460&r=sea |