nep-sea New Economics Papers
on South East Asia
Issue of 2017‒07‒30
sixteen papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Equity Markets Integration in Asia By WAHBEEAH MOHTI; Andreia Dionísio; Isabel Vieira; Paulo Ferreira
  2. Community Participation on Health Management: A Case of Dengue Fever Disease Control Program By Anusorn Kunanusorn; Chanita Chotisatiankul
  3. Challenges and barriers to the development of sukuk in the European capital market By Dariusz Piotrowski
  4. Writing problems and Writing Strategies of English Major and Non-English Major Students in a Thai University By PANUPONG SEENSANGWORN
  5. Plato in Singapore: A Case for Globalizing Ethics Courses By Debra Bourdeau
  7. The Japanese Yellow Peril By Jason Barrows
  8. Energy Market Integration in the ASEAN: Economics, Technology and Welfare Implications By Chang, Youngho; Lee, Justin; Ang, Wei Xiang; Chua, Jing Yi
  9. CONTEXTUALIZING TEACHING PRACTICES IN A DIVERSIFIED CLASSROOM: AN ASSESSMENT By Percyveranda Lubrica; Janet Lynn Montemayor; Arnulfo Capili; Evelyn Angiwan
  11. Robust Pricing and Hedging around the Globe By Sebastian Herrmann; Florian Stebegg
  12. The Yellow Peril in Britain By Nicholas Stone
  13. Impact of Psychological Needs on Luxury Consumption By Ning Mao; Michael McAleer; Shuyu Bai
  14. Do Environmental Regulations Effect FDI Decisions? The Pollution Haven Hypothesis Revisited By Yoon, Haeyeon; Heshmati, Almas
  15. Analisis Surplus Padi dan Kaitannya Dengan Ketahanan Pangan Rumah Tangga Petani (Suatu Studi Tentang Marketable Surplus dan Marketed Surplus Komoditas Padi Serta Tingkat Ketahanan Pangan Pada Rumah Tangga Petani Padi di Kabupaten Subang) By Harisman, Kundang
  16. The Economic Burden of Chronic Diseases: Estimates and Projections for China, Japan and South Korea By Bloom, David E.; Chen, Simiao; Kuhn, Michael; McGovern, Mark E.; Oxley, Les; Prettner, Klaus

  1. By: WAHBEEAH MOHTI (Universidade de Évora (Departamento de Gestão)); Andreia Dionísio (CEFAGE-UE, IIFA, Universidade de Évora); Isabel Vieira (Universidade de Évora (Departamento de Economia), Largo dos Colegiais, 2. 7000-903 Évora, Portugal.); Paulo Ferreira (CEFAGE ? UE, Universidade de Évora,)
    Abstract: This study explores the Asian Emerging and Frontier equity markets, integrated regionally or globally. In undertaking the empirical analysis, data from twelve Asian equity markets indices are utilize. The study employed residual based co-integration test proposed by Gregory and Hansen (1996) and Detrended Cross Correlation Analysis (DCCA). Findings indicate, most of the Asian emerging equity markets integrated with global market, whereas most of the frontier markets integrated with the regional market. However, the results from DCCA are more explanatory. The results also reveal that integration in Asia region is not complete. Asia region has an economically potential and fastest growing in the world. However, there is still so much to unlock the full potential, and the one way to achieve this growth is to continue on the road of financial integration.
    Keywords: Financial Integration, Frontier markets, Detrended cross correlation analysis (DCCA), Gregory and Hansen co integration test
    JEL: G10 G11 G15
    Date: 2017–05
  2. By: Anusorn Kunanusorn (Rajamangala University of Technology Lanna); Chanita Chotisatiankul (Rajamangala University of Technology Lanna)
    Abstract: Community Participation on Health Management: A Case of Dengue Fever Disease Control ProgramAnusorn Kunanusorn1 PhDChanita Chotisatiankul, ProfessorAbstract Dengue Fever disease has been one of public health problems in urban and rural areas of Thailand for many years. The Royal Thai Government has spent large amount of annual budget to controlling and combating the Dengue Fever disease nation-wide for years. Chiang Mai Province is one of areas where Dengue Fever has been a health problem for years. Number of Dengue Fever patients and dead cases in Chiang Mai were high as compared to other provinces. Public health management has been changed from centralization system to decentralization system where involvements from local and community were initiated since April 2001. McKean Hospital, a charitable hospital under The Foundation of Church of Christ in Thailand, had joined the Universal Health Coverage since May 2001. Besides other health programs, the hospital had set up a program on Dengue Fever control program incorporated with local public health center, temples, churches, schools, community leaders, and NGOs in responsible area since June 2001. In 13 villages, there are health-volunteers who were assigned to look after 5 to 10 households in health activities. The hospital which responsible for a certain area on health worked closely with these health volunteers. The health program on Dengue Fever had been operated successfully with community participation. With the policy of The Royal Thai Government on The Universal Health Coverage, McKean hospital had done successfully in eradication of Dengue Fever identified by decreasing number of patients and dead cases down to zero in its responsible area during five - year plan. Four strategies ? organizing, public relations, campaign, and monitoring and evaluation were managed in the program targeting to eradicate the Dengue Fever. With strong supports and participations, from all in community, there had been made the Dengue Fever control program reached its target successfully. McKean hospital was awarded an outstanding performance citation on ?Strong Community Supports for Dengue Fever Prevention? from The National Health Security Office (NHSO) of Thailand. The theoretical framework of this strategic operation was drafted, constructed, and operated by participations of community parties which could be tested statistically and use as a model to other health programs. 1 Rajamangala University of Technology Lanna, Faculty of Business Administration and Liberal Arts, MBA Program, Chiang Mai ThailandE-mail:
    Keywords: Dengue Fever DiseaseUniversal Health CoverageCommunity ParticipationCentralization and Decentralization
    JEL: I18 I00 I10
    Date: 2017–07
  3. By: Dariusz Piotrowski (Nicolaus Copernicus University in Toru?)
    Abstract: Sukuk are instruments of the capital market whose construction is based on the sharia rules. Over the last two decades, the sukuk market has become global. However, the main centres of trade are still located in South-Eastern Asia, with Malaysia at the forefront, and countries in the Persian Gulf region. Sukuk are present in the European financial market, mainly through companies' issues and the functioning of centres of trade in London, Luxembourg and Dublin. Despite that, the Islamic certificates have not yet gained significant interest. The paper will indicate the types of challenges and barriers related to issuing and trading sukuk in the European market. The research applies an analysis of literature on the subject, reasoning based on statistical data regarding the European market and a case study of a 2014 sukuk offering transacted by the government of the United Kingdom. The paper indicates that the specific characteristics of sukuk lead to the conclusion that they should be treated as a separate category of capital market instruments. In consequence, trading in these instruments on the European financial market requires an adjustment of the applicable legal norms. What is more, the fact that sukuk's structure is more complicated than that of traditional financial instruments increases risks and costs of the issuers. The distinctness and variety of sukuk forms hinder financial risk assessment, and thus have a negative impact on the scale of investors' interest in sukuk.
    Keywords: Sukuk, Islamic finance, European financial market, development barriers
    JEL: G18 O16 Z12
    Date: 2017–07
  4. By: PANUPONG SEENSANGWORN (Srinakharinwirot University)
    Abstract: The purposes of this study are to explore the writing problems and investigate the writing strategies related to the process-based approach of university EFL writing in Thailand. The study was conducted with eighty second-year Thai undergraduate students, including both English majors and non-English majors at Burapha University. The participants were asked to write a paragraph in English about their problems and to complete a three-part questionnaire. The qualitative and quantitative data collected from the questionnaire and drafts of paragraph writing were analyzed. The data are in the process of being analyzed and the results will then be reported. This present study could help teachers of English and writing instructors to resolve the writing problems and find a range of effective strategies to improve the writing of EFL students in English.
    Keywords: Writing Problems, Writing Strategies
    JEL: I29
    Date: 2017–07
  5. By: Debra Bourdeau (Embry-Riddle Aeronautical University--Worldwide)
    Abstract: This paper discusses my experience as an American instructor teaching a Values and Ethics course in Singapore. This course is required of all students in our university, which is a distributed-campus model with over 120 teaching sites, including our Asia campus. Having developed this course for online delivery for all of our instructors, I was aware of the Western focus of its textbook and its worldview. Similarly, the course itself is built upon Western teaching practices. Both realities produced a fascinating experience when I taught the course to approximately 60 undergraduate Singaporean students in a condensed nine-week format in 2015. The almost-fully Western view, based heavily on Judeo-Christian values and the philosophy of Aristotle, Plato, Descartes and Kant, proved to be a myopic way to approach the course. Blending Eastern concepts such as collectivism with Western ideals such as individualism, and the Western focus on reason with Buddhist understandings of cause/effect relationships, added depth to the student experience in the course and provided me with new levels of insight as an instructor. Additionally, the course demands significant student participation and collaboration, with the instructor often becoming more of a facilitator in the course. Singaporean students commented that this was a new way of learning for them, removing the layers of authority between student and teacher and increasing their confidence in their ability to speak articulately on course concepts. Finally, the class demands the application of various ethical frameworks to current issues, compelling students to consider contemporary world problems through the lens of formal philosophical thought. Their topics of choice provided an intriguing contrast to American students? selections for that same set of assignments. Ultimately, increasing globalization demands an internationalized curriculum that is not overly dependent on the traditions of any one specific culture. My experience in this course provides a case study of ?accidental? internationalization that could, ideally, lead to some permanent changes in how such courses can be taught to students worldwide.
    Keywords: teaching, humanities, values and ethics
    Date: 2017–07
  6. By: Chuleewan Praneetham (Suratthani Rajabhat University); Jittree Saithong (Suratthani Rajabhat University); NISARAT THAITHONG (Suratthani Rajabhat University); NISA CHARUSIRICHAI (Suratthani Rajabhat University); Mantanan Khunrit (Suratthani Rajabhat University); TATIANA LITVINOVA (Suratthani Rajabhat University); PRASERT SITTHIJIRAPAT (Sripatum University)
    Abstract: The purposes of this research were: 1) to compare the difference of achievement scores earned in Chinese knowledge and skills of hotel personnel before and after the training for personnel development in enhancing Chinese language skills, and 2) to study the satisfaction towards the training of hotel personnel. The research samples consisted of 50 hotel staff in Koh Samui, Thailand, collected by purposive sampling technique. The instruments used in this research were the course modules for hotel business training for personnel development in enhancing Chinese language skills, pre-test and post-test, and satisfied evaluated questionnaire. The frequency, percentage, mean, standard deviation, and t-test were used to analyze the data. The findings indicated that: 1) the hotel personnel?s achievement in enhancing Chinese language knowledge and skills increased with statistical significance (p
    Keywords: hotel business, training, personnel development, language skills
    JEL: J24 L80
    Date: 2017–07
  7. By: Jason Barrows (Tokyo Denki University)
    Abstract: The subject of this paper is how the Associated Press used propaganda in the United States in order to sway the public sentiment regarding Yellow Peril and the effects on public opinions when the popular media chose whether to follow or reject the popular prejudices of the time. During the years 1888 to 1905, the diplomatic relations between the Western powers and the Far East showed signs of increasing equality and interdependence between the East and West, which unsettled many Westerners. Since Westerners had limited access to knowledge about Asia, they created an image that Asia, with is vast population, would join together in making a powerful military unit, and this force would be a substantial threat to ?Christian civilization.? These unrealistic fears caused the West to witness an outpouring of books, articles and editorial commentary concerning the impending danger to Western-white-Christian civilization from the growing power of the Oriental peoples. The slogan `Yellow Peril` not only expressed the Western fears of Asia initiating physical war against the US or Europe, but also fears that Asian immigrants to the United States were stealing American jobs.
    Keywords: Japanese Yellow Peril
    JEL: I24
    Date: 2017–05
  8. By: Chang, Youngho (School of Business, Singapore University of Social Sciences); Lee, Justin (School of Social Sciences, Nanyang Technological University); Ang, Wei Xiang (School of Social Sciences, Nanyang Technological University); Chua, Jing Yi (School of Social Sciences, Nanyang Technological University)
    Abstract: Energy Market Integration (EMI) in the ASEAN through the ASEAN Power Grid (APG) is considered to improve the welfare of the economy. However, the EMI through power grids incurs some costs due to transmission losses, among others and the pricing of transmission losses ought to consider the marginal effect of demand and supply of both generators and consumers. Charging only a tariff as a function of the distance transmitted as access costs ignores the effect of a marginal change in demand or supply from consumers and generators respectively on the transmission grid. This leads to a poor signal to the market, leading to suboptimal decisions made by economic agents. The marginal cost pricing of transmission losses would reflect the opportunity costs of alternative options better and provide better incentives for investment, consumption and generation, leading to increases in welfare. This study aims to analyze how the locational marginal pricing (LMP) of transmission losses influences an optimal energy mix and energy trading in the ASEAN and derive policy implications for completing the APG. Four energy trade scenarios of 0%, 25%, 50%, and 75% with LMP mechanism of transmission losses appear to provide benefits to the countries under the APG as the total cost of electricity generation declines when power trade increases among ASEAN countries. The underpinnings of positive results strongly suggest ASEAN member countries seriously consider to enhance grid interconnection to realize the efficiency of power trading infrastructure.
    Keywords: Energy Market Integration; Transmission losses; Locational marginal pricing of transmission loses; Grid interconnection; Power trading
    JEL: F15 O13 Q49
    Date: 2017–03–15
  9. By: Percyveranda Lubrica (Benguet State University); Janet Lynn Montemayor (Benguet State Universitz); Arnulfo Capili (Benguet State University); Evelyn Angiwan (Benguet State University)
    Abstract: ABSTRACTManaging diverse populations is one great challenge facing the Philippine society. Educators affirm that the classroom is diverse, but continue to treat all learners alike while paying lip service to the principle of diversity. This study looked into the extent by which teachers contextualize teaching and learning practices amidst diversity in cognitive preference modality and personal, academic status, demographic profile, and socio-economic condition. Teacher Education students from the six state universities and colleges in the Cordillera Administrative Region (n=715) were randomly selected to assess teachers regarding their level of effectiveness in managing diversity in various areas of pedagogical approaches while teachers (n=45) were purposively selected to validate data through a focused group discussion. Results show that teachers were competent but insufficiently observe students? preferred teaching practices (mean=3.29, SD=.37), management of diverse learning environment (mean=3.21; SD=.46), and accommodation of diversity (mean=3.24, SD=.47). Analysis of variance and t-test for independent means revealed significant differences (p
    Keywords: classroom diversity, teaching practices, differentiated instruction
    Date: 2017–07
  10. By: Chuleewan Praneetham (Suratthani Rajabhat University); JITTREE SAITHONG (Suratthani Rajabhat University); BENYA JARIYAWIJIT (Suratthani Rajabhat University); SASITHON UCHUPONGSATHON (Suratthani Rajabhat University); WARUNSIRI PRANEETHAM (Suan Sunandha Rajabhat University, Thailand)
    Abstract: Cultural Competence is a concept about learning proper principles of another culture to be applied to the daily life of people in the era of globalization with cultural and racial diversities, advances in science and technology, which people can quickly and easily communicate with others. These issues may affect human?s way of life, beliefs, attitudes and behaviors towards cultural diversity. The integration of the ASEAN Economic Community is one of the factors contributing to the increasing of cultural exchanges, as well as rapidly changes in demographic, economic, and political and social environment may be the cause of cultural adaptation that people are facing and these could lead to a conflict of cultures. Nowadays, focusing the study on cultural competence is very important for education. The purpose of the study can lead promote cultural and cross-cultural competence of students, and raise their cultural awareness, cultural knowledge, and cultural skill on other cultures.
    Keywords: competence, cross-cultural, students
    JEL: I29
    Date: 2017–07
  11. By: Sebastian Herrmann; Florian Stebegg
    Abstract: We consider the martingale optimal transport duality for c\`adl\`ag processes with given initial and terminal laws. Strong duality and existence of dual optimizers (robust semi-static superhedging strategies) are proved for a class of payoffs that includes American, Asian, Bermudan, and European options with intermediate maturity. We exhibit an optimal superhedging strategy for which the static part solves an auxiliary problem and the dynamic part is given explicitly in terms of the static part. In the case of finitely supported marginal laws, solving for the static part reduces to a semi-infinite linear program.
    Date: 2017–07
  12. By: Nicholas Stone (Tung Wah College)
    Abstract: Between the late nineteenth and early twentieth centuries, Britain experienced a wave of xenophobia against a single ethnic minority, the Chinese, that would become known as the Yellow Peril. Britain was not alone in experiencing this phenomenon, but compared to the more documented example of the Peril in North America, the British example has been far less documented. Initially reflecting international notions of the Yellow Peril, such as fears over mass immigration from Asia into the West, at its heart the British example reflected local concerns vis-à-vis the recently emerged Chinese communities. The following article will present a discussion on the exclusively Sinocentric British experience of the Yellow Peril and document how despite their minute numbers, the Chinese would bear the brunt of Britain's alien xenophobia during the period. It will examine how their visible and cultural differences signalled them to become scapegoats for a host of social, labour and political issues. It will also mention how these same differences led to a mystique developing around their communities, spawning a uniquely British aspect of the Yellow Peril, that of the popular pulp fiction of the time, most notably the Dr Fu Manchu stories. This article will also argue that despite the uniqueness of the British experience, it nonetheless would not have developed in isolation without the international aspects of the Peril feeding into the local debate. Ultimately, it was the outside stimulus of the First World War and associated post-war settlements that would signal the end of the British Yellow Peril in the early twentieth century.
    Keywords: The Yellow Peril, Britain, xenophobia, China, Chinese, Sinocentric, Dr Fu Manchu, First World War, The Defence of the Realm Act (DORA), the Great Unrest, Limehouse,
    Date: 2017–05
  13. By: Ning Mao (China-ASEAN International College and Dhurakij Pundit University, Thailand); Michael McAleer (National Tsing Hua University, Taiwan; University of Sydney Business School; Erasmus University Rotterdam, The Netherlands, Complutense University of Madrid, Spain and Yokohama National University, Japan); Shuyu Bai (Limian Material Technology Corporation, China)
    Abstract: This paper examines the impact of psychological needs on luxury consumption. Veblen’s Theory of the Leisure Class (1899) invented the term “conspicuous consumption” to describe luxury goods and services, in which Veblen indicated the purpose of luxury consumption was to display wealth and social status. This paper integrates the following two papers: (1) Han and Zhou (2002), who proposed an integrative model, and argued that three variables, namely Country-of-Origin, Brand Name, and Price, were major predictors for overall product evaluation and purchase intentions; and (2) Han, Nunes and Dreze (2010), who proposed a taxonomy called The Luxury 4Ps, to explain the inductive and deductive psychological needs of luxury consumption.
    Keywords: Psychological needs; Luxury consumption; Consumer behavior
    JEL: N35 Z12 Z13
    Date: 2017–07–18
  14. By: Yoon, Haeyeon (Sogang University); Heshmati, Almas (Jönköping University, Sogang University)
    Abstract: In an attempt to verify the pollution haven hypothesis, this study investigates the impact of environmental regulations on foreign direct investment (FDI). We use Korean outward FDI data covering the manufacturing sector for 2009-15. The study not only considers the stringency but also the enforcement of environmental regulations when measuring the degree of the host country's environmental regulations. Since the pollution haven's effects indicate moving the polluting production stages from the home country to other (host) countries, we distinguish between investments in the 'production' part from that in the non-production part using location information about the host country. The main results of the estimation of a FDI model show that the stricter the regulations in host countries in Asia the lower the FDI both intensively and extensively to those countries. This supports the prevalence of the effects of pollution havens. However, before we separate the FDI into the production part, the effect of environmental regulations on FDI is hindered by the FDI in the non-production part. The results indicate that environmental regulations are determinants of FDI in the production part, while environmental regulations do not have a significant effect on FDI decisions when the entire FDI is considered.
    Keywords: pollution haven hypothesis, environmental regulation, foreign direct investment
    JEL: F23 K32 L51 Q56
    Date: 2017–07
  15. By: Harisman, Kundang
    Abstract: Food security has become a central issue in the framework of agricultural development and national development. The establishment of a special institution that handles food security issues namely the Food Security Affairs Agency in 2000 and then in 2001 was changed to the Agency for Mass Guidance on Food Security showed the importance of handling the problem of food security. This institution is expected to strengthen the food security system for domestic interests, given the changing international and domestic strategic environment. Uncertainty and instability of national food production, can not automatically rely on the availability of food in the world market. Existence of food availability at regional level (national and regional) does not guarantee food security at the individual or household level. The results showed the average of household consumption expenditure of rice farmers for food that is Rp. 6,417,519 shows greater than non-food consumption expenditure of Rp. 5.290.062,5. In the allocation of consumption expenditure for food, the proportion of rice consumption is greater than other types of food. The annual per capita rice consumption level in the average 130 kg of rice farming households exceeds the standard of rice consumed according to the Ministry of Agriculture of 109.5 kg per capita per year but tends to be lower than the average consumption rate of Indonesians according to FAO data Amounting to 133 Kg per capita per year .
    Keywords: consumption, environment, food, national
    JEL: Q18
    Date: 2017
  16. By: Bloom, David E. (Harvard University); Chen, Simiao (Harvard School of Public Health); Kuhn, Michael (Vienna Institute of Demography); McGovern, Mark E. (Queen's University Belfast); Oxley, Les (University of Waikato); Prettner, Klaus (University of Hohenheim)
    Abstract: We propose a novel framework to analyse the macroeconomic impact of non-communicable diseases. We incorporate measures of disease prevalence into a human capital augmented production function, which enables us to determine the economic costs of chronic health conditions in terms of foregone gross domestic product (GDP). Unlike previously adopted frameworks, this approach allows us to account for i) variations in human capital for workers in different age groups, ii) mortality and morbidity effects of non-communicable diseases, and iii) the treatment costs of diseases. We apply our methodology to China, Japan, and South Korea, and estimate the economic burden of chronic conditions in five domains (cardiovascular diseases, cancer, respiratory diseases, diabetes, and mental health conditions). Overall, total losses associated with these non-communicable diseases over the period 2010-2030 are $16 trillion for China (measured in real USD with the base year 2010), $5.7 trillion for Japan, and $1.5 trillion for South Korea. Our results also highlight the limits of cost-effectiveness analysis by identifying some intervention strategies to reduce disease prevalence in China that are cost beneficial and therefore a rational use of resources, though they are not cost-effective as judged by conventional thresholds.
    Keywords: non-communicable diseases, human capital, health interventions, aggregate output, ageing, East Asia
    JEL: H51 I15 I18 J24 O11
    Date: 2017–07

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