nep-sea New Economics Papers
on South East Asia
Issue of 2017‒08‒20
seven papers chosen by
Kavita Iyengar
Asian Development Bank

  1. US Antidumping Petitions and Revealed Comparative Advantage of Shrimp Exporting Countries By Chang, C-L.; McAleer, M.J.; Nguyen, D.K.
  2. An Instruments to Develop Cashless in Malaysia By Taasim, Shairil; Yusoff, Remali
  3. Does the energy-environmental Kuznets curve hypothesis sustain in the Asia-Pacific region? By Aruga, Kentaka
  4. Human Capital and Structural Change By Porzio, Tommaso; Santangelo, Gabriella
  5. The Contribution of Passenger Movement to Economic Growth in Malaysia By Taasim, Shairil; yusoff, remali
  6. Capital Structure of Malaysian Firms: Financing the Deficit and Shari’ah Compliance By iqbal hussain, hafezali
  7. Systematic Managed Floating By Jeffrey A. Frankel

  1. By: Chang, C-L.; McAleer, M.J.; Nguyen, D.K.
    Abstract: The paper explores the trade competitiveness of seven major shrimp exporting countries, namely Vietnam, China, Thailand, Ecuador, India, Indonesia and Mexico, to the USA. Specifically, we investigate whether the United States (US) antidumping petitions impact upon the bilateral revealed comparative advantage (RCA) indexes for each of the seven shrimp exporting countries with the USA. Monthly data from January 2003 to December 2014 and the panel data model are used to examine the determinants of the RCA for the shrimp exporting countries. The empirical results show the shrimp exporting countries have superior competitiveness against the shrimp market in the USA. Moreover, the RCA indexes are significantly negatively influenced by shrimp prices, and are positively affected by US income per capita. However, the EMS (Early Mortality Syndrome) shrimp disease, domestic US shrimp quantity, exchange rate, and US antidumping laws are found to have no significant impacts on the RCA indexes. In terms of policy implications, the USA should try to reduce production costs of shrimp in the US market instead of imposing antidumping petitions, and the shrimp exporting countries should maintain their comparative advantage and diversify into new markets.
    Keywords: Shrimp, antidumping, revealed comparative advantage, panel data model
    JEL: C23 F13 P45 Q17
    Date: 2016–10–01
  2. By: Taasim, Shairil; Yusoff, Remali
    Abstract: This study aims to apply the technology assessment (TA) model to analyze ebanking perceptions in the context of Malaysia. It involves aspects of supply and demand to understand increasing cashless concept in the country. A sample of 470 respondents were randomly selected from high density state capitals and major cities, using the convenience sampling method. Respondents were requested to complete a questionnaire developed from the basic model by forming UTAUT constructs, including quality, skills, transaction costs, user satisfaction, role of service providers (banks), and the influence of environment. Based on the results obtained, the model suggests that transaction costs, as direct costs by service providers, have a significant impact on the overall assessment of the performance of retail e-banking. Data analysis was performed using structured equation modeling (SEM), with the use of AMOS V22 as a method of trajectory analysis.
    Keywords: Technology, SEM, Performance, e-banking.
    JEL: G0 G00 O1 O16
    Date: 2017–03–01
  3. By: Aruga, Kentaka
    Abstract: As mitigating the effects of energy consumption on the environment is a crucial issue for the Asia-Pacific region, this study investigates the energy-environmental Kuznets curve (EEKC) hypothesis among the 19 Asia-Pacific regions. The study also test the hypothesis for the low-, middle-, and high-income groups of the region. The panel regression and cointegration models are used for this purpose. Both models suggest that the EEKC hypothesis does sustain for the whole Asia-Pacific region. However, the test performed on the income groups revealed that the hypothesis only holds for the high-income group and the low- and middle-income groups do not satisfy the hypothesis. This is likely indicating that the transition in the energy consumption along the EEKC is only occurring in the developed countries of the Asia-Pacific region.
    Keywords: Energy-environmental Kuznets curve, energy consumption, GDP per capita, Asian-Pacific region, panel regression model, panel cointegration model
    JEL: O53 Q56
    Date: 2017–08–08
  4. By: Porzio, Tommaso; Santangelo, Gabriella
    Abstract: What explains labor reallocation out of agriculture? We propose an accounting framework that leverages observable variation across birth cohorts to study the role of human capital accumulation. We model a dynamic overlapping generations economy where heterogeneous individuals choose whether to stay in or move out of agriculture, subject to mobility frictions. The model shows analytically that labor reallocation within- and across-cohorts pins down the relative role of human capital vs. sectoral prices/productivities in labor reallocation. We apply the framework to micro data from 52 countries. We document novel empirical patterns on labor reallocation by cohort and use them, through the lens of our model, to discipline the size of mobility frictions and show two results: (i) human capital explains one third of labor reallocation, on average; but (ii) it has a minor role in explaining why some countries have faster reallocation than others. Furthermore, we use years of schooling as a direct measure of human capital to validate our main approach and we exploit a large-scale school construction program in Indonesia as a natural experiment to study the effects of an exogenous increase in human capital. We show that the program led to labor reallocation out of agriculture.
    Keywords: Social and Behavioral Sciences, Human Capital, Structural Change, Agriculture, Development, Schooling
    Date: 2017–08–16
  5. By: Taasim, Shairil; yusoff, remali
    Abstract: This study investigates the causal relations between passenger movement handled by Malaysia airports and economic growth per capita from 1990 to 2015 by using co-integration approach, Granger causality and vector autoregression (VAR) model. By applying time series analysis, we explored whether the two variables lead each other to Malaysia’s economic growth. The result showed that both variables integrated to enhance Malaysia’s economic performance.
    Keywords: Granger, Airports, Co-Integration, GDP per capita
    JEL: O2 O21
    Date: 2017–01–01
  6. By: iqbal hussain, hafezali
    Abstract: Our paper evaluates the capital structure of Malaysian firms from a unique perspective by evaluating the impact of Shari’ah compliance on firms’ financing decision. We find that firms that are Shari’ah compliant tend to lean towards lower debt issues to finance their deficits, implying that the compliance status has an impact on their cost of equity which ultimately affects cost of capital.
    Keywords: Capital Structure, Shari’ah Compliance, Islamic Finance, Malaysian Firms
    JEL: G32 Z12
    Date: 2017–08–01
  7. By: Jeffrey A. Frankel
    Abstract: A majority of countries neither freely float their currencies nor firmly peg. But most of the remainder in practice also don’t obey such well-defined intermediate exchange rate regimes as target zones. This paper proposes to define an intermediate regime, to be called “systematic managed floating,” as an arrangement where the central bank regularly responds to changes in total exchange market pressure by allowing some fraction to be reflected as a change in the exchange rate and the remaining fraction to be absorbed as a change in foreign exchange reserves. An operational criterion for judging systematic managed floaters is a high correlation between exchange rate changes and reserve changes. The paper rejects the view that exchange rate regimes make no difference. In regressions to test effects on real exchange rates, we find that positive external shocks tend to cause real appreciation for most systematic managed-floaters; more strongly so for pure floaters; and not at all for most firm peggers. Two measures of exogenous external shocks are used: (i) for commodity-exporters, a country-specific index of global prices of the export commodities and (ii) for other Asian emerging market economies, the VIX.
    JEL: F31 F33 F41
    Date: 2017–08

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