nep-sea New Economics Papers
on South East Asia
Issue of 2018‒01‒01
seventeen papers chosen by
Kavita Iyengar
Asian Development Bank

  1. SME Technological Progress and Cooperation in Chinese Taipei: Implications to Selected APEC Economies By Lee, Jinsang; Kim, Amy
  2. Vietnam’s recognition and enforcement of foreign arbitral awards and preparation for EVFTA By Chu Thanh, Giang; Dinh Hoang, Anh; Nguyen Phuong, Linh
  3. LAO P.D.R.: Assessing the Quality of Trade Statistics By Geoffrey J Bannister; Manuk Ghazanchyan; Theodore Pierre Bikoi
  4. Intra-ASEAN trade – Gravity model and spatial Housman-Taylor approach By Nguyen Thi Xuan, Thu; Pham Anh, Tuan; Phung Duy, Quang
  5. The resettlement of Vietnamese refugees across Canada over three decades By Feng Hou
  6. Energi baru terbarukan di Indonesia: Isyarat ilmiah al-Qur’an dan implementasinya dalam ekonomi Islam By Jaelani, Aan
  7. Adjustment of the Vietnamese Labour Market in Time of Economic fluctuations and Structural Changes By Xavier Oudin; Laure Pasquier-Doumer; Thai Pham Minh; François Roubaud
  8. Housing satisfaction and its determinants among residents living in affordable apartments in urban Hanoi, Vietnam By Tuan Anh Nguyen; Tuyen Quang Tran; Huong Van Vu; Dat Quoc Luu
  9. Vulnerability from trade in Vietnam By Emiliano Magrini; Pierluigi Montalbano; L. Alan Winters
  10. Random Coefficient Continuous Systems: Testing for Extreme Sample Path Behaviour By Yubo Tao; Peter C.B. Phillips; Jun Yu
  11. Philippines; 2017 Article IV Consultation-Press Release; Staff Report By International Monetary Fund
  12. Philippines; Selected Issues By International Monetary Fund
  13. The impacts of value, disconfirmation and satisfaction on loyalty: Evidence from international higher education setting By Hiep-Hung Pham; Sue Ling Lai; Quan-Hoang Vuong
  14. Time preferences of food producers between fishermen and farmers: Do "cultivate and grow" matter? By Yayan Hernuryadin; Koji Kotani; Tatsuyoshi Saijo
  15. To sew or not to sew ? assessing the welfare effects of the garment industry in Cambodia By Mejia-Mantilla,Carolina; Woldemichae,Martha Tesfaye
  16. Revenue Nodes in South India and Central Java By Hoadley, Mason; Hatti, Neelambar
  17. Bank Capital and Lending: An Extended Framework and Evidence of Nonlinearity By Mario Catalan; Alexander W. Hoffmaister; Cicilia Anggadewi Harun

  1. By: Lee, Jinsang (State University of New York Korea); Kim, Amy (State University of New York Korea)
    Abstract: Chinese Taipei became one of the most successful economies in Asia after the WWII, and the country was one of the four Asian tigers together with the Republic of Korea, Chinese Hong Kong and Singapore. Their economic achievement was mainly originated from the development of SMEs which government policies were effectively implemented and brought strong im-pacts on technological progress. SMEs were able to obtain technologies through research and development, and technology transfer from developed countries with various cooperation programs. However, APEC economies notably Viet Nam, Malaysia, Indonesia and the Philippines have achieved economic development and SME technological promotion, but they are not comparable with Chinese Taipei. This paper analyses Chinese Taipei govern-ment policies on SMEs, technological progress, and technology cooperation with developed countries. These areas are compared with other four APEC economies. It brings some suggestions how APEC can enhance SME tech-nology cooperation with other countries.
    Keywords: SME; technological progress; technology cooperation; Chinese Taipei; the Philippines; Malaysia; Indonesia; Viet Nam; APEC
    JEL: F21 L60 O33
    Date: 2017–12–10
  2. By: Chu Thanh, Giang; Dinh Hoang, Anh; Nguyen Phuong, Linh
    Abstract: SECO Working Paper 18/2017 by Nguyen Phuong Linh, Dinh Hoang Anh and Chu Thanh Giang
    Abstract: Arbitration activities in Vietnam is becoming a popular choice of investors in dispute resolution. However, European investors in Vietnam repeatedly raised concerns that it is extremely difficult in practice to achieve the recognition and enforcement of foreign arbitral awards through the Vietnamese courts. Now the European - Vietnam Free Trade Agreement (EVFTA) which is expected to take effect in 2018 has imposed a new two-tier investment court system (ICS) for investors-States dispute settlement (ISDS) instead of traditional arbitration-based ISDS. This paper focuses on analysing the compatibility between the ICS mechanism and Vietnam legal framework and current practice in recognition and enforcement of foreign arbitral awards, thereby proposing some recommendations for Vietnam’s preparation with the EVFTA ahead.
    Date: 2017–12–13
  3. By: Geoffrey J Bannister; Manuk Ghazanchyan; Theodore Pierre Bikoi
    Abstract: This paper assesses external trade statistics in Lao PDR by looking at mirror statistics, and with reference to international experience in compilation and dissemination of external trade data. We find that exports could be underreported by 8 to 50 percent, while imports could be underreported by 30 to 70 percent, and the trade deficit could be 20 percent to 280 percent higher. Underreporting is concentrated in trade with major partners, including Thailand (17 percent of total trade), China (10 percent of total trade) and Vietnam (3 percent of total trade). On the export side, underreporting is concentrated in wood and wood products, while for imports it is concentrated in a much wider variety of products, including food, fuel, vehicles, machinery, chemical products, plastics and rubber, and construction materials. Possible sources and implications of these discrepancies are discussed.
    Date: 2017–11–16
  4. By: Nguyen Thi Xuan, Thu; Pham Anh, Tuan; Phung Duy, Quang
    Abstract: SECO Working Paper 20/2017 by Quang Phung Duy, Tuan Pham Anh and Thu Nguyen Thi Xuan
    Abstract: This study examines determinants of intra-industry trade between Vietnam and ASEAN countries. By solving endogenous problems and applying a Hausman-Taylor model panel two-way dataset, we detect that export flows of Vietnam gravitate to neighbouring countries and those with similar GDP. More importantly, the research indicates the existence of spatial-lag interaction.
    Date: 2017–12–22
  5. By: Feng Hou
    Abstract: Welcoming 60,000 Southeast Asian refugees in the 1979–80 period has become a celebrated part of Canada’s history, but the eventual integration of these refugees into Canadian society has received insufficient attention. This study provides a comprehensive overview of Vietnamese refugees’ economic outcomes over the three decades after their arrival. This study also explores how regional contexts contributed to shaping economic outcomes. Based on analyses of the 1981, 1991, and 2001 census and the 2011 National Household Survey, this study finds that adult Vietnamese refugees arrived with little human capital, but they had high employment rates, and over time they closed their initial large earnings gap with other immigrants. Childhood Vietnamese refugees out-performed other childhood immigrants and similar-aged Canadian-born individuals in educational attainment and earnings when they reached adulthood. The geographic region of residence was associated with some large variations in refugees’ socioeconomic outcomes; and regional differences in refugees’ human capital characteristics, ethnic enclave, and economic conditions played varying roles depending on the outcome measure and length of residence.
    Date: 2017
  6. By: Jaelani, Aan
    Abstract: This study confirms that renewable energy sources become the solution for energy development in Indonesia due to the increasingly depleted use of fossil-based energy, due to an increase in the population that increases energy consumption and waste in fuel consumption. The Qur'an has provided simple concepts and illustrations about renewable energy sources that can be utilized by humans, energy conservation, and energy enrichment. With the codification and content analysis approach to energy policy in Indonesia and energy themes in the Qur'an, this paper asserts that the Government of Indonesia's renewable energy policy focuses on providing and developing renewable energy as part of sustainable development. This renewable energy policy can be proven scientifically with the implementation of scientific Qur'anic terms about renewable energy sources such as water, geothermal, ocean, vegetation, and wind. The policy on energy conservation through energy saving becomes a religious obligation for every person, institution, and government because to meet the needs of consumers, maintain the survival of the community, and preserve the environment.
    Keywords: renewable energy, energy conservation, energy saving, energy economy
    JEL: Q28 Q43 Q48 Q57 Q58 Z12
    Date: 2017–09–04
  7. By: Xavier Oudin (LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine); Laure Pasquier-Doumer (LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine); Thai Pham Minh (autre - AUTRES); François Roubaud (LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine)
    Abstract: In this paper, we consider how labour market adjusts to economic fluctuations, considering structural transformation at work as well as short term changes. We utilise series calculated from population censuses and data published in the statistical yearbooks of GSO for long term series, and Labour Force Surveys from 2007 to 2012 for short term data. The paper highlights the deep transformation of the labour market in the last decades. The labour force has doubled in 25 years and the share of agriculture has declined below 50%. Labour supply absorption was thus one of the main challenges for the Vietnamese economy. The household sector has been the main job provider over the years, in agriculture as well as in non-farm activities. The labour market has adjusted to the recent economic slowdown through different channels. If unemployment does not rise, some people withdraw from the labour force and the number of non-active people has grown. The quantity of labour is also affected by a significant reduction of hours worked. While the non-farm sector generates more jobs for skilled workers, there is a shift of unskilled labour towards agriculture. Due to demographic factors, labour supply absorption and creation of new jobs become a less acute problem. As Vietnam benefits of the demographic dividend, the situation on the labour market should be favourable during the present decade to implement structural policies.
    Abstract: Dans cet article, nous examinons les ajustements du marché du travail aux fluctuations économiques, compte tenu des transformations structurelles en cours ainsi que des changements à court terme. Nous utilisons pour cela des données des recensements de la population ou publiées dans les annuaires statistiques de l’Office Général de la Statistique pour les séries à long terme, et les enquêtes emploi conduites entre 2007 à 2012 pour les données à court terme. Cet article souligne la profonde transformation du marché du travail au cours des dernières décennies. La population active a doublé en 25 ans et la part de l'agriculture est passée en dessous du seuil de 50 %. L’absorption de l'offre de travail a donc été l'un des principaux défis pour l'économie vietnamienne sur cette période. Le secteur des entreprises familiales agricoles et non-agricoles a été le principal pourvoyeur d'emplois au cours de ces années. Le marché du travail s'est adapté au récent ralentissement économique à travers différents canaux. Le chômage est resté stable mais le nombre de personnes inactives a augmenté. La quantité de travail a également été affectée par une réduction significative du nombre d'heures travaillées. Alors que le secteur non agricole a généré plus d'emplois pour les travailleurs qualifiés, un flux de travailleurs non-qualifiés vers l’agriculture a été observé. En raison de facteurs démographiques, l'absorption de l'offre de travail et la création de nouveaux emplois ne sont plus le principal problème. En revanche, l’évolution récente du marché du travail appelle à la mise en oeuvre de politiques structurelles en vue d’améliorer les conditions de travail, la période étant particulièrement favorable pour mener ces politiques puisque le Vietnam profite actuellement du dividende démographique.
    Keywords: Marché du travail,Ajustement à long et court terme,Emploi,Labour Market,Long term and Short term Adjustment,Employment,Vietnam
    Date: 2017–11–28
  8. By: Tuan Anh Nguyen (University of Economics and Business, Vietnam National University, Hanoi, Vietnam and VietinBank Capital, VietinBank); Tuyen Quang Tran (University of Economics and Business, Vietnam National University, Hanoi); Huong Van Vu (Department of Economics, Academy of Finance, Hanoi, Vietnam); Dat Quoc Luu (University of Economics and Business, Vietnam National University, Hanoi, Vietnam)
    Abstract: Using a novel dataset involving 450 respondents living in affordable apartments in urban Hanoi, this study examines the level of housing satisfaction and its correlates. We find that housing satisfaction is positively associated with household income but negatively related to education. Interestingly, the study finds that residents borrowing from banks to buy home are less satisfied with their home than their non-borrowing counterparts. We also find that respondents’ positive evaluation of their apartments, such as the design, construction quality and price of apartments, are strongly linked with housing satisfaction. In addition, the location of and environmental quality surrounding the housing area were found to be major factors affecting housing satisfaction.
    Keywords: affordable apartment, housing satisfaction, social apartment, cheap commercial apartment.
    JEL: D4 D6 D11
    Date: 2017–03
  9. By: Emiliano Magrini (Food and Agriculture Organization of the United Nations, Rome (IT).); Pierluigi Montalbano (Department of Economics and Social Sciences, Sapienza University of Rome (IT).); L. Alan Winters (Department of Economics, University of Sussex (UK))
    Abstract: This paper assesses vulnerability from trade in Vietnam by presenting an extended version of Ligon and Schechter’s (2003) Vulnerability as low Expected Utility (VEU) measure. It uses the VHLSS panel data covering the period 2002-06. The empirical results show that risk-induced vulnerability and het-erogeneity in trade exposure matters in determining household overall vulnerability and that this is not linked to the actual manifestation of shocks. Although it does not represent, by any means, an argument against free trade, this work is relevant for policymaking since it contributes to deepen our knowledge on the subtle links between trade openness and vulnerability providing some insight on the stabilisation needs of trade reforms. These include protecting vulnerable farmers from excessive price volatility, as well as fostering their risk management strategies.
    Keywords: trade openness, vulnerability, poverty, risk, consumption behaviour, Vietnam.
    JEL: F14 O12 D12 C31
    Date: 2017–11
  10. By: Yubo Tao (School of Economics, Singapore Management University); Peter C.B. Phillips (Cowles Foundation, Yale University); Jun Yu (School of Economics and Lee Kong Chian School of Business, Singapore Management University)
    Abstract: This paper studies a continuous time dynamic system with a random persistence parameter. The exact discrete time representation is obtained and related to several discrete time random coefficient models currently in the literature. The model distinguishes various forms of unstable and explosive behaviour according to specific regions of the parameter space that open up the potential for testing these forms of extreme behaviour. A two-stage approach that employs realized volatility is proposed for the continuous system estimation, asymptotic theory is developed, and test statistics to identify the different forms of extreme sample path behaviour are proposed. Simulations show that the proposed estimators work well in empirically realistic settings and that the tests have good size and power properties in discriminating characteristics in the data that differ from typical unit root behaviour. The theory is extended to cover models where the random persistence parameter is endogenously determined. An empirical application based on daily real S\&P 500 index data over 1964-2015 reveals strong evidence against parameter constancy after early 1980, which strengthens after July 1997, leading to a long duration of what the model characterizes as extreme behaviour in real stock prices.
    Keywords: Continuous time models, Explosive path, Extreme behaviour, Random coefficient autoregression, Infill asymptotics, Bubble testing
    JEL: C13 C22 G13
    Date: 2017–12
  11. By: International Monetary Fund
    Abstract: The Philippine economy has performed well and is in a favorable position to address its socioeconomic challenges. Sound policies have delivered solid growth, low inflation, financial stability, and external and fiscal buffers. However, poverty remains high and the country needs to create jobs for its young and growing population. Sustaining the growth momentum in an uncertain and volatile external environment requires tackling the constraints to inclusive growth, while protecting policy anchors, adapting policies to changing conditions, and maintaining vigilance against risks, including from high credit growth, loan concentration, and overheating.
    Keywords: Philippines;Asia and Pacific;
    Date: 2017–11–10
  12. By: International Monetary Fund
    Abstract: Selected Issues
    Keywords: Philippines;Asia and Pacific;
    Date: 2017–11–10
  13. By: Hiep-Hung Pham; Sue Ling Lai; Quan-Hoang Vuong
    Abstract: Relationships with international students can be beneficial to higher education in terms of financial and human resources. For this reason, establishing and maintaining such relationships are usually pre-eminent concerns. In this study, we extended the application of the disconfirmation expectation model by incorporating components from subjective task value to predict the loyalty of international students toward their host countries. On a sample of 410 Vietnamese students enrolled in establishments of higher education in over 15 countries across the globe, we employed structural equation model to construct the conceptual model. Our empirical findings revealed that while the roles of satisfaction and disconfirmation are still important as direct and indirect antecedents of international student loyalty, its most powerful predictors are the three components of subjective task value: attainment, utility and intrinsic. These insights result in a number of implications for actors on the higher ducation scene, such as heads of institutions and policy makers.
    Keywords: international student; loyalty; value; disconfirmation; satisfaction
    JEL: I21
    Date: 2017–12–19
  14. By: Yayan Hernuryadin (School of Economics and Management, Kochi University of Technology); Koji Kotani (School of Economics and Management, Kochi University of Technology); Tatsuyoshi Saijo (Research Institute for Humanity and Nature)
    Abstract: Resource scarcity and food security are two important issues due to overexploitation of natural resources with increasing population, market demand and mass production, whereas fishermen and farmers have been two main occupations that produce food, utilizing natural resources. The production mode between fishermen and farmers is distinct in that fishermen (farmers) harvest (cultivate, grow and harvest), leading to different daily life style and culture. It is hypothesized that such differences in daily practices and production mode between fishermen and farmers characterize their time preferences or discounting behaviors. We have conducted a discounting elicitation experiment for fishermen and farmers in Indonesia. The statistical analysis shows that the average (median) discount factors of farmers are 0.48 (0.50), respectively, whereas those of fishermen are 0.30 (0.10). The betafit and median regressions demonstrate that the discount factors of farmers are 9.8% and 26.8% higher than those of fishermen, respectively, implying that fishermen are much more shortsighted than farmers. This result appears to reflect that farmers wait or "cultivate and grow" six months for their harvest because of which they save some portion of their income, while fishermen catch or "harvest" fish every day and typically use up their daily income. Although same policies have been uniformly implemented on these two occupations, the government may need some devices and education on fishermen to nurture a culture of "cultivate and grow" fish stock for promoting long-term conservation behaviors as well as sustaining fishery and their lives.
    Keywords: time preferences, field experiments, food security, resource sustainability, fishermen
    Date: 2017–12
  15. By: Mejia-Mantilla,Carolina; Woldemichae,Martha Tesfaye
    Abstract: This paper uses the 2011 Cambodia Socio-Economic Survey to analyze the relationship between participation in the garment industry and household welfare. The analysis relies on propensity score matching estimators to investigate whether households that have at least one member employed in the textile and apparel sector are better off than those who do not participate in the garment industry, in terms of several monetary and non-monetary welfare indicators. The findings show that garment households are less likely to experience self-reported food insufficiency, and their children are more likely to be enrolled in school. Yet, the positive effect of the treatment is restricted to the bottom 40 percent of the consumption distribution, possibly due to the nature of garment jobs, and the fact that they represent an attractive alternative for the poorest households but not necessarily for the better-off. Using instrumental-variables, the analysis also shows that remittances originating from the textile and apparel sector relax household budget constraints, increasing expenditures in education, health, and investments in agricultural activities.
    Keywords: Inequality,International Trade and Trade Rules
    Date: 2017–05–16
  16. By: Hoadley, Mason (Centre for Languages and Literature, Lund University); Hatti, Neelambar (Department of Economic History, Lund University)
    Abstract: Studies of relations binding ruled and ruler over the form and content of revenue assessment during the colonial era are not lacking. Rather, the intellectual challenge lies in ascertaining the degree to which the relevant economic institutions of the subjected regions in southern Asia constituted continuity of tradition, modifications thereof, or completely alien constructs. Meeting that challenge is hindered by inequality of information revealing ‘before’ and ‘after’ conditions; an embarrassment of riches in information on the latter contrasts to poverty of the former. The present paper aims at least partially filling that gap by ascertaining in comparative perspective the basis of the revenue assessment systems prevailing in South India (Karnataka) and Central Java (Yogyakarta) during the late eighteenth and early nineteenth centuries. What makes such an undertaking not only desirable from a scholarly point of view but also possible in practice is the near unique finds of virtually untapped original source materials deriving from the respective institutions’ function.
    Keywords: Revenue assessment; Land tenure; Inequality; Archival sources; Kaditas; South India; Central Java; Local administrative traditions; Colonial policy
    JEL: H71 N35 N45 N95 Q15
    Date: 2017–12–15
  17. By: Mario Catalan; Alexander W. Hoffmaister; Cicilia Anggadewi Harun
    Abstract: This paper studies the transmission of bank capital shocks to loan supply in Indonesia. A series of theoretically founded dynamic panel data models are estimated and find nonlinear effects of capital on loan growth: the response of weaker banks to changes in their capital positions is larger than that of stronger banks. This non-linearity implies that not only the level of capital but also its distribution across banks in the financial system affects the transmission of shocks to aggregate lending. Likewise, the effects of bank recapitalization on loan growth depend on banks’ starting capital positions and the size of capital injections.
    Date: 2017–11–16

This nep-sea issue is ©2018 by Kavita Iyengar. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.