nep-sea New Economics Papers
on South East Asia
Issue of 2018‒05‒07
nine papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Motivation to Choose a Public Service Career in Developing Countries: Focused on Philippines, Bangladesh, Cambodia, Vietnam, and Indonesia By Sangyub Ryu; Yongjin Chang
  2. Recent trade dynamics in Asia: Examples from specific industries By Auboin, Marc; Borino, Floriana
  3. Managing mangrove forests from the sky: Forest inventory using field data and Unmanned Aerial Vehicle (UAV) imagery in the Matang Mangrove Forest Reserve, peninsular Malaysia By Viviana Otero Fadul; Ruben Van De Kerchove; Behara Satyanarayana; Columba Martínez-Espinosa; Muhammad Amir Bin Fisol; Mohd Rodila Bin Ibrahim; Sulong Ibrahim; Husain Mohd-Lokman; Richard Lucas; Farid Dahdouh-Guebas
  4. Decomposition of changes in the consumption of macronutrients in Vietnam between 2004 and 2014 By Simioni, Michel; Thomas-Agnan, Christine; Trinh, Thi-Huong
  5. Spatial Inequalities in Indonesia, 1996-2010: A Hierarchical Decomposition Analysis By Takahiro Akita; Sachiko Miyata
  6. Managing Technical Efficiency of Public and Private Hospitals in Vietnam: Do Market-Oriented Policies Matter? By Hideaki Kitaki
  7. China's Economic Slowdown and International Inflation Dynamics By Salzmann, Leonard
  8. Taxing property in a neo-developmental state: The politics of urban land value capture in Rwanda and Ethiopia By Goodfellow, Tom
  9. Global and Regional Value Chains: How Important, How Different? By Doris Hanzl-Weiss; Sandra M. Leitner; Robert Stehrer; Roman Stöllinger

  1. By: Sangyub Ryu (Hankuk University of Foreign Studies); Yongjin Chang (International University of Japan)
    Abstract: The current case study has examined five public officials from five different developing countries in Asia to find motivation factors to choose public service careers. Based on the case analysis, social recognition of the job, strong bureaucratic power and network, and family-oriented culture are significant drivers for individuals when they choose their career. Public service motivation factors, such as social contribution or serving to public, however, were not the prior reason to choose public service career in this study.
    Keywords: Motivation, Public Service Career, Public Sector Motivation, Developing Countries, Case Study
    Date: 2017–02
  2. By: Auboin, Marc; Borino, Floriana
    Abstract: This paper looks at the extent to which the shift in the lower value added production to countries in the following development "tier" is actually becoming a reality. Several countries in East Asia have been upgrading production patterns and moving up the value chain, this paper looks at how this helps and offers new opportunities to less advanced countries to integrate in world trade. The paper uses a combination of techniques, from an analysis of disaggregated trade flows by country and sectors, to the calculation of trade intensity indices by country and sector, and value-added trade by sector. It finds combined evidence of forward and backward trade increasing between several neighbouring Asian economies and China, in the most labour-intensive industries in particular. Econometric analysis shows that relative unit labour costs are an explanatory factor of increased trade links. In cases, the intensification of trade links on the export side can relate to a strongly expanding local market (for example India for electronic products such as smartphones), but mostly the intensification of trade links takes place both on the import and export sides with markets which are much smaller than China (Vietnam, Bangladesh, etc.), and which experienced increased outward-processing activities as a result of China's production upgrade.
    Keywords: investment,trade policy,business cycles
    JEL: E22 F13 F44
    Date: 2018
  3. By: Viviana Otero Fadul; Ruben Van De Kerchove; Behara Satyanarayana; Columba Martínez-Espinosa; Muhammad Amir Bin Fisol; Mohd Rodila Bin Ibrahim; Sulong Ibrahim; Husain Mohd-Lokman; Richard Lucas; Farid Dahdouh-Guebas
    Abstract: Retrieval of biophysical properties of mangrove vegetation (e.g. height and above ground biomass) has typically relied upon traditional forest inventory data collection methods. Recently, the availability of Unmanned Aerial Vehicles (UAV) with different types of sensors and capabilities has proliferated, opening the possibility to expand the methods to retrieve biophysical properties of vegetation. Focusing on the Matang Mangrove Forest Reserve (MMFR) in Perak Province, Malaysia, this study aimed to investigate the use of UAV imagery for retrieving structural information on mangroves. We focused on a structurally complex 90-year-old protective forest zone and a simpler 15-year-old productive forest zone that had been silviculturally managed for charcoal production. The UAV data were acquired in June 2016. In the productive zone, the median tree stand heights retrieved from the UAV and field data were, respectively, 13.7 m and 14 m (no significant difference, p-value =.375). In the protective zone, the median tree stand heights retrieved from the UAV and field data were, respectively, 25.8 and 16.5 m (significant difference, p-value =.0001) taking into account only the upper canopy. The above ground biomass (AGB) in the productive zone was estimated at 217 Mg ha−1 using UAV data and 238 Mg ha−1 using ground inventory data. In the protective zone, the AGB was estimated at 210 Mg ha−1 using UAV data and 143 Mg ha−1 using ground inventory data, taking into account only upper canopy trees in both estimations. These observations suggested that UAV data were most useful for retrieving canopy height and biomass from forests that were relatively homogeneous and with a single dominant layer. A set of guidelines for enabling the use of UAV data for local management is presented, including suggestions as to how to use these data in combination with field observations to support management activities. This approach would be applicable in other regions where mangroves occur, particularly as these are environments that are often remote, inaccessible or difficult to work in.
    Keywords: Canopy height model; Forest inventory; Mangroves; Structure from Motion; UAV
    Date: 2018–03
  4. By: Simioni, Michel; Thomas-Agnan, Christine; Trinh, Thi-Huong
    Abstract: Vietnam is undergoing a nutritional transition like many middle-income countries. This paper proposes to highlight the socio-demographic drivers of this transition over the period 2004-2014. We implement a method of decomposition of between-year differences in economic outcomes recently proposed in the literature. This method allows decomposing the composition effect on the distribution of the outcome under study, which is due to the differences in covariates across years, into direct contributions of each covariate and effects of their interactions. This method is applied to VHLSS data. The results show the importance of between-year changes in the distributions of covariates on between-year changes in the distributions of total calorie intake and calorie intakes from proteins and fat. This effect is more contrasted in case of calorie intake from carbohydrates. Food expenditure and household size appear to be the main drivers of the observed evolutions in macronutrients consumption. On the contrary, the urbanization of the population has a negative effect on these evolutions, except on fat consumption. The effect of urbanization is, nevertheless, less important than the positive effects of the previous two variables.
    Keywords: Macronutrient consumption; Nutritional transition; Decomposition method; Copulas; Vietnam
    JEL: C02 C14 C51 O15 Q18
    Date: 2018–04
  5. By: Takahiro Akita (Rikkyo University, International University of University); Sachiko Miyata (Ritsumeikan University)
    Abstract: This study analyzes spatial inequalities in Indonesia from 1996-2010 using the hierarchical decomposition method. It uses household expenditures rather than regional accounts and tries to investigate the contributions of spatial inequalities to overall expenditure inequality. We find that urban-rural disparity constitutes 15-25% of overall expenditure inequality. A large difference exists between urban and rural areas in the magnitude of inequality among districts. After controlling for the urban and rural difference, inequality among districts accounts for 15-25% of overall inequality. While disparity between five major island regions is negligible, inequalities between districts within provinces appear to have played an increasingly important role in both urban and rural areas. Given unequal geographic distributions of resource endowments, public infrastructure and economic activities, some spatial inequalities are inevitable. Nevertheless, sustained efforts are necessary to reduce spatial inequalities to facilitate national unity, cohesion and stability.
    Keywords: spatial inequality, expenditure inequality, hierarchical decomposition of inequality, Theil index, Indonesia
    JEL: O15 O18 R12
    Date: 2017–02
  6. By: Hideaki Kitaki
    Abstract: This study examined how ownership and the degree of competition in the market were related to pure technical efficiency, using micro-level hospital data from six regions in Vietnam that were collected by an original survey. According to the results, the provincial hospitals have significantly higher efficiency than the district hospitals, while the private hospitals have significantly lower efficiency than the district hospitals. Moreover, the number of competing hospitals has a statistically significant negative correlation with the efficiency of the hospitals, and so does the number of competing private hospitals. On the other hand, the degree of concentration in the market has no significant correlation with efficiency. Those results may imply that competition raises problems with resource allocation among the hospitals in Vietnam.
    Keywords: technical efficiency, ownership, competition, DEA, bootstrap method
    Date: 2018–03
  7. By: Salzmann, Leonard
    Abstract: I fit a high-dimensional macroeconomic dataset of 41 countries to a factor-augmented vector autoregressive model to examine the role of the recent Chinese economic slowdown for international inflation dynamics. I identify Chinese supply and demand shocks and examine their contributions to international price indicators. My main findings are: (i) Impulse response analyses indicate that Chinese business cycle shocks and especially demand shocks significantly spill over to inflation rates in Europe, North America, Asia and Oceania, mainly transmitted through global oil, commodity and manufacturing prices. (ii) The Chinese growth slowdown that started in 2012 can be attributed to a fall in aggregate Chinese demand and supply. (iii) Historical decompositions indicate that the fall in Chinese demand lowered national prices in Europe, North America, Asia and Oceania by up to 12 percent from the third quarter of 2013 on.
    Keywords: China’s Economic Slowdown,Global inflation,Spillovers,Factor Augmented Vector Autoregressive Model
    Date: 2018
  8. By: Goodfellow, Tom
    Abstract: Of the African states experiencing sustained growth and poverty reduction in recent decades, Rwanda and Ethiopia stand out due to the scope of their development visions and relatively effective state-driven transformation, leading them to be compared to the East Asian ‘developmental states’. This article argues that these two states are better conceived as ‘neo-developmental’ due to important differences in the international and national constraints they face compared with the East Asian ‘tigers’. One effect of these differences is the difficulty of attracting investment into manufacturing industry, and the consequent concentration of capital in high-end urban real estate. This underscores the need for effective land value capture and property taxation, which featured strongly in the East Asian cases. Currently, however, both Rwanda and Ethiopia lack effective mechanisms for capturing the value of urban property in a way that is sustainable, redistributive and developmental. The article explores the politics of efforts to introduce property tax in both cases. It argues that property taxation has been obstructed by conflicting imperatives on land reform and tax reform, alongside resistance from vested interests created by the rapid generation of real estate-based wealth in the absence of other sufficiently lucrative investment options.
    Keywords: Governance,
    Date: 2017
  9. By: Doris Hanzl-Weiss (The Vienna Institute for International Economic Studies, wiiw); Sandra M. Leitner (The Vienna Institute for International Economic Studies, wiiw); Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw); Roman Stöllinger (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: This study investigates in detail value chain trade of the EU and its Member States, compares it to that of other trading blocs and regions such as NAFTA and East Asia, and delves into implications of value chain trade on specialisation and competitiveness as well as on the declining income elasticity of trade. The analysis of value chain (VC) trade, understood as trade that involves internationally organised production processes, is based on the latest update of the World Input-Output Database (WIOD). It relies to a large extent on a forward production integration measure termed re-exported domestic value added (DVAre) which comprises exports of intermediates that cross international borders at least twice. Results confirm the conjecture that the expansion of international value chains has come to a halt in the post-crisis period (2011-2014). Still, the EU’s VC trade was growing at the same pace as value added exports in general in the post-crisis years, implying that value chains were not dismantled. In contrast, worldwide VC trade was indeed less dynamic than value added exports, which could be seen as a sign that some value chains are on the retreat. Zooming closer into the EU, there was a marked reshuffling of market shares of Member States in EU-wide VC trade from large Member States such as France, Italy and the United Kingdom towards a group of Central European (CE) economies – Germany, Austria, the Czech Republic, Hungary, Poland and Slovakia – which together form the Central European Manufacturing Core. Looking at the question whether VC trade is rather regional in scope, VC trade is separated into regional value chain (RVC) trade – involving only regional production partners – and global value chain (GVC) trade – involving also extra-regional partner countries. For the EU as a whole this split is about half-half, with only a slight move towards GVC trade between 2000 and 2014. Strikingly, demand is strongly shaping the organisation of production while RVCs are predominantly producing for the EU market, GVCs are predominantly procuring for third countries. As regards implications of value chain trade, these are harder to assess. Overall, implications for structural change and competitiveness are rather country and context specific. Changes in attitudes towards international value chains contributed to the significant decline in the income elasticity of trade.
    Keywords: value chain trade, global value chains, regional value chains, Factory Europe, Factory North America, Factory Asia, revealed export preferences, regional introversion index, specialisation, competitiveness, income elasticity of trade
    JEL: F14 F15
    Date: 2018–04

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