nep-sea New Economics Papers
on South East Asia
Issue of 2018‒08‒13
34 papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Let’s talk about the Free Trade Agreement (FTA): The five ASEAN members highlighting Indonesia By Verico, Kiki; Natanael, Yeremia
  2. Comparing peri-urban versus rural poverty and child malnutrition reduction: Insights from Southeast Asia By Pahlisch, Thi Hoa; Parvathi, Priyanka; Waibel, Hermann
  3. Rural-urban migration, welfare and employment: Comparing results from Thailand and Vietnam By Grote, Ulrike; Waibel, Hermann
  4. Explaining differences in rural household debt between Thailand and Vietnam: Economic environment versus household characteristics By Chichaibelu, Bezawit Beyene; Waibel, Hermann
  5. Corporate material flow management in Thailand: The way to material flow cost accounting By Yagi, Michiyuki; Kokubu, Katsuhiko
  6. Rainfall shocks and risk aversion: Evidence from Southeast Asia By Liebenehm, Sabine; Degener, Nele; Strobl, Eric
  7. Analysis of shock transmissions to a small open emerging economy using a SVARMA model By Raghavan, Mala; Athanasopoulos, George
  8. Confidence in the implementation of U.S. monetary policy normalization: remarks at the 23rd EMEAP (Executives’ Meeting of East Asia-Pacific Central Banks) Governors’ Meeting, Manila, Philippines By Potter, Simon M.
  9. Monetary Policy and Inflation Dynamics in ASEAN Economies By Geraldine Dany-Knedlik; Juan Angel Garcia
  10. Analysis Of Weaknesses Of Coastal Community Economy Empowerment Program (Pemp) And National Program Of Community Empowerment Of Independent Marine And Fisheries (Pnpm-Mkp) On Traditional Fishermen In Indonesia By Ginting, Bengkel; Nasution, M. Arif; Subhilhar, Subhilhar; Harahap, R. Hamdani
  11. The Mediation Effect of Regional Development in Relationship Between Community Participation to Sustainable Transportation in The City of Medan, North Sumatra Indonesia By Estetiono, Andi; Badaruddin, Badaruddin; Asmirza, Moh. Sofian; Rujiman, Rujiman
  12. E-Education in the Philippines: The Case of Technical Education and Skills Development Authority Online Program By Quimba, Francis Mark A.; Dumaua-Cabautan, Madeline; Calizo, Sylwyn C.; Pacio, Lachmi C.
  13. Experimentally validated general risk attitude among different ethnic groups in Vietnam By Pham, Huong Dien; Liebenehm,Sabine; Waibel, Hermann
  14. Tjong Yong Hian And the Development of The City of Medan, The Existence of Chinese The Economy Field in Indonesia By Pin, Pin; Subhilhar, Subhilhar; Kusmanto, Heri; Purba, Amir
  15. Sistem anggaran berbasis kinerja pada APBN di Indonesia perspektif ekonomi Islam By Jaelani, Aan
  16. Exchange Rate Pass-through to Domestic Prices in Thailand, 2000-2017 By Jiranyakul, Komain
  17. Asian Option Pricing with Orthogonal Polynomials By Sander Willems
  18. Risk attitudes, knowledge, skills and agricultural productivity By Pham, Huong Dien; Waibel, Hermann
  19. Decoupled but not neutral: The effects of stochastic transfers on investment and incomes in rural Thailand By Wagener, Andreas; Zenker, Juliane
  20. Analysis of Corporate Social Responsibility, Default Risk and Conservatism Effect to Earning Management with Good Corporate Governance as Moderating Variable in Manufacturing Company Whose Shares Incorporated in Indonesia Sharia Stock Index By Siregar, Budi Gautama; Lubis, Ade Fatma; Maksum, Azhar; Fachrudin, Fachrudin
  21. Seaweed food products What term for seaweed? By Morgane Marchand; Marie Lesueur
  22. Education-job mismatches and their impacts on job satisfaction: An analysis among university graduates in Cambodia By SAM, Vichet
  23. Rice Seed System in Thailand By Orachos Napasintuwong
  24. Effect of corporate governance on cost of equity before and after international financial reporting standard implementation By Chandra, Situmeang; Erlina, Erlina; Maksum, Azhar; Supriana, Tavi
  25. Planting and nurturing the seeds of equity in Africa By CORNIA, GIOVANNI ANDREA; ODUSOLA, AYODELE; BHORAT, HAROON; CONCEIÇÃO, PEDRO
  26. Unemployment duration and educational mismatches: A theoretical and empirical investigation among graduates in Cambodia. By SAM, Vichet
  27. Innovation and the State: Towards an Evolutionary Theory of Policy Capacity By Erkki Karo; Rainer Kattel
  28. Accumulation of foreign currency reserves and risk-taking By Rasmus Fatum; James Yetman
  29. Produits alimentaires aux algues Quel terme pour désigner les algues ? Projet Idealg By Marie Lesueur; Morgane Marchand
  30. Do cultural factors alter the relationship between risk attitudes and economic welfare? By Pham, Huong Dien
  31. Testing the predictability of commodity prices in stock returns: A new perspective By Afees A. Salisu; Kazeem Isah; Ibrahim D. Raheem
  32. The Long-Lasting Effects of Family and Childhood on Adult Wellbeing: Evidence from British Cohort Data By Sarah Flèche; Warn Lekfuangfu; Andrew E. Clark
  33. Does time-variation matter in the stochastic volatility components for G7 stock returns By Afees A. Salisu; Ahamuefula Ephraim Ogbonna
  34. At the roots of China's striking performance in textile exports: a comparison with its main Asian competitors By D. Baiardi; C. Bianchi

  1. By: Verico, Kiki; Natanael, Yeremia
    Abstract: This paper attempts to assess the role of FTA (Free Trade Agreement) in enhancing both the trade and investment in both levels of the country and the region. This paper chooses Indonesia as the country and five ASEAN member states (Indonesia, Malaysia, Thailand, Philippines, and Vietnam) as the regional case of study. This paper uses net export & intra-trade and FDI inflows & intra-FDI as the dependent variables for trade and investment respectively. Period of analysis is 25 years from 1992 to 2016. This paper found that FTA utilization is effective to increase trade and investment at both the country and regional level with certain control variables. It found that ASEAN is ready to move from intra-regional trade to intra-regional investment. Therefore, the ASEAN Economic Community is on the right track and in the right time for ASEAN. At the bilateral level, this study proposed that the net export surplus is the aim for the negotiation to the lower income per capita trading partner while FDI inflow from the trading partner is the aim for the higher income one. From non-regression model, this paper found that the role of FTA center is necessary to optimize the utilization of FTA.
    Keywords: Trade Policy, Empirical Studies of Trade, Economic Integration, International Investment, Bilateral Trade Agreement, ASEAN, Indonesia
    JEL: F13 F14 F15 F21
    Date: 2018–07–16
  2. By: Pahlisch, Thi Hoa; Parvathi, Priyanka; Waibel, Hermann
    Abstract: Success in reducing monetary poverty in Southeast Asia does not fully translate into reduction in malnutrition. Using a three-year panel data from one province each in Thailand, Lao PDR and Vietnam, we study the correlation between monetary poverty and nutritional outcomes of children under five. Furthermore, we analyze differences between nutrition outcomes of children between rural and peri-urban areas. We apply ordinary least squares, two stage least squares and quantile regression models and find that nutrition remains a problem despite achievements in poverty alleviation. Results also show significant differences across countries as well as between peri-urban and rural areas.
    Keywords: Poverty, Child malnutrition, Peri-urban, Rural, Southeast Asia
    JEL: I15 I30 R11
    Date: 2017–12
  3. By: Grote, Ulrike; Waibel, Hermann
    Abstract: This paper compares empirical findings on the motivation and welfare impacts of rural-urban migration from two comprehensive case studies conducted in Thailand and Vietnam. Panel data of around 4,000 rural households and tracking surveys of close to 1,000 migrants are used from the two countries. The studies find that outcomes depend to a large extent on the development status of the country. Rural households consider outmigration mostly as a livelihood support strategy. Given the scarcity of employment opportunities in the rural areas, migrants see themselves forced to look for jobs in the cities. Interestingly, most migrants perceive themselves to be better off in the cities. The rural households left behind benefit from migration as the remittances tend to have positive income growth effects. The research confirms the calls for improved social protection for migrants in urban areas and for quality schooling in the rural areas.
    Keywords: Migration, Poverty, Livelihoods, Employment quality, Vietnam, Thailand
    JEL: O15 Q56 R23
    Date: 2017–04
  4. By: Chichaibelu, Bezawit Beyene; Waibel, Hermann
    Abstract: This paper compares empirical findings on the motivation and welfare impacts of rural-urban migration from two comprehensive case studies conducted in Thailand and Vietnam. Panel data of around 4,000 rural households and tracking surveys of close to 1,000 migrants are used from the two countries. The studies find that outcomes depend to a large extent on the development status of the country. Rural households consider outmigration mostly as a livelihood support strategy. Given the scarcity of employment opportunities in the rural areas, migrants see themselves forced to look for jobs in the cities. Interestingly, most migrants perceive themselves to be better off in the cities. The rural households left behind benefit from migration as the remittances tend to have positive income growth effects. The research confirms the calls for improved social protection for migrants in urban areas and for quality schooling in the rural areas.
    Keywords: Rural households, Microcredit, Household debt, Household Indebtedness, Decomposition Analysis, Thailand, Vietnam
    JEL: D14 G11 R11
    Date: 2017–06
  5. By: Yagi, Michiyuki; Kokubu, Katsuhiko
    Abstract: In recent years, material flow cost accounting (MFCA) has gradually been recognized in Asia by the standardization of ISO 14051 and 14052 and by the project of dissemination undertaken by the Asian Productivity Organization (APO). However, MFCA is still not used across the board. This study analyzes the characteristics of material flow (MF) management to facilitate the expanded use of MFCA. The research framework of this study investigates the degree of MF management and the sequential relationships among financial factors, MF management, and waste performance, based on a questionnaire survey of non-financial listed companies in Thailand. Fifty-eight percent of the respondent firms answer that they are managing MF information (self-rating). Meanwhile, 50%, 49%, 29%, and 24% of the firms actually disclose the amounts of total waste, hazardous waste, raw materials consumed, and recycled waste, respectively. The results of this study show that respondent firms with MF management (self-rating) are more likely to manage/disclose total waste, hazardous waste, and raw materials consumed than those without it. In terms of financial factors, cost ratio and profitability are likely to affect firm decisions regarding whether to manage the MF. Additionally, MF management is likely to decrease the hazardous waste ratio. The series of results shows that firms in Thailand are more likely to be concerned about hazardous waste management than resource efficiency. Therefore, hazardous waste should probably be thoroughly managed, as a preliminary step in the promotion of MFCA.
    Keywords: Material flow management; Thailand; Waste performance; Material flow cost accounting; Data envelopment analysis
    JEL: M11 Q53 Q56
    Date: 2018
  6. By: Liebenehm, Sabine; Degener, Nele; Strobl, Eric
    Abstract: Empirical studies advocating the temporal variability of risk attitudes suggest that adverse covariate shocks significantly alter risk attitudes over time, but there is no consensus on the direction. In this paper, we investigate whether risk aversion increases or decreases in response to shocks. To do so, we combine individual-level panel data with historical rainfall data for rural Thailand and Vietnam. Our econometric analysis shows that temporal variability in risk attitudes is driven by rainfall shocks. Both severe shortages and excesses appear to increase individuals’ risk aversion. Contrary to expectations, we find that this impact is lower for farmers than for non-farmers. We can explain this result by the heterogeneous composition of non-farmers and by farmers’ ability to mitigate rainfall shocks. Our findings have potentially important implications especially for developing countries in that adverse shocks can increase poor people’s risk aversion and may lead to decisions that perpetuate their lives in poverty.
    Keywords: Rainfall, Risk attitudes, Risk mitigation
    JEL: C23 D9 Q54
    Date: 2018–04
  7. By: Raghavan, Mala (Tasmanian School of Business & Economics, University of Tasmania); Athanasopoulos, George (Monash University)
    Abstract: Using a parsimonious structural vector autoregressive moving average (SVARMA) model, we analyse the transmission of foreign and domestic shocks to a small open emerging economy under di erent policy regimes. Narrower con dence bands around the SVARMA responses compared to the SVAR responses, advocate the suitability of this framework for analysing the propagation of economic shocks over time. Malaysia is an interesting small open economy that has experienced an ongoing process of economic transition and development. The Malaysian government imposed exchange rate and capital control measures following the 1997 Asian nancial crisis. Historical and variance decompositions highlight Malaysia's high exposure to foreign shocks. The effects of these shocks change over time under di erent policy regimes. During the pegged exchange rate period, Malaysian monetary policymakers experienced some breathing space to focus on maintaining price and output stability. In the post-pegged period, Malaysia's exposure to foreign shocks increased and in recent times are largely driven by world commodity price and global activity shocks.
    Keywords: SVARMA models, Open Economy Macroeconomics, ASEAN, Shock transmissions
    JEL: C32 F41 E52
    Date: 2018
  8. By: Potter, Simon M. (Federal Reserve Bank of New York)
    Abstract: Remarks at the 23rd EMEAP (Executives’ Meeting of East Asia-Pacific Central Banks) Governors’ Meeting, Manila, Philippines.
    Keywords: financial stability; FOMC; rate of interest paid on reserves (IOR); LIBOR; overnight reverse repurchase agreement (ON RRP); balance sheet; portfolio; Federal Home Loan Banks (FHLBs); Liquidity Coverage Ratio (LCR); high-quality liquid assets (HQLA); money market turbulence; term dollar money markets; Tax Cuts and Jobs Act (TCJA)
    Date: 2018–08–04
  9. By: Geraldine Dany-Knedlik; Juan Angel Garcia
    Abstract: This paper investigates the evolution of inflation dynamics in the five largest ASEAN countries between 1997 and 2017. To account for changes in the monetary policy frameworks since the Asian Financial Crisis (AFC), the analysis is based on country-specific Phillips curves allowing for time-varying parameters. The paper finds evidence of a higher degree of forward-looking dynamics and a better anchoring of inflation expectations, consistent with the improvements in monetary policy frameworks in the region. In contrast, the quantitative impact of cyclical fluctuations and import prices has gradually diminished over time.
    Date: 2018–06–21
  10. By: Ginting, Bengkel; Nasution, M. Arif; Subhilhar, Subhilhar; Harahap, R. Hamdani
    Abstract: Indonesia has an abundant fisheries resource. The potential has not been well this is marked by the small contribution of marine and fishery sector to the national income of only 14.7% of the total gross domestic product (GDP), compared to other countries. The dramatic phenomenon between the potential and utilization of marine resources implies to the predominant level of coastal communities who mostly work as fishermen at sea. In order to go to sea with a simple technology also with low human resources make the living standard of traditional fishermen may be categorized as poor. When compared to other farming groups in the agricultural sector, traditional fishermen are among the poorest. With an already many government empowerment programs, yet it has not managed to raise the standard of living for the traditional fishermen. The research is aimed to describe the implementation and weakness of Coastal Community Economy Empowerment Program (PEMP) and National Program of Community Empowerment of Independent Marine and Fisheries (PNPM-MKP) on the traditional fishermen of Percut Village, Percut Sei Tuan in North Sumatra, Indonesia. Type of research is descriptive with 10 traditional fishermen, the fishermen group committee and the marine and fisheries department’s officials. Data were collected by observation, in-depth interview and focus group discussion (FGD). The result of the study of socio-economic condition of traditional fishermen of Percut Village is badly seen from the indicators of housing and sanitation that are not suitable for healthy living, limited fishing equipment and over fishing catching areas.
    Keywords: Empowerment; Fishermen; Poverty; socio-economic condition
    JEL: H53 H55 I31 I38 P36
    Date: 2018–02
  11. By: Estetiono, Andi; Badaruddin, Badaruddin; Asmirza, Moh. Sofian; Rujiman, Rujiman
    Abstract: The paper aims is to investigate the mediation effect of regional development on the relationship between community participation to sustainable transportation in the city of Medan, North Sumatra Indonesia. This research was conducted by an explanatory approach using primary data with purposive sampling technique method based on criteria of 300 respondents. Data analysis techniques used was SEM (Structural Equation Modeling). The results of this study indicate that community participation has positive influence on regional development in the city of Medan, regional development has positive direct effect on sustainable transportation in the city of Medan, community participation has positive direct effect on sustainable transportation in the city of Medan, and community participation has positive indirect effect on sustainable transportation in the city of Medan. Regional development has positive mediation effect between community participation to sustainable transportation in the city of Medan, North Sumatra Indonesia.
    Keywords: SEM; Regional Development; Community Participation; Sustainable Transportation
    JEL: H63 L91 R48 R58
    Date: 2018–02
  12. By: Quimba, Francis Mark A.; Dumaua-Cabautan, Madeline; Calizo, Sylwyn C.; Pacio, Lachmi C.
    Abstract: Education and training for productive employment play a crucial role in the social and economic plans of a developing country like the Philippines. Technical and vocational education and training (TVET) in the country has been viewed as a tool to help equip the people with the necessary skills for employment. In effect, this increases their income potential, and eventually, remove them from poverty. To reach more people, more so, those in the remotest places, TESDA introduced information, communications, and technology (ICT) into TVET and launched the TESDA Online Program (TOP) in 2012. TOP is the first Philippine institution to offer massive open online courses. Current TESDA statistics estimate that more than a million Filipinos were able to access and utilize the TOP. This study assesses how ICT has enabled the Filipinos to have access and use online technical education offered free by e-TESDA program. It also acknowledges the unlimited opportunities offered by TOP through its courses and the potential number of users/beneficiaries. The vision of a globally competent Filipino workforce with advanced skills can be realized with the encouraging results of the TOP accreditation and certification. Read more about the recommendations on how to improve the current TOP in this study.
    Keywords: Philippines, TESDA, digital economy, TVET, e-education, e-learning, technical and vocational education and training, Technical Education and Skills Development Authority, information and communication technology, digital literacy
    Date: 2018
  13. By: Pham, Huong Dien; Liebenehm,Sabine; Waibel, Hermann
    Abstract: In this paper, we compare experimentally measured individual risk attitudes and survey-based risk items for rural households in the province of Dak Lak in Southern Vietnam. In particular, we test whether the survey-based measure can be validated by a risk experiment among different ethnic groups. Albeit we find that ethnic minorities are on average more risk averse than the ethnic majority, our results show similar correlations between risk attitudes and socio-economic characteristics among the two ethnic groups. Testing the explanatory power of the survey-based risk item shows the validity of this measure among different ethnic groups. Our findings have potentially important implications. First, the survey-based item is effective to measure risk attitudes of a multiethnic community. Second, our findings also suggest that the assumption of a “self-reinforcing culture of poverty†which is often attributed to minority group of Vietnam should be challenged in the light of these results.
    Keywords: Ethnic minorities, Survey risk items, Risk experiments
    JEL: C83 C93 Z19
    Date: 2017–10
  14. By: Pin, Pin; Subhilhar, Subhilhar; Kusmanto, Heri; Purba, Amir
    Abstract: The domination of economy and trading by a Chinese group in Indonesia could not be separated from the ”open door policy” since colonial age. Politically, Chinese had been granted special privilege through vreemde oosterlingen system, which was the separation of foreign eastern people and native inhabitants. Besides the officer system, residential system, construction of the social order were the construction of power hegemony in order to achieve development objectives. Tjong Yong Hian was one of the prominent businessman in a colonial age that arose from the production of that colonial policy system. Position and status that were given to Tjong Yong Hian, as well as political policy that were given by the government to the Chines,e enabled Tjong Yong Hian to strengthen his existence in the economy field. His success in developing his business empire had given contribution in the development of the City of Medan since the beginning of the 20th century.
    Keywords: Domination of economy; residential system; Tjong Yong Hian
    JEL: N01 N85 N95 O17 Q27
    Date: 2018–03
  15. By: Jaelani, Aan
    Abstract: This article reviews the state budget with a performance-based financial system in Indonesia, which previously implemented a balanced financial system. By using qualitative method and content analysis approach in understanding the theory and document of the financial system in Indonesia. This paper concludes that performance-based financial system in Indonesia provides a new direction in more transparent and accountable financial management for development activities in realizing community welfare
    Keywords: budgetary reform, performance-based finance, State Budget, Islamic economics
    JEL: E62 H21 H53 P48
    Date: 2018–06–01
  16. By: Jiranyakul, Komain
    Abstract: This paper explores the degree of exchange rate pass-through to domestic prices in Thailand using quarterly data from 2000Q1 to 2017Q4. Johansen cointegration tests are employed in the analysis. The degree of exchange rate pass-through is found to be partial and modest. The stable pass-through effect in the long-run is found for import price index. The findings give some implications for risk perception by firms and investors regarding the future inflationary environment of the country.
    Keywords: Exchange rate, domestic prices, cointegration
    JEL: C22 E31 F31
    Date: 2018–06
  17. By: Sander Willems (Ecole Polytechnique Fédérale de Lausanne and Swiss Finance Institute)
    Abstract: In this paper we derive a series expansion for the price of a continuously sampled arithmetic Asian option in the Black-Scholes setting. The expansion is based on polynomials that are orthogonal with respect to the log-normal distribution. All terms in the series are fully explicit and no numerical integration nor any special functions are involved. We provide sufficient conditions to guarantee convergence of the series. We address the moment indeterminacy of the log-normal distribution and numerically investigate its impact on the asymptotic behavior of the series.
    Keywords: Asian Option, Option Pricing, Orthogonal Polynomials
    JEL: C32 G13
    Date: 2018–02
  18. By: Pham, Huong Dien; Waibel, Hermann
    Abstract: Agriculture is a risky business contingent on risks and uncertainty. Without strong technical knowledge, farmers tend to rely heavily on heuristics and subjective judgments to deal with their daily business. It is crucial to understand farmers’ practices to provide suitable supports. This study uses a rich data set from a long panel household survey to assess farmers’ agricultural productivity in Hue province of Vietnam that we combine with data collected from special surveys conducted in 2014 and 2015 focusing on farmers’ knowledge, skills and risk attitudes. It aims to provide an overview of the environment in which farmers do business under constraints. Particularly, we investigate the relations among risk attitudes, farmers’ knowledge, management ability and agricultural productivity by using univariate and bivariate analyses. The results indicate a large variation in farmers’ knowledge. Most of them have low degree of technical knowledge, but show higher subjective knowledge. Agricultural performance tends to be more dependent on subjective knowledge than technical knowledge. Accordingly, farmers received limited support from the extension institutions. While risk attitudes are significantly correlated with farmers’ knowledge and decision-making ability in livestock production, it has no direct significant relation with agricultural performance. The previous outcome showed that livestock productivity is prone to fluctuation, risk-taking should be important for farmers to cope with shocks. This study suggests extension services to fill the gap between subjective knowledge and technical knowledge and to build a significant linkage between risk-taking and learning to improve farmers’ abilities and consequently enhance agricultural productivity.
    Keywords: Agriculture, Knowledge, Risk attitudes
    JEL: D81 Q00 Q10
    Date: 2018–04
  19. By: Wagener, Andreas; Zenker, Juliane
    Abstract: In 2009, the Thai government implemented a price insurance scheme for rice farmers. The program, which was abandoned after only one year, added to the incomes of registered farmers a non-negative but stochastic amount that was decoupled from farmers' agricultural activities. A rich panel data set spanning from 2008 to 2013 enables us to control for self-selection into the program and to study its impact on small-scale rice farmers in relatively poor Northeastern Thailand. Program participation increases rice production but also leads to shifts in the composition of income generating activities away from agriculture, which may be beneficial for rural development. Decreasing risk-aversion and relieved credit constraints may be possible channels for these effects.
    Keywords: Cash transfers, Agricultural subsidies, Farm households, Thailand, Propensity score matching
    JEL: D13 H25 I38 Q12
    Date: 2018–07
  20. By: Siregar, Budi Gautama; Lubis, Ade Fatma; Maksum, Azhar; Fachrudin, Fachrudin
    Abstract: The purpose of this research is to examine and analyze Good Corporate Governance in moderating the relationship between Corporate Social Responsibility (as measured by economic, environmental and social), Default Risk (as measured by debt to equity ratio and debt to assets ratio) and Conservatism (as measured by earning / stock return relation, accruals and net assets) Earnings Management. The sample used is a manufacturing company during the period 2011-2015. The total sample used is 170 samples. Sampling technique used is saturated sample method. The analytical model used in this research with Structural Equation Modeling. The results showed that Corporate Social Responsibility, as measured by the economy and environment, has a positive and significant effect on earning management, while Corporate Social Responsibility measured by social have negative and significant effect to earning management. Default risk, as measured by debt to equity ratio and debt to asset ratio, has positive and significant effect on Earnings Management. Also, conservatism measured by earning / stock return relation and accrual has adverse and insignificant effect on earning management. Good Corporate Governance moderates weakening the effect of Corporate Social Responsibility as measured by economic, environmental to Earnings Management. Meanwhile, the interaction of Corporate Social Responsibility proxy by social with good corporate governance has a positive and significant effect. Good Corporate Governance moderates weakening the effect of default risk measured by debt to equity ratio on Earnings Management, while the interaction between default risk measured by debt to asset ratio with good corporate governance has positive and insignificant effect, so GCG does not moderate the effect of default risk as measured by debt to asset ratio to Earnings Management. Another result was that good Corporate governance does not moderate Conservatism effect measured by Earning Stock Return and accrual to Earnings Management on manufacturing companies registered in ISSI on the Indonesia Stock Exchange
    Keywords: Corporate Social Responsibility; Default Risk; Conservatism; Earning Management; Moderation; Good Corporate Governance
    JEL: G30 M14 O16
    Date: 2018–02
  21. By: Morgane Marchand (Pôle halieutique - AGROCAMPUS OUEST); Marie Lesueur (AGROCAMPUS OUEST, Pôle halieutique - AGROCAMPUS OUEST)
    Abstract: Product packaging and labelling must be concise and yet as informave as possible to help consumers make their purchase decisions. Informaon about product content, origin, nutrional properes and best before date is conveyed via its packaging. This is why processors and manufacturers have to determine what relevant informa*on-like product name, brand or cerficaons-need to be highlighted on the label. A consumpon survey and a market study conducted by AGROCAMPUS OUEST as part of the Idealg project have shown that a wide range of raw and processed seaweed food products is available on the French market. More than half of the French eat seaweed, mainly Asian-style products, as well as products more suited to French-style cuisine. In most cases, the packaging-including product name-gives little or no indication of the presence of seaweed in its composion. Should the product name include the term seaweed on the grounds of transparency? The risk would then be that a negave link is made in consumers' minds between seaweed and algal blooms affecng Brittany's coasts, largely covered in the media. Or should terms like " sea vegetables " or " sea plants " be preferred to avoid the negave connotaons associated with " seaweed " ? Widely divergent views exist as to how seaweed should be termed. Terms currently used to denote seaweed on food products A shop survey of seaweed-based products-including Asian-and French-style products-has revealed that many different terms are used to designate seaweed in product names. Out of the 405 seaweed-based products idenfied, only 124, i.e. one third, included the term " seaweed " in their names. Another third were more specific and gave the name of the species used: wakame, dulse, laver, kelp, wrack, etc. Among them, almost 50% were Japanese-style products, especially dried laver sheets. Examples of terms used to denote seaweed on seaweed food products
    Date: 2017
  22. By: SAM, Vichet
    Abstract: Education-job mismatches, especially overeducation or vertical mismatch, are generally found to lower the worker's job satisfaction, which may generate the counter-productive behaviors such as high rates of absenteeism and turnover in developed countries. The purpose of this article is to examine the impacts of educational mismatches from their both forms and dimensions (match, overeducation, horizontal mismatch and double mismatch) on the job satisfaction among university graduates in Cambodia. To deal with the sample selection bias owing to the unobserved job satisfaction of unemployed graduates, this study applies the Heckman probit model on a survey conducted with nineteen higher education institutions in Cambodia. Results indicate that the both forms of mismatches adversely affect the job satisfaction and the consequence is stronger if graduates suffer both vertical and horizontal mismatches. This suggests that the literature has to focus on all forms and dimensions of mismatches when examining their impacts on the individual outcomes in the labor market. The findings also underline the importance of improvement in the quality of education-job matching in Cambodia because the possible counter-productive behaviors due to inadequate education-employment may affect the productivity of firms and thus limit their development.
    Keywords: Vertical and horizontal educational mismatches, job satisfaction, sample selection bias, Heckman probit regression, higher education.
    JEL: I23 I25 J24 J28
    Date: 2018–07–15
  23. By: Orachos Napasintuwong (Department of Agricultural and Resource Economics, Faculty of Economics, Kasetsart University)
    Abstract: Thailand’s rice has set a supreme quality standard in the world market. Seed is one of the important factors contributing to good quality grains. As the competition for quality rice in the world market is becoming intensive, rice seeds play a significant role not only to ensure food and income security but also to retain quality and competitiveness of Thai rice in the world market. This paper reviews policies and regulations related to rice seed industry in Thailand, current situations of rice seed system, the supply and demand of rice seeds, and implications for future rice seed industry development. It is found that some of current regulations and business environment do not create much incentive for investments for the private sector. The imports and exports of rice seeds are practically prohibited. Thus, most of existing rice seeds in the market comprise of mainly public varieties produced by formal seed sector with a few exceptions of privately developed varieties by Thai companies, farmers’ groups and research institutes. None of the foreign stakeholders is in rice seed industry in Thailand presently. As seed producers do not hold exclusive rights to reproduce public varieties, and because all of the varieties are not hybrids, informal seed system is the major source of rice seeds. The systems of rice seed suggest that formal and informal systems can be integrated and linkages between both systems should create incentives for business opportunities.
    Keywords: seed system, rice seed, certified seed
    JEL: Q13 L1
    Date: 2018–08
  24. By: Chandra, Situmeang; Erlina, Erlina; Maksum, Azhar; Supriana, Tavi
    Abstract: The ability to compete between companies at the time of intercompany production efficiency is no longer a differentiator, the determinant of competitiveness includes the aspect of funding to be one of the determinants of competitiveness. One of the company's competitiveness capabilities is determined by the capital cost or the discount rate used in evaluating a project. The higher the cost of capital will be the lower the competitiveness of the company. There are many factors that determine the cost of a company's capital, but this research focuses only on the aspects of Corporate Governance (CG). Investors will assume that the risk in companies that have good CG quality will be smaller than companies that do not have good CG quality. On the other hand, IFRS implementation has a variety of purposes including improving the implementation of CG in a company, so it is theoretically suspected that IFRS implementation will increase CG's influence on CoE. The approach used is to study the capability of the linear regression model formed and to conduct a comparative analysis among regression models established by data from manufacturing companies listed on the Indonesia Stock Exchange during 2007-2011 as data prior to IFRS implementation and 2012-2015 for data after IFRS implementation. Based on the results of data processing obtained evidence that Corporate Governance negatively affect the Cost of Equity (CoE). This contradicts the theory because the better the CG value of a firm the CoE will be to decrease. When compared to the period before and after IFRS implementation, there is no evidence of a relationship between CG and CoE.
    Keywords: Corporate Governance; Cost of Equity; IFRS
    JEL: D53 E44 F34 H63
    Date: 2018–02
    Abstract: Sub-Saharan Africa has made a number of important improvements in the 15 years since the turn of the 20th century. GDP growth has accelerated after two and a half decades of stagnation, agricultural output has risen in some countries after a protracted decline, and internal and external macroeconomic equilibrium has been restored in much of the region. In addition, although difficult to define, democratic rule has spread across the region and, even more important, the number of conflicts was halved, although new episodes linked to violent extremism are occurring. The incidence of HIV/AIDS and its destabilising impact have declined slowly since the mid-2000s as a result of more extensive awareness campaigns and the increased supply of antiretrovirals. These and other health interventions, including action on malaria control, have led to a very rapid decline in the under-5 mortality rate (U5MR) and some improvements in overall health conditions. This has led to increased life expectancy at birth to 60 years for the region as a whole. Several other MDG targets were met, although less progress was achieved in reducing child malnutrition and maternal mortality. Furthermore, with the development of highly divisible technologies, the region has begun to catch up with other developing regions in the field of communications, internet banking, marketing and services. Finally, central to the topic of this book, over the last 20 years, inequality declined in more than half of the countries in sub-Saharan Africa. At the same time, several Asian countries (e.g. Bangladesh, China, Indonesia, Nepal and Sri Lanka), some economies in transition (Bosnia and Herzegovina, Georgia and Montenegro) and OECD countries (Australia, Canada, France and United States of America) experienced an upturn in inequality.
    Keywords: Environmental Economics and Policy, Institutional and Behavioral Economics, International Development, Public Economics
    Date: 2017–08–01
  26. By: SAM, Vichet
    Abstract: This article analyzes the relation between unemployment duration and educational mismatches (overeducation and horizontal mismatches). This study proposes a job matching model to identify the theoretical mechanisms. An econometric analysis using the independent competing-risks duration model on a survey of graduates from Cambodian universities, allows testing the theoretical predictions. The results prove that unemployment duration increases with educational mismatches. The development of higher education sector in Cambodia needs to pay more attention to the unemployment risks and education-job mismatches among university graduates.
    Keywords: vertical and horizontal educational mismatches, unemployment duration, job matching model, competing risks duration model.
    JEL: I23 J24 J64
    Date: 2017–04–01
  27. By: Erkki Karo; Rainer Kattel
    Abstract: In this paper we propose an evolutionary analytical approach to policy capacity with a specific focus on policy domains, where uncertainty and need for policy innovations, or novelty creation, is a central concern for effective policies. From an evolutionary perspective, the core elements of policy capacity are: a) organizational routines and their varieties, b) search and selection and the endogenous and exogenous sources of novelty creation, c) selection and feedback environments. We operationalize these elements and illustrate the value of the evolutionary analytical perspective through discussing the evolution of science, technology and innovation (STI) policy capacities of three Asian Tigers.
    Date: 2016–09
  28. By: Rasmus Fatum; James Yetman
    Abstract: We assess whether the accumulation of foreign currency reserves in the Asia-Pacific region may have unintended consequences in the form of increased private sector risk-taking. To do so we carry out a country-specific daily data event study analysis of the relationship between official announcements of reserves stocks and various proxy measures of risk-taking. Overall, our results suggest that reserves accumulation exerts no significant influence on risk-taking.
    Keywords: foreign exchange reserves; risk-taking; implied volatility; credit default swaps
    JEL: F31 G15
    Date: 2018–06
  29. By: Marie Lesueur (Pôle halieutique - AGROCAMPUS OUEST); Morgane Marchand (Pôle halieutique - AGROCAMPUS OUEST)
    Abstract: Contexte L'emballage d'un produit et son étiquette doivent être le plus informatif possible tout en étant concis, dans le but d'aider le consommateur lors de son achat. En effet, c'est par son emballage que le produit transmet les informations concernant le contenu, l'origine, les caractéristiques nutritionnelles, la date limite de consommation, etc. C'est donc aux transformateurs et industriels de choisir les éléments pertinents à mettre en valeur sur l'étiquette, tels que le nom du produit, la marque ou encore les labels. Une enquête de consommation et une étude de marché menées par AGROCAMPUS OUEST dans le cadre du projet Idealg ont révélé qu'il existe sur le marché français des algues alimentaires, une grande variété de produits, qu'elles soient brutes ou élaborées. Plus de la moitié de la population française mange des algues, en majorité des produits d'inspiration asiatique mais également des produits plus adaptés à la culture culinaire française. Sur leur emballage, la majorité de ces produits communiquent peu, voire pas, sur la présence d'algues, même dans le simple nom du produit. Faut-il désigner la présence d'algues comme telle dans le nom d'un produit pour être le plus transparent possible ? Pourtant, une possible mauvaise connexion cognitive de la part du consommateur pourrait associer les algues aux pollutions et marées vertes observées notamment sur les côtes bretonnes et qui font fortement parler d'elles dans les médias. Faut-il alors parler de légumes de la mer, ou bien encore de plantes marines, afin d'éviter les connotations négatives liées au terme « algue » ? Les avis divergent forte-ment sur cette question de désignation des algues. Comment sont désignées les algues aujourd'hui dans les produits alimentaires ? Une analyse de linéaires répertoriant les produits alimentaires aux algues, qu'ils soient d'inspiration asia-tique ou française, a révélé une grande diversité de désignations de la présence d'algues dans le nom du produit. Parmi 405 produits aux algues référencés, seuls 124 comportaient le terme « algue(s) » (ou le préfixe « alg ») dans leur désignation, soit un tiers. Un autre tiers des produits est plus précis et donne le nom de l'espèce utilisée : wakamé, dulse, nori, kombu, fucus, etc. Parmi ces derniers, presque la moitié sont des produits d'inspiration japonaise, notamment les feuilles de Nori séchées. Exemples de désignation des algues dans plusieurs produits aux algues
    Date: 2017
  30. By: Pham, Huong Dien
    Abstract: This paper analyzes how cultural factors shape risk attitudes and subsequently alter its relationship with economic welfare. The research sample is comprised by a three wave balanced panel data set of 588 ethnically diverse households collected between 2008 and 2013 in the Central Vietnam. Different ethnic groups are characterized by different languages, customs and beliefs that create the cultural diversity of the sample. Different approaches are used to examine the relationship between risk attitudes and economic welfare in the presence of the cultural diversity. First, a single-equation estimation method using a fixed effects model and a Hausman-Taylor model is employed to examine the unidirectional relationship. Second, a simultaneous equation estimation method using the Three Stage Least Squares model is applied to explore a bidirectional relationship between risk attitudes and economic welfare. Among the ethnic minorities, results indicate a negative association between willingness to take risks and economic welfare at low degree but a positive at the higher degree of risk-taking. For the ethnic majority, a positive and mutual relationship between risk attitudes and economic welfare is indicated. The ethnic majority is economically better-off than their minority counterparts are, whereas the minorities are economically homogenous but strongly diverse in risk attitudes and social factors. This study sheds light on the cultural heterogeneity in the individual risk attitudes as well as in shaping its relationship with economic welfare. Generally, it is suggested to consider sociocultural factors via risk-taking channel in socioeconomic policies that target ethnically or culturally diverse populations. Particularly, that implies a need to encourage the risk-taking strategies among the extremely risk-averse individuals, particularly who belong to the ethnic minorities.
    Keywords: Ethnicity, Risk attitude, Economic welfare, Simultaneous equation model
    JEL: C33 D81 I30 R20 Z19
    Date: 2017–08
  31. By: Afees A. Salisu (Department for Management of Science and Technology Development, Ton Duc Thang University, Ho Chi Minh City, Vietnam Faculty of Business Administration, Ton Duc Thang University, Ho Chi Minh City, Vietnam Centre for Econometric and Allied Research, University of Ibadan); Kazeem Isah (Centre for Econometric and Allied Research, University of Ibadan); Ibrahim D. Raheem (School of Economics, University of Kent, Canterbury, UK)
    Abstract: In this paper, we offer an alternative approach for testing the predictive power of commodity prices in stock returns using monthly data of about six decades. In the process, we account for prominent features of predictive models such as asymmetry, conditional heteroscedasticity, endogeneity, persistence, and structural breaks that may bias the forecast outcomes. Using the G7 stock exchanges, three findings are discernible from the various analyses. First, commodity prices are good predictors of stock returns both for in-sample and out-of-sample forecasts. Second, the proposed commodity-based model for stock returns that accounts for the highlighted features outperforms both the traditional predictive model as well historical average models that ignore same. Thirdly, these conclusions are robust to different components of commodity prices, multiple data samples and alternative forecast horizons.
    Keywords: Stock prices, Commodity prices, G7 countries, Asymmetry, Persistence, Endogeneity; Conditional heteroscedasticity; Structural breaks
    Date: 2018–07
  32. By: Sarah Flèche (Centre for Economic Performance - LSE - London School of Economics and Political Science); Warn Lekfuangfu (LSE - London School of Economics and Political Science, Chulalongkorn University (THAILAND) - Chulalongkorn University (THAILAND)); Andrew E. Clark (Centre for Economic Performance - LSE - London School of Economics and Political Science, LSE - London School of Economics and Political Science, PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)
    Abstract: To what extent do childhood experiences continue to affect adult wellbeing over the life course? Previous work on this link has been carried out either at one particular adult age or for some average of adulthood. We here use two British birth-cohort datasets (the 1958 NCDS and the 1970 BCS) to map out the time profile of the effect of childhood on adult outcomes, including life satisfaction. We find that the effect of many aspects of childhood do not fade away over time, but are rather remarkably stable. In both birth cohorts child non-cognitive skills are the strongest predictors of adult life satisfaction at all ages. Of these, emotional health is the strongest. Childhood cognitive performance is more important than good conduct in explaining adult life satisfaction in the earlier cohort, whereas this ranking is inverted in the more recent BCS.
    Keywords: life satisfaction,cohort data,childhood,adult outcomes
    Date: 2017–07
  33. By: Afees A. Salisu (Department for Management of Science and Technology Development, Ton Duc Thang University, Ho Chi Minh City, Vietnam Faculty of Business Administration, Ton Duc Thang University, Ho Chi Minh City, Vietnam Centre for Econometric and Allied Research, University of Ibadan); Ahamuefula Ephraim Ogbonna (Centre for Econometric and Allied Research, University of Ibadan Department of Statistics, University of Ibadan, Ibadan, Nigeria)
    Abstract: This study empirically tests for time variation in the stochastic volatility (SV) components for the G7 stock returns. The time variation in both trend and transitory components of the SV is tested separately and jointly using the unobserved component model and following the approach developed by Chan (2018). Consequently, the computed Bayes factor obtained from the SavageDickey density ratio, which circumvents the computation of marginal likelihood, is used to adjudge the performance of each restricted time varying stochastic volatility model without the trend and transitory components against the unrestricted model that allows for same. The empirical evidence supports time variation in the transitory component of SV while the trend component is found to be relatively constant over time. These empirical estimates are not sensitive to data frequency.
    Keywords: Bayesian; Bayes factor; Transitory component; Trend component; Unobserved Component Model
    JEL: C11 C32 C53 E37 G17
    Date: 2018–07
  34. By: D. Baiardi; C. Bianchi
    Abstract: This paper analyzes the determinants of China's striking performance in textile exports in the time period 2001-2016. We integrate the analysis by Lall and Albaladejo (World Development, 2004), based only on China and its main Asian competitors' market share dynamics, by estimating an extended version of a traditional export function, derived from the imperfect substitute model, including a proxy of non-price competitiveness. The key long-run elasticities for each Asian exporter are thus computed and discussed in a panel-data framework, and the different export performances are examined taking into account the interaction between the estimated parameters and the growth rates of relative prices, world income and product quality. Lastly, we decompose the textile export growth differences between China and its rivals into the three main channels of trade competition, i.e. price, quantity and quality. Our findings show that China is crowding out most of its rivals with a competitive strategy based on a mix of low and decreasing relative prices and non-price policies aiming at stimulating export volumes. However, certain weaknesses in the Chinese trade prospects emerge when quality improvement is considered.
    Keywords: Textile exports, Outperformance, Displacement, Competitiveness, Cross-country comparisons, Panel data analysis
    JEL: C23 F14 L67
    Date: 2018

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