nep-sea New Economics Papers
on South East Asia
Issue of 2018‒11‒12
sixteen papers chosen by
Kavita Iyengar
Asian Development Bank

  1. The Effect of Integrating Reporting on Earnings Quality: A Study of Family Firms in Indonesia By Shanti
  2. The Institutional Foundations of Religious Politics: Evidence from Indonesia By Samuel Bazzi; Gabriel Koehler-Derrick; Benjamin Marx
  3. Internet Financial Reporting Of Public Institutions and E-Government as a Medium of Good Governance in Indonesia By Grace T. Pontoh
  4. Give Someone a Fishpond Modeling the Impacts of Aquaculture in the Rural Economy By Filipski, M.; Belton, B.
  5. Value chain governance and institutions behind biosecurity along pig value chains in Myanmar By Ebata, A.; Win, K.S.; Loevinsohn, M.; Macgregor, H.
  7. Self-sufficiency and International Trade Policy Strategies in Malaysian Rice Sector: Approaches to Food Security Using Spatial Partial Equilibrium Analysis By Ali, R.
  9. Export Promotion Policy and Economic Growth in the Philippines: A Comparative Context By Florian A. Alburo
  10. Open Access in the Economic Sphere and Restricted Access in the Political Sphere: The Case of Singapore By Guanghua Yu
  11. The Response of Consumption to Fuel Switching : Panel Data Estimates By Imelda, Imelda
  13. The Effects of Energy Price Changes: Heterogeneous Welfare Impacts, Energy Poverty, and CO2 Emissions in Indonesia By Renner, Sebastian; Lay, Jann; Schleicher, Michael
  14. Ethnicity and risk sharing network formation: Evidence from rural Viet Nam By Hoang; Laure Pasquier-Doumer; Camille Saint-Macary
  15. Understanding Human Trafficking Using Victim-Level Data By Artadi, Elsa; Björkman Nyqvist, Martina; Kuecken, Maria; La Ferrara, Eliana
  16. Information Provision and Streamlined Medical Service: Evidence from a Mobile Appointment App By Song, Changcheng; Yang, Nan; Yi, Junjian; Yuan, Ye

  1. By: Shanti (Widya Mandala Catholic University, Dinoyo Street, 42-44, 60265, Surabaya, Indonesia Author-2-Name: Bambang Tjahjadi Author-2-Workplace-Name: Airlangga University, Airlangga Street 4-6, 60286, Surabaya, Indonesia Author-3-Name: I Made Narsa Author-3-Workplace-Name: Airlangga University, Airlangga Street 4-6, 60286, Surabaya, Indonesia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: Objective - The implementation of integrated reporting (IR), which is a composite of financial and non-financial information, in one single report makes financial reporting more comprehensive and more transparent. Transparent information in IR gives annual reporting of family firms a higher earnings quality. Methodology/Technique - This research aims to examine the effect of IR on earnings quality of family firms in the mining industry on the Indonesian Stock Exchange between 2014 and 2017. Findings - The results of this study indicate that there is a positive and significant relationship between integrating reporting and earnings quality. These results confirm that firms that use integrated reporting tend to show higher earnings quality. The study also finds that larger sized companies and larger leverage amounts equals a higher volume of information disclosed. Novelty – The motivation of this research is to examine IR issues that are relatively new.
    Keywords: Earnings Quality; Family Firms; Financial Reporting; Indonesia; Integrated Reporting.
    JEL: M40 M41 M49
    Date: 2018–09–30
  2. By: Samuel Bazzi; Gabriel Koehler-Derrick; Benjamin Marx
    Abstract: Why do religious politics thrive in some societies but not others? This paper explores the institutional foundations of this process in Indonesia, the world’s largest Muslim democracy. We show that a major Islamic institution, the waqf, fostered the entrenchment of political Islam at a critical historical juncture. In the early 1960s, rural elites transferred large amounts of land into waqf—a type of inalienable charitable trust—to avoid expropriation by the government as part of a major land reform effort. Although the land reform was later undone, the waqf properties remained. We show that greater intensity of the planned reform led to more prevalent waqf land and Islamic institutions endowed as such, including religious schools, which are strongholds of the Islamist movement. We identify lasting effects of the reform on electoral support for Islamist parties, preferences for religious candidates, and the adoption of Islamic legal regulations (sharia). Overall, the land reform contributed to the resilience and eventual rise of political Islam by helping to spread religious institutions, thereby solidifying the alliance between local elites and Islamist groups. These findings shed new light on how religious institutions may shape politics in modern democracies.
    JEL: D72 D74 P16 P26 Z12
    Date: 2018–10
  3. By: Grace T. Pontoh (Faculty of Economics and Business of Hasanuddin University, 90245, Makassar, Indonesia Author-2-Name: Yohanis Rura Author-2-Workplace-Name: Faculty of Economics and Business of Hasanuddin University, 90245, Makassar, Indonesia Author-3-Name: Abdul Rahman Author-3-Workplace-Name: Faculty of Economics and Business of Hasanuddin University, 90245, Makassar, Indonesia Author-4-Name: Muhammad Achyar Ibrahim Author-4-Workplace-Name: Faculty of Economics and Business of Hasanuddin University, 90245, Makassar, Indonesia Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: Objective - Transparency of financial reporting can be achieved through various media including the internet and is an important factor of good governance. The use of internet in government has been regulated to encourage the government to build and develop websites to present information to the public. This research analyzes the factors that influence the government's internet financial reporting (IFR) through e-government. Methodology/Technique - The factors tested in this research are: size, leverage, capital expenditure, and audit opinion of the Republic Indonesia Audit Board (BPK). The population of this research is 25 ministries registered on the e-government ranking index (PeGI) between 2013 and 2015. Path analysis using the SPSS 21 application program is used. Findings - The results show that size, capital expenditure and audit opinion of BPK affected the use of IFR through e-government, whereas leverage did not affect the use of IFR through e-government. Novelty – These findings indicate that e-government is an important mediating factor in disclosing financial reports on the internet as a medium of good governance for public institutions in Indonesia.
    Keywords: Internet Financial Reporting; Size; Leverage; Capital Expenditure; Audit opinion; E- government.
    JEL: M40 M41 M49
    Date: 2018–09–30
  4. By: Filipski, M.; Belton, B.
    Abstract: The rapid growth of fish farming over the past three decades has generated heated debates over the place of aquaculture in rural development. Central to these debates is the question of whether and how aquaculture impacts local incomes and employment, yet little empirical evidence exists on the issue. To address this question, we propose a Local Economy-wide Impact Evaluation (LEWIE) model which nests fish farm models within a general-equilibrium model of their local economy. The model is calibrated using primary data collected from 1102 households in Myanmar s main aquaculture zone, representative of 60% of the country s aquaculture. Using this model, we examine the impact of aquaculture on the incomes and labor market outcomes of fish farming households, but also crop farms and non-farm households in the cluster. Simulating one-acre increases in pond/plot surface we find that: (1) aquaculture generates much higher incomes per-acre than agriculture; (2) aquaculture generates larger income spillovers than agriculture for non-farm households, by way of retail and labor markets; (3) small commercial fish farms generate greater spillovers than large fish farms. These results bolster the notion that fish-farming, notably small-scale commercial aquaculture, may have a significant role to play in rural development and poverty reduction. Acknowledgement : This research was made possible by the support of the United States Agency for International Development (USAID) funded Food Security Policy Project (Associate Award No. AID-482-LA-14-00003), and financial assistance from the Livelihoods and Food Security Trust Fund (LIFT) Grant Support Agreement Number: R 1.4/029/2014 for the project Agrifood Value Chain Development in Myanmar: Implications for Livelihoods of the Rural Poor . We also thank Mekamu Kedir Jamal of the International Food Policy Research Institute for assistance with analysis of satellite imagery and mapping.
    Keywords: Resource/Energy Economics and Policy
    Date: 2018–07
  5. By: Ebata, A.; Win, K.S.; Loevinsohn, M.; Macgregor, H.
    Abstract: This study contributes to understanding what challenges and opportunities exist in making livestock production more profitable and safer. In particular, consumption of pork in Southeast Asia is increasing in response to rapid urbanization and growing average household income. In order to improve lives of pig farmers while minimizing negative effects of increased pig production, we investigate factors influencing application of biosecurity measures along pig value chains in Myanmar. Based on qualitative research methods, we analyze how the value chains are governed and what institutional arrangements influence biosecurity. We find that value chain transactions are largely governed by market and show little vertical coordination. This indicates that value chain actors do not currently invest in biosecurity in a sufficient manner. Lack of access to low-interest loan encourages farmers to undertake risky behaviors while lack of cash discourages value chain stakeholders to invest in biosecurity. On the other hand, key actors such as large-scale pig farmers informally impose biosecurity measures to pig buyers while informal arrangements to ensure food safety is found to encourage increased biosecurity. Public policies may exploit these existing institutions to improve chain-wide biosecurity. Acknowledgement : This paper was developed based on funding under the Zoonoses and Emerging Livestock Systems (ZELS) scheme by the Department for International Development (DFID) of the United Kingdom. The authors are thankful for the support provided by the Livestock Breeding and Veterinary Department of the Government of Myanmar, Myanmar Oxford Clinical Research Unit, Oxford University Clinical Research Unit in Ho Chi Minh City, and the University of Cambridge in conducting the field work in Myanmar.
    Keywords: Livestock Production/Industries
    Date: 2018–07
  6. By: Luca Alfieri
    Abstract: The paper aims to assess the influence of the heterogeneity of financial institutions in the relationship between bilateral trade and the monetary integration process in East Asia. I used a structural gravity model with similarity of currency regimes and I introduced a heterogeneity of financial institutions variable derived from the World Bank Financial Development and Structure Dataset. The hypothesis is that the more heterogeneous financial institutions are, the less bilateral trade there is. The results show a negative relationship between trade and the heterogeneity of the financial institutions. The similarity of currency regimes has a negative effect on bilateral trade, and that effect increases with the presence of the financial institutions variable. I made a second estimation concerning 184 countries and territories and I replaced the similarity of currency regimes with a standard currency dummy. The results confirmed the negative and significant relationship between the heterogeneity of the financial institutions and trade. The recent reform plans of ASEAN countries should also consider these aspects, which are not limited to financial integration problems.
    Keywords: Trade, Institutions, Monetary Integration, Trade Finance
    JEL: F14 F33 N25
    Date: 2018
  7. By: Ali, R.
    Abstract: While much evidence shows self-sufficiency is not an efficient policy strategy to address food security concerns as well as poverty alleviation, Malaysia is following a self-sufficiency strategy in its primary staple, rice. This study evaluates and analyzes the impact of two alternative approaches to achieve food security, namely, pursuing rice self-sufficiency, and allowing free trade in rice. The results indicate that even though Malaysia could achieve self-sufficiency in rice, consumers are worse off, since consumer rice prices increase sharply. On the other hand, rice producers are better off due to higher producer prices and domestic production. The government welfare worsens from the self-sufficiency policy due to massive requirements on additional subsidies and the loss of import tariff revenues. Free trade results in lower consumer prices and greater rice consumption, thus favoring consumer welfare. Producer welfare worsens due to higher import competition and lower producer prices. Pursuing self-sufficiency would effectively punish consumers, and even the government loses from the policy. Otherwise, self-sufficiency could also be a political strategy in political economic environment to become an independent region without relying on external food sources. This study provides economic measures on self-sufficiency and free trade of non-distortionary policy options of Malaysian rice sector. Acknowledgement : First and foremost, I am very grateful to the Malaysian Agricultural Research and Development Institute (MARDI) and the Department of Agricultural Economics and Agribusiness, University of Arkansas for providing financial and technical supports to conduct this research. I would like to extend my gratitude to Dr. Eric Wailes and Dr. Alvaro Durand-Morat for their tireless assistance, outstanding knowledge, expertise in methodologies, and insightful comments to improve research and writing. Special thanks go to Ms. Hannah Allen, Mr. Lucas Palmer, and Mr John Mahany for their assistance in reviewing and correcting this writing.
    Keywords: Food Security and Poverty
    Date: 2018–07
  8. By: Oraphin Choochom (Srinakharinwirot University)
    Abstract: The purpose of the study was to investigate how individual characteristics, family environment, and work environment predicted work-family conflict. Work-family conflict has the two directions of conflict (family to work conflict and work to family conflict). The sample consisted of 702 government officials in Bangkok, Thailand. Self-report inventories with a five-point rating scales ranging from always true to never true were administered to collect data. Data were analyzed using hierarchical regression. The results indicated that psychological characteristics and environment taken together accounted for 54 % of the variance in family-to-work conflict and 75 % variance in work-to-family conflict, respectively. The most powerful predictors for family-to-work conflict were workload, family load, optimism, and work support respectively. Similarly, family load contributed to work-to-family conflict the most whereas workload was the second in terms of the strength of its contributions. Family-friendly organizational support, intrinsic motivation, and work involvement were the third, fourth, and fifth powerful predictors of work-to-family conflict, respectively. The results support the importance of psychological characteristics and environment impact on work-family conflict. Implications for practice and future research are discussed.
    Keywords: Work-family conflict, Psychological characteristics, Family environment, Work environment
    JEL: A30
    Date: 2018–07
  9. By: Florian A. Alburo (School of Economics, University of the Philippines Diliman)
    Abstract: The paper examines recent technology enablers as these affect the services sector and are seen to be analogous to developments taking place as Industry 4.0. After briefly summarizing these, we argue that there are important implications to services, particularly their international trade, in terms of challenges to investment, regulation, policy, regional cooperation, and regional agreements, among others. Some of the possible adjustments arising out of these developments are outlined - in the manufacturing sector and in the services (and their trade).
    Keywords: trade and investment
    Date: 2018–10
  10. By: Guanghua Yu (Faculty of Law, The University of Hong Kong)
    Abstract: This article uses the case of Singapore to argue that the theory of open access order advocated by North and his colleagues goes beyond what is necessary. Although their theory of open access order explains the West relatively well, it does not always apply to contemporary non-Western countries. Similar to the cases of India and Japan examined elsewhere, the case of Singapore shows that what is more important to economic and human development is the open access in the economic sphere and the interconnected institutions in the area of property rights protection and contract enforcement, financial market, rule of law, and human resource accumulation. In other words, countries without open access in the political sphere as practiced in Singapore may also be able to achieve a great deal of success in terms of economic and human development if they ensure open access in the economic sphere and devote adequate resources to establishing the necessary interconnected institutions examined in this article. Further research elsewhere on China will similarly demonstrate this insight.
    Keywords: open access order, interconnected institutions, competitive democracy, Singapore
    JEL: P16 K00
    Date: 2018–07
  11. By: Imelda, Imelda
    Abstract: This paper investigates on the extent to which the switching improves households' standard of living. Using a nationwide transition from kerosene to cleaner burning propane in Indonesia, I explore households' consumption response to fuel switching from a nation wide kerosene to liquid petroleum gas conversion program in Indonesia. Based on combustion efficiency and end-use energy equivalence, LPG is cleaner and more efficient than kerosene. Using variation in the timing of the implementation on four waves of the Indonesia longitudinal survey, I compare changes in expenditure within households of targeted districts with changes in expenditure within households of untargeted districts. I find that households reduce their kerosene consumption up to 100% and their fuel expenses are reduced by 40%, or 1.19 USD per month on average. These effects are higher among poor households. I do not find any response to other nondurable expenditures which provides some evidence of consumption smoothing. This is as expected considering the size of the effect is only about a 2% reduction from total monthly expenditure.
    Date: 2018–10–26
  12. By: Chhabilal Sapkota (Star Technology & IT Consultant Pvt. Ltd)
    Abstract: The author believes that developing countries (DC), in particular Nepal, need to urgently develop a culturally appropriate national strategy if they wish information technology (IT) to have a positive impact on their overall socio-economic development. While countries like Singapore claim to have very successful national strategies, the long-term impact on the country?s social development may have been over looked. Left unchecked the technological marketplace will impose a hard-to-reverse negative role on small countries like Nepal. This will make it increasingly difficult for Nepal to decide it is own long-term preferences for social and economic development. Put bluntly, these countries need to decide what they want from the global technology marketplace and then work out how they are going to achieve it. It is believed that hard technological determinism can only be countered by very real and well thought out national strategies. The paper argues that the national IT strategy will need to address the issues of resistance to change due to cultural, personal and infrastructure factors, be very culturally sensitive and, given the rate change of the technology, will need to be constructed as an evolving, and learning system. The first stage in the development of such a system is to design an appropriate forum for discussion, and a well-constituted and ongoing decision-making protocol. It seems appropriate that in countries with a less than thriving technology marketplace, it is incumbent on their Government to provide a lead in this complex undertaking.
    Keywords: Information Technology, Government Role, Nepal, Development
    Date: 2018–07
  13. By: Renner, Sebastian; Lay, Jann; Schleicher, Michael
    Abstract: We study the welfare, energy poverty, and CO2 emission implications of energy price change scenarios in Indonesia. Our analysis extends previous analyses of energy price impacts at the household level in several ways. First, by employing a household energy demand system (QUAIDS), we are able to distinguish between first- and second-order welfare effects over the income distribution. Our analysis shows considerable heterogeneity of welfare impacts. For gasoline and electricity, first-order calculations overestimate welfare effects by 10 to 20 per cent for price changes between 20 and 50 per cent. Second, our results point to the ownership of energy-processing durables as another source of impact heterogeneity. Poor households that own these goods may be hit particularly strongly by energy price increases. Third, we extend the welfare analysis beyond the money-metric utility effects and look at energy poverty, which is understood as the absence of or imperfect access to reliable and clean modern energy services. Drawing on the estimated demand function, we find that price increases have substantial effects on energy poverty. Fourth, our analysis explicitly considers the emissions effects of energy price scenarios. We find that reduced household energy demand implies a substantial reduction in emissions. The analysis thus indicates that energy prices may serve as an effective mitigation instrument but also have important adverse welfare effects. The latter can, however, be mitigated by appropriate compensation policies.
    Keywords: energy subsidies,climate policy,poverty,distributional effects,energy poverty
    Date: 2017
  14. By: Hoang (PSL, Université Paris-Dauphine, Paris, France, UMR 225 DIAL, Institut de Recherche pour le Développement (IRD), Paris, France); Laure Pasquier-Doumer (IRD, UMR DIAL, PSL, Université Paris-Dauphine); Camille Saint-Macary (IRD, UMR DIAL, PSL, Université Paris-Dauphine)
    Abstract: Ethnic inequality remains a persistent challenge for Viet Nam. This paper aims at better understanding this ethnic gap through exploring the formation of risk sharing networks in rural areas. It first investigates the differences in risk sharing networks between the ethnic minorities and the Kinh majority, in terms of size and similarity attributes of the networks. Second, it relies on the concept of ethnic homophily in link formation to explain the mechanisms leading to those differences. In particular, it disentangles the effect of demographic and local distribution of ethnic groups on risk-sharing network formation from cultural and social distance between ethnic groups, while controlling for the disparities in the geographical environment. Results show that ethnic minorities have smaller and less diversified networks than the majority. This is partly explained by differences in wealth and in the geographical environment. But ethnicity also plays a direct role in risk-sharing network formation through the combination of preferences to form a link with people from the same ethnic group (inbreeding homophily) and the relative size of ethnic groups conditioning the opportunities to form a link (baseline homophily). Inbreeding homophily is found to be stronger among the Kinh majority, leading to the exclusion of ethnic minorities from Kinh networks, which are supposed to be more efficient to cope with covariant risk because they are more diversified in the occupation and location of their members. This evidence suggests that inequalities among ethnic groups in Viet Nam are partly rooted in the cultural and social distances between them.
    Keywords: Risk-sharing network, homophily, ethnic gap, Viet Nam, Vietnam.
    JEL: O12 I31 D85
    Date: 2018
  15. By: Artadi, Elsa; Björkman Nyqvist, Martina; Kuecken, Maria; La Ferrara, Eliana
    Abstract: Quantitative research on human trafficking is scant due to lack of data. This study makes use of a unique survey we collected on former victims of trafficking and vulnerable women and girls in the Philippines. We start by exploring the correlates of trafficking and show that household composition (in particular the presence of older sisters) and plausibly exogenous measures of health and economic shocks predict the likelihood of being tracked. We then study the effects of trafficking on victims' intertemporal and risk preferences using entropy balancing. We find that trafficking victims are not differentially patient, but they are more risk-loving. Our novel data and findings are pertinent to the design of policies intending to prevent trafficking and reintegrate victims.
    Keywords: child labor; human trafficking; Philippines; prostitution
    JEL: D13 D80 J47
    Date: 2018–10
  16. By: Song, Changcheng (National University of Singapore); Yang, Nan (National University of Singapore); Yi, Junjian (National University of Singapore); Yuan, Ye (National University of Singapore)
    Abstract: We examine the launch of a mobile outpatient appointment app in China to study the effect of information provision and a streamlined appointment process on hospital operations and the alignment of healthcare supply and demand. Using a longitudinal dataset on hospital operations and a difference-in-differences model, we document that the app increases completed hospital consultations by 9.5%, through boosting registrations by 4.8% and reducing appointment cancellations by 3.4%. The app improves queuing efficiency in overcrowded hospitals and draws demand for underutilized ones. Supported by additional evidence from a subset of patients' electronic medical records, we also find that the app directs patients to the hospital and department more suitable to their medical conditions and to less busy days, resulting in a better match between patient demand and hospital service.
    Keywords: healthcare information technology, information provision, hospital operations, patient sorting, patient choices
    JEL: I11 I12 I18
    Date: 2018–09

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