nep-sea New Economics Papers
on South East Asia
Issue of 2018‒11‒19
thirty-two papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Willingness to internalize sustainability in agricultural value chains through vertical coordination in Vietnam By Ba, H.A.; Demont, M.; Veettil, P.C.
  2. Technoeconomic Assessment of Microgrids in Myanmar* By Masako Numata; Masahiro Sugiyama; Gento Mogi; Wunna Swe; Venkatachalam Anbumozhi
  3. Land-Use Changes, Nutrition, and Gender Roles in Indonesian Farm Households By Chrisendo, D.N.; Krishna, V.; Qaim, M.
  4. The Importance of household business and informal sector for inclusive growth in Vietnam By Laure Pasquier-Doumer; Xavier Oudin; Nguyen Thang
  5. Can Indonesia Secure a Development Dividend from Its Resource Export Boom? By Rashesh SHRESTHA; Ian COXHEAD
  6. The Halal Certification Restaurants in Thailand: Institutional Analysis and Fieldwork Results By Wanasin Sattayanuwat
  7. Farmer preferences for rice varietal trait improvements in Nueva Ecija, Philippines: A latent class cluster approach By Maligalig, R.; Umbeger, W.; Demont, M.; Peralta, A.
  8. Does Deposit Insurance Matter? Behavioral Evidence from Indonesia By Chaikal Nuryakin; Natanael Waraney Gerald Massie
  9. Are Production Networks Passé in East Asia? Not Yet By Ayako Obashi; Fukunari Kimura
  10. Awareness, perceptions and factors affecting purchase decisions of solar dried vegetables in rural Tanzania By Ochieng, J.; Kessy, R.; Afari-Sefa, V.; Chagomoka, T.
  11. Viet Nam: The dragon that rose from the ashes By Finn Tarp
  12. Planting Trees in Oil Palm Plantations: Results from a Randomized Controlled Trial By Rudolf, K.; Romero, M.; Wollni, M.
  13. Deconstructed CSR and Social Audit Model: Postmodernist Paradigm Observations in Luwu Mining Areas, Indonesia By Rahmawati
  14. Determinants of the Success of Corporate Recovery in Financial Distressed Company By Giriati
  15. The Implications of Intangible Assets Identification with DEMPE in the Indonesia’s Transfer Pricing Tax Regulations By Leonard Saputra; Christine Tjen
  16. Income Benefits of Thai Retired Government Officials By Thitirut Chanmaha
  17. Domestic value creation in global value chains in Asian economies By Taguchi, Hiroyuki
  18. Climatic shocks and child undernutrition in Ethiopia: A longitudinal path analysis By Bahru, B.
  19. Facilitating ASEAN Trade in Goods By Lili Yan Ing; Olivier Cadot
  20. The Rohingya Muslims in Myanmar are Victim of Genocide! By Mohajan, Haradhan
  21. Moral Incentives in Credit Card Debt Repayment: Evidence from a Field Experiment By Leonardo Bursztyn; Stefano Fiorin; Daniel Gottlieb; Martin Kanz
  22. Improving Education Sector Performance in Malaysia By World Bank Group
  23. Temporary migrants and gender housework division among left-behind household members By VU, Manh Tien
  24. Are (More) Economic News Good for the Economy ? Case on Indonesian Sub-nationals By Riatu Mariatul Qibthiyyah; Ummi Salamah
  25. Balancing Investment and Development Assistance in Africa: Growth Prospects from Asia–Africa Connectivity By Anita Prakash
  26. The effects of markets, uncertainty and search intensity on bitcoin returns By Theodore Panagiotidis; Thanasis Stengos; Orestis Vravosinos
  27. Nationalism, Populism, Realism and the Intensification of East Asia's Maritime Disputes By Graeme Auton
  28. Natural resource extraction and household welfare in rural Laos By Grote, U.; Nguyen, T.T.
  29. Infrastructure and Industrialisation: Ensuring Sustainable and Inclusive Growth in Africa By Anita Prakash
  30. Explaining Trumpism as a Structural US Problem: New Insights and Transatlantic Plus Global Economic Perspectives By Paul J.J. Welfens
  31. Electoral rules and agricultural protectionism: The case of Japan s participation in the Trans-Pacific Partnership Agreement By Sakuyama, T.
  32. Technology-Driven Novel Strategies to Decrease Attrition Rates in Massive Open Online Courses (Mooc's) By Mrinal Musib

  1. By: Ba, H.A.; Demont, M.; Veettil, P.C.
    Abstract: With the growing concern for issues related to climate change, the development of sustainable agricultural value chains is of prime concern. Using a Discrete Choice Experiment, we examine both firms and farmers prospective responses to the internalization of sustainability through contract farming in the Vietnamese rice sector. Our findings suggest that farmers are more willing to internalize environmental sustainable production standards in contract farming than agribusiness firms. The latter are found less likely to mandate GlobalGAP/VietGAP production standards due to the cost of implementation and the lack of institutional support. It may be more interesting for firms to invest in standards with lower entry barrier. Furthermore, the internalization of the socio-economic pillar of sustainability in contract farming may require stimulating demand for sustainable rice and providing an enabling institutional environment for both farmers and firms to grasp new market opportunities. Acknowledgement : This research was conducted as part of the CORIGAP project: Closing Rice Yield Gaps in Asia with Reduced Environmental Footprint. The project was funded by the Swiss Agency for Development and Cooperation (SDC). Additional funding was provided by the CGIAR Research Program on Rice. The authors would like to acknowledge Nguyen Thi Kieu and Nguyen Thi My Phung from the Department of Agriculture and Rural Development (DARD), Can Tho and An Giang, Vietnam for their excellent research support.
    Keywords: Marketing
    Date: 2018–07
  2. By: Masako Numata; Masahiro Sugiyama; Gento Mogi; Wunna Swe; Venkatachalam Anbumozhi (Economic Research Institute for ASEAN and East Asia (ERIA))
    Abstract: The electrification rate of Myanmar is the second-lowest in Asia, so its improvement is an urgent matter. Sustainable Development Goal 7 recognises the importance of energy access and calls for finding a way to realise the Government of Myanmar’s goal to reach 100% electrification by 2030. To achieve this ambitious target, both centralised (main-grid extension) and decentralised approaches should be considered. In this study, we focused on distributed microgrids amongst electrification options. In Myanmar, as in other developing countries of the Association of Southeast Asian Nations (ASEAN), diesel generators are widely used as power sources of microgrids. Considering the global trend of renewable energy, especially opportunities available for solar photovoltaics (PVs), power sources should be selected carefully. When discussing possible power sources, cost-competitiveness is an important aspect. Therefore, we researched the question: How cost-competitive are microgrids powered by solar PVs compared to conventional diesel power source? We used the primary data collected through interviews and field surveys and calculated the levelised cost of electricity (LCOE) of microgrids. Our results show that solar PVs and batteries are cost-competitive compared with diesel in off-grid areas where diesel fuel prices are much higher than in urban areas. However, to improve efficiency, daytime use of electricity (e.g. productive use) needs to be promoted
    Keywords: Energy access; Rural electrification; Myanmar; LCOE; minigrid
    JEL: Q42 O22
  3. By: Chrisendo, D.N.; Krishna, V.; Qaim, M.
    Abstract: Oil palm has been claimed as one of the major drivers for the land-use change in Indonesia. Research regarding the environmental degradation and biodiversity loss because of oil palm has been performed massively. However, how the land-use change influence the household nutrition and gender roles are still limited known. We analyze the association between land-use change in Jambi, Indonesia with dietary quality and gender roles of smallholder farm households. Results show that oil palm liberates women and men from the on-farm employment, but it only increases the men s participation in off-farm employment. It is the education - of both men and women in the household - which increases off-farm employment for women. We find positive effects of oil palm adoption on the household nutrition. However, it is not achieved through women empowerment while women participation in off-farm could help increase the household nutrition significantly. This suggests that improving household wealth and promoting women s participation in the off-farm sector could have a significant impact on household s dietary quality in Jambi, Sumatra. Keywords: oil palm cultivation, smallholder livelihoods, women s role, gender, nutrition, dietary quality, Indonesia Acknowledgement : This study was financially supported by the German Research Foundation (DFG) in the framework of the collaborative German-Indonesian research project CRC990, the University of G ttingen. The authors also thank the Indonesian government who give the scholarship to the first author through the Indonesian Endowment Fund for Education scheme.
    Keywords: Labor and Human Capital
    Date: 2018–07
  4. By: Laure Pasquier-Doumer (LEDa - DIAL - Laboratoire d'Economie de Dauphine - Economie de la mondialisation et du développement - Université Paris-Dauphine, IRD - Institut de Recherche pour le Développement); Xavier Oudin (LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine, DIAL - Développement, institutions et analyses de long terme, IRD - Institut de Recherche pour le Développement); Nguyen Thang (IRD - Institut de Recherche pour le Développement)
    Abstract: This book draws on an original and innovative data collection to provide new evidence on household businesses and the informal sector in Vietnam. This 2014/15 HB&IS survey conducted in late 2014 and early 2015 is the first national survey ever on this sector in Vietnam with full coverage of its different components. The purpose of this book is threefold. First, it aims at filling the knowledge gap as to the role of household businesses and the informal sector in the Vietnamese economy. Second, it provides new insights for policymakers to unlock household business potential by identifying the factors blocking their performance and productivity. Thirdly, it identifies the sources of worker vulnerability in household businesses and the informal sector to inform the design of a suitable policy to tackle this vulnerability.
    Keywords: inclusive growth,Informal sector,Vietnam
    Date: 2017
  5. By: Rashesh SHRESTHA (Economic Research Institute for ASEAN and East Asia (ERIA)); Ian COXHEAD
    Abstract: Indonesia has enjoyed a long spell of sustained and relatively rapid economic expansion, largely on the back of strong commodity prices. No commodity boom lasts forever, however, and threats to the continuation of this growth are mounting. Indonesia now faces the challenge of locking in gains and setting a course to sustain future development in less favourable times. Post-2000 growth differs from earlier experiences in that exports of agricultural products, especially palm oil, now play a leading role. In contrast to the country’s earlier oil and gas export boom, the gains from agricultural export growth accrue mainly to private actors that include corporations, smallholders, and the agricultural labour force, with a much smaller share passing through to government budgets. Government can no longer simply mandate the use of funds for development purposes; many other actors and institutions are involved. It is reasonable to assume that the benefits from such a decentralised export boom would be widely diffused, with relatively large effects on rural and farm households and lower-skilled workers. However, this boom has been accompanied by a sharp rise in inequality and virtually no real wage growth. Moreover, while spending rose robustly during the boom, it is not clear whether poor, farm-based households have chosen (or been able) to use the gains to smooth consumption or to invest for future generations. The capacity to lock in gains at micro and macro levels is subject to significant policy influence. The maxim that ‘while the sun is shining is the best time to repair the roof’ applies: currently healthy global economic conditions present an opportune moment for Indonesian policymakers to reflect and to look ahead, with an eye towards achieving optimal development policy settings
    Keywords: development policy, commodity market, palm oil, poverty
    JEL: F16 J43 O11 O13 O15
  6. By: Wanasin Sattayanuwat (Srinakharinwirot University)
    Abstract: This paper has three objectives, first to collects development of Thailand halal regulation. Second this paper seeks to examine Thailand?s restaurants driving force toward halal certification. And finally, we analyze Thai Buddhists perspective toward Halal principle. The next section provides the preliminary results. The finding is to Thailand does not have the requirement of restaurants. Restaurants which want to apply for halal certification have to follow the implementation of entrepreneur. Most of the small restaurants are treated as small entrepreneurs and the fees are 10,000 baht. The rate is quite expensive for ordinary small restaurants. Thai halal regulation is designed to serve firm producing products. In case of without the approval or misuse a halal certificate in relation to any product or restaurants, there is no fine. On average, we found that Muslim restaurants in Thailand do not willing to apply for halal certificates since they do not see any benefit. Also Application process is costly, time consuming and imposes a burden to the business. ?Non-Muslim consumers do not understand halal principle. The main reasons are a lack of knowledge and insufficient information on the benefits of the halal process.
    Keywords: Halal food, Restaurants, Muslim consumers
    Date: 2018–07
  7. By: Maligalig, R.; Umbeger, W.; Demont, M.; Peralta, A.
    Abstract: Using an experimental methodology based on investment games, this study examines whether smallholder rice farmers from Nueva Ecija, Philippines have heterogeneous preferences for improvements in ten rice varietal traits. On average, farmers invested the most in VTIs that can potentially reduce losses caused by lodging, insects, and diseases. A latent class cluster approach was employed to identify different segments of rice producing households and their distinct preferences. The identified clusters were characterised post-hoc using household and farm characteristics. We found four classes of farmers with distinct preferences for improvements in variety traits. The results also revealed that the clusters are significantly different in terms of household, farm, and marketing characteristics. The findings can guide breeding research in the development of varieties that have the traits farmers identified for improvement, and that will address distinct farmer segments and needs. Acknowledgement : We acknowledge funding support from the Lee Foundation Rice Scholarship Program and the International Rice Research Institute (IRRI) in the data collection. We also acknowledge the research scholarship received by the first author from the Australian Government Research Training Program. We are also grateful for the assistance provided by Ms. Jhoanne Ynion and Mr. Donald Villanueva from IRRI during the data collection.
    Keywords: Crop Production/Industries
    Date: 2018–07
  8. By: Chaikal Nuryakin; Natanael Waraney Gerald Massie (Economics Department, Department of Economics, Faculty of Economics and Business, Universitas Indonesia)
    Abstract: This study aims to observe the relationship between deposit insurance characterizations and behavioral aspects (i.e. time and risk preferences) towards withdrawal decisions under hypothesized economic shock. Our sample is drawn from 154 depositors in Indonesia, 42 percent of which is classified as prime depositors – those holding a significant amount of third-party fund in savings. The findings suggest that the above-mentioned aspects have significant influences on withdrawal decisions conditional on certain scenarios of economic shocks. Furthermore, we found evidence showing that not only deposit insurance characterizations influence initial withdrawals, it also have important implications in deterring the contagion effect of massive withdrawal that may lead to the case of bank runs.We discuss our findings in relevance to the current developments of banking sector and financial issues in Indonesia.
    Keywords: Bank runs — deposit insurance characterization — time preferences — risk preferences — contagion
    JEL: D81 G01 G21
    Date: 2018
  9. By: Ayako Obashi; Fukunari Kimura (Economic Research Institute for ASEAN and East Asia (ERIA))
    Abstract: Many people have a vague notion that the room for expanding international production networks is almost exhausted and that this is why international trade has slowed down since the recovery from the great trade collapse. This paper presents evidence against such belief in the East Asian context by classifying finely disaggregated international trade data into five categories based on the stages of the production process. Our thorough data examinations show that the slowdown in world trade and East Asian trade was attributed mainly to sluggish growth in trade of primary goods and processed raw materials. In contrast, East Asian trade in manufactured parts and components and the assembled end products within international production networks mostly seen in machinery industries, continued to expand steadily, underpinned by the intensive margin growth. We argue that East Asian production networks did not slow down and the potentiality of the production networks has not been exhausted yet.
    Keywords: slow trade, global value chains, machinery trade, extensive and intensive margins, difference-in-difference
    JEL: F14 F23
  10. By: Ochieng, J.; Kessy, R.; Afari-Sefa, V.; Chagomoka, T.
    Abstract: This paper analyzes rural households awareness, perceptions and factors influencing decisions to purchase solar dried vegetables. Solar dried vegetables have higher nutritive value and hygiene than open sun dried vegetables. Findings show that about 36 percent of the rural households are aware of solar dried vegetables. Decision to purchase solar dried vegetables were influenced by female household head, income level, experience in the consumption of dried vegetables and awareness of the importance of solar dried vegetables. Thus, awareness creation and promoting solar driers to dry vegetables is suggested as an effective way to continuously access nutritious vegetables, particularly among households faced with frequent droughts. Acknowledgement : We acknowledge the financial support from the Bureau for Food Security, (USAID), under the terms of Award No. AID-BFS-IO-12-00004. The opinions expressed in this paper are entirely those of the author(s) and do not necessarily reflect the views of the USAID. We thank the district authorities in the study area and all those who were involved in data collection. We also appreciate core donors to the World Vegetable Center: Republic of China (Taiwan), UK Department for International Development (DFID), United States Agency for International Development (USAID), Australian Centre for International Agricultural Research (ACIAR), Germany, Thailand, Philippines, Korea, and Japan.
    Keywords: Crop Production/Industries
    Date: 2018–07
  11. By: Finn Tarp
    Abstract: This study takes as its starting point what Gunnar Myrdal had to say about Viet Nam in the context of his seminal work, Asian Drama: An Inquiry into the Poverty of Nations, published in 1968. Myrdal pointed to the decisive nature of the Vietnamese people; and subsequent developments, which are explained in detail in this paper, demonstrate that amply. Viet Nam adopted a dogged and, in retrospect, very costly position on economic policy and management from 1976. At the same time, when the approach taken did not produce the hoped-for results, an effective course correction was initiated in 1986 in the context of a comprehensive, domestically owned reform programme known as Doi Moi. Since then, Viet Nam has come a very long way; the last three decades have witnessed one of the best performances in the world in terms of both economic growth and poverty reduction. People’s living standards have improved significantly, and the country’s socio-economic achievements are impressive from a human development perspective. Wide-ranging institutional reform has been introduced, including a greater reliance on market forces in the allocation of resources and the determination of prices. The shift from an economy completely dominated by the state and cooperative sectors, to one where the private sector and foreign investment both play key and dynamic roles. Significant strides have been made to further the transition from a centrally planned to a market economy, without giving up strategic leadership and influence by the state.
    Date: 2018
  12. By: Rudolf, K.; Romero, M.; Wollni, M.
    Abstract: Palm oil expansion in Indonesia is associated with both a reduction in biodiversity and ecosystem services, and livelihood improvements for smallholder farmers. While this dichotomy highlights the importance of sustainable management options, empirical evidence on which policies are effective in stimulating biodiversity-friendly plantation management is relatively scarce. This paper addresses this gap by presenting results from a Randomized Controlled Trial implemented in Jambi province, Sumatra, in 2016. We focus on tree nuclei planting in oil palm plantations as one sustainable management option. To test whether information and input provision affect smallholders tree enrichment activities, two treatments were designed: the first provided information about tree planting in oil palm, while the second combined information and input delivery. We model adoption in a double-hurdle framework where farmers first decide whether to adopt or not and then how many trees they plant per hectare. Our results suggest that both interventions are effective in stimulating tree planting in oil palm. While input provision in combination with information leads to a higher probability of adoption, farmers plant on average relatively few trees per hectare. In contrast, in the informational treatment, few farmers enrich but they plant more trees per hectare than farmers who received saplings. Acknowledgement : We thank the Deutsche Forschungsgemeinschaft (DFG) who funded the data collection in the framework of the collaborative German-Indonesian research project CRC990.
    Keywords: Research Methods/ Statistical Methods
    Date: 2018–07
  13. By: Rahmawati (School of Economics Muhammadiyah Palopo, Binturu, 91923, Palopo, Indonesia Author-2-Name: Dileep Kumar Author-2-Workplace-Name: Berjaya University, Kuala Lumpur, Malaysia Author-3-Name: Author-3-Workplace-Name: 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 research aims to decode the model of Social Audit on Corporate Social Responsibility (CSR) and develop a new model for CSR. Methodology/Technique - The study uses qualitative research using Derrida's deconstructive postmodernism paradigm. This study scrutinises all models of CSR, distinguishing between capitalism and socialism in audit practices, and creates a new CSR model that integrates the local wisdom of indigenous peoples. Findings - The study observes several unfair practices without ensuring social and distributive justice to the indigenous community where mining activities are conducted. Several concepts linked to sustainable development were evolved during the data collection phase. By deconstructing the two major concepts of CSR and Social Audit, the research develops a new model of sustainable corporate responsibility which enables stakeholders to empower the Luwu community by ensuring cultural integration and social development. Novelty – By exploring CSR activities in the Luwu area, this study verifies all existing CSR practices and Social Audit models to generate a sustainable corporate social responsibility model for corporations, government and allied stakeholders. This research may be used to support policy agreements between governments, industry players and the corporations, towards effective SCSR implementation.
    Keywords: Corporate Social Responsibility; Social Audit; Sustainable Development; Capitalism; Local wisdom.
    JEL: M40 M42 M49
    Date: 2018–06–30
  14. By: Giriati (University of Tanjungpura Pontianak, Indonesia Author-2-Name: Mustaruddin Author-2-Workplace-Name: University of Tanjungpura Pontianak, Indonesia Author-3-Name: M. Rustam Author-3-Workplace-Name: University of Tanjungpura Pontianak, 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 - This study aims to examine and analyze the influence of severity, free assets, company size, asset retrenchment and CEO expertise on the success of recovery companies experiencing financial distress that are listed on the Indonesian Stock Exchange (IDX). Methodology/Technique - The population used in this study are all companies listed on the Indonesian Stock Exchange between 2011 and 2016. This study uses a simple logistic regression analysis to test the hypotheses. Findings - The results indicate that free assets and CEO expertise have a significant and positive effect on the success of a company's recovery. Meanwhile, variable severity, asset retrenchment and firm size do not affect the success of the company's recovery.
    Keywords: Turnaround/Recovery; ? Severity; Free Assets; Company Size; Asset Retrenchment; CEO Expertise.
    JEL: G30 G33 G39
    Date: 2018–06–30
  15. By: Leonard Saputra; Christine Tjen (LPEM, Faculty of Economics and Business, University of Indonesia)
    Abstract: This study is focusing to analyze the implications of implementing the concept of function identification in the intangible assets that is discussed in Action 8-10, known as DEMPE, in the Indonesia’s transfer pricing regulations. This research method is descriptive research with more priority to in-depth interview as primary data source. The result of this research is that there is relevance to apply BEPS Action Plan 8–10 in Indonesia, DEMPE concept can be applied effectively in Indonesia to overcome various problems, and its implementation only requires less significant adjustment because implicitly DEMPE concept has been applied mainly as basic inspection. Implementation in Indonesia’s pricing transfer rules can create new regulations that are generally described in PMK and the details will be explained in PER by adjusting to the relevance in Indonesia that allows added “marketing” function in the DEMPE concept. This implementation is expected to be able to get closer to each stakeholder’s perspective regarding to the procedure of identifying intangible assets that emphasizes the analysis of economic ownership
    Keywords: Transfer Pricing — OECD — BEPS — Action Plan 8-10 — Intangible Asset — DEMPE
    JEL: H25 H26
    Date: 2018
  16. By: Thitirut Chanmaha (Université de Bordeaux)
    Abstract: When Thailand is going to the society of ageing, to prepare for the situation is to select the stabile career. For Thai, this type of career is a government official because the welfare covers medical charges and after the retirement, they will obtain financial aid for the rest of their lives. For the pension system of Thailand, it can be divided into 4 types which are special pension, inherited pension, living support pension, and general pension. According to the second edition of the Civil Service Act B.E. 2558 (2015), the pension rate depends on the duration of works and salary, resulting in the great different between low-level position and a high-level position. Therefore, should the financial aids be equally appropriate to all level of officials?
    Keywords: Income, Retirement, Government officer
    Date: 2018–07
  17. By: Taguchi, Hiroyuki
    Abstract: This article examines the structural changes in domestic value creation in exports in the involvement process of global value chains with a focus on eight Asian economies, through the quantitative analyses using the updated OECD value-added-trade data. The major research questions are: what is an average turning point in terms of per capita GDP in regaining domestic value added share to exports, and which industries, the export industry or supporting industries, have contributed to regaining domestic value added share to exports. The empirical analyses using the dynamic panel analysis, the vector auto-regression estimation for causality tests and the sectoral observation of the decomposed domestic value creations in all the sample economies could identify an accurate turning point at 2,270 US dollars as per capita GDP in regaining domestic value added share to exports, and could also show that the supporting industries including service sector, rather than the exporting industry itself, have played an active role to push up the domestic value added share to exports in the involvement process of global value chains.
    Keywords: Domestic value creation, Global value chains, Asian economies, Value-added-trade data, Supporting industries
    JEL: F14 L60 O53
    Date: 2018–10
  18. By: Bahru, B.
    Abstract: Climate change poses a serious challenge to achieving the SDG2 of ending hunger by 2030 and leaves billions of people at risk of food insecurity, illness, and malnutrition. This paper analyzes the long-term impacts of climatic shocks on the nutritional status of 1,911 sample children in Ethiopia. To this end, the study employed a linear mixed effect model, random intercept probit model, and structural equation modeling. Accordingly, climatic shocks are negatively associated with child nutrition. Moreover, early life exposure to climatic shocks is negatively associated with nutritional status at later age. Therefore, if appropriate measures are not taken, the predicted increase in the frequency of extreme events might slow down the secular progress in reduction of child undernutrition in Ethiopia. The role of other covariates was also analyzed. Accordingly, despite their biological and behavioral advantage, girls were more likely to be stunted than boys. This finding highlights the need for a gender-sensitive intervention and the role of intra-household food allocation during shocks. This study also revealed that program participation by drought-affected households has a positive association with child nutrition. Therefore, programs targeted to shock affected households might have a potential to smooth the impact of climatic shocks on child undernutrition Acknowledgement : The data used in this study come from Young Lives, a 15-year study of the changingnature of childhood poverty in Ethiopia, India, Peru and Vietnam ( Young Lives is funded by UK aid from the Department forInternational Development (DFID). The views expressed here are those of the author(s). They are not necessarily those of Young Lives, the University of Oxford, DFID or other funders.
    Keywords: Environmental Economics and Policy
    Date: 2018–07
  19. By: Lili Yan Ing (Economic Research Institute for ASEAN and East Asia (ERIA)); Olivier Cadot
    Abstract: To move forward trade facilitation agenda in ASEAN, this brief presents three recommendations that focus on rules of origin, transparency of non-tariff measures (NTM), and NTM streamlining. Although the ASEAN Trade in Goods Agreement's rules of origin have a relatively simple structure, these require supervision as recent research puts their ad valorem equivalent at about 3.40%. Meanwhile, the transparency of NTMs rests on two pillars: accurate data, and open dissemination and dynamic disciplines. Last but not least, the move for NTM streamlining should not be viewed as a trade negotiation issue because NTMs are not purely trade policy instruments.
    Date: 2017–12
  20. By: Mohajan, Haradhan
    Abstract: This article deals with the genocide against the Rohingya Muslims in Myanmar. For decades, the Rohingya in Myanmar has been the victim of the extensive violation of human rights. Recently the Rohingya, Karen, San, Chin, and other ethnic groups are facing ethnic cleansing in Myanmar. Of them, the Rohingya is the mostly dehumanized and persecuted ethnic minority group. The Rohingya is stateless and exile in its own country. The Government of Myanmar (GoM) has taken attempts for establishing one nation, one language, and one religious policy in the country. Since 2012 the persecution upon the Rohingya in Myanmar falls in the genocide. In 1917, the Rohingya faced the final stages of genocide. Genocide is considered as one of the worst moral crimes a Government can commit against its citizens. An attempt has been taken here to discuss the aspects of genocide, and genocide upon the Rohingya Muslims in Myanmar.
    Keywords: Ethnic cleansing, genocide, human rights, the Rohingya
    JEL: I3 I31
    Date: 2018–08–10
  21. By: Leonardo Bursztyn (University of Chicago and NBER); Stefano Fiorin (University of California, San Diego); Daniel Gottlieb (Washington University in St. Louis); Martin Kanz (World Bank and CEPR)
    Abstract: We study the role of morality in debt repayment, using an experiment with the credit card customers of a large Islamic bank in Indonesia. In our main treatment, clients receive a text message stating that “non-repayment of debts by someone who is able to repay is an injustice." This moral appeal decreases delinquency by 4.4 percentage points from a baseline of 66 percent, and reduces default among customers with the highest ex-ante credit risk. Additional treatments help benchmark the effects against direct financial incentives, and rule out competing explanations, such as reminder effects, priming religion, and provision of new information.
    Date: 2018–03
  22. By: World Bank Group
    Keywords: Public Sector Development - Public Sector Management and Reform Education - Economics of Education Education - Education For All Education - Education Reform and Management Education - Educational Policy and Planning Education - Effective Schools and Teachers
    Date: 2018–01
  23. By: VU, Manh Tien
    Abstract: We examine whether Vietnamese migrant workers induce different gender roles in housework division among their left-behind household members. Using two waves of Vietnamese Household Living Standard Surveys (2006-2008), we apply the first-difference method and deploy a simple household fixed effects model with instrumental variables for robustness check. We find temporary female migrants are associated with a higher probability of undertaking housework by left-behind male members and there is a reduction in the gender gap of time spent on chores. However, we find little evidence for a similar reduction in the gender gap where household size is altered for other reasons.
    Keywords: Gender, Housework, Housework division, Migration, Vietnam, J16, D13, O15
    Date: 2018–10
  24. By: Riatu Mariatul Qibthiyyah (Department of Economics, Faculty of Economics and Business, Universitas Indonesia); Ummi Salamah (Department of Communication, Faculty of Social and Political Science, Universitas Indonesia)
    Abstract: The online media has not only capture news at the national level but also deliver news on specific regions, either the province(s) or local governments. A focus on delivering more local economic news, may also align to trend of decentralization policies, triggered especially after period of post-1998 and the adoption of sub-national election (Morrell, 2005). Previous studies mostly explored of how economic news may affect election outcome (Holbrook, 2004), but not on the effect to related economic outcome. We use news data from four large media online, as follows: Kompas, Okezone, Republika, Sindonews, and Tribunnews, over the year of 2010 up to 2015. The data of economic news category, as it focused on news at the province and local level, are specific news classified in 13 categories. Based on fixed-effect panel regression, our preliminary finding indicates of how economic news may positively affected economic outcome – referring to per capita GRDP (Gross Regional Domestic Product). By category ofecoonomic news, news on investments and on tourism tat have positive effect on province per capita GRDP. Meanwhile, on the effect of political event, we only found a significant effect of province election in the case of election year 2012. For these provinces with election year in 2012, more economic news instead associated with lower province per capita GRDP.
    Keywords: decentralization — news media — economic news — economic development
    JEL: L82 H89
    Date: 2018
  25. By: Anita Prakash (Economic Research Institute for ASEAN and East Asia (ERIA))
    Abstract: Africa’s young demography and developing economy require integration and expansion into the global value chains. Asia can share its growth experience with Africa. Africa can benefit from trade, investment, and development cooperation through a measured combination of investments and development assistance. The policy challenge facing the countries of Africa and their development partners is to balance official development assistance programmes with foreign direct investment initiatives, as physical, institutional, and human resource capacities must grow simultaneously
    Date: 2018–08
  26. By: Theodore Panagiotidis (University of Macedonia, Greece; Rimini Centre for Economic Analysis); Thanasis Stengos (University of Guelph, Canada; Rimini Centre for Economic Analysis); Orestis Vravosinos (Universitat Pompeu Fabra, Spain)
    Abstract: We review the literature and examine the effects of shocks on bitcoin returns. We assess the effects of factors such as stock market returns, exchange rates, gold and oil returns, FED’s and ECB’s rates and internet trends on bitcoin returns. Alternative VAR and FAVAR models are employed and generalized as well as local impulse response functions are produced. Our results reveal (i) a significant interaction between bitcoin and traditional stock markets, (ii) a weaker interaction with FX markets and the macroeconomy and (iii) an anemic importance of popularity measures. Lastly, we reveal the increased impact of Asian markets on bitcoin compared to other geographically-defined markets, which however appears to have waned in the last two years after the Chinese regulatory interventions and the sudden contraction of CNY’s share in bitcoin trading volume.
    Keywords: bitcoin, cryptocurrency, exchange rate, returns, FAVAR, factor analysis
    JEL: G12 G15
    Date: 2018–11
  27. By: Graeme Auton (University of Redlands)
    Abstract: The neo-realist paradigm in international relations scholarship holds that sovereign states are rational, unitary, value-maximizing actors capable of understanding and rank-ordering their tangible national interests while distinguishing between short- and long-term goals. In the neo-realist view, territorial conflicts, unless involving central security concerns, will be subordinated to larger foreign policy objectives. Neo-liberals, on the other hand, argue that the growth of trade and economic interdependence is conducive to cooperation. ?Trade dependency? on a state with which there is a territorial conflict will lead to sublimation, sidelining or delayed resolution of the dispute without the threat or use of force. This paper analyzes three of East Asia?s high-profile maritime disputes, those over the Southern Kurlies/Northern Territories (Russia and Japan), Dokdo/Takeshima (South Korea/Japan), and Diaoyu/Senkaku (China/Japan). The paper demonstrates that, to an increasing degree, nationalist and populist sentiment ? rather than neo-realist or neo-liberal calculation ? has been the prime mover in each of these conflicts. The four regional players ? China, Japan, South Korea and Russia ? have politically invested far more in these islands than an objective analysis would seem to warrant, leading to intensified diplomatic conflict, hampered cooperation, emotion-driven domestic populism, and the possibility of future military action. The paper rejects the reasoning of some recent scholarship on the resolution of maritime disputes. It argues that the increasing salience of populist nationalism as a force hampering the resolution of maritime conflict is part of a global trend in the second decade of the 21st century.
    Keywords: maritime conflict; conflict resolution; nationalism; populism; neo-realism; neo-liberalism; constructivism; social identity theory; Asia-Pacific
    JEL: D74 D81 H12
    Date: 2018–11
  28. By: Grote, U.; Nguyen, T.T.
    Abstract: Human induced degradation of land due to over-extraction of water and forest resources is a threat to sustainable development in many developing countries. Solving this requires an understanding of the factors affecting the extraction and its impacts on rural welfare. In this study, we determine the factors affecting the extraction of and dependence on forest and water resources and examine the impacts of the extraction on rural household welfare in Laos. We address our research questions with an econometric framework that models the extraction and its implications simultaneously. We use the data of 430 rural households from a survey undertaken in 2013 in 38 villages of Savannakhet province. Our findings show that extraction is a shock-coping strategy of rural households but contributes to reducing household income inequality. For extracting households, extraction increases household income, consumption and food security. However, for non-extracting households, although extraction would increase food security, it would reduce their income and consumption. We suggest that promoting rural education and off-farm employment opportunities, enhancing investments in physical infrastructure, and developing livestock rearing would reduce the extraction of and the dependence on the resources of extractors and prevent non-extractors from being forced to extract the resources. Acknowledgement : We thank the farmers in Savannakhet province for their support and cooperation. We also acknowledge the support and appreciate the efforts of our partners in Lao PDR as well as all our colleagues at the Leibniz University Hannover for data collection.
    Keywords: Food Security and Poverty
    Date: 2018–07
  29. By: Anita Prakash (Economic Research Institute for ASEAN and East Asia (ERIA))
    Abstract: Africa’s economy is on a growth curve where development and investment plans must focus on the expansion of infrastructure, capacities, and institutions. Infrastructure development, which allows investing economies and companies to target the higher end of industrial value chains, will help to diversify the African economy and trade patterns, promote value-added production of goods and services, and boost consumption. Infrastructure planning and investment must be responsive to the development priorities of a country or subregion if infrastructure is to be an agent for growth and the narrowing of development gaps
    Date: 2018–09
  30. By: Paul J.J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))
    Abstract: The 2016 US presidential election resulted in the populist Donald Trump becoming the 45th President of the United States. While many observers assume that this reflects a transitory phase of populism in the US, a closer analysis suggests that there will be a structural populist threat for the US, the West and the world economy. There is survey evidence that US voters consider the inequality which has emerged in the US over many years as unacceptable. At the same time the Lindh-McCall survey results show that the relative majority of US voters expect that big companies rather than government will correct this inequality. This is illusory and wishful thinking and will serve to create continued voter frustration for the lower half of households – this refers to the poorer half of US households – and populism could indeed expand on the basis of such frustration for many years to come. The main drivers of rising inequality in the US, namely ICT expansion, financial globalization and the rise of China’s exports will continue in the medium term so that US voters’ frustration is a structural problem that cannot easily be remedied and that has consequences for transatlantic and global economic relations as well as security policy implications. While the decline of the income share for the lower half of income earners in Western Europe has been rather modest in 1981-2015, the decline of that share in the US has been dramatic, namely from 20% to 13%. The EU is nevertheless threatened by US populism since its political representatives are trying to export their ideology and approach to Italy and other Western continental EU countries. In the UK, a subtle populism is already becoming more apparent under the heading of BREXIT. If the EU27 could defend the model of the Social Market Economy and export this system to Asia and Africa while joining political forces with ASEAN – and possibly China – to defend the multilateral economic order, European impulses could help to contain US populism.
    Keywords: Political economy, collective decision making, populism, inequality, international economics
    JEL: D7 F00 F02 P16
    Date: 2018–10
  31. By: Sakuyama, T.
    Abstract: This article aims to clarify the linkage between electoral rules and politicians protectionist motives. Specifically, hypotheses on the positive impacts of the proportional representation formula and constituency size on candidates attitudes toward the Trans-Pacific Partnership (TPP) are tested by estimating an ordered probit model using survey data on Japan s national elections in 2012, 2013, and 2016. By extending the coverage to the upper house elections, this article adds value to the previous literature. The estimation results confirm that proportional representation formula and constituency size have a positive impact on candidates support for the TPP in the lower house election in 2012, but have no influence in the upper house elections in 2013 and 2016. Moreover, constituency size is no longer significant once the sample is limited to single-member district candidates even in the 2012 lower house election. It is therefore concluded that, contrary to the previous literature, constituency size that manifests electoral incentives is not a notable cause of candidates protectionist bias. In contrast, it is found that candidates political ideology, such as their affinity for agriculture and Asia as well as antipathy to small government and immigrants, is proved to be the main drivers of candidates protectionist motives. Acknowledgement : I am grateful to the participants to the Annual Conference of the Japan Public Choice Society at Kwansei Gakuin University in 2017. This work is supported by a Grant-in-Aid for Scientific Research from the Japan Society for the Promotion of Science, Grant Number 16K07911.
    Keywords: International Relations/Trade
    Date: 2018–07
  32. By: Mrinal Musib (National University of Singapore)
    Abstract: Massive Open Online Courses (MOOCs) are rather a new phenomenon that has been possible due to the introduction and integration of technology into education to attain various learning objectives. Over the last 10 to 15 years MOOC?s have evolved at a phenomenal pace and are presently being offered by various commercial platforms such as Udacity, Edx and Coursera, and are being offered by expert faculty members from several leading educational institutions and universities. The initial objective of MOOC?s has been to make quality study materials accessible to anyone in the world at little or no costs, who has access to internet. In spite of the general acceptability and affordability of such novel platforms, their completion rate remains very low and is a huge concern. Typically 80-90% of the initially registered students eventually drop out due to various reasons. In this work we develop a four-pronged strategy on a Support-Trend-Expenses-Payout (STEP?s) that educators and MOOC developers alike may adopt and implement to stem and decrease this high dropout rates seen in MOOCs.
    Keywords: MOOCs, drop out rates, innovative pedagogy, learning objectives
    Date: 2018–07

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