nep-sea New Economics Papers
on South East Asia
Issue of 2018‒12‒10
28 papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Identifying Influential Traders by Agent Based Modelling By Kopp, T.; Salecker, J.
  2. Contract farming effects on technical efficiency of the export-oriented rice production sector in Vietnam By Le Ngoc, H.
  3. The shape of rice agriculture towards 2050 By Samal, P.; Babu, S.
  4. How Is Climate Change Affecting Thailand’s Agriculture? A Literature Review with Policy Update By Attavanich, Witsanu
  5. Introduction to Disease, Human Health, and Regional Growth and Development in Asia By Batabyal, Amitrajeet; Higano, Yoshiro; Nijkamp, Peter
  6. The EU-Japan Economic Partnership Agreement and its relevance for the Austrian Economy By Julia Grübler; Oliver Reiter; Robert Stehrer
  7. Growth and real business cycles in Vietnam and the ASEAN-5. Does the trend shock matter? By Pham, Binh T.; Sala, Hector; Silva, José I.
  8. Investigating International Portfolio Diversification Opportunities for the Asian Islamic Stock Market Investors By Yildirim, Ramazan; Masih, Mansur
  9. Budidaya Tanaman Karet (Hevea brasiliensis) Di Indonesia Dan Kajian Ekonominya By Sofiani, Iqrima Hana; Ulfiah, Kiki; Fitriyanie, Lucky
  10. Budidaya Tanaman Kelapa (Cocos nucifera) Ditinjau Dari Segi Ekonomi By Resminiasari, Nurfitri; Rahmat, Shintia; Imbarwati, Sisca
  11. Prospek Ekonomi dan Budidaya Perkebunan Kelapa Sawit di Indonesia By Joko Ismoyo, Agung; Saiful M, Adi Auf; Supriadi, Cepi; Winianingsih, Dewi; Ayu Lestari, Firda; Marhama, Hasna; Pazriatu R, Intan
  12. Aspek Ekonomi Dari Budidaya Tanaman Kapas (Gossypium hirsutum L.)Di Indonesia By Razaq, Khairul; Aprilia, Mia; Juliayanti, Neng Sri; Ariyanti, Nina
  13. When the Wind Blows: Spatial Spillover Effects of Urban Air Pollution By Chen, X.; Ye, J.
  14. Asian Experiences with Global and Regional Value Chain Integration and Structural Change By Roman Stöllinger
  15. On Incentive Compatible, Individually Rational Public Good Provision Mechanisms By Kunimoto, Takashi; Zhang, Cuiling
  16. Legal Reform of Asset Declaration system: A Strategy to prevent and combat corruption in Thailand By Bajrawan NUCHPRAYOOL
  18. New Chinese in Thailand: the combination of diaspora, overseas Chinese and international students By sivarin lertpusit
  19. From Prevention to Seizing Power: The Thai Martial Law and the Making of Special Authority by the Constitution in Thailand By Thep Boontanondha
  20. Determinants of Foreign Direct Investment in Fast-Growing Economies: Evidence from the BRICS and MINT Countries By Simplice A. Asongu; Uduak S. Akpan; Salisu R. Isihak
  21. Drivers of Growth in Fast Emerging Economies: a Dynamic Instrumental Quantile Approach to Real Output and its Rates of Growth in BRICS and MINT countries, 2001-2011 By Simplice A. Asongu; Nicholas M. Odhiambo
  22. Knowledge-Driven Economic Growth: The Case of Sub-Saharan Africa By Stephen Oluwatobi; Isaiah Olurinola; Philip Alege; Adeyemi Ogundipe
  23. Development of the Vietnamese Iron and Steel Industry under International Economic Integration By Nozomu Kawabata
  24. A Sectorial Performance Analysis of Kuala Lumpur Stock Exchange (KLSE, Bursa Malaysia) By Chin, Leong Choong; Sek, Siok Kun; Tan, Yee Theng
  25. Nilai Ekonomi Tanaman Kelapa Sawit (Elaeis guinensis jack) Untuk Rakyat Indonesia By Ulfah, Kiki Ulfiah; Al Hakim, Lukman Al Hakim; Dimas Ilham, Moch Dimas Ilham; Muliyanto, Muhammad Muliyanto; Sri Julianti, Neng Sri Julianti; Arianti, Nina Ariyanti; Ramadhani, Novita Ramadhanti; Puji Astuti, Rahayu Puji Astuti; Nurfaizah, Raicitra Nurfaizah; Giwangkara, Ramdana Giwangkara; Suryani, Ririn Suryani; -, Shodik
  26. Companies’ Characteristics and the Choice of Hedge Accounting for Derivatives Reporting: Evidence from Malaysian Listed Companies By Abdullah, Azrul; Ku Ismail, Ku Nor Izah
  27. Enabling sustainable and inclusive irrigation development in Cambodia By Raju, K V; Taron, Avinandan
  28. Modelling Social Evolutionary Processes and Peer Effects in Agricultural Trade Networks: the Rubber Value Chain in Indonesia By Thomas Kopp; Jan Salecker

  1. By: Kopp, T.; Salecker, J.
    Abstract: Understanding individual traders' channel choices is important to policy makers because it yields information on which channels are effective in transmitting information. Since trading networks are characterised by feedback mechanisms along several dimensions they can be understood as complex adaptive systems. Conventional approaches, such as regression analysis, face severe drawbacks when modelling these since endogeneity is omnipresent. Instead, they are best studied via agent based modelling. This paper applies an ABM to the empirical example of rubber trade in Indonesia, which is a dense network. Results indicate that the decision for traders' channel choices are mostly driven by physical distance and debt obligations, and to a minor extent by peer-interaction. Acknowledgement : Financial support from the German Research Foundation (DFG) within Collaborative Research Centre 990 Ecological and Socioeconomic Functions of Tropical Rainforest Transformation Systems in Sumatra, Indonesia (CRC990) is greatly appreciated. Thomas Kopp thanks DFG for generous support within project KO 5269/1-1. Valuable assistance in literature search was provided by Stefan Moser.
    Keywords: International Relations/Trade
    Date: 2018–07
  2. By: Le Ngoc, H.
    Abstract: Improving farming technical efficiency for smallholders by applying contract farming is an interesting topic nowadays. A cross sectional sample of 250 Vietnamese export-oriented rice households was employed to investigate how contract farming improves farming technical efficiency in the country. The Stochastic Frontier Analysis is applied to estimate the production frontier, the technical inefficiency determinants and Propensity Score Matching is used to control self-selection bias. The results show an average technical efficiency score is of 87.33 percent and suggests convincible opportunities for farmers to increase productivity of export-oriented rice in the country by nearly 13 percent. The expenditures on seed, land, and fertilizer are the key determinants of the technical efficiency level in this region. The results reveal the positive relationship of contract farming participation on technical efficiency improvement. Acknowledgement : The authors acknowledge financial support from the Stiftung Fiat Panis and the Vietnamese Educational and Tranning scholarship. We are also grateful to the Nha Trang University, Vietnam for their support in fieldwork coordination.
    Keywords: Land Economics/Use
    Date: 2018–07
  3. By: Samal, P.; Babu, S.
    Abstract: The rice consumption growth is very slow in Asia during 1961-2013 and has slowed down in other continents except Africa. The consumption growth in Africa is strong during recent years. Future additional demand will come mainly due to population growth in Africa and Asia. The production growth during last fifty years led by growth in yield has helped in achieving food security in many Asian countries. Many countries have turned out to be exporters due to impressive yield growth. But, the yield growth has slowed down considerably. The demand for rice by 2050 has been estimated as 506, 562 and 607 million tons at three levels of consumption. Scientists have been able to break the yield ceilings in the last decade, which has brought new hopes of achieving the targeted production. With increasing diversification towards high value crops/commodities, Asia may lose 4 million ha of rice area by the year 2050. However, due to strong rice consumption growth in Africa, the area in that continent will increase by 8 million ha. The speed of rice area expansion and yield enhancement in Africa depends on the level of investment in research and development of infrastructure. Acknowledgement :
    Keywords: Crop Production/Industries
    Date: 2018–07
  4. By: Attavanich, Witsanu
    Abstract: Agriculture in developing countries is the most sensitive economic sector when it comes to climate change. Thailand is one of the developing countries where agriculture plays a significant role and is likely vulnerable to the changing climate. Past studies investigated the impacts of climate change on Thailand’s agricultural sector, but they are fragmented, lack of synthetic results linking to national climate change policies. The objectives of this article are to review and synthesize recent studies investigating the climate change impacts on Thailand’s agricultural sector and update the current state of climate change policies in the sector. Several policies implications can be extracted from the study.
    Keywords: Climate change, Thailand, Agriculture, Impact, Climate Change Policy, Literature Review, Economics,
    JEL: Q18 Q54 R14
    Date: 2018–10–28
  5. By: Batabyal, Amitrajeet; Higano, Yoshiro; Nijkamp, Peter
    Abstract: We have two objectives in this book. First, we bring together in one place, original research that sheds light on the myriad connections between disease, human health, and regional economic growth and development. Second, given the contemporary salience of Asia in world affairs, we concentrate on the trinity of disease, human health, and regional economic growth and development in different regions within Asia. Following this introductory chapter, there are nine chapters and each of these chapters—written by an expert or by a team of experts—discusses a particular research question or questions about disease, human health, and regional economic growth and development within Asia.
    Keywords: Asia, Disease, Economic Development, Human Health, Regional Growth
    JEL: I12 I15 R11
    Date: 2018–10–26
  6. By: Julia Grübler; Oliver Reiter; Robert Stehrer
    Abstract: Since the beginning of 2017, a paradigm change in international trade policy is observed. While the protectionist agendas are on the rise, the EU and Japan signed an Economic Partnership Agreement (EPA) on 17 July 2018. It is the most ambitious agreement of the EU with any Asian state. The study estimates the effect of the EU-Japan EPA for Austria based on qualitative analysis and a structural gravity model. The model predicts small but positive effects of around 0.01% of GDP for Austria. Highest gains are expected for manufactured goods, particularly in the medium- and high-tech sectors.
    Keywords: Economic partnership, Free Trade Agreement, EPA, FTA, EU, Japan, South Korea, tariffs, non-tariff measures, structural Gravity model
    JEL: D58 F13 O24 Q17
    Date: 2018–10
  7. By: Pham, Binh T.; Sala, Hector; Silva, José I.
    Abstract: We examine Vietnam’s economy together with its closest trade partners. We show that capital accumulation has been the primary growth engine since the start of its transition to the pro-market economy in 1986–the Doi Moi. We also show that the cyclical behavior of its macro-aggregates is similar to the one of its ASEAN-5 peers and other developing countries. We extend the standard small-open-economy RBC model by considering habit persistence and government consumption which allows a close match of the moments of the growth variables. At the business cycle frequency, transitory productivity shocks account for approximately one-half of Vietnam’s output variance, while country-risk and non-transitory productivity shocks account to close to one-fifth each. Regarding Solow residual's volatility, we find that the trend component merely accounts for 12% of this variance in Vietnam, while in Thailand it is only 6%. These findings refute “the cycle is the trend” hypothesis in Aguiar and Gopinath (2007), and align to those in García-Cicco, Pancrazi, and Uribe (2010) and Rhee (2017), in which the stationary component is overwhelmingly dominant. We claim that technological progress and productivity-enhancing measures are fundamental for Vietnam's economy to sustain a high growth.
    Keywords: Vietnam, ASEAN, DSGE, RBC, trend shock, growth
    JEL: E0 E13 E3 E32 E60
    Date: 2018–11–22
  8. By: Yildirim, Ramazan; Masih, Mansur
    Abstract: The purpose of this paper is to analyze the possible portfolio diversification opportunities between Asian Islamic market and other regions’ Islamic markets; namely USA, Europe and BRIC. This study makes the initial attempt to fill in the gaps of previous studies by focusing on the proxies of global Islamic markets to identify the correlations among those selected markets by employing the recent econometric methodologies such as multivariate generalized autoregressive conditional heteroscedastic-dynamic conditional correlations (MGARCH–DCC), maximum overlap discrete wavelet transform (MODWT), and the continuous wavelet transform (CWT). By utilizing the MGARCH-DCC, this chapter tries to identify the strength of the time-varying correlation among the markets. However, to see the time-scale dependent nature of these mentioned correlations, the authors utilized CWT. For robustness, the authors have applied MODWT methodology as well. The findings tend to indicate that the Asian investors have better portfolio diversification opportunities with the US markets followed by the European markets. BRIC markets do not offer any portfolio diversification benefits, which may be explained partly by the fact that the Asian markets cover partially the same countries of BRIC markets, namely India and China. Considering the time horizon dimension, the results narrow down the portfolio diversification opportunities only to the short-term investment horizons. The very short-run investors (up to eight days only) can benefit through portfolio diversification, especially in the US and European markets. The above-mentioned results have policy implications for the Asian Islamic investors (e.g. Portfolio Management, Strategic Investment Management).
    Keywords: MGARCH-DCC, MODWT, Continuous Wavelet Transform CWT, Contagion, Volatility Spillover, Shariah Indices
    JEL: C22 C58 G11 G15
    Date: 2018–05–19
  9. By: Sofiani, Iqrima Hana; Ulfiah, Kiki; Fitriyanie, Lucky
    Abstract: The government's efforts to reduce the number of unemployed and poverty in line with the medium-term development plan of 5.1% are difficult to achieve if there is no effort to develop the real sector. Revitalization of plantation rubber is based on: (1) having a strategic role as a source of public income, (2) domestic and export markets, (3) being able to absorb labor, (4) ensuring an environment of mental sustainability. The constraints faced by rubber development focus on: (1) low plantation productivity, because there are many plantations that are being damaged by wild plant material, (2) less developed domestic downstream industries, (3) no special funding for plantations, and (4) policies that do not support the development of plantations. Based on developments in 1992-1996, the results have been able to drive economic growth and enter the doubling of farmers' income significantly.
    Keywords: Keywords: economic area, rubber, growth, farmers
    JEL: Q5
    Date: 2018
  10. By: Resminiasari, Nurfitri; Rahmat, Shintia; Imbarwati, Sisca
    Abstract: Coconut plants (Cocos nucifera L.) are one of the commodities that have high economic value if managed properly. Indonesia itself is a coconut producing country, because as a multipurpose plant that has given life to farmers in Indonesia, this is evidenced by the level of mastery of coconut plants in Indonesia, which is 98% is smallholder plantations. The development of world average coconut production during the 1999-2004 period reached 52.5 thousand tons / year. Of all the producing countries in the world, Indonesia is the largest producer country, with an average production of 15.6 thousand tons / year, the Philippines ranks second at 13.5 thousand tons / year. The main reason for making coconut a commercial commodity is that all parts of coconut can be used for various purposes and have social, cultural and economic roles in the lives of Indonesian people. Coconut products that are quite potential to be traded on the international market are copra, copra cake, shell charcoal Crude coconut Oil. Coconut oil is the most valuable downstream product of coconut fruit and is widely used as an industrial raw material or as cooking oil. Domestic and export coconut oil needs continue to increase from year to year, this shows that coconut has an important role in economic development and sources of foreign exchange. Based on the analysis of cultivation, it can be seen that the investment is large and can be profitable only in less than six years, not including other benefits obtained other than fruit. Therefore, coconut cultivation is one of the most profitable alternatives.
    Keywords: Keywords: Coconut (Cocos nucifera), exports, copra, coconut oil
    JEL: Q55
    Date: 2018
  11. By: Joko Ismoyo, Agung; Saiful M, Adi Auf; Supriadi, Cepi; Winianingsih, Dewi; Ayu Lestari, Firda; Marhama, Hasna; Pazriatu R, Intan
    Abstract: Planting oil palms must meet the growing conditions and appropriate cultivation methods so that the products obtained are in good condition, qualitatively and quantitatively. Palm oil contains high saturated fatty acids (> 50%) and relatively few polyunsaturated fatty acids (
    Keywords: Key words: Palm, acids, land, economically.
    JEL: Q4
    Date: 2018
  12. By: Razaq, Khairul; Aprilia, Mia; Juliayanti, Neng Sri; Ariyanti, Nina
    Abstract: Abstract Cotton (Gossypium hirsutum L.) is one of the natural fiber-producing plantation commodities for textile industry raw materials that play a role in Indonesia's non-oil and gas exports. Cotton production in Indonesia has not been able to meet national cotton needs, this is because the development of cotton in Indonesia has experienced many obstacles, especially in the maintenance of plants that have not been optimal. One effort that can be done is through improving agricultural cultivation techniques from seeding, land preparation to maintenance which include irrigation, fertilization, planting, thinning and pest and disease control. Domestic cotton fiber production is less than 5% of national demand, while the raw material needs of the textile industry continue to increase from year to year in line with the growing population. Realizing this, the government since 2007 has tried to continue to increase cotton production from the implementation of the IKR program, P2WK, OECF projects, self-help from farmers to the Acceleration (cotton acceleration) program.
    Keywords: Keywords: exports, national, constraints, acceleration.
    JEL: Q57
    Date: 2018
  13. By: Chen, X.; Ye, J.
    Abstract: This paper investigates the existence and magnitude of air pollution spillovers in Chinese cities. Estimation of this spillover effect is complicated because neighboring cities share similar business/pollution cycles and changes in wind direction can be fairly frequent. To circumvent these empirical challenges, we exploit spatial and temporal variations in PM10 concentrations for 108 major cities in China s Eastern Monsoon Region during the East Asian winter and summer monsoon seasons. We find large pollution spillover effects: a city s average PM10 concentration increases by 0.09-0.21 units during the winter monsoon season and by 0.06-0.10 units during the summer monsoon season, if PM10 concentrations in cities upwind of this city increase by one unit. The percentage contributions of PM10 pollution from upwind cities to local PM10 levels vary by region and can be as large as 30%. These findings are comparable to the existing atmospheric evidence. Our findings suggest that pollution control policies must be coordinated between cities to abate urban air pollution. Acknowledgement :
    Keywords: Environmental Economics and Policy
    Date: 2018–07
  14. By: Roman Stöllinger (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: This research report investigates the relationship between the growing integration into global and regional value chains (VCs) and structural change in the South and South East Asian (SEA) region. The analysis includes a sample of 60 developed and developing countries covered in the OECD’s Inter-Country Input-Output Tables. Focusing on the SEA region, we find the usual inverted U-shaped relationship between the manufacturing share and per capita income. With regards to the impact of growing VC integration, the econometric results suggest a small positive effect of the overall VC integration on the change in the manufacturing share at the global level. Very similar patterns are found for the South and South East Asian region, however, with a large degree of country heterogeneity. The main beneficiaries from VC integration in the region in terms of the relative importance of manufacturing in the economy include for example Korea and Thailand. Unexpectedly, no significant differences in the (manufacturing-related) structural impacts of regional and global VCs could be identified.
    Keywords: global value chains, structural change, competitiveness, economic development
    JEL: F15 O19 O25
    Date: 2018–12
  15. By: Kunimoto, Takashi (School of Economics, Singapore Management University); Zhang, Cuiling (School of Economics, Singapore Management University)
    Abstract: This paper characterizes mechanisms satisfying Bayesian incentive compatibility (BIC) and interim individual rationality (IIR) in the classical public good provision problem. Many papers in the literature obtain the results in the so-called standard model of ex ante identical agents with a continuous, closed interval of types. Although the standard model and more generally a continuum type space are widely used in the literature, it is nonetheless an abstraction of reality. Given that the public good provision problem has occupied a central application in the theory of mechanism design, we propose a "stress test" for the results in the standard model by subjecting them to a fi nite discretization over the standard model. The main contribution of this paper is that many of the known results gained within the standard continuum type space also hold when it is replaced by a discrete type space.
    Keywords: Budget balance; decision efficiency; incentive compatibility; individual rationality; mechanisms; public goods
    JEL: C72 D78 D82
    Date: 2018–11–20
  16. By: Bajrawan NUCHPRAYOOL (National Institute of Development Administration)
    Abstract: Declaration of assets and liabilities by politicians and public officials can be a powerful tool to prevent and fight corruption. Politicians and public officials are obliged by the Organic Act on Counter Corruption B.E. 2542 to submit an account showing particulars of their assets and liabilities and to disclose such account to the public. It has been acknowledged that a number of the assets declaration reports have been left unverified by the National Anti-Corruption Commission (NACC), thus making the system ineffective. The purpose of this study is to examine, analyze, and compare the asset declaration systems in Thailand and in other countries, as well as the problems and obstacles in practice. This study found that in order to improve the efficiency and effectiveness of the asset declaration system, NACC should make it compulsory for all types of public officials to submit an account showing particulars of their assets and liabilities but verify an account only when there are doubts about a submitted account or only for positions with high risk of conflict of interest. The deployment of information technology in the asset declaration system especially for the filing process and the verification process as well as linking the information from other government agencies and private organizations shall increase the efficacy of the system. The disclosure of account showing particulars of assets and liabilities should be required from everyone who is holding a political position and from every public official so that the general public will be able to examine the disclosed information. Finally improving the organizational structure of NACC to be in line with the asset verification system can increase the effectiveness of the system.
    Keywords: Declaration of assets and liabilities, National Anti-Corruption Commission, assets and liabilities
    JEL: K49 K10 K42
    Date: 2018–10
  17. By: Chanida Jittaruttha (CHULALONGKORN UNIVERSITY)
    Abstract: Organizational cultural theorists suggest that culture is the critical factor of the facts, derived from social values given as socially constructed realities. This research paper aimed to explore ASEAN citizens? perceived shared culture on the realm of decreasing power distance and uplifting the citizens? quality of life. It is conducted in order to investigate the following questions: (a) what level of power distance that ASEAN citizens in four countries (Brunei, Singapore, Philippines, and Thailand) perceived and why they do perceive like that by testing Hofstede and Hofstede?s proposal (Hofstede and Hofstede, 2005, Jittaruttha, 2011) of power distance at three levels: 1) general level of social norms, 2) workplace relationships level, and 3) political or state relationships level, (b) what level of quality of life that ASEAN citizens in four countries perceived and why they do perceive like that by testing those concepts of quality of life in ten dimensions (Haq, 1990; UN, 1995; White, 2007; Helliwell, Layard, Sachs, 2012; UN, 2015; UNDP, 2015) (c) what key success factors lead to the shared culture of the ASEAN community, which is decreasing power distance and uplifting the citizens? quality of life. The methodology employed in this research is mixed methods conducted by analyzing academic works as well as a field survey. The article postulates that the perceived shared culture of ?power distance? of 2,880 people in four countries was low at three levels, excepts in Philippines that culture of ?power distance? was moderate at general level (mean 2.78). As for the perceived shared culture of ?quality of life? in four countries was moderate level in whole but slightly different. Brunei is the first order of quality of life measurement and Philippines is the first one of equality measurement. The conclusion confirms that participative culture is the shared culture of the ASEAN community, which is decreasing power distance and uplifting the citizens? quality of life. It also offers that there will be more participative culture if these four political culture indicators are strongly promoted: (1) cultural indicators; small power distance, (2) historical sociology indicators; reduction of obedience, freedom of decision, (3) organizational society indicators; participation, decentralization, and (4) political economy indicators; accountability, transparency. The recommendations give support to Hofstede?s power distance concept, and that of House (2004) and Robbins (2004). It highlights that participative culture of ASEAN community will be sustained by reducing inequality from nepotism, patronage or spoil system and eliminating corruption.
    Keywords: power distance, inequality, citizens? quality of life
    Date: 2018–10
  18. By: sivarin lertpusit (Waseda University)
    Abstract: This paper aimed to explain the pattern of migration of Chinese people in Thailand between 1978 and 2014 through qualitative research methodology. The findings were divided into two parts: the demographics of the new Chinese people in Thailand and the pattern of migration. After Sino-Thai open its diplomatic relations in 1975, the number of Chinese arrivals were slowly increasing. The shifting point was in the beginning of 2010 which a large amount of Chinese came to Thailand under supporting international circumstances in mobility and the economic interdependency. Assessing from their objectives of entering Thai, the new Chinese can be divided into four groups: Investors, small traders, labourers and students. This paper was implied in the concept of diaspora and the characteristic of new Chinese migrant around the world. The unique characteristics of Chinese diaspora, however, are the long residing in host countries, the formation of a well-established ethnic group and the retaining of Chinese identity including contributing to the development of China.The model of new Chinese migration in Thailand can be divided into two forms. Those investors, employees and students match the terms of diaspora as they were long-term migrants who probably return. On the other hand, the trader?s model is a traditional form of overseas Chinese who stayed and worked with their relatives. Moreover, they tend to stay permanently in Thai as ethnic Chinese.
    Keywords: Chinese migrant, Thailand, student mobility
    JEL: Z19
    Date: 2018–10
  19. By: Thep Boontanondha (Graduate School of Asia ? Pacific Studies, Waseda University)
    Abstract: Thailand has seen 13 coup d'états since the 1932 revolution that established democracy in the country. This number marks Thailand as one of the countries experiencing most frequent coup d?états. Therefore, the coup d?état and the democracy in Thailand is one of the much-studied topics by many scholars. Some famous pieces of work include Thailand: The Politics of Despotic Paternalism by Thak Chaleumtiarana and The Plan to snatch the Nation: About the Stage and against Stage in the second term of Field Marshal P. Phibunsongkram (1948 - 1957) by Suthachai Yimprasert. Most of these researches focus on the political circumstance and the factors that supported the occurrence of the coup d'état. These studies identify many factors that contributed to the success of the armed forces in overthrowing governments. However, the martial law, one of the important factors, has been always overlooked. Generally, the purpose of martial law imposition is to maintain peace in the society during wartime or in periods of civil unrest or chaos. The particular feature of martial law allows military armies to impose the law without government approvals. Once declared, it gives the ultimate power to the commander-in-chief of the army who becomes the person that everyone in the country must obey. This law preludes the way for the commander-in-chief to seize power from the civil government. Hence, it is unsurprising that the armed forces always declare martial law before it overthrows the government. Martial law has probably, in a way, become military's preparation for coup launching. This research will focus on how the armed forces use martial law to support their coup and how martial law becomes one of the most important military?s tools for launching a coup.
    Keywords: martial law, armed force, coup d?état
    JEL: N95
    Date: 2018–10
  20. By: Simplice A. Asongu (Yaoundé/Cameroon); Uduak S. Akpan (Uyo, Akwa Ibom State, Nigeria); Salisu R. Isihak (Rural Electrification Agency, Nigeria)
    Abstract: This study employs panel analysis to examine the determinants of foreign direct investment (FDI) to Brazil, Russia, India, China, and South Africa (BRICS) and Mexico, Indonesia, Nigeria, and Turkey (MINT) using data for eleven years i.e. 2001 – 2011. First, it uses pooled time-series cross sectional analysis to estimate the model on determinants of FDI for three samples: BRICS only, MINT only, and BRICS and MINT combined; then, fixed effects model is also employed to estimate the model for BRICS and MINT combined. The results show that market size, infrastructure availability, and trade openness play the most significant roles in attracting FDI to BRICS and MINT while the roles of availability of natural resources and institutional quality are insignificant. Given that FDI inflow to a country has the potential of being mutually beneficial to the investing entity and host government, the challenge is on how BRICS and MINT can sustain the level of FDI inflow and ensure it results in economic growth and socio-economic transformation. To sustain the level of FDI inflow, governments of BRICS and MINT need to ensure that their countries remain attractive for investment. BRICS and MINT also need to ensure that their economies absorb substantial skills and technology spillovers from FDI inflow to promote sustainable long-term economic growth by investing more in their human capital. The study is significant because it contributes to literature on determinants of FDI by extending the scope of previous studies which often focus only on BRICS.
    Keywords: FDI, determinants, fast-growing economies, BRICS, MINT
    JEL: C52 F21 F23 O40 O50
    Date: 2018–01
  21. By: Simplice A. Asongu (Yaoundé/Cameroon); Nicholas M. Odhiambo (University of South Africa, Pretoria, South Africa)
    Abstract: We analyze the evolution of fast emerging economies of the BRICS (Brazil, Russia, India, China & South Africa) and MINT (Mexico, Indonesia, Nigeria & Turkey) countries, by assessing growth determinants throughout the conditional distributions of the growth rate and real GDP output for the period 2001-2011. An instrumenal variable (IV) quantile regression approach is complemented with Two-Stage-Least Squares and IV Least Absolute Deviations. We find that the highest rates of growth of real GDP per head, among the nine countries of this study, corresponded to China, India, Nigeria, Indonesia and Turkey, but the highest increases in real GDP per capita corresponded, in descending order, to Turkey China, Brazil, South Africa and India. This study analyzes the impacts of several indicators on the increase of the rate of growth of real GDP and on the logarithm of the real GDP. We analyze several limitations of the methodology, related with the selection of the explained and the explanatory variables, the effect of missing variables, and the particular problems of some indicators. Our results show that Net Foreign Direct Investment, Natural Resources, and Political Stability have a positive and significant impact on the rate of growth of real GDP or on real GDP.
    Keywords: Economic Growth; Emerging countries; Quantile regression
    JEL: C52 F21 F23 O40 O50
    Date: 2018–01
  22. By: Stephen Oluwatobi (Covenant University, Ota, Ogun State, Nigeria); Isaiah Olurinola (Covenant University, Ota, Ogun State, Nigeria); Philip Alege (Covenant University, Ota, Ogun State, Nigeria); Adeyemi Ogundipe (Covenant University, Ota, Ogun State, Nigeria)
    Abstract: The experience of South Korea, India, China and Singapore reveals that developing economies can fasttrack development, leapfrog the stages of development and catch up with advanced economies by putting knowledge capital as the driver of development. If the knowledge economy is therefore an accelerant of development for both advanced and developing economies, it is possible for Sub-Saharan African (SSA) economies to also catch up with advanced economies. It was on this basis that this study assessed the knowledge capacity of SSA and the effect it has on its economic advancement. Given the importance of the interrelatedness among the knowledge economy elements, this study, thus, examined how the interaction effect between the elements of the knowledge economy affects economic growth in 32 SSA countries, for which data were available, over the period of 17 years (1996-2012). Using the System Generalized Method of Moments (SGMM), the study found out that institutions and human capital in SSA mitigate the effect of innovation on economic growth in the region, thus, making it a lean knowledge economy.
    Keywords: Economic Growth; Human Capital; ICT; Innovation; Institutions; Knowledge Economy
    JEL: O10 O30 O38 O55 O57
    Date: 2018–01
  23. By: Nozomu Kawabata
    Abstract: This study discusses the development of the Vietnamese iron and steel industry under international economic integration. In particular, this study investigates what type of enterprise was responsible for this development, as well as the economic and managerial logic that can explain this development. The analysis provides suggestions for industrial development under international economic integration in developing economies. Under trade and investment liberalization, private enterprises and foreign capital firms have been the main participants in the development of the Vietnamese iron and steel industry. However, such development did not occur via a simple laissez-faire approach. Each enterprise type and the government faced challenges. Ownership and management reform were required of state-owned enterprises, and local private enterprises had to ensure market creation through innovation, by making full use of the local condition. Foreign enterprises had to introduce the huge funds and state-of-the-art technology. Moreover adaption to local society influenced their projects' progress. Thus, the government should review and monitor large-scale projects from both economic and social viewpoints. The Vietnamese iron and steel industry recorded steady growth because some of these conditions were met, while some unachieved conditions caused problems. This case suggests that industrial development under international economic integration is possible. In addition, such integration requires not only a market mechanism but also an entrepreneurial spirit that encourages market creation and government policies that complement the market's role and resolve social issues.
    Date: 2018–11
  24. By: Chin, Leong Choong; Sek, Siok Kun; Tan, Yee Theng
    Abstract: This paper extended the examination on the sectoral stock performances in Malaysia using different approaches. In particular, we seek to compare the performance of stock returns across sectors by focusing on the risk adjusted performance measures (Jensen’s Alpha, Sharpe Ratio, Treynor Ratio and MM Measure), Capital Asset Pricing Model (CAPM) hypothesis and stock diversification analysis. For this purpose, the single equation of Threshold Generalized Autoregressive Conditional Heteroskedasticity (TGARCH) is applied. The results of TGARCH and the risk-adjusted measures are consistent which suggest the consumer product as the best performed sector while technology as the lowest ranked sector. The results of TGARCH verified the validity of the CAPM theory in our study. The results also show that oil price, gold price, exchange rate and policy rate are influential to affect the stock return. However, they have limited influence to affect the volatility of stock return. The volatility of stock return exhibits a random walk behavior, with GARCH effect as the dominant factor that contributing to the volatility of stock return.
    Keywords: Stock return, TGARCH, Capital asset pricing model, risk-adjusted measure
    JEL: G11 G12
    Date: 2018–09–19
  25. By: Ulfah, Kiki Ulfiah; Al Hakim, Lukman Al Hakim; Dimas Ilham, Moch Dimas Ilham; Muliyanto, Muhammad Muliyanto; Sri Julianti, Neng Sri Julianti; Arianti, Nina Ariyanti; Ramadhani, Novita Ramadhanti; Puji Astuti, Rahayu Puji Astuti; Nurfaizah, Raicitra Nurfaizah; Giwangkara, Ramdana Giwangkara; Suryani, Ririn Suryani; -, Shodik
    Abstract: Palm oil provides the highest economic income to the country's economy. Based on the results of studies obtained from various sources it can be concluded that the Palm Oil Plant (Elaeis guineensis Jacq.) Originates from Nigeria, West Africa. Oil palm is a superior plantation commodity and Indonesia. Plants whose main products consist of palm oil (CPO) and palm kernel oil (PKO) have high economic value and are one of the biggest contributors to foreign exchange compared to other plantation commodities. Indonesia and Malaysia are major exporters of palm oil, which each have an export of 15.7 and 15.1 million tons. The main importing countries of palm oil are India, China and the European Union, which each import 6.7 million, 6 , 3 million and 4.6 million tons. It is alleged that there is a lack of flexibility in the management of oil palm plantations in particular so that oil palm development needs to prioritize the national economic interests of the Indonesian people. .
    Keywords: Keywords. : economy, exporter, oil, people
    JEL: Q55
    Date: 2018
  26. By: Abdullah, Azrul; Ku Ismail, Ku Nor Izah
    Abstract: This paper investigates the adoption of hedge accounting by Malaysian listed companies in reporting their use of derivatives for hedging activities. Based on a sample of 300 Malaysian listed companies, we found that only 162 companies (54 percent) used derivatives to hedge their financial risks exposure and only 30 percent of the companies chose to apply hedge accounting. In addition, this study examines the relationship between the company specific characteristics and their application of hedge accounting. The logistic regression results showed that the decision to apply hedge accounting by Malaysian companies is positively influenced by the company size and leverage. The implications of the findings were discussed.
    Keywords: Derivatives; Financial instruments; Hedge Accounting; Company Specific Characteristics
    JEL: M21 M41 M48
    Date: 2017–06–09
  27. By: Raju, K V; Taron, Avinandan
    Abstract: Cambodia’s 16% of the total cultivated area (2.7 million hectare) is irrigated by 950 irrigation schemes most of which were developed by the government. Financing irrigation development in Cambodia has two problems: (a) shrinkage of funds for construction of ongoing or new canal network, leading to delay in completion of projects; (b) crunch for operation and maintenance. This paper, focuses on status of financing irrigation development laying stress on identifying options to fund the irrigation development more aggressively and sustainably. Further, possible approaches, governance reforms required in water sector, and supportive policy and legal aspects are discussed.
    Keywords: financing irrigation, governance, operation and maintenance costs, fiscal crunch
    JEL: H54 O21 Q25
    Date: 2018
  28. By: Thomas Kopp; Jan Salecker
    Abstract: Understanding market participants' channel choices is important to policy makers because it yields information on which channels are effective in transmitting information. These channel choices are the result of a recursive process of social interactions and determine the observable trading networks. They are characterized by feedback mechanisms due to peer interaction and therefore need to be understood as complex adaptive systems (CAS). When modelling CAS, conventional approaches like regression analyses face severe drawbacks since endogeneity is omnipresent. As an alternative, process-based analyses allow researchers to capture these endogenous processes and multiple feedback loops. This paper applies an agent-based modelling approach (ABM) to the empirical example of the Indonesian rubber trade. The feedback mechanisms are modelled via an innovative approach of a social matrix, which allows decisions made in a specific period to feed back into the decision processes in subsequent periods, and allows agents to systematically assign different weights to the decision parameters based on their individual characteristics. In the validation against the observed network, uncertainty in the found estimates, as well as under determination of the model, are dealt with via an approach of evolutionary calibration: a genetic algorithm finds the combination of parameters that maximizes the similarity between the simulated and the observed network. Results indicate that the sellers' channel choice decisions are mostly driven by physical distance and debt obligations, as well as peer-interaction. Within the social matrix, the most influential individuals are sellers that live close by to other traders, are active in social groups and belong to the ethnic majority in their village.
    Date: 2018–11

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