nep-sea New Economics Papers
on South East Asia
Issue of 2019‒04‒29
nineteen papers chosen by
Kavita Iyengar
Asian Development Bank

  1. The Economic Correlation between China and Southeast Asian Countries: Derivative Market and Real Sector Analysis By Muhamad Irzal; Kiki Verico
  2. A Comparison Between Merit-Based and Test-Based Higher Education Admission in Indonesia By Teguh Dartanto; Chairina Hanum Siregar; Alvin Ulido Lumbanraja; Usman; Hamdan Bintara; Wahyu Pramono; Nia Kurnia Sholihah
  3. A Comparison Between Merit-Based and Test-Based Higher Education Admission in Indonesia By Mohamad Ikhsan; Natanael Waraney Gerald Massie; Ari Kuncoro
  4. Land Reform and Productivity: A Quantitative Analysis with Micro Data By Tasso Adamopoulos; Diego Restuccia
  5. Promoting sustainable land use choices in Indonesia: Experimental evidence on the role of changing mindsets and structural barriers By Romero, Miriam; Wollni, Meike; Rudolf, Katrin; Asnawi, Rosyani; Irawan, Bambang
  6. Beyond Indonesia’s Sustainable Movement in South Paci?c Area: Study Case on Pilot Projects for Timor Leste and Fiji By Rhapsagita Malist Pamasiwi; Natanael Novrima Rizki Arsyani
  7. Land-use change, nutrition, and gender roles in Indonesian farm households By Chrisendo, Daniel; Krishna, Vijesh V.; Siregar, Hermanto; Qaim, Matin
  8. Female Labour Force Participation in Indonesia: Why Has It Stalled By Lisa Cameron; Diana Contreras Suárez
  9. Trade Integration in the Economic Community of West African States: Assessing Constraints and Opportunities Using an Augmented Gravity Model By Abdelaaziz Aït Ali; Rim Berahab
  10. Labor savings in agriculture and inequality at different spatial scales: The expansion of oil palm in Indonesia By Kubitza, Christoph; Dib, Jonida Bou; Kopp, Thomas; Krishna, Vijesh V.; Nuryartono, Nunung; Qaim, Matin; Romero, Miriam; Klasen, Stephan
  11. The 2018 EU Industrial R&D Investment Scoreboard By Hector Hernandez Guevara; Nicola Grassano; Alexander Tuebke; Lesley Potters; Petros Gkotsis; Antonio Vezzani
  12. QUALITY AND THE NEW FLAGSHIP UNIVERSITY IDEAL IN ASIAN HIGHER EDUCATION by David P. Ericson, University of Hawaii CSHE 12.17 (November 2017) By Ericson, David P
  13. An Unconventional Way to Support Health Expenditure By Nizam, Ahmed Mehedi
  14. Cabotage Sabotage? The Curious Case of the Jones Act By William W. Olney
  15. FDI Patterns and Global Value Chains in the Digital Economy By Antonello Zanfei; Andrea Coveri; Mario Pianta
  16. Structural Changes in Heterogeneous Panels with Endogenous Regressors By Badi Baltagi; Qu Feng; Chihwa Kao
  17. Positive Early Life Rainfall Shocks and Adult Mental Health By Mochamad Pasha; Marc Rockmore; Chih Ming Tan
  18. EU exports to the world: Effects on employment By Inaki Arto; Jose M. Rueda-Cantuche; Ignacio Cazcarro; Antonio F. Amores; Erik Dietzenbacher; M. Victoria Roman; Zornitsa Kutlina-Dimitrova
  19. EU exports to the world: Effects on income By Inaki Arto; Jose M. Rueda-Cantuche; Ignacio Cazcarro; Antonio F. Amores; Erik Dietzenbacher; M. Victoria Roman; Zornitsa Kutlina-Dimitrova

  1. By: Muhamad Irzal (Ministry of Trade of Republic of Indonesia); Kiki Verico (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia)
    Abstract: This paper attempts to analyze economic integration of China and Southeast Asian countries. This paper adopts several methods: One, stationarity for correlation, Error Correction Model (ECM) for short-run relation and Cointegration for long-run relations. Two, Structural Vector Autoregression (SVAR) analysis to identify the cause and impact. As stock market index follows real sector performance this paper utilizes: One, elasticity analysis of economic growth between China and these countries as a proxy for real sector economic relations between them and two, descriptive statistical analysis on real effective exchange rate as well as Current Account Balance as a proxy of external economic performance between them. In correlation analysis, this paper found that one, stationarity of each country is difference at level; two, short-run economic relations (ECM) between China and these Southeast Asian countries and three, they have long-run economic relations. In causality, this paper found that China affects all of these Southeast Asian countries and no causality between Singapore and Philippines. In term of real sector analysis this paper found that, one, economic growth in China signi?cantly affects all of these countries’ economic growth. Two, external economic performance of these countries are difference with special ?nding on Indonesia’s current account.
    Keywords: Time-Series Model — stock market integration — foreign exchange — elasticity of economic growth — current account balance — China and Southeast Asia Economy of Indonesia, Malaysia, Singapore, Thailand, & Philippines
    JEL: C32 F36 F31 F43 F32
    Date: 2019–03
    URL: http://d.repec.org/n?u=RePEc:lpe:wpaper:201934&r=all
  2. By: Teguh Dartanto (Department of Economics, Faculty of Economics and Business, Universitas Indonesia); Chairina Hanum Siregar (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)); Alvin Ulido Lumbanraja (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)); Usman (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)); Hamdan Bintara (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)); Wahyu Pramono (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)); Nia Kurnia Sholihah (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))
    Abstract: One of the main challenges to Universal Health Coverage in developing countries like Indonesia is a high prevalence of those working in the informal sector that by the system they have to voluntarily register in the National Health Insurance System (NHIS) as Self Enroled Member. Therefore, challenges are administrative dif?culties in recruiting, registering and collecting regular contribution in the most of cost-effective way. This condition hinders some individuals for being covered NHIS. This research aims to analyze qualitatively some aspects that in?uence the decisions of individuals or households to join NHIS in Indonesia. By conducting in-depth interviews with some of the informants who were surveyed in 2014, and some new additional informants in the three selected regions of Deli Serdang, Pandeglang, and Kupang, the study found that regional socio-economic characteristics, demographics, culture and belief systems have varying degrees of in?uence on individual decisions to join the NHIS. The general pattern across all the regions reveals three main factors that in?uence the decisions of those working in the informal sector to join the NHIS: health conditions; family and peers; and existing knowledge and experience. High-risk individuals tend to join the NHIS through interactions with health workers, family members, and friends, concerning their illnesses or health risks. These groups tend to advocate NHIS as a means of reducing overall health expenses, particularly for expensive procedures. This creates an adverse selection problem and a pressing challenge for Social Security Agency for Health (SSAH) to attract healthy, young and low-risk groups in the informal sector to join the NHIS. The stories provided by the informants regarding their decision-making processes in joining NHIS also reveal the necessary and suf?cient conditions that enable informal sector workers to join the program. The necessary conditions are individual-speci?c and may differ between people, depending on individual characteristics, regional socio-economic and demographic characteristics, as well as belief systems. All the factors, apart from knowledge and experience, are necessary conditions for joining the NHIS, while knowledge and experience are suf?cient conditions that encourage informal sector (PBPU) to join NHIS. Without reliable information and knowledge about the NHIS, PBPU will not join NHIS, although they may like to join because of various individual factors.
    Keywords: NHIS — Universal Health Coverage — missing middle problem — informality — qualitative study — Indonesia
    JEL: I13 I14 I18 I3
    Date: 2019–03
    URL: http://d.repec.org/n?u=RePEc:lpe:wpaper:201933&r=all
  3. By: Mohamad Ikhsan (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)); Natanael Waraney Gerald Massie (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)); Ari Kuncoro (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))
    Abstract: The undergraduate admissions in Indonesia’s public universities are interestingly conducted in a two-fold system. Students are ?rst considered for the merit-based ‘Undangan’ admissions, whereas the test-based admissions are conducted afterwards. This study aims to discuss the differences of academic performances of students entering universities through the merit-based and test-based admissions. Our discussion utilizes a comprehensive data of 5,470 freshmen admitted during the period 2001 to 2017 at the Faculty of Economics and Business of Universitas Indonesia. We observed the differences using regression and matching estimates controlling the students’ characteristics and demographics. The ?ndings suggest that students admitted through the Undangan system perform generally betterHowever, such difference of academic performance diminishes across time. Furthermore, we describe the potential problems and, at the same time, progress for the country’s education system posed by the phenomenon.
    Keywords: Academic performance — merit-based admission — test-based admission — matching methods — higher education — Indonesia
    JEL: H52 I21 I23
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:lpe:wpaper:201932&r=all
  4. By: Tasso Adamopoulos; Diego Restuccia
    Abstract: We assess the effects of a major land policy change on farm size and agricultural productivity using a quantitative model and micro-level data. We study the 1988 land reform in the Philippines that imposed a ceiling on land holdings, redistributed above-ceiling lands to landless and smallholder households, and severely restricted the transferability of the redistributed farm lands. We study this reform in the context of an industry model of agriculture with a non-degenerate distribution of farm sizes featuring an occupation decision and a technology choice of farm operators. In this model, the land reform can reduce agricultural productivity not only by misallocating resources across farmers but also by distorting farmers' occupation and technology decisions. The model, calibrated to pre-reform farm-level data in the Philippines, implies that on impact the land reform reduces average farm size by 34% and agricultural productivity by 17%. The government assignment of land and the ban on its transfer are key for the magnitude of the results since a market allocation of the above-ceiling land produces about 1/3 of the size and productivity effects. These results emphasize the potential role of land market efficiency for misallocation and productivity in the agricultural sector.
    Keywords: agriculture, productivity, land reform, misallocation, land market, crop choice.
    JEL: O11 O13 O14 O4 O53 Q1 R2 R52
    Date: 2019–04–18
    URL: http://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-637&r=all
  5. By: Romero, Miriam; Wollni, Meike; Rudolf, Katrin; Asnawi, Rosyani; Irawan, Bambang
    Abstract: This study evaluates the effects of two environmental policy instruments on the adoption of native tree planting in oil palm plantations. The first instrument is an information campaign on tree planting in oil palm. The second instrument combines the information campaign with a structural intervention that provides native tree seedlings for free. We implemented a randomized controlled trial in oil palm growing villages in Jambi, Indonesia. Our study addresses the underlying mechanisms of behavioral change, by investigating how the policy instruments shape farmers' perceptions, intentions and actual adoption decisions. The results show that information campaigns and structural interventions can motivate tree planting among smallholder oil palm farmers in Indonesia. While both treatments have a positive and significant effect, the intervention combining information with seedling provision leads to significantly higher adoption rates, indicating that overcoming structural barriers is critical. While changes in perceptions and intentions fully mediate the effect of the information campaign on adoption, they can only partially explain the effect of the combined intervention. Thus, to promote a transition towards more sustainable development pathways, facilitating easy access to critical inputs may be key to motivate adoption among large numbers of potential users.
    Keywords: tree-planting,oil palm,intentions,mediation,Asia
    Date: 2019
    URL: http://d.repec.org/n?u=RePEc:zbw:crc990:25&r=all
  6. By: Rhapsagita Malist Pamasiwi (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)); Natanael Novrima Rizki Arsyani (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))
    Abstract: This paper aims to review Indonesia’s breakthrough on providing technical assistance under South-South Cooperation (SSC) scheme in Paci?c countries. For years, Indonesia has been engaging with the main bene?ciary countries: Timor Leste and Fiji. From one-off technical assistance programs, Indonesia tried to shift into more sustainable design in the form of pilot projects. By the given two case studies namely Country Partnership Strategy (CPS) Timor Leste and Gender Responsive Planning and Budgeting (GRPB) for Fiji, this article articulated Indonesia’s national interests in term of economics and political level. Both countries also represented as a part of Indonesia’s strategic way in to the South Paci?c area.
    Keywords: Indonesia — South-South Cooperation — Pilot Project — Timor-Leste — Fiji
    JEL: F50 H11 O19
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:lpe:wpaper:201931&r=all
  7. By: Chrisendo, Daniel; Krishna, Vijesh V.; Siregar, Hermanto; Qaim, Matin
    Abstract: Many tropical countries are experiencing massive land-use change with profound environmental and socioeconomic implications. In Indonesia, oil palm cultivation is rapidly expanding at the expense of more traditional agricultural crops and forest land. While environmental effects of the oil palm boom were analyzed in many studies, much less is known about social effects. Here, we analyze how oil palm cultivation by smallholder farmers influences nutrition through changing income, gender roles, and other possible mechanisms. The analysis uses panel data collected in Jambi Province, Sumatra, one of the hotspots of Indonesia's recent oil palm boom. Regression models show that oil palm cultivation has positive effects on different indicators of nutrition and dietary quality. These effects are primarily channeled through income gains that improve smallholders' access to nutritious foods from the market. Oil palm requires less family labor than traditional crops, so a switch to oil palm could potentially free labor for off-farm economic activities. We find that oil palm cultivation is positively associated with off-farm employment of male but not female household members, which may be related to unequal opportunities. Independent of oil palm cultivation, female off-farm employment has positive nutrition effects, even after controlling for total household income.
    Keywords: oil palm,smallholder livelihoods,gender roles,female empowerment,nutrition,dietary quality
    Date: 2019
    URL: http://d.repec.org/n?u=RePEc:zbw:crc990:24&r=all
  8. By: Lisa Cameron (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne); Diana Contreras Suárez (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne)
    Abstract: This paper examines the drivers of female labour force participation in Indonesia and disentangles the factors that have contributed to it remaining largely unchanged for two decades at around 51%. Data from the National Socioeconomic Survey (Susenas) and the Village Potential Statistics (Podes) over the period 1996 to 2013 are used to implement a cohort analysis which separates out life-cycle effects from changes over time in women’s labour market participation. We find that the raw labour market participation figures which show little change over time mask changes that offset one another in the current population. There is evidence of social norms changing to support women’s participation but this is offset by the effect of the changing industrial structure. Projections show that with the current policy settings Indonesia is unlikely to reach its G20 target of decreasing the gender gap in participation by 25% between 2014 and 2025.
    Keywords: Female labour force participation, labour markets, gender, Indonesia, cohort analysis
    JEL: O12 O15 J16 J21
    Date: 2018–10
    URL: http://d.repec.org/n?u=RePEc:iae:iaewps:wp2018n11&r=all
  9. By: Abdelaaziz Aït Ali; Rim Berahab
    Abstract: This study assesses and compares the determinants of intra-trade in the Economic Community of West African States (ECOWAS) and the Association of Southeast Asian Nations (ASEAN). Regarding the adopted methodology, we estimate two versions of the gravity model over intra-trade. For the two communities, the first model captures standard effects of the exporting and the importing economic size, the distance, contiguity, while the second model incorporates, as additional explanatory variables, the quality of infrastructure and the bilateral complementarity. The Pseudo Poisson Maximum Likelihood (PPML) technique is used to offset the systematic heteroscedasticity bias. The results show that the effort of export in ECOWAS captured through the elasticity to export is surprisingly higher than the ASEAN, once we control for the infrastructure and complementarity. Transaction costs, captured, inter alia, through the landlockness variable, are very informative in this case, as they has lost significance in the augmented gravity model mainly for the ECOWAS, meaning that what matters the most in this case is infrastructure base and complementarity index that allows the country to overcome geographic constraints. Then, we simulate the potential or the theoretical trade within the ECOWAS and compare it to observed data, using the coefficients estimated over the ASEAN. Results suggest that trade potential within the ECOWAS, remains below the potential given by the gravity model, especially for small economies in the community. This calls for pro-active strategic policies that aim to reap the benefits of trade liberalization and fulfill the potential. This comes through closing Africa’s infrastructure gap to reduce trade costs and the promotion of economic diversification. In fact, estimation results display higher sensitiveness to infrastructure and complementarity indexes in the ECOWAS than the ASEAN. Nonetheless, trade dynamics are more complicated and depend on several factors of which the centrality of local product competitiveness. The latter can indeed determine how far ECOWAS’s products can replace foreign products at least in the domestic market. A brief analysis of revealed comparative advantage (RCA) shows that aside from primary commodities, the majority of products imported by the ECOWAS are supplied by other countries who have a stronger RCA.
    Date: 2018–12
    URL: http://d.repec.org/n?u=RePEc:ocp:rpaper:rp1809&r=all
  10. By: Kubitza, Christoph; Dib, Jonida Bou; Kopp, Thomas; Krishna, Vijesh V.; Nuryartono, Nunung; Qaim, Matin; Romero, Miriam; Klasen, Stephan
    Abstract: Labor saving innovations are essential to increase agricultural productivity, but they might also increase inequality through displacing labor. Empirical evidence on such labor displacements is limited. This study uses representative data at local and national scales to analyze labor market effects of the expansion of oil palm among smallholder farmers in Indonesia. Oil palm is labor-saving in the sense that it requires much less labor per unit of land than alternative crops. The labor market effects depend on how oil-palm-adopting farm households reallocate the saved labor time; either to the off-farm sector or to cultivating additional land. If adopters increase their labor supply to the off-farm sector, employment and wages of rural laborers might decrease. This is especially true for female agricultural laborers, who are often employed in alternative crops but less in oil palm, as their labor productivity in this particular crop is lower than that of men. However, our results suggest that oil palm adoption in Indonesia largely led to the cultivation of additional land, entailing higher agricultural labor demand, especially for men. At the same time, the oil palm boom caused broader rural economic development, providing additional employment opportunities also in the non-agricultural sector, thus absorbing some of the female labor released from agriculture. Overall employment rates did not decrease, neither for men nor for women. While this is good news from economic and social perspectives, the cropland expansion contributes to deforestation with adverse environmental effects. Policies to curb deforestation are needed. Forest conservation policies should go hand-in-hand with measures to further improve rural non-agricultural employment opportunities, to avoid negative socioeconomic effects for poor rural laborers, and women in particular.
    Keywords: tree-planting,oil palm,intentions,mediation,Asia
    JEL: Q23 R14 J61
    Date: 2019
    URL: http://d.repec.org/n?u=RePEc:zbw:crc990:26&r=all
  11. By: Hector Hernandez Guevara (European Commission – JRC); Nicola Grassano (European Commission – JRC); Alexander Tuebke (European Commission – JRC); Lesley Potters (European Commission – JRC); Petros Gkotsis (European Commission – JRC); Antonio Vezzani (European Commission – JRC)
    Abstract: The 2018 edition of the EU Industrial R&D Investment Scoreboard (the Scoreboard) comprises the 2500 companies investing the largest sums in R&D in the world in 2017/18. These companies, based in 46 countries, each invested over €25 million in R&D for a total of €736.4bn which is approximately 90% of the world’s businessfunded R&D. They include 577 EU companies accounting for 27% of the total, 778 US companies for 37%, 339 Japanese companies for 14%, 438 Chinese for 10% and 368 from the rest-of-the-world (RoW) for 12%. This report analyses the main changes in companies’ R&D and economic indicators over the past year and their performance over the past ten years. It also includes a patent-based analysis aimed at characterising further the innovation activity of the business sector in the 28 member states of the EU. Finally, the report comprises a 10-year analysis of the performance of Scoreboard companies based in Asian countries, examining in particular the role of foreign direct investment and related mergers and acquisitions.
    Keywords: Industrial R&D, top R&D investors, innovation, company performance, economic and innovation performance
    Date: 2018–12
    URL: http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc113807&r=all
  12. By: Ericson, David P
    Keywords: Education
    Date: 2017–11–01
    URL: http://d.repec.org/n?u=RePEc:cdl:cshedu:qt8mp5b48r&r=all
  13. By: Nizam, Ahmed Mehedi
    Abstract: Here, we propose a taxation scheme towards the implementation of universal health care under Beveridge model. In our proposed framework, a small amount of health tax is imposed on each and every non-cash transaction including transactions through debit and credit card, credit transfer, direct debit and cheque which is found to be solely sufficient to cover up entire health expenditure of a nation. We have shown empirically that a $1.84$ USD levy on every non-cash transaction is enough to meet up the annual health expenditure in the CEMEA (Central Europe, Middle East and Africa) region. For Latin America (LA), Emerging Asia (EA), Mature Asia and the Pacific (MAP) and North America (NA) this value is found to be $4.51$, $2.04$, $15.93$ and $21.07$ USD respectively. Moreover, as the proposed levy is collectable electronically without any human intervention, no additional logistic support is required for the implementation of the scheme.
    Keywords: Universal Health Care; Non-cash Transaction, Beveridge Model; Health Care Funding Model; Health Insurance
    JEL: I0 I1 I10 I13 I18 I31 I38
    Date: 2019–04–21
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:93444&r=all
  14. By: William W. Olney (Williams College)
    Abstract: This paper examines the economic implications of the Jones Act, which is a 1920 U.S. cabotage law that restricts domestic waterborne shipments to American vessels. Since the passage of the Act, there has been a dramatic rise in the Asian maritime industry which has caused American shipbuilding to become uncompetitive. It is now eight times more expensive to build a large merchant ship in the U.S., and as a result most American shipyards have closed and the number of American built ships has plummeted. Thus, the Jones Act requirement that domestic shipments be transported on American built ships has become more onerous over time. The first set of findings show that this has reduced waterborne trade between U.S. states relative to other modes of transport, relative to waterborne exports, and especially in coastal states. Second, there is evidence that this reduction in domestic trade, due to the Jones Act, has increased prices within U.S. states, although the magnitude of this effect is modest. These findings support common, but to date unverified, claims that the Jones Act impedes domestic trade and drives up prices.
    Keywords: Trade policy, Non-tariff barriers, Cabotage, Jones Act, Domestic trade
    JEL: F13 F14
    Date: 2019–04
    URL: http://d.repec.org/n?u=RePEc:wil:wileco:2019-03&r=all
  15. By: Antonello Zanfei (Department of Economics, Society & Politics, Universit? di Urbino Carlo Bo); Andrea Coveri (Department of Economics, Society & Politics, Universit? di Urbino Carlo Bo); Mario Pianta (Scuola Normale Superiore, Florence)
    Abstract: The modern process of digitalization of the world economy entails global flows of investment in technology-based industries and knowledge activities located upstream of value chains. This work exploits the wealth of information offered by the fDi Markets database to provide an overview about the geographical patterns of FDIs and of specialization in digital industries and in technological activities.We showremarkable differences across both advanced and emerging economies in this respect. Europe is both a big attractor and a big investor in digital related business, but relies on emerging economies more to offshore production than to set up R&D labs in these countries. By contrast, North American economies are more prone to engage in knowledge intensive FDIs towards the most dynamic emerging countries than is the case of Europe.Emerging economies also play a large variety of rolesinglobal flows of investment in digital industries.However, with the relevant exceptions of China, India and the Four Asian Tigers, inward and outward FDIsof Emerging economies are predominantlyproduction-oriented, with a lower involvement in R&D, Design and ICT activities. Hence, the observed patterns of FDIs appear to consolidate existing hierarchies in digital related global production networks, creating limited upgrading opportunities in the case of most emerging economies.
    Keywords: Foreign direct investment, globalization, digitalization, global value chains.
    JEL: F12 F21 F23 L23 M21 O30
    Date: 2019
    URL: http://d.repec.org/n?u=RePEc:urb:wpaper:19_03&r=all
  16. By: Badi Baltagi (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244); Qu Feng (chool of Social Sciences, Nanyang Technological University, Singapore); Chihwa Kao (Department of Economics, University of Connecticut)
    Abstract: This paper extends Pesaran (2006) common correlated e¤ects (CCE) by allowing for endogenous regressors in large heterogeneous panels with unknown common structural changes in slopes and error factor structure. Since endogenous regressors and structural breaks are often encountered in empirical studies with large panels, this extension makes the Pesaran’s (2006) CCE approach empirically more appealing. In addition to allowing for slope heterogeneity and cross-sectional dependence, we find that Pesaran’s CCE approach is also valid when dealing with unobservable factors in the presence of endogenous regressors and structural changes in slopes and error factor loadings. This is supported by Monte Carlo experiments.
    Keywords: Structural Changes, Heterogeneous Panels, Common Correlated Effects, Endogeneity
    JEL: C23 C33
    Date: 2019–04
    URL: http://d.repec.org/n?u=RePEc:max:cprwps:214&r=all
  17. By: Mochamad Pasha (Consultant, World Bank, Indonesia); Marc Rockmore (Department of Economics, Clark University, USA); Chih Ming Tan (Department of Economics, University of North Dakota, USA; Rimini Centre for Economic Analysis)
    Abstract: We study the effect of early life exposure to above average levels of rainfall on adult mental health. While we find no effect from pre-natal exposure, post-natal positive rainfall shocks decrease average Center for Epidemiological Studies Depression (CESD) mental health scores by 15 percent and increase the likelihood of depression by 5 percent, a more than 20 percent increase relative to the mean. These effects are limited to females. We rule out prenatal stress and income shocks as pathways and find evidence suggestive of increased exposure to disease.
    Keywords: fetal origins, early life shocks, rainfall, mental health, climate change, Indonesia
    JEL: I15 O12
    Date: 2019–04
    URL: http://d.repec.org/n?u=RePEc:rim:rimwps:19-09&r=all
  18. By: Inaki Arto (Basque Centre for Climate Change – BC3); Jose M. Rueda-Cantuche (European Commission – JRC); Ignacio Cazcarro (Basque Centre for Climate Change – BC3); Antonio F. Amores (European Commission – JRC); Erik Dietzenbacher (University of Groningen); M. Victoria Roman (European Commission – JRC); Zornitsa Kutlina-Dimitrova (European Commission – TRADE)
    Abstract: The European Commission identified trade policy as a core component of the European Union's 2020 Strategy. The fast changing global economy, characterised by the dynamic creation of business opportunities and increasingly complex production chains, means that it is now even more important to fully understand how trade flows affect employment. Gathering comprehensive, reliable and comparable information on this is crucial to support evidencebased policymaking. Guided by that objective, the European Commission's Joint Research Centre (JRC) and the Commission's Directorate General for Trade have collaborated to produce this publication. It aims to be a valuable tool for trade policymakers. Following up the first edition (Arto et al, 2015), the report features a series of indicators to illustrate in detail the relationship between trade and employment for the EU as a whole and for each EU Member State using the new World Input-Output Database (WIOD), 2016 release (Timmer et al, 2015, 2016), as the main data source. This information has been complemented with data on employment by age, skill and gender from other sources such as EUKLEMS. All the indicators relate to the EU exports to the rest of the world so as to reflect the scope of EU trade policymaking. Most indicators are available as off 2000 but, due to data constraints, the indicators on employment split by skill, gender and age are only available from 2008 to 2014. The geographical breakdown of the data includes the 28 EU Member States, Australia, Brazil, Canada, China, India, Indonesia, Japan, Mexico, Norway, Russia, South Korea, Switzerland, Turkey, Taiwan, the United States of America, and an aggregate "Rest of the World" region. On the basis of the number of jobs embodied in every million EUR worth of exports in 2014 and more recent data on international trade in goods and services, this report also provides projections elaborated by the JRC for 2017 using a different methodology, so they should be taken with caution. The information presented in this pocketbook is complemented with an electronic version allowing downloads of the tables with the complete time series (2000-2014 and 2017).
    Keywords: Employment, Exports, European Union
    JEL: C67
    Date: 2018–11
    URL: http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc113071&r=all
  19. By: Inaki Arto (Basque Centre for Climate Change – BC3); Jose M. Rueda-Cantuche (European Commission – JRC); Ignacio Cazcarro (Basque Centre for Climate Change – BC3); Antonio F. Amores (European Commission – JRC); Erik Dietzenbacher (University of Groningen); M. Victoria Roman (European Commission – JRC); Zornitsa Kutlina-Dimitrova (European Commission – TRADE)
    Abstract: The European Commission identified trade policy as a core component of the European Union's 2020 Strategy. The fast changing global economy, characterised by the dynamic creation of business opportunities and increasingly complex production chains, means that it is now even more important to fully understand how trade flows affect income generation. Gathering comprehensive, reliable and comparable information on this is crucial to support evidence-based policymaking. Guided by that objective, the European Commission's Joint Research Centre (JRC) and the Commission's Directorate General for Trade have collaborated to produce this publication. It aims to be a valuable tool for trade policymakers. Following up the first edition (Arto et al., 2015), the report features a series of indicators to illustrate in detail the relationship between trade and income (i.e. value added) generation for the EU as a whole and for each EU Member State using the World Input-Output Database (WIOD), 2016 release (Timmer et al., 2015, 2016), as the main data source. This information has been complemented with data on labour compensation by skill from EUKLEMS. All the indicators relate to the EU's exports to the rest of the world so as to reflect the scope of EU trade policymaking. Most indicators are available as off 2000 but, due to data constraints, the indicator on labour compensation split by skill is only available from 2008 to 2014. The geographical breakdown of the data includes the 28 EU Member States, Australia, Brazil, Canada, China, India, Indonesia, Japan, Mexico, Norway, Russia, South Korea, Switzerland, Turkey, Taiwan, the United States of America, and an aggregate "Rest of the World" region. On the basis of the value added embodied in every million EUR worth of exports in 2014 and more recent data on international trade in goods and services, this report also provides projections elaborated by the JRC for 2017 using a different methodology, so they should be taken with caution. The information presented in this pocketbook is complemented with an electronic version allowing downloads of the tables with the complete time series (2000-2014 and 2017).
    Keywords: Income, Exports, European Union
    JEL: C67
    Date: 2018–11
    URL: http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc113072&r=all

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