nep-sea New Economics Papers
on South East Asia
Issue of 2019‒10‒14
27 papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Creating a unique mobile financial services framework for Myanmar: A Review By Dr Ma Nang Laik; Chester Mark Hong Wei
  2. Effects of Tourists' Trust on Behaviour Intention in the Thai Tourism Market: Mediating Effects of Perceived Authenticity By Angela Ya-Ping
  3. Ambidextrous Leadership in Manufacture Industry in Indonesia By Elfindah Princes
  4. Dana Desa on clean water and sanitation access in Indonesia: Does Cash-for-work (PKT) matter? By Isnawati Hidayah; Imam Mukhlis
  5. The Challenges of Universal Health Insurance in Developing Countries: Evidence from a Large-scale Randomized Experiment in Indonesia By Rema Hanna; Benjamin A. Olken
  6. Increasing Employee's Job Satisfaction Through the Implementation of Transformational Leadership and Work Stress Level Management By Bachruddin Saleh Luturlean
  7. The corruption growth relationship: Do political institutions matter? By Sen Kunal; Saha Shrabani
  8. A survey of the ocean’s plastic waste problem, and some policy developments of the Philippines By Abueg, Luisito
  9. Benefits of Community-driven Development program to improve livelihood: Case Study of Dana Desa (Village Funds) in Indonesia By Isnawati Hidayah; Imam Mukhlis; Denny Yarmawati
  10. Generating a Reform of the BRI from the Inside: Japan's Contribution Via Soft Law Diplomacy By Alisher UMIRDINOV
  11. The Impact of Market Orientation and Dynamic Marketing Capability on the Marketing Performance of 'Make-To- Order' SMEs By Yosef Budi Susanto
  12. The Influence of User Generated Content and Purchase Intention on Beauty Products By Firda Nosita
  13. The One-Child Policy and Chinese Saving Behavior By Zhongchen Song; Tom Coupé; W. Robert Reed
  14. The Influence of Online Review on Consumers' Purchase Intention By Yeshika Alversia
  15. Pegging or Floating? A Regime-Switching Perspective of Asian Exchange Rate Practices By Benjamin KEDDAD; SATO Kiyotaka
  16. [WTO Case Review Series No.26] European Union—Measures Affecting Tariff Concessions on Certain Poultry Meat Products (WT/DS492): Characteristics of the WTO Panel's Interpretation of Articles XIII and XXVIII of the GATT (Japanese) By HIRAMI Kenta
  17. Tax Administration vs. Tax Rates: Evidence from Corporate Taxation in Indonesia By Rema Hanna; Benjamin A. Olken
  18. Can Transparency and Accountability Programs Improve Health? Experimental Evidence from Indonesia and Tanzania By Dan Levy
  19. How Cities Erode Gender Inequality: A New Theory and Evidence from Cambodia By Alice Evans
  20. Economic shocks and labour market flexibility By Franklin, Simon; Labonne, Julien
  21. Who Wins in the World Economy and English Football? By Matt Andrews
  22. Not for you! The cost of having a foreign-sounding name in the Swedish private housing market By Molla, Hemrin; Rhawi, Caroline; Lampi, Elina
  23. How to Manage Customer Satisfaction through Brand Association and Perceived Value Strategy By Vonny Susanti
  24. Russia’s socioeconomic policy in 2018: national goals and a model of economic growth By Mau Vladimir
  25. Reappraisal of Japan-LAC Trade and Investment Relations Amid China's Ascendance By Mikio Kuwayama
  26. Informational Content of Factor Structures in Simultaneous Binary Response Models By Shakeeb Khan; Arnaud Maurel; Yichong Zhang
  27. First union formation among the children of immigrants in Norway. Timing and choice of union type By Kenneth Aarskaug Wiik

  1. By: Dr Ma Nang Laik; Chester Mark Hong Wei
    Abstract: Myanmar is languishing at the bottom of key international indexes. United Nations considers the country as a structurally weak and vulnerable economy. Yet, from 2011 when Myanmar ended decades of military rule and isolationism and transited towards democracy, its breakneck development has led to many considering the country to be one of the final frontiers for growth in the Asia region. One such industry that has benefitted from the opening of the country is telecommunications. The mobile penetration rate at 4.8% in 2011 has increased significantly to 90% in 2016. Despite renewed optimism and development in the economy, one statistic remains disappointing. According to a report by Asian Development Bank (ADB), only 23% of the adult population have access to a bank account. This highlights a need to reach out and increase access to financial resources to a population that is severely unbanked and underbanked. This creates an interesting proposition of allowing both the telecommunications and financial sector to form the mobile financial services (MFS) sector and meet the need of improving access to financial resources for the population. This report explores the government role in supporting, growing and sustaining the MFS sector and conducts a comparative research into Singapore, Malaysia and Thailand to understand the steps taken by these governments to develop their own Financial Technology (FinTech), specifically MFS, industry. Finally, the report will present preliminary recommendations that the Myanmar government could consider implementing to drive growth in its MFS sector.
    Date: 2019–10
  2. By: Angela Ya-Ping (Department of Tourism Management, China-ASEAN International College (CAIC) Dhurakij Pundit University, Bangkok, Thailand Author-2-Name: Chang Author-2-Workplace-Name: Department of Tourism Management, China-ASEAN International College (CAIC) Dhurakij Pundit University, Bangkok, Thailand Author-3-Name: Cheng-Yi, Kuo Author-3-Workplace-Name: Department of Tourism Management, China-ASEAN International College (CAIC) Dhurakij Pundit University, Bangkok, Thailand 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 increasing growth of the Thai tourism market has resulted in international tourists flooding into Thailand and providing significant economic benefits for the country's tourism development. The purpose of this research is to examine a comprehensive model for Thai tourism. This study aims to investigate how tourists' trust can enhance their behaviour intentions in travelling to Thailand through perceived authenticity. Methodology/Technique - The research tests a model linking trust to authenticity, and behaviour intention to current Thai tourism. Using a convenience sampling method, a sample of 453 international Asian tourists who travelled to Thailand were surveyed. Finding - The findings show that different levels of trust directly influence tourists' behavioural intentions, trust influences perceived authenticity, perceived authenticity further affects behaviour intention, and perceived authenticity mediates the relationship between tourists' trust and their behavioural intention. Moreover, demographic factors moderate the effects of trust on tourists' perceived authenticity. Novelty – The present research is expected to clarify the potential research topics in the field of Thai tourism development. Type of Paper - Empirical.
    Keywords: Tourists' Trust; Behaviour Intention; Perceived Authenticity; Thailand.
    JEL: M16 M30 M39
    Date: 2019–09–25
  3. By: Elfindah Princes (Bina Nusantara University, Indonesia Author-2-Name: Author-2-Workplace-Name: 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 - Leadership has evolved (Cogliser & Brigham 2004) and has become more dynamic than ever before (McClean et. al. 2019). Prior research has shown that ambidexterity generates persistent and conflicting demands within an organization (Koryak et. al. 2018), while others have been successful (Diaz- Fernandez, Pasamar-Reyes & Valle-Cabrera, 2017). This paper highlights the strengths and challenges of two popular leadership styles in Indonesia, namely: transactional leadership and transformational leadership using two concepts of ambidextirity, exploitation and exploration. Ambidextirity is believed to be the answer to recent market shifts and can also help organisations to solve future problems. However, there is not a clear theory to determine when, where, and how to use ambidexterity. Methodology/Technique - This study uses a systematic literature review (Okoli et. al., 2014, Okoli & John, 2015), 5 in-depth interviews, a case study and reports from Ministry of Commerce to provide a solid theory of ambidexterity. The writer concludes that having ambidextrous skills in leadership is mandatory for the manufacturing industry and will guarantee future success (Tushman & O'Reilly, 2012). Finding - There are some barriers in implementing ambidextrous capabilities in leadership, namely cognitive conflicts, inertia, and confusion pressure on when and how to balance both transactional leadership and transformational leadership. The writer suggests that high transactional leadership and high transformational leadership will increase firm performance. Novelty – This paper has several limitations such as the unavailability of data on ambidextrous leadership in Indonesia, the limited scope as this research is conducted in manufacturing industries which might have different results in other industries, and the relatively short period of data collection. Future studies should address these limitations. Type of Paper - Review.
    Keywords: Ambidextrous Leadership; Ambidextrous Organisations; Transformational; Transactional; Leadership Skills.
    JEL: M12 M19 O15
    Date: 2019–09–22
  4. By: Isnawati Hidayah (Wageningen University and Research); Imam Mukhlis (State University of Malang)
    Abstract: This paper estimates the impact of Dana Desa as a form of the community-driven development program (CDD) on clean water and sanitation improvement in Indonesia. The data used is Indonesian National Socioeconomic Survey (SUSENAS) from Statistics Indonesia (BPS) and the amount of Dana Desa?s money transfer in districts level from Ministry of Village, Development of Disadvantaged Regions And Transmigration (KEMENDESA) in 2015. The baseline data used is SUSENAS in 2014, and SUSENAS in 2016 as the data of post-intervention. The study used is quantitative analysis named difference-in-difference estimation (DID) which compare the outcome before (2014) and after (2016) the program using fixed-effect regressions. The analysis involves 405 districts and 810 observations of rural area. The study aims to assess the impact of Dana Desa on clean water and sanitation. The findings show that Dana Desa gives a positive and significant impact on sanitation access and clean water access in the districts where more people are working in informal sectors. Because they have more time to participate on supporting the program by joining cash-for-work (Padat Karya Tunai). This research is important to evaluate Dana Desa program as the biggest CDD program under President Joko Widodo?s era.
    Keywords: Dana Desa, Community-driven development, difference-in-difference, cash-for-work, community participation, rural area
    JEL: C10 C19 O22
    Date: 2019–10
  5. By: Rema Hanna (Center for International Development at Harvard University); Benjamin A. Olken
    Abstract: To assess ways to achieve widespread health insurance coverage with financial solvency in developing countries, we designed a randomized experiment involving almost 6,000 households in Indonesia who are subject to a nationally mandated government health insurance program. We assessed several interventions that simple theory and prior evidence suggest could increase coverage and reduce adverse selection: substantial temporary price subsidies (which had to be activated within a limited time window and lasted for only a year), assisted registration, and information. Both temporary subsidies and assisted registration increased initial enrollment. Temporary subsidies attracted lower-cost enrollees, in part by eliminating the practice observed in the no subsidy group of strategically timing coverage for a few months during health emergencies. As a result, while subsidies were in effect, they increased coverage more than eightfold, at no higher unit cost; even after the subsidies ended, coverage remained twice as high, again at no higher unit cost. However, the most intensive (and effective) intervention – assisted registration and a full one-year subsidy – resulted in only a 30 percent initial enrollment rate, underscoring the challenges to achieving widespread coverage.
    Keywords: Global Health
    JEL: I13 O15
    Date: 2019–10
  6. By: Bachruddin Saleh Luturlean (School of Communications & Business, Telkom University, Indonesia Author-2-Name: Arif Partono Prasetio Author-2-Workplace-Name: School of Economics & Business & Communication, Telkom Univeristy, Jl Telekomunikasi, 40257, Bandung, Indonesia Author-3-Name: Romat Saragih Author-3-Workplace-Name: School of Communications & Business, Telkom Univeristy, Jl Telekomunikasi, 40257, Bandung, Indonesia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: Objective - The objective of this paper is to examine the relationship between transformational leadership, work stress and job satisfaction. Based on previous studies, we proposed that work stress will mediate the relationship between transformational leadership and employees' job satisfaction. Methodology/Technique - Data was collected from 248 employees working in three organizations in Java Island, Indonesia. To test the hypotheses, we used regression analysis and a boostrapping approach with a Macro Process. Finding - The results of this study show that transformational leadership has a positive relationship with employee job satisfaction. However, transformational leadership does not have significant relationship with work stress. This therefore means that there is no mediation of work stress either. Novelty – This empirical study provides a first glance at the correlation between the variables. Future studies should consider using more participants from across Indonesia to properly reflect the cultural difference among other provinces. Type of Paper - Empirical.
    Keywords: Work Motivation; Job Satisfaction; Affective Commitment; Mediation; Human Resources.
    JEL: M10 M12 M19
    Date: 2019–09–26
  7. By: Sen Kunal; Saha Shrabani
    Abstract: Corruption is widely believed to negatively affect economic growth. However, many East and Southeast Asia countries either achieved or currently are achieving impressively rapid economic growth despite widespread corruption — the ‘East Asian Paradox’. Is this negative relationship equally likely to hold for autocracies and democracies? This paper examines the role of political institutions in mediating the corruption–growth relationship using panel data over one hundred countries for the period 1984–2016. We find clear evidence that corruption–growth relationship differs by the type of political institution, and the growth enhancing effect of corruption is more likely in autocracies than in democracies. The perceived credibility of long-term ruling political elites by promoting economic freedom to do business gives confidence to the firms, vital for investment and growth. Our findings provide suggestive evidence in support of the East Asian Paradox.
    Keywords: Panel data analysis,Democracy,Corruption,Economic growth
    Date: 2019
  8. By: Abueg, Luisito
    Abstract: A review of literature the state of ocean clean-up and how is the Philippines contributing to problem of plastic disposal globally. This paper focuses on the problems related to the generation, use, and disposal of single-use plastics. This also presents a review on recent policy formulation and implementation in addressing such problems, both on the level of local government units and the national key agencies. Anecdotal examples of business initiatives are also cited in literature review.
    Keywords: plastics, single-use refuse, ocean clean-up, ocean pollution, ocean garbage patches, plastic use bans, recycling, Philippine environmental laws, solid waste management
    JEL: Q52 Q53 Q56
    Date: 2019–10–01
  9. By: Isnawati Hidayah (Wageningen University and Research, Netherlands); Imam Mukhlis (State University of Malang); Denny Yarmawati (Staff member of DPR RI**)
    Abstract: Indonesia has been implementing Dana Desa (Village Funds) program since 2015. It is a form of the community-driven development approaches in rural areas which involves more than 74.000 villages. This research presents a case study from Ponggok village, Jetak Village, and Ngadas Village, which have successfully implemented Dana Desa. The central government appoints them as the national role models on implementing Dana Desa. They show that benefits from CDD (community-driven development) program can fulfil their needs, especially on developing clean water and sanitation access which leads to improving their livelihood. This research uses a qualitative approach using case study methodology. The research uses purposive sampling, by which, collecting data is done by interviewing, documenting, and observing the samples. It discusses several social factors which are claimed to have been contributing to the success of the implementation of Dana Desa programs, such as the role of central and local government, social capital and community participation. It aims to analyse the study case that is expected to be a lesson learned for government, practitioners and other village government, to make sure that Dana Desa is well-implemented in their areas. It is concluded that Dana Desa can be well-implemented if the villages have decent community participation, leadership, and suitable planning.
    Keywords: Community-driven Development, livelihood, community participation, social capital, Village Fund**This proceedings did not represent DPR RI official research. It is funded by LPDP RI (Indonesia Endowment Funds for Education)
    JEL: O10 O22 H43
    Date: 2019–10
  10. By: Alisher UMIRDINOV
    Abstract: This paper investigates whether there is space for Japan to maneuver soft law mechanisms regarding China to ensure conformance of Belt and Road Initiative (BRI) projects to high-level standards. The author posits that with its unique geographic position, sharp rivalry in ASEAN, and strongly intertwined and complementary market with China, Japan's potential to reform the BRI from the inside should not be underestimated. Rather, by stubbornly adhering to high-level "Quality Infrastructure Investment" (QII) principles promoted by the G7 countries in the last three years, Japan has successfully pulled China toward these principles, enabling it to endorse the notion of high-quality infrastructure in the second BRI forum. Under Japanese presidency, the G20 Osaka summit also vastly contributed to upgrading the level and normative content of the QII principles. Moreover, despite its soft law and less-institutional nature, effective utilization of the Japan-China Memorandum on Business Cooperation in Third Countries can provide Japan with some new tactics that can restrain harmful economic activities of Chinese companies in its markets. At this point, the Sino-Japanese collaboration in Thailand's East-West Economic Corridor Program will test whether the Chinese government is sincerely marketing "Third Party Market Cooperation" or if it is just another futile attempt.
    Date: 2019–09
  11. By: Yosef Budi Susanto (Universitas Multimedia Nusantara, Jl. Boulevar Gading Serpong, Tangerang, Indonesia Author-2-Name: Author-2-Workplace-Name: 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 - Literature suggest that companies should focus their Market Orientation (MO) on good marketing and business performance. However, previous research in this area deals mostly with large companies. The objective of this research is to study the significance of MO for small and medium enterprises (SMEs) with the specific production strategy of Make-To-Order.Methodology/Technique - The sample of this study is 111 Indonesia SMEs. The descriptive research design is supported by exploratory research. The structural model is analysed using the Structural Equation Modelling approach with LISREL 8.8 and SPSS 16.00.Finding - The result shows that MO does not have a significant impact on Marketing Performance. In the context of MTO, SMEs do not need to have a high Market Orientation to have satisfactory performance. It is more important for them to take care of the relationship with their principal companies. Government regulations, such as raw material regulations, also have an impact on SMEs performance. It is recommended that future research explore the types of capabilities of SMEs relating with the era of Industry 4.0. Other strategic orientations, such as production orientation, could be considered as factors in future research. Type of Paper - Empirical.
    Keywords: Strategic Leadership Competence; Entrepreneurial Orientation; Market Orientation; Dynamic Marketing Capability; Business Environment; Marketing Performance; Maklun (MTO Strategy).
    JEL: M3 M30 M31
    Date: 2019–09–20
  12. By: Firda Nosita (Department of Management, Sekolah Tinggi Ilmu Ekonomi Pancasetia, Indonesia Author-2-Name: Tina Lestari Author-2-Workplace-Name: Department of Management, Sekolah Tinggi Ilmu Ekonomi Pancasetia, Indonesia 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 thrive of social media enables everyone to share their purchase and consumption experiences, including beauty product consumption. The study aims to determine whether the attitude towards UGC, perceived credibility and user activity of UGC on YouTube influences the purchase intention toward a beauty product. Methodology/Technique - Questionnaires were distributed online to 200 people who had watched beauty product review videos on YouTube at least once and who were minimum 18 years old. The data was analyzed using multiple regression. Finding - The results indicate that attitudes towards UGC content on YouTube and perceived credibility affect purchasing intentions. Whereas user activities does not correlate with purchase intentions on beauty products. UGC content usually provides information and provides tips and tricks about using beauty products. The more attractive the content is, the more people want to see it and the more likely they will be to use the content to fulfill their information needs. Beauty vloggers are considered more credible than producer-generated content. Activities such as searching for, liking, subscribing or commenting does not necessarily indicate purchase intentions. This simply represents people fulfilling their social needs to interact with each other in a social environment. Novelty – Companies could provide training or facilities for UGC creators in order to create more attractive content. The most important finding of this study is that companies should continually improve the quality of their products, because the credibility of content makers relies on their experience with the products themselves. Marketers should monitor community discussions to find out more about the public interest in their products. In addition, marketers can also identify the shortcomings of their products to better enable them to fix them by reviewing comments on UGC. Type of Paper - Empirical.
    Keywords: User Generated Content (UGC); Beauty Vlogger; Beauty Product; E-WoM; YouTube.
    JEL: M31 M37 M39
    Date: 2019–09–28
  13. By: Zhongchen Song; Tom Coupé (University of Canterbury); W. Robert Reed (University of Canterbury)
    Abstract: Researchers have long puzzled over China’s high saving rate. Some have hypothesized that the explanation lies with China’s One-Child Policy (OCP). According to this hypothesis, faced with fewer children to support them in their old age, Chinese parents increased their saving to finance retirement. Previous research relied on empirical studies of the relationship between children and saving behavior. However, all of these studies based their analysis on data after the OCP was implemented. Their implicit counterfactual for China without an OCP was households with multiple children living in an OCP environment. In contrast, we compare Chinese people with people from regions that do not have restrictive population policies (Taiwan, Hong Kong, Singapore, Malaysia, Japan, and South Korea). These regions share many cultural and demographic characteristics with China that suggest they can be used as a counterfactual for China. This approach also enables us to employ a Blinder-Oaxaca decomposition procedure to identify the different channels by which children could affect savings. Our main finding is that there is little difference in the saving behavior of Chinese people with their regional counterfactuals. This is evidence against the hypothesis that the OCP was a major contributor to China’s high saving rate. It also suggests that the recent relaxation of the OCP cannot be counted upon to boost Chinese consumption.
    Keywords: China, One-Child Policy, Saving rate, Demographics, Blinder-Oaxaca decomposition
    JEL: D14 E21 J13 J18 O10
    Date: 2019–10–01
  14. By: Yeshika Alversia (Faculty of Economics and Business Universitas Indonesia, Jakarta, Indonesia Author-2-Name: Anindita R. Aditya Author-2-Workplace-Name: Faculty of Economics and Business Universitas Indonesia, Jakarta, Indonesia 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 development of cafe businesses in Indonesia has recently increased, making the level of competition become tighter. This is what makes cafe business able to maintain the loyalty of the customer, due to consumers' tending to try new things or places. In this context, research was conducted to determine the impact of online reviews on a review website platform on consumer purchase intention in choosing the first visited cafe. Methodology/Technique - The customer's decision-making is affected by various factors such as review platforms, other customer reviews, and property characteristics as well as the customer's profile itself. Previous research models have become a reference for this study, and this study was conducted by collecting data from questionnaires that were distributed using an online survey. Finding - This study identified six features of online review content and one source attribute, namely timeliness, reviewer expertise, usefulness, volume, positive online reviews, negative online reviews, and comprehensiveness. Regression analysis was used to examine the impact of these attributes on consumer purchase intention. Novelty – The results of the regression analysis showed significant relationships among variables like usefulness, volume, timeliness, positive online reviews, negative online reviews, and comprehensiveness, along with property characteristics on consumer's purchase intention. Type of Paper - Empirical.
    Keywords: Online review, electronic word-of-mouth, review website platform, purchase intention
    JEL: M30 M31 M39
    Date: 2019–09–23
  15. By: Benjamin KEDDAD; SATO Kiyotaka
    Abstract: We propose a two-state Markov-switching version of the Frankel and Wei (MS-FW) model to assess Asian exchange rate policies during the period from August 2005 to August 2016. We impose coefficient constraints on FW coefficients to detect floating and pegging episodes against the main anchor currencies, such as the U.S. Dollar (USD), Renminbi (RMB), Euro, Japanese Yen and Asian Currency Unit. After estimating episodes where Asian currencies co-move with international currencies, we link the estimated regime probabilities to a set of economic fundamentals of Asian countries to identify the determinants of exchange rate regimes in Asia. We reveal that most Asian countries tend to constantly adjust the weight of their currency basket. When Asian countries loosen their peg against the USD, these currencies tend to increase their correlation with the RMB. However, the soft USD peg regime has a longer duration in most Asian countries, while the regime with a large RMB weight tends to be of shorter duration. Finally, we show that China's trade dependence is a key factor in pegging Asian currencies to RMB, though export similarity with China does not necessarily facilitate the RMB regime.
    Date: 2019–09
  16. By: HIRAMI Kenta
    Abstract: China, which is expanding its export of poultry products in recent years, brought the claims concerning the European Union's (EU) modification of its tariff concessions on certain poultry products and the institution of the tariff rate quotas (TRQs) on these products. Since this WTO dispute is a rare case which concerns the interpretation of GATT Articles XXVIII and XIII, the panel grappled with various interpretative issues with no judicial precedent in the GATT/WTO and newly provided legal interpretations of these issues. The Panel rejected most claims made by China but found that the EU's allocation of the TRQs shares among supplying countries was inconsistent with the requirement of Article XIII:2. This finding provides China gains with an important foothold toward the expansion of poultry products export to the EU market. In implementing the panel's recommendations and rulings, however, it is expected that difficulties will arise, as there are other WTO Members which also have a supplying interest behind this dispute. Namely, the allocation of the TRQs made by the EU had been closely interrelated with the GATT Article XXVIII negotiations with Thailand and Brazil, which are major suppliers of poultry products. Therefore, if the EU reallocates the TRQs only in relation to China, new legal problems will arise in relation to Brazil and Thailand.
    Date: 2019–08
  17. By: Rema Hanna (Center for International Development at Harvard University); Benjamin A. Olken
    Abstract: Developing countries collect a far lower share of GDP in taxes than richer countries. This paper asks whether changes in tax administration and tax rates can nevertheless raise substantial additional revenue – and if so, which approach is most effective. We study corporate taxation in Indonesia, where the government implemented two reforms that differentially affected firms. First, we show that increasing tax administration intensity by moving the top firms in each region into “Medium-Sized Taxpayer Offices,” with much higher staff-to-taxpayer ratios, more than doubled tax revenue from affected firms over six years, with increasing impacts over time. Second, using non-linear changes to the corporate income tax schedule, we estimate an elasticity of taxable income of 0.59, which implies that the revenue-maximizing rate is almost double the current rate. The increased revenue from improvements in tax administration is equivalent to raising the marginal corporate tax rate on affected firms by about 23 percentage points. We suggest one reason improved tax administration was so effective was that it flattened the relationship between firm size and enforcement, removing the additional “enforcement tax” on large firms. On net, our results suggest that improving tax administration can have significant returns for developing country governments.
    Keywords: Tax Administration
    JEL: H25 H26 O23
    Date: 2019–10
  18. By: Dan Levy (Center for International Development at Harvard University)
    Abstract: We assess the impact of a transparency and accountability program designed to improve maternal and newborn health (MNH) outcomes in Indonesia and Tanzania. Co-designed with local partner organizations to be community-led and non-prescriptive, the program sought to encourage community participation to address local barriers in access to high quality care for pregnant women and infants. We evaluate the impact of this program through randomized controlled trials (RCTs), involving 100 treatment and 100 control communities in each country. We find that on average, this program did not have a statistically significant impact on the use or content of maternal and newborn health services, nor the sense of civic efficacy or civic participation among recent mothers in the communities who were offered it. These findings hold in both countries and in a set of prespecified subgroups. To identify reasons for the lack of impacts, we use a mixed-method approach combining interviews, observations, surveys, focus groups, and ethnographic studies that together provide an in-depth assessment of the complex causal paths linking participation in the program to improvements in MNH outcomes. Although participation in program meetings was substantial and sustained in most communities, and most attempted at least some of what they had planned, only a minority achieved tangible improvements and fewer still saw more than one such success. Our assessment is that the main explanation for the lack of impact is that few communities were able to traverse the complex causal paths from planning actions to accomplishing tangible improvements in their access to quality health care.
    Keywords: Health Outcomes
  19. By: Alice Evans (Center for International Development at Harvard University)
    Abstract: Support for gender equality has risen, globally. Analyses of this trend focus on individual and/or country-level characteristics. But this overlooks sub-national variation. Citydwellers are more likely to support gender equality in education, employment, leadership, and leisure. Why is this? This paper investigates the causes of rural-urban differences through comparative, qualitative research. It centres on Cambodia, where the growth of rural garment factories enables us to test theories that female employment fosters support for gender equality: potentially closing rural-urban differences; or whether other important aspects of city-living accelerate support for gender equality. Drawing on this rural and urban fieldwork, the paper suggests why social change is faster in Cambodian cities. First, cities raise the opportunity costs of gender divisions of labour – given higher living costs and more economic opportunities for women. Second, cities increase exposure to alternatives. People living in more interconnected, heterogeneous, densely populated areas are more exposed to women demonstrating their equal competence in socially valued, masculine domains. Third, they have more avenues to collectively contest established practices. Association and exposure reinforce growing flexibility in gender divisions of labour. By investigating the causes of subnational variation, this paper advances a new theory of growing support for gender equality.
    Keywords: Learning and Evaluation
    Date: 2019–06
  20. By: Franklin, Simon; Labonne, Julien
    Abstract: We test how labour markets adjust to large, but temporary, economic shocks in a context in which such shocks are common. Using an individual-level panel, from 1,140 Philippine municipalities over 26 quarters, we find that workers in areas affected by strong typhoons experience reductions in hours worked and hourly wages, without evidence of layoffs. The results are strongest for formal, wage-paying jobs. We argue that those results are best explained by implicit contracts where workers and firms share risks. We provide extensive qualitative data suggesting that employment contracts in the Philippines allow for such flexibility.
    JEL: J1 R14 J01
    Date: 2019–11–01
  21. By: Matt Andrews (Center for International Development at Harvard University)
    Abstract: Globalization has fed significant economic gains across the world. The gains lead some policymakers in developing countries to believe in the potential of ‘catch up’—where they leverage the gains of an open world economy to foster rapid progress and compete with more developed nations. This belief is particularly evident in countries like Rwanda, where policymakers aspire to turn the country into ‘Africa’s Singapore’. This paper asks if such aspiration is realistic: Do developing countries really gain enough from globalization to catch up to more developed countries? The paper examines the world economy as a league in which countries compete for winnings (manifest in higher income and production). Wealthier countries are in the top tiers of this league and poorer countries are in the lower tiers. The paper asks if gains from the last generation of growth have been distributed in such a way to foster ‘catch up’ by lower tier countries, and if we see these countries ‘catching up’ by moving into higher tiers. This analysis of the world economy is compared with a study of English football, where over 90 clubs play in an multi-tier league system. Prominent examples of ‘catch up’ in this system include Leicester City’s rise from the third tier in 2008 to become first tier champion in 2015. The paper asks if such ‘catch up’ is common in English football, given the way winnings are distributed, and if ‘catch up’ is more common in this context than in the world economy more generally.
    Keywords: Globalization
    Date: 2019–01
  22. By: Molla, Hemrin (Department of Economics, School of Business, Economics and Law, Göteborg University); Rhawi, Caroline (Department of Economics, School of Business, Economics and Law, Göteborg University); Lampi, Elina (Department of Economics, School of Business, Economics and Law, Göteborg University)
    Abstract: Both immigration and a troubling housing deficit have increased rapidly in Sweden over the past 20 years. Today, up to 33 percent of the people living in the largest Swedish cities are immigrants. In this Internet-based field experiment, we investigated whether there exists discrimination in the Swedish private rental housing market based on the names of apartment seekers. We used a correspondent test by randomly sending out equivalent applications from four fictitious, highly educated, and seemingly “well-behaved” male applicants in response to a number of randomly selected private housing ads. Each advertiser received applications from two applicants with names signalling Swedish, Arab/Muslim, Eastern European, or East Asian ethnicity. Our results clearly confirm previous findings that persons with a name traditionally associated with the majority group in the respective community receive more call backs than others. When comparing our results with previous discrimination research focusing on Swedish housing market, we find that a man with an Arab/Muslim-sounding name needs to apply for clearly more rental objects in order to get a call back compared with just 10 years ago. Our results strongly indicate that the name of a person matters a great deal when applying for a rental object.
    Keywords: Discrimination; housing market; field experiment; correspondent test
    JEL: J71 R21
    Date: 2019–10
  23. By: Vonny Susanti (Graduate School of Management and Business, Bogor Agricultural University, Indonesia Author-2-Name: Ujang Sumarwan Author-2-Workplace-Name: Department of Family and Consumer Science, Graduate School of Management and Business, Bogor Agricultural University, Indonesia Author-3-Name: Megawati Simanjuntak Author-3-Workplace-Name: Department of Family and Consumer Science, Graduate School of Management and Business, Bogor Agricultural University, Indonesia Author-4-Name: Eva Z Yusuf Author-4-Workplace-Name: Graduate School of Management and Business, Bogor Agricultural University, Indonesia Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: Objective - The purpose of this study is to identify which factor has a stronger influence on customer satisfaction: perceived value or brand association. By understanding the influencer, the seller understands what policies and implications should be addressed to maintain and even enhance customer loyalty.Methodology/Technique - This empirical study uses a quantitative method and employs a PLS program to ensure a correlation between the constructs. Finding - The study concludes that brand association is a crucial determinant factor in customer satisfaction. Brand associations influence satisfaction relatively more than perceived value does. From the customer perspective, brand associations are affected more by salesman personality than brand image. Type of Paper - Empirical.
    Keywords: Brand Association; Brand Image; Perceived Value; Salesman Personality; Satisfaction.
    JEL: M30 M31 M39
    Date: 2019–09–23
  24. By: Mau Vladimir (RANEPA)
    Abstract: A number of unique anniversaries fell in 2018–2019: 30 years since the collapse of the communist system, 20 years since the start of the Asian economic crisis, 20 years since the introduction of the Euro (the new currency was introduced into noncash circulation on 1 January 1999), and 10 years since the development of the global structural crisis. There is a specific date that is important in the history of the Russian economy and economic policy: in 1999 the ten-year decline changed to economic growth, which led to doubling the GDP and a restoration of the pre-crisis level by 2008. These are not just anniversaries of events that remain in the past but key milestones of socioeconomic development that in many ways formed the priorities and phobias of the political elite of the world’s leading countries, both developed and developing. These events of the past continue to have significant influence of today’s economic policy.
    Keywords: Russian economy, economic growth, economic crisis
    JEL: P16 P26 P48
    Date: 2019
  25. By: Mikio Kuwayama (Research Fellow of Kobe University Research Institute for Economics and Business (RIEB) and Managing Director of the Japan Association of Latin America and the Caribbean (JALAC))
    Abstract: Though LAC's bilateral trade with Japan has not been as buoyant as that with China in recent years, Japan's trade relations with the region is more diversified and balanced in terms of trading partners, product composition, and trade balance. Furthermore, business activities of Japanese subsidiaries operating in the region are conducive to employment creation, export expansion (especially to third-country markets), and global value-chain developments in the region. In addition, Japan's FDI flows to LAC fare quite well when compared with those from China in both quantitative and qualitative respects: Japan's FDI stock is high and is diversified among targeted industries, thereby contributing to technological transfer and human resource development. Moreover, Japan has been a significant source of development finance for the LAC region; the present scale of JBIC's operations in Latin America rivals those of Chinese policy banks. The nature and scope of JICA's activities in LAC suggest the relationship between Japan and the LAC region has transformed from "Japan as donor and LAC as recipient" to "Japan-LAC global partners." As a result of the preceding, LAC nations are increasingly viewed by Japan as essential economic and political partners as Japan promotes its model of cooperation and economic governance in the Asia-Pacific region and globally. In short, cooperation has been an integral part of the Japan-LAC relationship, demonstrating how interactions in the private sector open space for government-to-government cooperation and vice versa. Strengthening commercial relations with Japan by reciprocally applying the public-private partnership (PPP) principle will assist LAC countries in addressing some structural problems and challenges of long data.
    Date: 2019–10
  26. By: Shakeeb Khan (Boston College); Arnaud Maurel (Duke University); Yichong Zhang (Singapore Management University)
    Abstract: We study the informational content of factor structures in discrete triangular systems. Factor structures have been employed in a variety of settings in cross sectional and panel data models, and in this paper we formally quantify their identifying power in a bivariate system often employed in the treatment effects literature. Our main findings are that imposing a factor structure yields point identification of parameters of interest, such as the coefficient associated with the endogenous regressor in the outcome equation, under weaker assumptions than usually required in these systems. In particular, we show that an exclusion restriction, requiring an explanatory variable in the outcome equation to be excluded from the treatment equation, is no longer necessary for identification. Under such settings, we propose a rank estimator for both the factor loading and the causal effect parameter that are root-n consistent and asymptotically normal. The estimator’s finite sample properties are evaluated through a simulation study. We also establish identification results in models with more general factor structures, that are characterized by nonparametric functional forms and multiple idiosyncratic shocks.
    Keywords: Factor Structures, Discrete Choice, Causal Effects
    Date: 2019–09–15
  27. By: Kenneth Aarskaug Wiik (Statistics Norway)
    Abstract: Using Norwegian register data on all individuals born 1985 to 2000 who were either nativeborn or who immigrated as children or teens (N=1,013,734), the current study investigated timing of first co-residential union and choice of union type in the period 2005 through 2018. Descriptive results showed that 64% of the second generation (Norwegian-born children of immigrants) and 75% of the 1.5 generation (immigrated prior to age 18) chose cohabitation as first union, compared with 94% of those without a migration background. Results from competing risk event history models confirmed that second-generation immigrants, and particularly women, were more likely to marry directly and less likely to cohabit than those belonging to the 1.5 generation and Norwegians without a migration background. Secondgeneration individuals originating from Turkey, Pakistan, Morocco, Kosovo, Sri-Lanka, and India were more prone to marry directly than the native-born children of immigrants from other non-Western countries. Conversely, second-generation Iranians were less likely to marry, whereas those originating from Vietnam and Bosnia and Herzegovina were most likely to cohabit. The chance of marrying directly decreased across the study period among immigrant-background and majority individuals alike.
    Keywords: First union formation; Cohabitation; Marriage; The Second generation; Immigrants; Norway
    JEL: J10 J12 J15
    Date: 2019–09

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