nep-sea New Economics Papers
on South East Asia
Issue of 2020‒09‒28
25 papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Do electricity consumption and economic growth lead to enviromental pollution: Empirical evidence from association of Southeast Asian countries By Nguyen, V.C.; Thanh, Hai Phan; Nguyen, Thu Thuy
  2. Enhancing Financial Connectivity between Asia and Europe: Implications for Infrastructure Convergence between the Two Regions By Yoshino, Naoyuki; Hossain, Monzur; Taghizadeh-Hesary, Farhad
  3. Maize production, farm size, and tied credit in Southern Shan State, Myanmar By Fang, Peixun; Belton, Ben
  4. Distributional impact of the rice tariffication policy in the Philippines By Balié, Jean; Minot, Nicholas; Valera, Harold Glenn
  5. Monitoring the impact of COVID-19 in Myanmar: Agricultural commodity traders - May 2020 survey round - An analytical summary [in Burmese] By Goeb, Joseph; Boughton, Duncan; Maredia, Mywish K.; Zu, A. Myint; Synt, Nang Lun Kham
  6. Monitoring the impact of COVID-19 in Myanmar: Urban food retailers - Early July 2020 survey round [in Burmese] By Masias, Ian; Goeb, Joseph; Lambrecht, Isabel; Maredia, Mywish K.; Win, Khin Zin
  7. Improvement of Learning Achievement of Small Schools in Thailand by Educational Network Operating Management System (EdNet-OMS): A Case Study of Ban Wang Takian School in Kanchanaburi Province By CHOOCHAT PHUANGSOMJIT
  9. Determinates of factors influencing job satisfaction and organizational loyalty By Vuong, Bui Nhat
  10. Factors Influencing Resilience of Micro Small and Medium Entrepreneur (MSME) during Covid 19 Outbreak in South Sulawesi Province Indonesia By Hidayat, Muhammad; Latief, Fitriani; Nianti, Dara Ayu; Bahasoan, Shandra; Widiawati, Andi
  11. The Beneficial Impacts of COVID-19 Lockdowns on Air Pollution: Evidence from Vietnam By Dang, Hai-Anh; Trinh, Trong-Anh
  12. Assessing the impacts of COVID-19 on household incomes and poverty in Myanmar: A microsimulation approach - An analytical summary [in Burmese] By Diao, Xinshen; Mahrt, Kristi
  13. Developing Natuna: Integrating Tourism, Marine and Infrastructure Strategies towards Implementing Indonesia’s Global Maritime Fulcrum. Author: Tirta Nugraha Mursitama, Yi Ying, Bahtiar Saleh Abbas By Ahmad, Abdul
  14. Escaping to nature in pandemic: a natural experiment of COVID-19 in Asian cities By LU, Yi; Zhao, Jianting; Wu, Xueying; Lo, Siu Ming
  15. Factors affecting non-performing loans of commercial banks: The role of bank performance and credit growth By Dao, Kieu Oanh; Nguyen, Thi Yen; Hussain, Sarfraz; Nguyen, V.C.
  16. Access to Land and Tenancy Practices on Tanah Bengkok: Evidence from Java, Indonesia By Kurosaki, Takashi; Paul, Saumik; Witoelar, Firman
  18. A Rolling Optimized Nonlinear Grey Bernoulli Model RONGBM(1,1) and application in predicting total COVID-19 cases By NGO, Hoang Anh; HOANG, Thai Nam
  20. Pesticide Efficiency and Determinants of Overuse: A comparison between rice and fruit production in Vietnam By Tran, Lan T.; Skevas, Teo; McCann, Laura
  21. What drives the profit rates of islamic banks ? Malaysia’s case By Fairuz, Sharifah; Masih, Mansur
  22. Variance Gamma Model in Hedging Vanilla and Exotic Options By Bartłomiej Bollin; Robert Ślepaczuk
  23. Triple Helix Innovation Model: Inspiration from Germany By Wicaksono, Hendro
  24. The Effect of Finance on Inequality in Sub-Saharan Africa: Avoidable CO2 emissions Thresholds By Simplice A. Asongu; Xuan V. Vo
  25. The Novel Coronavirus (Covid-19): Theoretical and practical perspectives on children, women and sex trafficking By Simplice A. Asongu; Usman M. Usman; Xuan V. Vo

  1. By: Nguyen, V.C.; Thanh, Hai Phan; Nguyen, Thu Thuy
    Abstract: Nowadays, environmental pollution has become a global problem and common to both developed and developing countries. The purpose of this study is to analyze the environmental pollution during the period from 1990 to 2014 in order to discuss the most important factors can effect environmental quality in a specific region in Asia. Using a panel data, in particular generalized least squares model for the sample with T large, N small examined by Pesaran (2006), Sickles and Horrace (2014), our results that a less developed country has a lower level of environmental pollution than a more developed country. More specifically, countries such as Singapore, Malaysia, Thailand, Indonesia, Philippines, and Vietnam have a positive and significant effect on environmental degradation, but no effect for Myanmar. In regard to environmental quality across year, environmental pollution has become even more urgent over time. Specifically, a negative and significant effect can be found in the period from 2005 to 2014 but insignificant effect in the period from 1991 to 2004, and the magnitude of effect has increasingly increased. Further, electricity consumption and income have a positive and significant effect on environmental pollution. However, although export performance has a negative effect on environmental pollution but this effect was insignificant.
    Date: 2020–08–09
  2. By: Yoshino, Naoyuki (Asian Development Bank Institute); Hossain, Monzur (Asian Development Bank Institute); Taghizadeh-Hesary, Farhad (Asian Development Bank Institute)
    Abstract: While discussing the enhancement of the connectivity between Europe and Asia, we explore a new area of cooperation, which is the use of European long-term investment funds in Asia’s infrastructure. We argue that, if Asian countries agree to offer 50% of their spillover revenue to infrastructure investors from Europe, it will increase the rate of return of long-term investment funds, such as pension and insurance funds. This will create a win–win situation for both Asia and Europe, because investment in infrastructure will enhance various spillover benefits and increase the savings in these countries, which will ultimately enhance the economic growth in the Asian countries. On the other hand, idle European funds will generate higher returns from infrastructure investments in Asia, which will also be beneficial for European countries. This approach will reduce the divergence in infrastructure between the two regions and encourage regional connectivity, such as the People’s Republic of China’s Belt and Road Initiative. With some empirical evidence, we also highlight the methods of spillover revenue collection and approaches to share the revenues. It is important for Asian countries to review the approaches and develop some institutional mechanisms to allow private investors in infrastructure. Moreover, Asian and European leaders, for example in the Asia–Europe Meeting, might devise appropriate methods that would allow European long-term investors to invest in Asian infrastructure needs.
    Keywords: financial connectivity; infrastructure investments; spillover tax revenue; pension and insurance funds; Europe; Asia
    JEL: F36 F37 O22 O23 O24
    Date: 2020–01–22
  3. By: Fang, Peixun; Belton, Ben
    Abstract: This report presents results from by far the most comprehensive survey of maize cultivators ever conducted in Myanmar. This research was designed to test characterizations of hybrid maize farming from the literature on Myanmar empirically, and identify implications for development policy and programming. Our survey represented the population of all maize growing village tracts in the nine major maize growing townships of southern Shan where the security situation at the time of the survey permitted access. A total 884 maize growing and 678 non-maize growing rural households were interviewed. We summarize key survey results and their implications below. Numbers of maize growers in southern Shan more than tripled between 2007 and 2017. Households with larger landholdings are more likely to farm maize. Many farmers grew local maize varieties before growing hybrids. Farming maize does not reduce crop diversity. Most food eaten by rural households in southern Shan is purchased. There is little difference in the value or composition of foods eaten by maize and non-maize farming households, but maize growers obtain a larger share of their food from own production than non-maize growing farm households. Maize is by far the most important crop grown the areas surveyed in terms of contribution to cash incomes. Hybrid maize seed has been adopted widely in southern Shan. Adoption of hybrid maize has been accompanied by big increases in fertilizer use. Fertilizer application and maize yields have climbed over the past decade. Maize yields vary little with farm size, but small farms apply inputs to maize more intensively than large farms. Average maize yields are lower than in other countries in the region. Women contribute 55% of all labor inputs for maize farming. Chemical inputs make up the largest share of production costs. Interest on loans amounts to just 4% of total maize production costs for households who avail credit for maize cultivation. Average gross margins for maize during 2017 were modest, but only 5% of maize growers made losses. Farms made a profit or broke even on >80% of maize harvests within the past 10 years. Returns to family labor exceed the average agricultural wage. The maize price received by farmers corresponds closely to timing of sale. Larger farms earn higher gross margins per acre on average. Most farms do not use credit to obtain maize seed and fertilizer. Most trader credit is advanced to large farms. Output-tied loans are less common than believed and taken mainly by larger farms. Taking credit does not affect the sales price obtained by maize growers.
    Keywords: MYANMAR; BURMA; SOUTHEAST ASIA; ASIA; maize; seeds; diversification; farming systems; food security; land use change; pigeon peas; food prices; yields; profitability; food production; crop production; farm size; hybrid maize seed; crop diversity; maize farming; crop marketing; maize price; maize yield; tied credit
    Date: 2020
  4. By: Balié, Jean; Minot, Nicholas; Valera, Harold Glenn
    Abstract: In March 2019, the government of the Philippines promulgated a bill called the Rice Tariffication Law (RTL). It has dramatically changed the policy landscape in the rice sector and generated heated debates on how it would affect food security and poverty. This study explores the welfare effects of this reform across different types of households. We rely on the IRRI Global Rice Model to simulate the domestic price effects of the reform (Balié and Valera, 2020) and the Family Income and Expenditure Survey (FIES) to study the welfare impact of these price changes. Our results show that the RTL reduces consumer and producer rice prices, which affects households on the production and the consumption sides. Because a large majority of households are net buyers of rice and the policy reform reduces rice prices, most households benefit from the reform. Overall, the effects of the reform on poverty are beneficial. The poorest quintiles are positively affected, while the richest quintiles are unaffected or slightly worse-off. Spatially, the poorest regions also benefit the most. However, the rice growers who are net sellers are negatively impacted. The government should seek to mitigate the negative effects on non-competitive rice growers. Investments in public goods and services are a promising option to ease the emergence of on-farm and off-farm businesses as more profitable alternatives to rice production.
    Keywords: PHILIPPINES; SOUTH EAST ASIA; ASIA; welfare; rice; policies; food prices; agricultural policies; poverty; food security; governance; households; tariffs; Rice Tariffication Law (RTL); rice price; price change; regional analysis; welfare effects; rice policy; rice tariffication
    Date: 2020
  5. By: Goeb, Joseph; Boughton, Duncan; Maredia, Mywish K.; Zu, A. Myint; Synt, Nang Lun Kham
    Keywords: MYANMAR, BURMA, SOUTHEAST ASIA, ASIA, Coronavirus, coronavirus disease, Coronavirinae, trade, supply chain, commodities, marketing, agricultural prices, prices, movement restrictions, agricultural products, Covid-19, crop marketing, traders,
    Date: 2020
  6. By: Masias, Ian; Goeb, Joseph; Lambrecht, Isabel; Maredia, Mywish K.; Win, Khin Zin
    Keywords: MYANMAR, BURMA, SOUTHEAST ASIA, ASIA, retail markets, Coronavirus, coronavirus disease, Coronavirinae, urban areas, surveys, policies, restrictions, food retailers, Covid-19, food retail shops, lockdown, phone survey, retail shop,
    Date: 2020
  7. By: CHOOCHAT PHUANGSOMJIT (Faculty of Education, Sukhothai Thammathirat Open University)
    Abstract: Ban Wang Takian School is a small primary school under Kanchanaburi Primary Education Service Area Office 1 in Thailand. It has 93 students and 5 teachers. It is a school with the problem of having not enough teachers for its classrooms, since it has eight classrooms from Kindergarten II (second year kindergarten) to Prathom Suksa VI (Grade 6) levels. Learning achievement of Prathom Suksa VI students in the 2016 academic year, based on the Ordinary National Educational Test (O-NET) results, of five learning areas before implementing the Educational Network Operating Management System (EdNet-OMS) was at the 41.67 percent of the full score. Later on, the school director initiated the implementation of the Educational Network Operating Management System (EdNet-OMS) that was connected with the Distance Learning Television (DLTV) system of the Distance Education via Satellite Foundation under the Royal Patronage in order to utilize the benefits from DLTV up to its full potential. Then the initiation was complemented by the development of teachers to equip them with the ability and skills for learning management via the information technology system, and the creating of the cooperation network involving the parents and local community. As a result, the O-NET result of Prathom Suksa VI students in the 2017 academic year was increased to be at the 46.71 percent of the full score. The EdNet-OMS system was composed of the following five operational steps: (1) the creation of awareness step; (2) the development of the Educational Network Operating Management System (EdNet-OMS) step; (3) the empowerment step; (4) the monitoring and follow-up of the operation step; and (5) the evaluation step. The most important factor that enabled the operation to achieve success was the factor of the administrator with innovation leadership.
    Keywords: Upgrading of learning achievement, Educational Network Operating Management System EdNet-OMS), Ban Wang Takian School
    JEL: I29 M15 D83
  8. By: fernos, jhon; Satifa, Oriza
    Abstract: This study aims to determine the application of credit risk management and criteria as well as efforts to minimize credit risk in Bank Nagari Simpang Haru Sub-Branch. In implementing credit risk management at Bank Nagari Simpang Haru Sub-Branch, it includes the identification, measurement, monitoring and control of credit risk. Credit risk is the risk of non-performing loans where the debtor must be under special surveillance while the credit measurement must be in accordance with the NPL, Non-perfoming loan (NPL) is very important for credit risk measurement at Bank Nagari Simpang Haru Sub-Branch, because it must be in accordance with the applicable provisions of the Bank Indonesia (BI), by using a non perfoming loan, it will be easy for the Bank to find out the criteria in analyzing credit risk where the Indonesian bank sets a maximum Npl of 5%. Credit collectability is the basis in calculating the level of NPL. Credit Risk Issues that appear at Bank Nagari Simpang Haru Sub-Branch, namely Problem Loans. In this case there are credit risk factors including internal banks, debtors and others. Thus the debtor becomes a factor that often arises and is of special concern.
    Date: 2020–07–31
  9. By: Vuong, Bui Nhat
    Abstract: Human resources in the medical sector play a very important role in public service activities to perform tasks as prescribed by law to serve the interests of the people and society. In this way, the service of medical doctors also has a direct effect on the public services and healthcare services of Vietnam. This research analyzes factors affecting doctors’ satisfaction and loyalty from a survey of 228 doctors working in public hospitals in Vietnam. The study was conducted using both qualitative and quantitative tools to examine the hypotheses of the survey. Cronbach’s Alpha analysis, Explanatory Factor Analysis (EFA) analysis and Structural Equation Modeling (SEM) were employed to test the relationship among the fac-tors in the research model. The results indicated that the influential factors on the satisfaction of a doctor’s job include the following, listed in diminishing importance order: (1) Income, (2) Relationship with col-leagues, (3) Quality of medical examination and treatment, (4) Hospital resources, (5) Autonomy at work, (6) Training and promotion opportunities. Besides, when doctors are satisfied with their job, they tend to be loyal to the organization. The study proposes several policy implications for medical sector managers to increase the doctors’ satisfaction and loyalty in public health services.
    Date: 2020–08–09
  10. By: Hidayat, Muhammad (STIE Nobel Indonesia); Latief, Fitriani; Nianti, Dara Ayu; Bahasoan, Shandra; Widiawati, Andi
    Abstract: Aim: To find out factors influencing resilience of Micro Small and Medium Entrepreneur MSME entrepreneurs during the worlwide spread of COVID-19 pandemic, this study aims at empirically examine the influence of entrepreneurial personality in utilizing technology and government support for business resilience through crisis management as an intervening variable. Research design, data and method: This research is a quantitative study analyzing sample of 97 small and medium enterprises actors in South Sulawesi, Indonesia, chosen by using purposive sampling. The main data in this study is results of questionnaires distributed to respondents which is analyzed by using Partial Least Square (PLS analysis). Results and Findings: This study proves a positive and significant relationship between entrepreneurship personlity and crisis management. There is no significant relationship between utilizing of technology toward crisis management. There is a positive and significant relationship between government support toward crisis management. This research also proves a positive and significant influence between crisis management on business resilience.
    Date: 2020–06–11
  11. By: Dang, Hai-Anh (World Bank); Trinh, Trong-Anh (World Bank)
    Abstract: Little evidence currently exists on the effects of COVID-19 on air quality in poorer countries, where most air pollution-linked deaths occur. We offer the first study that examines the pandemic's impacts on improving air quality in Vietnam, a lower-middle income country with worsening air pollution. Employing the Regression Discontinuity Design method to analyze a rich database that we compile from satellite air pollution data and data from various other sources, we find the concentration of NO2 to decrease by 24 to 32 percent two weeks after the COVID-19 lockdown. While this finding is robust to different measures of air quality and model specifications, the positive effects of the lockdown appear to dissipate after ten weeks. We also find that mobility restrictions are a potential channel for improved air quality. Finally, our back-of-the-envelope calculations suggest that two weeks after the lockdown, the economic gains from better air quality are roughly $0.6 billion US dollars.
    Keywords: COVID-19, air pollution, mobility restriction, RDD, Vietnam
    JEL: D00 H00 O13 Q50
    Date: 2020–09
  12. By: Diao, Xinshen; Mahrt, Kristi
    Keywords: MYANMAR, BURMA, SOUTHEAST ASIA, ASIA, Coronavirus, coronavirus disease, Coronavirinae, social protection, households, income, farm income, models, remittances, poverty, rural areas, remuneration, Covid-19, Social Accounting Matrix (SAM), Myanmar Poverty and Living Conditions Survey (MPLCS), lockdown, rural households, agricultural income,
    Date: 2020
  13. By: Ahmad, Abdul
    Abstract: Developing Natuna: Integrating Tourism, Marine and Infrastructure Strategies towards Implementing Indonesia’s Global Maritime Fulcrum BY Tirta Nugraha Mursitama, Yi Ying, Bahtiar Saleh Abbas
    Date: 2020–07–25
  14. By: LU, Yi; Zhao, Jianting; Wu, Xueying; Lo, Siu Ming
    Abstract: Cities implemented social distancing measures to cope with COVID-19, which kept people away from nature. A steep drop in the greenspace use was observed in western cities. Surprisingly, news revealed a surging greenspace use in Asian cities. In this study, we used COVID-19 outbreak stages as natural experiments to investigate individual behavioural changes of greenspace use before and during the pandemic. Our case cities are Hong Kong, Singapore, Tokyo and Seoul. We extracted panel data which consisted of longitudinal posts of 100, 232 users, being posted in 1,185 greenspaces in the four Asian cities. Our statistical models found a 5.3% increase in the odds of people using greenspaces for every 100 additional weekly new cases. The analyses also revealed people’s preference in larger, nature parks that are close to city centres. Due to the established physical and mental health benefits of greenspaces, people have been escaping to nature to cope with the pandemic in Asian cities.
    Date: 2020–09–03
  15. By: Dao, Kieu Oanh; Nguyen, Thi Yen; Hussain, Sarfraz; Nguyen, V.C.
    Abstract: The recent crisis of non-performing loans in the banking system has hit the Vietnamese economy hard. The GDP has been fallen down, while the bad debt ratio in the banking system has risen dramatically to 17.2 percent, and it takes more time to restore the economy and banking system. This research aims to define aspects that impact non-performing commercial bank loans in Vietnam. It covers the period of 2008–2017 using 200 identified banks of Ho Chi Minh City Stock Exchange and Hanoi Stock Exchange, and applies methods based on the regression of pooled ordinary least squares, fixed and random effects models, in particular, generalized least squares to confirm the stability of the regression model. The results show that non-performing loans this year will positively affect those in the next year. In addition, a raise in bank performance and credit growth also leads to the reduction in non-performing loans from banks. Regarding macroeconomic factors, higher interest rates would have a major and beneficial influence on failed loans in terms of macroeconomic dynamics, and, therefore, little effect on economic activity and inflation. Therefore, Vietnamese banking system should reduce the systematic risk and improve monitoring processes, drawing on the experience of global banks with extensive experience in risk management.
    Date: 2020–08–12
  16. By: Kurosaki, Takashi (Hitotsubashi University); Paul, Saumik (Newcastle University); Witoelar, Firman (Australian National University)
    Abstract: Tanah bengkok (bengkok land) in Java, Indonesia boasts a unique institution where elected village leaders receive usufruct rights to a parcel of land owned by the village, in lieu of salary. Despite its relevance to the political economy of land distribution in Java, unavailability of systematic data has so far constrained in-depth empirical research on bengkok land. In 2018, we conducted a survey covering 130 villages and more than 1,800 households in Java. We found substantial heterogeneity in the incidence and use patterns of bengkok land across villages. Fixed rental tenancy appeared more prevalent than sharecropping on bengkok land and bengkok landlords seldom got involved in tenants' farming decisions, which made bengkok land management look more 'business-like'. Finally, evidence is consistent with political cycles as the village heads with reelection motives offered sharecropping contracts to non-relatives to garner a larger pool of supporters.
    Keywords: Tanah bengkok, land tenancy, village administration, political cycle, Java, Indonesia
    JEL: H77 H83 O13 P14 O53 Q15
    Date: 2020–08
  17. By: KOOLCHALEE CHONGCHAROEN (School of Educational Studies, Sukhothai Thammatirat Open University)
    Abstract: Today?s globalized world has the direct impact on groups of people with a variety of ethnic groups, genders, and talents and so on which is known as multiculturalism. The educational design is required to meet the needs for changing the educational environment in more holistic ways so as to reach the achievement of the equality of education. Many interesting findings have been derived from much of multicultural education research in Thailand, especially in educational management. Thai school leaders are required to have multicultural leadership and play the crucial roles with the aim to effectively respond to diversity and as a result the achievement of the equality of education for all groups of people in the Thai society.
    Keywords: Multicultural, Leadership, Roles, School leaders
    JEL: I29 M12
  18. By: NGO, Hoang Anh; HOANG, Thai Nam
    Abstract: The Nonlinear Grey Bernoulli Model NGBM(1, 1) is a recently developed grey model which has various applications in different fields, mainly due to its accuracy in handling small time-series datasets with nonlinear variations. In this paper, to fully improve the accuracy of this model, a novel model is proposed, namely Rolling Optimized Nonlinear Grey Bernoulli Model RONGBM(1, 1). This model combines the rolling mechanism with the simultaneous optimization of all model parameters (exponential, background value and initial condition). The accuracy of this new model has significantly been proven through forecasting Vietnam’s GDP from 2013 to 2018, before it is applied to predict the total COVID-19 infected cases globally by day.
    Date: 2020–05–14
  19. By: fernos, jhon; Vatharani, Tri Vellia
    Abstract: This research was conducted to find out how the implementation of operational risk management in the teller unit carried out at PT. West Sumatra Regional Development Bank Siteba Branch. Considering this operational risk is not a new type of risk faced by a bank because this risk is inherent and continues to grow in the bank's operational activities. The author uses a qualitative method that explains descriptively by systematically describing data from the facts obtained then linked to the application of operational risk management to the teller unit at PT. West Sumatra Regional Development Bank Siteba Branch. The application of Operational Risk Management to the Teller Unit is seen in the daily activities carried out by the Teller itself. Starting in the morning when the head teller who is authorized to enter the treasury will hand over the cashbox to each teller who is fully responsible for each cashbox, then the teller will be ready to start his daily activities. The results showed that the Implementation of Operational Risk Management conducted by PT. The West Sumatra Regional Development Bank of the Siteba Branch is in accordance with the concepts established by Bank Indonesia so as to reduce the level of operational losses. The author suggests that the Implementation of Operational Risk Management should be further enhanced to its supervision.
    Date: 2020–08–01
  20. By: Tran, Lan T.; Skevas, Teo; McCann, Laura
    Keywords: Resource/Energy Economics and Policy, Productivity Analysis
    Date: 2020–07
  21. By: Fairuz, Sharifah; Masih, Mansur
    Abstract: Repeated financial crises helped the growth of Islamic banks as an alternative asset for investment. Similar to conventional banks, Islamic banks also depend on depositors’ money as their source of funds. The profit rate of Islamic banks is expected to influence the amount of funds deposited for investment. This paper wants to investigate what drives the profit rates of Islamic banks. The standard time series techniques are used for the analysis. Malaysia is used as a case study. The findings tend to indicate that the profit rates are driven by the investment deposits of Islamic banks followed by the deposits of the conventional banks and their interest rates. The outcome of the results would be particularly of great interest to the regulators and Islamic bank CEOs to make decisions on whether to still depend on conventional rates and deposits in order to survive.
    Keywords: Islamic bank investment deposits, conventional bank deposits, interest rates, profit rates, Malaysia
    JEL: C22 C58 E44 G21
    Date: 2018–11–30
  22. By: Bartłomiej Bollin (Quantitative Finance Research Group; Faculty of Economic Sciences, University of Warsaw); Robert Ślepaczuk (Quantitative Finance Research Group; Faculty of Economic Sciences, University of Warsaw)
    Abstract: The aim of this research is to explore the performance of different option pricing models in hedging the exotic options using the FX data. We analyze the narrow class of Lévy processes - the Variance Gamma process in hedging vanilla, Asian and lookback options. We pose a question of whether or not using additional level of complexity, by introducing more sophisticated models, improves the effectiveness of hedging options, assuming that hedging errors are measured as the differences between portfolio values according to the model and not real market data (which we don’t have). We compare this model with its special case and the Black-Scholes model. We use the data for EURUSD currency pair assuming that option prices change according to the model (as we don’t observe them directly). We use Monte Carlo methods in fitting the model’s parameters. Our results are not in line with the previous literature as there are no signs of the Variance Gamma process being better than the Black-Scholes and it seems that all three models perform equally well.
    Keywords: Monte Carlo, option pricing, Variance Gamma, BSM model, Lévy processes, FX market, hedging, Asian and lookback options
    JEL: C02 C4 C14 C15 C22 C45 C53 C58 C63 G12 G13
    Date: 2020
  23. By: Wicaksono, Hendro
    Abstract: The presentation discusses the implementation of triple helix innovation model 3, where government, universities, and industries collaborate closely to create an integrated innovation environment. The implementation in Germany focuses on university spin-off, open research and innovation projects, strategic alliances and clusters, an collaborative innovation labs. Finally, implications on Indonesian context are presented.
    Date: 2020–08–10
  24. By: Simplice A. Asongu (Yaounde, Cameroon); Xuan V. Vo (University of Economics Ho Chi Minh City, Vietnam)
    Abstract: There is a glaring concern of income inequality in the light of the post-2015 global development agenda of sustainable development goals (SDGs), especially for countries that are in the south of the Sahara. There are also concerns over the present and future consequences of environmental degradation on development outcomes in sub-Saharan Africa (SSA). This study provides carbon dioxide (CO2) emissions thresholds that should be avoided in the nexus between financial development and income inequality in a panel of 39 countries in SSA over the period 2004-2014. Quantile regressions are used as an empirical strategy. The following findings are established. Financial development unconditionally decreases income inequality with an increasing negative magnitude while the interactions between financial development and CO2 emissions have the opposite effect with an increasing positive magnitude. The underlying nexuses are significant exclusively in the median and top quantiles of the income inequality distribution. CO2 emission thresholds that should not be exceeded in order for financial development to continuously reduce income inequality are 0.222, 0.200 and 0.166 metric tons per capita for the median, 75th quantile and 90th quantile of the income inequality distribution, respectively. Policy implications are discussed with particular relevance to Sustainable Development Goals (SDGs).
    Keywords: Renewable energy; Inequality; Finance; Sub-Saharan Africa; Sustainable development
    JEL: H10 Q20 Q30 O11 O55
    Date: 2020–01
  25. By: Simplice A. Asongu (Yaounde, Cameroon); Usman M. Usman (Kula Lumpur, Malaysia); Xuan V. Vo (Ho Chi Minh City, Vietnam)
    Abstract: The novel Coronavirus has spread internationally to more than two hundred countries and territories. At the same time, human trafficking in girls and women constitutes a global oppression in virtually all nations either as the source, transit, or destination. The feminist investigators have it that women are in destitute situations, which is a substantial trait of exploitation, especially in the light of the present Covid-19 pandemic. There is practically no research on the relevance of the current deadly respiratory disease to human trafficking from the gender dimension. This study fills the identified gap by providing theoretical and practical perspectives on children, women, and sex trafficking. It is a qualitative inquiry that employs process tracing as a primary research instrument. To better understand the present plague and gender situation, secondary data which are utilized consist of articles, books, reports, and integrated statistics. This research is arguably the first attempt that creates data evidence connecting the pandemic to female sexual exploitation. The paper illustrates that a policy is needed that will strengthen the capacity of existing structures in the fight against the underlying trafficking so that these attendant structures efficiently react to the corresponding threats to public health safety as well as contribute towards stopping the trafficking of girls and women during a pandemic.
    Keywords: Coronavirus, pandemic, human trafficking, girls and women, feminism
    Date: 2020–06

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