nep-sea New Economics Papers
on South East Asia
Issue of 2021‒11‒22
27 papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Trade Networks, Heroin Markets, and the Labor Market Outcomes of Vietnam Veterans By Lonsky, Jakub; Ruiz, Isabel; Vargas-Silva, Carlos
  2. South Korea's New Southern Policy as an Open Regime: A View from Southeast Asia By Rabena, Aaron Jed
  3. Does Technical Efficiency of Smallholders Threaten Forest conservation? Evidence from the Oil Palm Sector in Indonesia By Dalheimer, Bernhard; Kubitza, Christoph; Bruemmer, Bernhard
  4. Social Norms and Perception on Women's Participation in Agricultural Decisions: The Case of West Java, Indonesia By Qanti, Sara Ratna; Peralta-Sanchez, Maria-Alexandra; Zeng, Di
  5. How to Promote Tree Planting As an Agricultural Technology That Generates Positive Environmental Effects? Evidence from Jambi, Indonesia By Brenneis, Karina; Irawan, Bambang; Wollni, Meike
  6. Social Capital and Conservation Under Collective and Individual Incentive Schemes: A Framed Field Experiment in Indonesia By Maria, Gracia; Ibañez, Marcela; Wollni, Meike; Vorlaufer, Miriam
  7. What's in the New Southern Policy Plus? An ASEAN Perspective on Building Niche-based Pragmatic Cooperation with South Korea By Hoo, Chiew-Ping
  8. Education for All? Assessing the Impact of Socio-economic Disparity on Learning Engagement During the COVID-19 Pandemic in Indonesia By Samuel Nursamsu; Wisnu Harto Adiwijoyo; Anissa Rahmawati
  9. The Impacts of Temperature Shocks on Birth Weight in Vietnam By Le, Kien; Nguyen, My
  10. ASEAN Economic Integration on Services: An Analysis of Economic Impacts and Implications By La, Meeryung
  11. How Do Disasters Change Inter-Group Perceptions? Evidence from the 2018 Sulawesi Earthquake By KASHIWAGI Yuzuka; TODO Yasuyuki
  12. Spillover Effects of Social and Economic Interactions on COVID-19 Pandemic Vulnerability Across Indonesia’s Regions By Ernawati Pasaribu; Puguh B. Irawan; Tiodora H. Siagian; Ika Yuni Wulansari; Robert Kurniawan
  13. The Nonlinear Effects of Oil Rent Dependence on Malaysian Manufacturing: Implications from Structural Change using a Markov-Regime Switching Model By Ramez Abubakr Badeeb; Jeremy Clark; Abey P. Philip
  14. The Agricultural Exodus in the Philippines: Are Wage Differentials Driving the Process? By Mr. Eugenio M Cerutti; Yiliang Li
  15. Exploring convergence between the New Southern Policy and U.S. Indo-Pacific Strategy: From Korea’s Perspective By Choi, Ina; Kwak, Sungil; Cheong, Jaewan; Lee, Jung-Mi; Park, Nayoun; Kim, Mi Lim; Lee, Jaehyon; Cho, Won Deuk
  16. Building Partnership with ASEAN and Korea's New Southern Policy: Views from India By De, Prabir
  17. Functional Income Distribution and Inequality in the Asia-Pacific Countries By Raihan, Selim
  18. A revisit to effects of demographic dynamics on economic growth in Asia By Taguchi, Hiroyuki
  19. Diversion of Tourism Flows in the Asia & Pacific Region: Lessons for COVID-19 Recovery By Mr. Robin Koepke; Vybhavi Balasundharam
  20. The New Southern Policy Plus: What's New and What's Next? By Thuzar, Moe
  21. An Overview of Large-Scale Conversion Programs to Organic Agriculture in Asia By Babajani, Arezou; Mühlberger, Shantala; Feuerbacher, Arndt; Wieck, Christine
  22. LDC Graduation of Bangladesh- In Search of Coping Strategies for the Bangladeshi RMG Industry By Ehsan, Zaeem-Al
  23. Fast and Sustainable Development Space: An Integrated Approach By Ly Dai Hung
  24. Fifteen Years of Korea's FTA: Achievements and Policy Implications By Cho, Moonhee; Kim, Young Gui; Bae, Chankwon; Keum, Hyeyoon; Eom, Jun-Hyun
  25. Safe Assets at Financial Globalization By Ly Dai Hung
  26. Regional responses to the Covid-19 crisis: a comparative study from economic, policy, and institutional perspectives By Graciela Schiliuk; Tullio Buccellato; Jens Lapointe-Rohde; Georgios Palaiodimos; Habib Attia; Marthe Memoracion Hinojales; Catharine Kho; Gennady Vasiliev; Tigran Kostanyan; Alexandra de Carvalho; Benedetta Guerzoni; Carlos Giraldo; Iader Giraldo
  27. Using contests to promote coordinated control of invasive species: An experimental evaluation By Stefan Meyer; Paulo Santos; Chitpasong Kousonsavath

  1. By: Lonsky, Jakub; Ruiz, Isabel; Vargas-Silva, Carlos
    Abstract: The role of ethnic immigrant networks in facilitating international trade is a well-established phenomenon in the literature. However, it is less clear whether this relationship extends to illegal trade and unauthorized immigrants. In this paper, we tackle this question by focusing on the case of the heroin trade and unauthorized Chinese immigrants in the early 1990s United States. Between mid-1980s and mid-1990s, Southeast Asia became the dominant source of heroin in the US. Heroin from this region was trafficked into the US by Chinese organized criminals, whose presence across the country can be approximated by the location of unauthorized Chinese immigrants. Instrumenting for the unauthorized Chinese immigrant enclaves in 1990 with their 1900 counterpart, we first show that Chinese presence in a community led to a sizeable increase in local opiates-related arrests, a proxy for local heroin markets. This effect is driven by arrests for sale/manufacturing of the drugs. Next, we examine the consequences of Chinese-trafficked heroin by looking at its impact on US Vietnam-era veterans - a group particularly vulnerable to heroin addiction in the early 1990s. Using a triple-difference estimation, we find mostly small but statistically significant detrimental effects on labor market outcomes of Vietnam veterans residing in unauthorized Chinese enclaves in 1990.
    Keywords: Trade networks,heroin markets,Vietnam veterans,labor market outcomes
    JEL: F16 F22 J15 K42
    Date: 2021
  2. By: Rabena, Aaron Jed (University of the Philippines (UP) Korea Research Center (KRC))
    Abstract: There are four ways on how the NSP Plus could be further improved. First, to avoid policy limitations and maximize the room for supply chain resiliency and functional cooperation, the coverage of the NSP countries can be expanded apart from ASEAN and India. Second, South Korea can employ the concept of Third-Party Market Cooperation (TPMC) or the pursuit of joint ventures or partnerships with other countries in maximizing capacity-building in third countries (NSP countries). Third, South Korea can help strengthen ASEAN institution-building, regionalism and internal balancing by applying a similar policy framework to the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) just as it does to the Mekong Region. Fourth, there needs to be more reciprocity or two-way interaction in the NSP so as to not make it seem that ASEAN is only on the receiving end of South Korean generosity. Finally, it is important to note that a change in the South Korean administration does not necessarily spell the end of the NSP just as the US' Pivot or Rebalance to Asia of the Obama Administration was remodeled to the Indo-Pacific under the Trump administration.
    Keywords: South Korea; New Southern Policy; Southeast Asia; ASEAN; Indo-Pacific
    Date: 2021–03–31
  3. By: Dalheimer, Bernhard; Kubitza, Christoph; Bruemmer, Bernhard
    Keywords: Resource /Energy Economics and Policy
    Date: 2021–08
  4. By: Qanti, Sara Ratna; Peralta-Sanchez, Maria-Alexandra; Zeng, Di
    Keywords: Labor and Human Capital, Consumer/Household Economics
    Date: 2021–08
  5. By: Brenneis, Karina; Irawan, Bambang; Wollni, Meike
    Keywords: Environmental Economics and Policy
    Date: 2021–08
  6. By: Maria, Gracia; Ibañez, Marcela; Wollni, Meike; Vorlaufer, Miriam
    Keywords: Agricultural and Food Policy, Environmental Economics and Policy
    Date: 2021–08
  7. By: Hoo, Chiew-Ping (National University of Malaysia)
    Abstract: It is clear that the NSP started off with the right messages and many Southeast Asian countries have been receptive to the initiatives. Despite the pandemic bringing a lot more challenges in implementing the policy initiatives, the NSP Plus has envisioned an innovation-oriented cooperation by transforming the traditional face-to-face operations to electronic and digitalized management. Public health cooperation is understandably the immediate focus, but such cooperation should be also seen as long-term fulfilment of the cooperation on the People pillar in the NSP. Infrastructure connectivity and South Korea's cooperation in the building of an evolving East Asian regional architecture respectively enhance the Prosperity and Peace pillars. With patience, dedication, and commitment, the NSP Plus will be a long-lasting foreign policy legacy of Moon that brings benefits to Korea, ASEAN, and regional stability.
    Keywords: New Southern Policy; ASEAN; South Korea; cooperation; initiative
    Date: 2021–03–31
  8. By: Samuel Nursamsu (Australia-Indonesia Partnership for Economic Development (PROSPERA)); Wisnu Harto Adiwijoyo (University of Göttingen); Anissa Rahmawati (Presisi Indonesia)
    Abstract: This paper attempts to shed light on the impact of socio-economic disparity on learning engagement during the COVID-19 pandemic in Indonesia. Utilising search intensity data from Google Trends, school data from Dapodik (Education Core Database), and socio-economic data from the National Socioeconomic Survey, we conduct descriptive analysis, an event study, and difference-in-difference estimations. First, school quality differs in terms of the regions’ development level, especially between western and eastern Indonesia. However, densely populated and well-developed areas generally have lower offline classroom availability. In addition, the quality of public schools is generally lower than private schools. Second, our estimation results show that only online-classroom related search intensity that increased significantly after school closures on 16 March 2020, not in self-learning related search intensity. Further the analysis shows that socio-economic disparity within provinces widens the gap in online learning engagement, albeit with weak evidence from per capita expenditure. Interestingly, provinces with a higher inequality and rural population tend to have higher self-learning related search intensity due to students’ necessity to compensate for low learning quality from schools. In addition, technology adoption does not seem to give much of an increase to online-classroom related search intensity but contributes to lower self-learning related search intensity due to increased academic distraction. Our study provides evidence for the Indonesian government to make more precise policy in improving learning quality during the pandemic.
    Keywords: Covid-19 Impact, Education Inequality, Online learning
    JEL: I24 O15
    Date: 2021–11–06
  9. By: Le, Kien; Nguyen, My
    Abstract: This paper investigates the extent to which in-utero exposure to temperature shocks affects birth weight outcomes in Vietnam. Exploiting the variations across districts and conception timing within districts, we show that a one standard deviation increase in temperature relative to the local norm (approximately 0.52 degree Celsius) during the first trimester of pregnancy reduces the child’s weight at birth by 67 grams or 2.2%. Our heterogeneity analysis suggests that infants living in rural areas, born to poor and low-educated mothers are especially vulnerable to temperature shocks.
    Keywords: Temperature, Birth Weight, Intergenerational Effects, Vietnam
    JEL: I15 J13 O15 Q54
    Date: 2020
    Abstract: ASEAN continues its efforts to liberalize services trade in the region as part of the process of establishing the ASEAN Economic Community (AEC). ASEAN has been increasing the level of regional liberalization through package negotiations of the ASEAN Framework Agreement on Services (AFAS). After signing the 10th AFAS package, the package negotiations were replaced by the ASEAN Trade in Services Agreement (ATISA), which takes a negative list approach and includes regulatory cooperation between member states. Upon this backdrop, this paper attempts to examine the progress of service market integration within ASEAN and analyze the impact of service liberalization pursued by ASEAN. Based on the analysis results, we also present policy implications to enhance cooperation with ASEAN in the service sectors.
    Keywords: ASEAN; service; integration; ASEAN Economic Community; AEC; AFAS; ATISA
    Date: 2021–05–28
  11. By: KASHIWAGI Yuzuka; TODO Yasuyuki
    Abstract: This study investigates whether and how natural disasters affect intergroup perceptions, particularly focusing on subjective expectations for dependability on other groups in emergencies. We conduct a household survey in Central Sulawesi, Indonesia, which has experienced religious conflicts and was heavily hit by the 2018 Sulawesi earthquake. Our estimation results from the survey data indicate that individuals who suffered from the earthquake exhibit higher expectations for access to emergency support from other religious groups in the future. As a possible mechanism of this change, we show that the direct and indirect experience of actual cooperation between groups after the earthquake contribute to the higher expectations of sufferers. We also find heterogeneity in the effect of the earthquake on intergroup perception, depending on, for example, the types of damage and past experiences.
    Date: 2021–10
  12. By: Ernawati Pasaribu (STIS Polytechnic of Statistics, Jakarta); Puguh B. Irawan (STIS Polytechnic of Statistics, Jakarta); Tiodora H. Siagian (STIS Polytechnic of Statistics, Jakarta); Ika Yuni Wulansari (STIS Polytechnic of Statistics, Jakarta); Robert Kurniawan (STIS Polytechnic of Statistics, Jakarta)
    Abstract: This research study focuses on measuring the possible spillover effects of socio-economic interactions on COVID-19 pandemic vulnerability across Indonesia’s regions by utilising a spatial simultaneous model. The COVID-19 pandemic vulnerability level here is used to indicate the extent to which a region is susceptible to the spreading COVID-19 pandemic, as determined by not only the region’s COVID-19 related epidemiological factors but also by its relevant socio-demographic and economic aspects, housing, environmental health, and availability of health facilities. High COVID-19 pandemic vulnerability levels were mostly found in districts in Java Island and southern Sumatera, suggesting high population density and mobility in both regions. It was revealed that 31 districts have low COVID-19 risk levels (from epidemiological indicators-related measurements), but they have high COVID-19 vulnerability levels (from epidemiological and socioeconomic indicators-based measurements). Labour productivity was found to have a reciprocal relationship with COVID-19 vulnerability, proving that the COVID-19 pandemic has a significant impact on labour productivity and vice versa. On the other hand, regional independence affects COVID-19 vulnerability, but this does not apply the other way around. Moreover, this study has also proven that COVID-19 pandemic vulnerability levels have socio-economic spillover effects on neighbouring areas in Indonesia.
    Keywords: Spillover Effects; Spatial Simultaneous Model; COVID-19 Vulnerability Levels
    JEL: C31 R23 R53
    Date: 2021–11–07
  13. By: Ramez Abubakr Badeeb; Jeremy Clark (University of Canterbury); Abey P. Philip
    Abstract: Previous “oil curse” studies primarily estimate a single, linear effect of oil rents on income using time-invariant parameters over entire sample periods. This means the true effects of oil dependence cannot be captured if structural changes are taking place, or effects are nonlinear. We introduce a two regime Markov-switching model into the resource effects literature to assess the time-varying effects of oil rent dependence on the Malaysian manufacturing sector. We also allow for non-linear threshold effects. We find the impact of oil rents is regimedependent. Under a rarer “first regime” structure there is no significant effect. Under a predominant “second regime” there is an inverted U-shaped effect, with oil rents’ share of GDP up to 8% positively associated with manufacturing, and negatively associated beyond this. We find connections between regime changes and the 1997 Asian financial crisis and 2008 global financial crisis. Implications for effective diversification policies are discussed.
    Keywords: Oil curse, Oil rent, Markov Switching Model, Manufacturing sector, Malaysia
    JEL: C22 O11 O13 Q33
    Date: 2021–11–01
  14. By: Mr. Eugenio M Cerutti; Yiliang Li
    Abstract: Lagging labor reallocations outside agriculture amid sustained low agricultural productivity have been a key feature in the Philippines over the past 15 years. An analysis of the labor adjustments in and out of agriculture shows that a variety of factors have influenced this process. We find that the widening of wage differentials with non-agricultural sectors, improvements in labor market efficiency, and better transport infrastructure are largely associated with growing outflows of labor from agriculture, whilst the lack of post-primary education and the presence of agricultural clusters hinder such outflows. In contrast to the traditional view that agricultural employment outflows are largely driven by productivity differences and wage differentials, our results emphasize the roles of education as well as transport infrastructure in facilitating labor reallocations from agriculture to non-agriculture.
    Keywords: real wage wage differential; time series trend; efficiency index; job separation; agriculture performance; labor adjustment; Labor markets; Agricultural sector; Employment; Real wages; Global
    Date: 2021–08–20
    Abstract: The growing economic power and geo-strategic significance of the Indo-Pacific have generated active engagement of major powers with the region. Under the New Southern Policy (NSP) unveiled in 2017, Korea has also sought to upgrade its relations with ASEAN and India by boosting economic ties, socio-cultural exchanges and cooperation in the area of peace and security. While an earlier version of the NSP focused on bilateral cooperation with targeted countries, it now looks to collaborate with other players in addressing the needs of ASEAN and India. In particular, as the United States seeks partnerships with its key allies in advancing the Free and Open Indo-Pacific Strategy (FOIP), there has been growing interest in cooperation between the FOIP and the NSP. Initially, the Korean government took an ambiguous stance toward the FOIP, but agreed to work together with the U.S. by building synergies between the NSP and the FOIP. However, given the strategic nature of the FOIP as a counterbalance to China’s Belt and Road Initiative (BRI) and attendant concerns about the FOIP in the region, particularly in ASEAN ‒ the key partner of the NSP ‒, close collaboration with the FOIP poses some challenges for the NSP in terms of addressing regional sensitivity to it. Against this backdrop, by exploring how the FOIP is perceived by NSP-targeted countries and clarifying their cooperation needs, this study provides policy recommendations on how the ROK-U.S. partnership should be advanced in the region.
    Keywords: Korea; New Southern Policy; U.S; Indo-Pacific Strategy; ASEAN; geo-strategic
    Date: 2021–04–08
  16. By: De, Prabir (Research and Information System for Developing Countries (RIS))
    Abstract: Both Korea and India have made phenomenal progress in integrating with ASEAN over time. However, the potential of the partnership is yet to be fully unlocked. What Korea and India need is a joint vision to add new momentum to the bilateral partnership as well as Indo-Pacific. Here comes the need for collaboration between the two countries under their respective Act East Policy (AEP) and New Southern Policy (NSP). In the pursuit of the new southward strategy, Korea may come out with its own Indo-Pacific Vision, which will then lead the partnership to another higher level.
    Keywords: ASEAN; Korea; India; New Southern Policy; Act East Policy; Indo-Pacific; partnership
    Date: 2021–03–19
  17. By: Raihan, Selim
    Abstract: In recent decades there has been a growing interest around functional income distribution. The functional income distribution determines how output is distributed among the factors of production, such as capital and labor. Labor remuneration, expressed as a share of value added or GDP, is known as the labor share and the residual is, therefore, the capital share. The interest on functional income distribution has grown into concern with the upsurge of the recent global economic crisis, and many countries experiencing millions of jobs losses, raising unemployment rates to all-time highs. The labor income share has also captured attention, including outside the academic debate, particularly as an inequality measure. The measure is included as an indicator to assess progress towards the United Nations Sustainable Development Goals. Studies have focused on the channels related to international trade and technological progress influencing employment, wages, and the labor share. Studies have also indicated other factors such as the economic growth, foreign direct investment, and social polices. Against this backdrop, the main objective of this paper is to present an analysis of the trend and patterns of the share of labor in GDP in countries of Asia and the Pacific region, identify policy-relevant stylized facts, analyze the reasons behind observed trends, identify possible drivers and expected future changes in the labor share and in inequality, and assess the relationship between labor’s share in GDP and inequality. This paper applies statistical analysis and relevant econometric models to generate evidence in an analytically systematic manner.
    Keywords: Functional Income Distribution, Inequality, Asia-Pacific
    JEL: F1 J31 J38 O1 O3 O4
    Date: 2021–09–15
  18. By: Taguchi, Hiroyuki
    Abstract: This paper aims to examine the effects of demographic dynamics on economic growth with a focus on working-age population and saving rate in 17 Asian economies for the past period from 1970 to 2018 and for the future period from 2018 to 2050. For the analytical methodology, this study applies a panel vector autoregressive model considering endogenous interactions among concerned variables. The main findings are summarized as follows: first, the estimation identified both the direct channel from working-age population share to economic growth and the indirect channel through saving rate; second, the estimated result also found the feedback effect from economic growth to saving rate; third, the contribution ratio of the demographic effect to economic growth for the past period, around 30 percent on average, is consistent with those in previous studies; and fourth, in the projection for 2018-2050, the degrees of the negative demographic effects in sample economies are getting larger than those of previous studies, due to the earlier-coming population onus with aging.
    Keywords: demographic dynamics, economic growth, Asia, saving rate, working-age population, panel vector-autoregressive model
    JEL: J11 O11 O53
    Date: 2021
  19. By: Mr. Robin Koepke; Vybhavi Balasundharam
    Abstract: The COVID-19 pandemic prompted a collapse in international tourism, severely impacting the tourism-dependent economies in the Asia & Pacific region. Once countries start reopening, tourism diversion effects could accelerate the recovery in countries that establish themselves as more attractive travel destinations than competitors. We investigate the impact of previous shocks in tourism competitor countries on visitor inflows, with a particular focus on tourism-dependent Pacific Island Countries (PICs). We find that PICs were generally resilient to external shocks and benefitted from diversion effects for certain types of shocks. For example, the share of departures from Australia to PICs increased by 12 percent during the SARS outbreak. We then derive policy implications for the post-COVID-19 revival of inbound tourism to PICs and lessons for the future.
    Keywords: tourism diversion effect; tourism recovery; tourism sector; tourism determinant; tourism revenue; tourism development; Tourism; COVID-19; Communicable diseases; Asia and Pacific; Pacific Islands; Global
    Date: 2021–08–20
  20. By: Thuzar, Moe (ISEAS - Yusof Ishak Institute)
    Abstract: Building on the New Southern Policy (NSP) implementation experience, and in recognition of the uneven impact of the Covid-19 pandemic on different populations in ASEAN, the ROK may consider the following operational dimensions of implementing the NSP Plus' strategic thrusts. First, consultation of ASEAN's collective and individual needs on each of the core strategy areas, leveraging on the ROK's willingness to share and adapt its successful practices to meet the needs of its ASEAN partners. Second, synchronizing or aligning the NSP Plus' regional thrusts with the ROK's bilateral programs in the ASEAN countries, to ensure a seamless continuity of matching regional-level support with in-country requirements. Third, instituting a periodic or mid-term review mechanism for the NSP Plus implementation may help early identification of areas or priorities to adjust or revise, taking into account emerging needs and concerns. Ultimately, the ROK's NSP niche will be the quality of its impact, in areas where the ROK's strengths speak most to its "new southern neighbors."
    Keywords: Korea; New Southern Policy; policy; Covid-19; ASEAN
    Date: 2021–03–19
  21. By: Babajani, Arezou; Mühlberger, Shantala; Feuerbacher, Arndt; Wieck, Christine
    Keywords: Agribusiness
    Date: 2021–08
  22. By: Ehsan, Zaeem-Al
    Abstract: This paper set out to assess the implication of graduation on the RMG sector of Bangladesh and propose coping strategies for smooth transition. It has been identified that Bangladesh has a RMG export concertation (80%) in the EU and North American market, a product concentration of 73% in 5 basic products, a dependence on cotton for 74% of RMG exports and a very poor global competitiveness index rank (105th out of 141 countries). Graduation from LDC category will mean that Bangladesh will be subject to standard Generalized System of Preferences. Bangladesh would also lose Duty-Free and Quota Free access to EU, Canada and other developed countries. Furthermore, RMG exports from Bangladesh will be subject to normal Rules of Origins, entailing the erosion of the “single transformation” charge they were once entitled to. Hence, to ease transition and to take full advantage of graduation, Bangladesh should expand its international market for RMG exports by targeting markets it has condoned till date. These include China, India, Indonesia etc. To widen its portfolio and reduce its dependence on cotton, Bangladesh should invest in Man-Made Fabric (MMF) and high-tech products. To this end Bangladesh should attract FDI to utilize the potential of backward linkage in MMF. Attracting FDI will prove to be easier if Bangladesh can improve its competitive indicators by investing more in infrastructure, industrial upgradation, administrative hurdles etc.
    Keywords: Bangladesh, LDC, RMG
    JEL: F18 O4
    Date: 2021–03
  23. By: Ly Dai Hung (Vietnam Institute of Economics, Hanoi, Vietnam)
    Abstract: Objective: The paper investigates the fast and sustainable development, then, discusses some policy implications to enhance the development process. The fast development is based on the economic growth rate combined with income distribution, while the sustainable development is based on the genuine savings per GDP and the biocapacity reserve. Methodology: The research method employs a quantitative analysis on a data sample of 172 economies over the 1992-2016 period. The empirical evidence is based on both a cross-section regression with each variable is average over time and a panel-data fixed-effect regression which captures the constant heterogeneity across countries. Findings: The empirical evidence records that the impact of economic growth rate on the income inequality follows an inverted-U-shaped curve or Kuznet curve, while its impact on the genuine savings per GDP and biocapacity reserve follows a linear increasing line. Based on this evidence, we also show that only 27/172 economies have available space to raise its economic growth rate over the fast and weak sustainable development path. And only 15/172 economies have available space to raise its economic growth rate along the fast and strong sustainable development path. Implications: The results suggest that an economy can first attain the objective of fast and weak sustainable development, then, the fast and strong sustainable development. The transmission from fast and weak sustainable development to the fast and strong sustainable develoment is difficult, thus, needs the appropriated public policy architecture.
    Keywords: Fast and Sustainable Development,Cross-Section Analysis,Public Policy
    Date: 2021–10–25
    Abstract: Since signing the first free trade agreement (FTA) with Chile in 2004, Korea has established 16 FTAs with 57 countries including EFTA, ASEAN, EU, US, etc. In this study we examine whether Korea's FTAs have achieved their original objectives in the following three aspects: FTA network, product market openness and foreign direct investment (FDI). We find that Korea showed a high level of centrality during 2010-2016, but recently it has weakened slightly. The empirical analysis shows that FTAs have a positive effect on the increase in both exports and imports. We also find that FTAs have a positive effect on FDI. In addition, FTAs increased outbound foreign direct investment (OFDI) to both developed and developing countries, but increased inbound foreign direct investment (IFDI) only from developed countries.
    Keywords: Korea; FTA; policy; network; product market; openness; foreign direct investment
    Date: 2020–12–22
  25. By: Ly Dai Hung (Vietnam Institute of Economics, Hanoi, Vietnam)
    Abstract: The paper explores the impact of safe assets on the economic growth on the financial globalization context. The method employs both cross-section and panel data regression on a data sample of 150 economies, both advanced and developing ones, over the 1990-2019 period. The robustness analysis is carried out by controlling for different sub-sampling data, including advanced economies compared with emerging and developing economies, and 3 consecutive 10-year periods from 1990 to 2019. The empirical evidence establishes an inverted-U-shaped dependence pattern of economic growth on the assets safety, measured by the sovereign debts rating. The economic growth is first increasing then decreasing on the assets safety, with the turning point being the value at 12.0 of sovereign debts rating. Thus, the assets safety only exerts a positive impact on the economic growth for the low safety level. The paper makes contribution on the economic growth literature by uncovering an inverted-U-shaped pattern of economic growth, and also on the safe assets literature by charactering the impact of sovereign debts rating, a proxy for the safety of government debts, on the economic growth.
    Keywords: Economic Growth,Safe Assets,Globalizaton,Cross-Section Regression.
    Date: 2020–09
  26. By: Graciela Schiliuk (ESM); Tullio Buccellato (ESM); Jens Lapointe-Rohde (ESM); Georgios Palaiodimos (ESM); Habib Attia (Arab Monetary Fund (AMF)); Marthe Memoracion Hinojales (ASEAN + 3 Macroeconomic Research Office (AMRO)); Catharine Kho (ASEAN + 3 Macroeconomic Research Office (AMRO)); Gennady Vasiliev (Eurasian Fund for Stabilization and Development (EFSD)); Tigran Kostanyan (Eurasian Fund for Stabilization and Development (EFSD)); Alexandra de Carvalho (European Commission); Benedetta Guerzoni (European Commission); Carlos Giraldo (Latin American Reserve Fund (FLAR)); Iader Giraldo (Latin American Reserve Fund (FLAR))
    Abstract: This study compares responses to the Covid-19 crisis across six regions covered by Regional Financing Arrangements (RFAs), outlining the pandemic’s economic impact, policy measures implemented by authorities to limit its economic damage, and the institutional actions by the RFAs to support members through the initial stages of the crisis. It is the result of a joint effort by RFA staff and underscores the institutions’ continuous efforts to cooperate closely through the sharing of crisis experiences.
    Date: 2021–11–08
  27. By: Stefan Meyer (Monash University); Paulo Santos (Monash University); Chitpasong Kousonsavath (National University of Laos)
    Abstract: We experimentally evaluate the effect of competing for a prize on the coordinated control of invasive species in the presence of externalities. We offered prizes (merit, monetary and a combination of both) to the best performer in a contest aimed at promoting the control of rodent pests, an invasive species that is responsible for large losses in stored grain. Only monetary prizes are capable of promoting behavioral change, with relatively large effects: households in villages where prizes were offered reported losses in storage that are 25% lower than in control villages. The effect is a non-linear function of prize, with only intermediate size prizes leading to reductions in storage losses. Spillovers matter greatly, with non-participants in the contest benefiting almost as much as participants, highlighting the importance of externalities. Avoided losses are large enough to drive a reduction in rice prices in seasonally isolated markets.
    Keywords: contests, invasive species, spillovers, food security
    JEL: Q56 Q12
    Date: 2021–11

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