nep-sea New Economics Papers
on South East Asia
Issue of 2021‒12‒13
eleven papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Analisis Volatilitas Return Saham Syariah Studi Kasus pada Saham Syariah Yang Terdaftar di Jakarta Islamic Index (JII) By Khalamillah, FAHMI
  2. How Much Do Households Dislike Local Density? And Do Developers Fully Consider Their Preferences? Evidence from a Policy Change in Singapore By Fesselmeyer, Eric; Liu, Haoming; Poco, Louisa
  3. A Study on Private Enterprises and Entrepreneurs in Transition Economies: Focusing on Russia and Vietnam By Kim, Seok Hwan; Min, Jiyoung; Pek, Jong Hun; Le, Sang-Xuan
  4. The Institutional Foundations of Religious Politics: Evidence from Indonesia By Samuel Bazzi; Gabriel Koehler-Derrick; Benjamin Marx
  5. Alcohol Consumption among Adults in Vietnam: Prevalence, Patterns, and Its Determinants By Kumar, Santosh; Gundi, Mukta; Atre, Sagar; Ngoc, Luu Bich; Thieng, Nguyen Thi; Rammohan, Anu
  6. Digital Economy: A New Prospect for Korea's New Southern Policy By Kim, Jeong Gon; Lee, Jaeho; Kim, Jegook
  7. The Improvement of Korea's New Northern Economic Cooperation Governance: Focusing on Russia By Park, Joungho; Jeong, Minhyeon; Kang, Boogyun; Jeong, Dongyeon; Kim, Chorong; Jeh, Sunghoon; Lukonin, Sergey; Zaklyazminskaya, Ekaterina
  8. Advancing Universal Health Coverage in the COVID-19 Era : An Assessment of Public Health Services Technical Efficiency and Applied Cost Allocation in Cambodia By Robert John Kolesar; Peter Bogetoft; Vanara Chea; Guido Erreygers; Sambo Pheakdey
  9. Hardship Financing, Productivity Loss, and the Economic Cost of Illness and Injury in Cambodia By Robert John Kolesar; Guido Erreygers; Wim van Dam; Vanara Chea; Theany Choeurng; Soklong Leng
  10. Impacts of Interest Rate Cap on Financial Inclusion in Cambodia By Dyna Heng; Serey Chea; Bomakara Heng
  11. Societal Perception of Biotech Corn Farmers Towards the Philippine Supreme Court Ban on Biotech Crops By Gonzalvo, Clarisse; Aala, Wilson

  1. By: Khalamillah, FAHMI
    Abstract: Sharia stocks still made a positive performance, even better than the composite stock price index (CSPI) and the 45 most liquid stock index on the stock exchange (LQ45) on the Indonesia Stock Exchange (IDX). Along with the decline in the index and JCI capitalization, in 2018 the development of the Islamic capital market also experienced the same thing. The ISSI index decreased by 3.09% compared to the end of 2017. The method used in this study is this research is included in quantitative research. Quantitative research is research that uses numbers either directly taken from research results or data that is processed using statistical analysis. The conclusion of this study is that the results of the F test show that the variables tested together have an F test value of 27.794. with a significance of F 0.000 (p
    Keywords: Volatility analysis, sharia-shares, index (jii) of the Indonesian stock exchange
    JEL: A11 L1 Z00
    Date: 2021–11–23
  2. By: Fesselmeyer, Eric (Monmouth University); Liu, Haoming (National University of Singapore); Poco, Louisa (National University of Singapore)
    Abstract: This paper measures how much households dislike density in their immediate surroundings. Using transaction and administrative data in Singapore, and exploiting the introduction of a regulation that restricted the number of housing units for certain land lots, we find that households do indeed discount density: a 10% increase in within-development density decreases price per square meter by up to 4%. Further, we find that the mean price per square meter of the average development increased by 1 to 3% after the regulation was introduced, while the amount of built-up space remained constant. The increase in total revenue suggests that developers may underestimate the externality caused by density. Our results are particularly relevant during the lockdowns and social distancing of the coronavirus pandemic.
    Keywords: land-use policy, regulation, density, externalities
    JEL: R20 R21 R38
    Date: 2021–09
    Abstract: Russia's privatization took place from small enterprises, apartments, family farms to mid- and large-sized firms. Although national assets and state-owned enterprises were sold to the private sector, the government's fiscal condition did not improve. Rather, the government revenue to GDP ratio decreased in general. Furthermore, the corporate income to GDP ratio shrank more drastically. One of the reasons behind this could be that the tax system was just formed. In addition, as privatization went on, a number of companies failed and the government provided tax off-sets or tax amnesty to businesses. In terms of productivity, privatization had a positive effect. According to J. David Brown, John. S. Earle, and Scott Gehlbah (2013), privatization by both foreigners and Russians increased productivity to different extents by period. However, privatization weakened the government's power, destroyed social order and exacerbated corruption. The opaque and monopolistic manner of privatization in Russia benefited only those who were in power. As a result, Russia became a phony capitalist economy and private companies and businessmen came to have a negative public image. The word "piratization" was also coined based on this. Vietnam's equitization, which began in the early 1990s, is still underway. Even though the government has announced privatization plans on several occasions, the process has been very slow with mediocre achievements. State-owned companies in Vietnam are struggling with debt issues and diseconomies of scale, which can be connected with the country's falling industrial competitiveness. The default of Vinashin Group (largest Vietnamese shipbuilder) in December 2010 was a representative instance that highlighted the need to reform state-run companies. The World Bank also recommended that in order for the Vietnamese economy to develop into a middle-income country by 2035, privatization of state-owned enterprises will have to be accelerated. (the rest omitted)
    Keywords: Russia; Vietnam; private enterprise; privatization
    Date: 2020–12–07
  4. By: Samuel Bazzi (BU - Boston University [Boston]); Gabriel Koehler-Derrick (Harvard University [Cambridge]); Benjamin Marx (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Why do religious politics thrive in some societies but not others? This paper explores the institutional foundations of this process in Indonesia, the world's largest Muslim democracy. We show that a major Islamic institution, the waqf, fostered the entrenchment of political Islam at a critical historical juncture. In the early 1960s, rural elites transferred large amounts of land into waqf —a type of inalienable charitable trust—to avoid expropriation by the government as part of a major land reform effort. Although the land reform was later undone, the waqf properties remained. We show that greater intensity of the planned reform led to more prevalent waqf land and Islamic institutions endowed as such, including religious schools, which are strongholds of the Islamist movement. We identify lasting effects of the reform on electoral support for Islamist parties, preferences for religious candidates, and the adoption of Islamic legal regulations (sharia). Overall, the land reform contributed to the resilience and eventual rise of political Islam by helping to spread religious institutions, thereby solidifying the alliance between local elites and Islamist groups. These findings shed new light on how religious institutions may shape politics in modern democracies.
    Keywords: Religion,Institutions,Land reform,Islam,Sharia Law
    Date: 2020–05
  5. By: Kumar, Santosh (Sam Houston State University); Gundi, Mukta (Azim Premji University); Atre, Sagar (Intellecap Advisory Services); Ngoc, Luu Bich (National Economics University Vietnam); Thieng, Nguyen Thi (National Economics University Vietnam); Rammohan, Anu (University of Western Australia)
    Abstract: This study describes the prevalence and drinking patterns of alcohol consumption among adults (aged 15+ years) and explores the association between sociodemographic factors and alcohol consumption in Vietnam. A cross-sectional representative survey of 5,200 respondents from 12 provinces was conducted in 2015. Multivariate logistic regression models were fitted to analyze the association between sociodemographic factors (age, gender, education, marital status, income, religion) and alcohol consumption patterns. Nearly three-quarters of males (77%) and one-quarter of females (23%) were current alcohol drinkers. In the multivariate analyses, being male (aOR=10.9, 95%CI = 8.01-14.8, p
    Keywords: alcohol use, sociodemographic determinants, homemade alcohol, Vietnam
    JEL: A10 I1
    Date: 2021–10
    Abstract: Korea's cooperation with Southeast Asian countries and India(New Southern Policy countries) has been mainly focused on the establishment of manufacturing production networks. Recently, the need to add a new dimension to the existing framework of cooperation is being raised. The demand in sectors related to the digital economy of those countries is increasing. Many of the NSP countries are now striving to achieve economic and industrial leaps through implementing digital transformation. Considering the mid- and long-term economic development directions of Korea and the NSP countries, it is necessary to pay attention to the digital economy as a new area of mutual prosperity. Southeast Asian countries and India have strong potentials for digital transformation with the high economic growth, large population, high ICT utilization levels, etc. Conditions for trade and investment are also favorable as their economic openness is being achieved. Korea and the NSP countries need to establish a comprehensive digital economy cooperation platform. Through this, Both sides can inform partners of their digital economy-related agenda/interests and discuss ways for cooperation. Especially, it will provide chances for participants to identify mutual cooperation needs efficiently and specifically. Innovative small businesses and startups should be the focus of the cooperation. For Korean side, based upon thorough and comprehensive understanding on the NSP countries' social and economic context, cooperation focusing on their urgent demands is of great importance.
    Keywords: Korea; New Southern Policy; India; digital; economy; platform
    Date: 2020–11–02
    Abstract: Marking the 30th anniversary of the establishment of diplomatic ties between Korea and Russia, this study aims to suggest policy proposals to improve Korea's economic cooperation governance with Russia. This study analyzes the structure and features of Russia's international economic cooperation governance as well as cases of economic cooperation governance with Russia in four major countries (China, Japan, German and Vietnam). In addition, we conducted a survey of experts at home and abroad on their evaluation of Korea’s economic cooperation governance with Russia. Based on the analysis, this study presents five policy proposals to improve Korea's economic cooperation governance with Russia. 1) Reorganize the Korea-Russia Joint Committee on Economic, Scientific and Technological Cooperation and its sub-committees; 2) Restructure and revitalize public-private and private consultative bodies for economic cooperation; 3) Successfully utilize financial assistance mechanisms and consider launching a cooperation fund; 4) Establish a K-business center; and 5) Strategically utilize the major international forums organized by Russia.
    Keywords: Korea; Russia; New Northern Policy; economic cooperation; governance
    Date: 2020–10–08
  8. By: Robert John Kolesar (Abt Associates, UA - University of Antwerp, Cambodian Ministry of Economy and Finance, CERDI - Centre d'Études et de Recherches sur le Développement International - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne); Peter Bogetoft (CBS - Copenhagen Business School [Copenhagen]); Vanara Chea (Cambodian Ministry of Economy and Finance); Guido Erreygers (UA - University of Antwerp); Sambo Pheakdey (Cambodian Ministry of Economy and Finance)
    Abstract: COVID-19 is causing serious impacts on tax revenue and consequentially on public health budgets. This study assesses Cambodia's public health services technical efficiency, unit costs, and utilization rates to quantify the extent to which current health financing can accommodate the expansion of social health protection coverage. Overall, for the public health system to be fully efficient output would need to increase by 34 and 73 percent for hospitals and health centers, respectively. We find public sector service quality, private sector providers, and non-discretionary financing to be statistically significant factors affecting technical efficiency. This study pioneers the application of Data Envelopment Analysis-Aumann-Shapley applied cost allocation to the health sector, enabling unit cost estimation for the major social health insurance payment categories. We estimate there is potential supply-side 'service space' to expand population coverage to an additional 4.69 million social health insurance beneficiaries with existing financing if the public health system were fully efficient.
    Keywords: health service efficiency,social health protection,costing,cost allocation,Universal Health Coverage
    Date: 2021–08–20
  9. By: Robert John Kolesar (Abt Associates, UA - University of Antwerp, Cambodian Ministry of Economy and Finance, CERDI - Centre d'Études et de Recherches sur le Développement International - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne); Guido Erreygers (UA - University of Antwerp); Wim van Dam (ITM - Institute of Tropical Medicine [Antwerp]); Vanara Chea (Cambodian Ministry of Economy and Finance); Theany Choeurng (Cambodian Ministry of Economy and Finance); Soklong Leng (Cambodian Ministry of Economy and Finance)
    Abstract: Financial risk protection is a core dimension of Universal Health Coverage. Hardship financing, defined as borrowing and selling land or assets to pay for healthcare, is a measure of last recourse. To inform efforts to improve Cambodia's social health protection system we analyze 2019-2020 Cambodia Socioeconomic Survey data to assess hardship financing, illness and injury related productivity loss, and estimate related economic impacts. We apply two-stage Instrumental Variable multiple regression to address endogeneity relating to net income. More than 98,500 households or 2.7% of the total population resorted to hardship financing over the past year. Factors significantly increasing risk are having an Equity card, higher out-of-pocket healthcare expenditures, illness or injury related productivity loss, and spending of savings. The economic burden from annual lost productivity from illness or injury amounts to USD 459.9 million or 1.7% of GDP. The estimated household economic cost related to hardship financing is USD 250.8 million or 0.9% of GDP. Such losses can be mitigated with policy measures such as linking a catastrophic health coverage mechanism to the Health Equity Funds, capping interest rates on health-related loans, and using loan guarantees to incentivize microfinance institutions and banks to refinance health-related, high-interest loans from money lenders.
    Keywords: social health protection,poverty,financial risk protection,Universal Health Coverage,hardship financing
    Date: 2021–07–29
  10. By: Dyna Heng; Serey Chea; Bomakara Heng
    Abstract: Interest rate caps, despite their intended objective of broadening financial inclusion, can have undesirable effects on financial inclusion under certain conditions. This paper examines the effect of microfinance-loan interest rate caps on financial inclusion in Cambodia. Based on a difference-in-difference analysis on bank and microfinance supervisory data, results show some unintended impact on financial inclusion. The cap led to a significant increase in non-interest fees charged on new loans following the introduction of an annual cap. Microfinance borrowers declined immediately, amid an increase in credit growth, as microfinance institutions targeted larger borrowers at the expense of smaller ones. Microfinance institutions, responded differently to the cap, considering their own operation and funding costs, and client base. Two years after the cap, institutions resumed lending to a wider group of borrowers with lower funding and operation costs brought by mobile payment development.
    Keywords: Financial Inclusion, Interest Rate Caps, Banking Sector; microfinance borrower; microfinance-loan interest rate caps; operation cost; supervisory data; impact of interest rate cap; Loans; Interest rate ceilings; Microfinance; Financial inclusion; Credit; Global
    Date: 2021–04–29
  11. By: Gonzalvo, Clarisse; Aala, Wilson
    Keywords: Crop Production/Industries
    Date: 2021–08

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