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on South East Asia |
| By: | Takahiro Akita (IUJ Research Institutey, International University of Japan); Sachiko Miyata (Ritsumeikan University) |
| Abstract: | Using nation-wide household surveys, this study investigates the roles of education in expenditure inequality in two archipelagic Asian countries: Indonesia and the Philippines. Since disparity between urban and rural areas is one of the main determinants of expenditure inequality and there is a large difference in educational endowments between urban and rural areas, an analysis is conducted in an urban-rural framework. Both countries achieved a notable reduction in expenditure inequality in the 2010s. In Indonesia, the reductions of disparity between education groups and tertiary education group’s within-group inequality in urban areas were the main contributors to the reduction of overall expenditure inequality. In the Philippines, the reductions of expenditure disparities between urban and rural areas and between education groups were the main contributors to the reduction of overall expenditure inequality. In 2018, Indonesia and the Philippines had the same level of expenditure inequality. But, as compared to developed countries, their expenditure inequalities are still very high. In Indonesia, expenditure inequality among those with secondary education is the major determinant of overall expenditure inequality. Thus, reducing secondary group’s within-group inequality is necessary. At the same time, tertiary group’s within-group inequality should be decreased in urban areas. In the Philippines, expenditure inequality among those with tertiary education is the major determinant of overall expenditure inequality. Thus, reducing tertiary group’s within-group inequality is imperative. At the same time, disparity between education groups should be decreased in both urban and rural areas. |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:iuj:wpaper:ems_2023_03&r=sea |
| By: | Takahiro Akita (IUJ Research Institutey, International University of Japan); Armida Salsiah Alisjahbana (Universitas Padjadjaran) |
| Abstract: | The COVID-19 pandemic has exerted an enormous impact on the Indonesian economy. In 2020, the country contracted by 2.7%. But, the impact has been spatially heterogeneous. Based on provincial GDP by industrial sectors, this study examines how structural changes caused by the pandemic have affected the determinants of inter-provincial inequality in Indonesia by conducting a bi-dimensional inequality decomposition analysis. It also investigates how the pandemic has affected provincial economies by performing a panel data regression analysis. According to the regression analysis, the pandemic appears to have affected the convergence speed of provincial economies. Provinces with larger GDP shares of the tourism sector were affected more severely by the pandemic. Meanwhile, the impact of the financial sector on provincial growth was not affected. According to the decomposition analysis, after the outbreak of the COVID-19, the tourism sector reduced its contribution to inter-provincial inequality. On the other hand, the IC and financial services sectors were not affected by the pandemic and raised their contributions. When Indonesia will recover from the pandemic, it is likely that the tourism sector will regain its position as an important determinant of inter-provincial inequality. However, the most important sectors in determining inter-provincial inequality will be IC, financial and business services sectors, particularly in the Java-Bali region. With the rapid advancement of IC, financial and e-business technologies, the roles of these high-inequality sectors are likely to increase unless policies that could facilitate spatial dispersion of these services activities are implemented. |
| Keywords: | Indonesia, COVID-19 pandemic, structural changes, inter-provincial income inequality, bi-dimensional inequality decomposition analysis |
| JEL: | I14 O15 R12 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:iuj:wpaper:ems_2023_02&r=sea |
| By: | Masato Abe (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific); Nick Freeman (Consultant, Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific); Mike Troilo (Consultant, Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific) |
| Abstract: | The COVID-19 pandemic is a global catastrophe, with no region spared including Asia and the Pacific. The cost has been considerable, whether measured in terms of public health or economic fallout. In a bid to constrain the spread of the coronavirus, national and local governments were obliged to lock down public spaces, forbade business transactions in person, restricted travel, and otherwise interdicted the flow of people, goods, and services globally. The consequences for business have been acute (ESCAP, 2021). Micro, small, and medium-sized enterprises (MSMEs) naturally suffered more than large firms, given their limited human and financial resources, and heavier reliance on cash flows. The exogenous shock of the sudden, dramatic curtailment of business was a blow that ended an unknown number of MSMEs across the region. Access to finance, already a major constraint to MSME development prior to the pandemic, has worsened considerably, even in cases where governments have had sufficient resources to enact emergency policies aimed at keeping their MSME sectors afloat (ESCAP, 2021). The environment remains difficult. Despite these challenges, the pandemic represents an opportunity for MSME finance in the region. Policymakers can build back better to enable MSME finance to be more sustainable, efficient, and resilient. This will require dramatic changes in how policymakers and all stakeholders, including members of the international development community such as ESCAP, view MSME finance: its provision and related services. In this policy brief, we propose a holistic framework to capture this new thinking. |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb118&r=sea |
| By: | Erik Grigoryan (Consultant, Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific); Zenathan Adnin Hasannudin (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific); Alberto Isgut (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific); Patrick Martin (Consultant, Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific); Deanna Morris (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific) |
| Abstract: | Under the Paris Agreement, developed and developing countries have committed to do their part to ensure that the warming of the planet is capped at well below 2 °C above pre- industrial levels and are pursuing efforts to limit the temperature increase to 1.5 °C above pre- industrial levels. These commitments are reflected in their Nationally Determined Contributions (NDCs), which countries are required to submit every five years. However, with COVID-19 recovery efforts demanding a massive increase in government expenditure amid slowing economic activity, sovereign debt levels have risen sharply in 2020 and are likely to remain high in the near future. Currently, 11 Asia-Pacific countries are at high risk of debt distress, seven of which are Pacific Small Island Developing States: Afghanistan, Kiribati, Lao PDR, Maldives, Marshall Islands, Micronesia (Federated States of), Papua New Guinea, Samoa, Tajikistan, Tonga and Tuvalu. Furthermore, as countries prioritize addressing health concerns and a speedy economic recovery, relatively less attention is being paid to tackling climate change. Given this situation, there has been increasing support for debt-for-climate swaps as a solution to simultaneously reduce sovereign debt burdens and increase financing to scale up investments in climate mitigation and adaptation projects. Earlier this year, the Managing Director of the IMF announced that the IMF and the World Bank are working together to develop an “organizing framework†for connecting debt relief to countries’ plans for investing in green, resilient and inclusive development. Their joint proposal for green debt swaps will be announced during COP 26. |
| Date: | 2021–10 |
| URL: | http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb121&r=sea |
| By: | Martín Calveira; Eduardo Fracchia |
| Abstract: | El presente trabajo analiza el proceso de transformación de la Republica Socialista de Vietnam iniciado en la década de 1980 a partir de reformas estructurales incluidas en el programa denominado Doi Moi (Renovación). Ese conjunto de medidas integrales tuvieron resultados notablemente favorables en términos de crecimiento económico y desarrollo productivo y social. En ese sentido la gestión de los cambios fue convergente con los objetivos de Productividad Inclusiva, principalmente al observar la inversión en capital humano derivado del énfasis en la educación. |
| JEL: | O1 O4 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:aep:anales:4545&r=sea |
| By: | Upalat Korwatanasakul |
| Abstract: | The study provides a novel analysis through the lens of the global value chain (GVC) framework with empirical data of trade in value added, which has not been explored much in the literature, to explain the issue of the middle-income trap in the context of Thailand by matching GVC data at the firm, industry, and country levels with the economic development path. The findings support the previous studies that GVC participation helps induce initial industrialisation and economic development. However, it does not guarantee technological upgrading at a later stage due to the risk of falling into the middle-income technology trap (MITT). Thailand depends heavily on passive technology and specialisation given by headquarter economies, which lock the country in the middle of value chains with limited knowledge and technology transfer. As a result, the country fell into the MITT. The MITT, together with other confounding factors, such as eroding competitiveness in labour-intensive production, made Thailand unable to sustain its growth and catch up with more innovative advanced economies and, in turn, fell into the middle-income trap. To escape from both traps, the government may consider policies that can deal with the issues of insufficient knowledge and technology transfer and a lack of local firms’ capacities as they are the primary causes of the limited upgrading. In addition, the study manifests the necessity of a contextual analysis at the industry level to understand value-added components and the importance of the quality of domestic value added sources. |
| Keywords: | Economic development; Global value chain (GVC); GVC participation; Middle-income trap; Thailand |
| JEL: | F13 F14 L25 O24 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:pui:dpaper:202&r=sea |
| By: | Erik Grigoryan (Consultant, Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific); Alberto Isgut (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific); Patrick Martin (Consultant, Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific) |
| Abstract: | The Pacific Small Island Developing States (PSIDS) are among the most vulnerable countries in the world to the effects of climate change and related disasters, but they can afford the least to invest in climate action. In addition to the adverse fiscal impacts of the COVID-19 pandemic, these countries have a high degree of economic vulnerability due to their small size and dependence on a few key export industries such as tourism or fisheries. As such, debt sustainability analyses conducted by the IMF and the World Bank regularly assess most PSIDS to be at high risk of debt distress. This report discusses the potential of debt for climate swaps to leverage additional finance for climate actions in the PSIDS while also reducing their debt burdens. The report examines the concept of debt for climate swaps, outlines the potential of debt for climate swaps in the PSIDS, and provides recommendations for the scheme design based on best practices. |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb123&r=sea |
| By: | JIN SEO CHO (Yonsei University); PETER C. B. PHILLIPS (Yale University); JUWON SEO (National University of Singapore) |
| Abstract: | A parametric quantile function estimation procedure is developed for functional data. The approach involves minimizing the sum of integrated functional distances that measure the functional gap between each functional observation and the quantile curve in terms of the check function. The procedure is validated under both correctly specified and misspecified models by allowing for the presence of nuisance parameter estimation effects. Testing methodology is developed using Wald, Lagrange multiplier, and quasi-likelihood ratio procedures in this functional data setting. Finite sample performance is assessed using simulations and the methodology is applied to study how lifetime income paths differ between genders and among different education levels using continuous work history samples. The methodology enables the analysis of full career income paths with temporal and possibly persistent dependence structures embodied in the observations.The results capture both gender and education effects but these empirical differences are shown to be mitigated upon rescaling to take account of lifetime experience and job mobility. |
| Keywords: | Functional data; quantile function; nuisance effects; quantile inference; lifetime income path; gender and education effects. |
| JEL: | C12 C21 C31 C80 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:yon:wpaper:2023rwp-211&r=sea |
| By: | Pavitra Paul (CSH - Centre de sciences humaines de New Delhi - MEAE - Ministère de l'Europe et des Affaires étrangères - CNRS - Centre National de la Recherche Scientifique, Yerevan State Medical University after Mkhitar Heratsi); Ulrich Nguemdjo (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique); Armel Ngami (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique); Natalia Kovtun (Taras Shevchenko National University of Kyiv); Bruno Ventelou (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Efficiency within the health system is well recognised as key for achieving Universal Health Coverage (UHC). However, achieving equity and efficiency simultaneously is often seen as a conflicting effort. Using 12 years of data (2003–2014) from the selection of a number of low- and lower middle-income countries (Afghanistan, Bangladesh, Burkina Faso, Ghana, Indonesia, Mongolia, Mozambique, Tajikistan, Togo, Uzbekistan and Yemen Republic), we compute an index of Universal health coverage (UHC), measure the health system's performance (HSp) and, finally, investigate the cross-dynamics of the resulting HSp and the UHC previously obtained. We find that, with the few exceptions over the statistical sample, the causality between performances of the national health system and the universal health coverage is typically bidirectional. From an empirical standpoint, our findings challenge the idea from economic orthodoxy that efficiency must precede equity in healthcare services. Rather, our findings support the view of simultaneous efforts to improve expansion of the coverage and efficiency of the health system, directing attention towards the importance of organisation of the health system in the country context. |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03997298&r=sea |
| By: | Ogundari, Kolawole |
| Abstract: | This study investigates the effects of socioeconomic status on racial achievement gaps. The educational achievement gap is based on the study's standardized test scores and grade point averages. And for the empirical analysis, we used a trend analysis and regression approach based on two-way fixed and multilevel mixed-effects regression models. The trend analysis showed that the achievement gap between White and Black students is positive and substantially large, followed by White and Hispanic students. However, the differences in the achievement gap between white and Asian are negative, which shows that student achievement is much higher among Asian students than the White students. Furthermore, the estimated regression models showed that the achievement gap increased significantly as the socioeconomic status between white/black and white/Hispanic students increased. In contrast, the achievement gap significantly decreased as the socioeconomic status gap between white and Asian students changed. |
| Keywords: | Education, inequality, racial achievement gap, Socioeconomic status, USA |
| JEL: | I21 I24 |
| Date: | 2023–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116625&r=sea |
| By: | Ethan B. Kapstein (Princeton University); Scott A. Tyson (Emory University); Audrye Wong (University of Southern California) |
| Abstract: | How do foreign agents, representing countries or other political actors, exert political influence in another country? While considerable theoretical and empirical attention are devoted to coercion (explicit or implicit) and corruption, other channels of political influence across countries have received far less consideration. In this article, we develop a novel theory of constituency cultivation, which is targeted investments by foreign actors that promote greater alignment between their interests and those of politically important groups/individuals in another country. We examine two key ingredients that influence constituency cultivation, pre-existing interest congruence and coordination salience (on decisions favoring the foreign actor). We show that increases in interest congruence and higher coordination salience reduce effort by a foreign actor on cultivating a constituency. Finally, we extend our theory to include corruption and show that it corresponds to a special case of equilibrium selection. |
| Keywords: | China; Political Influence; Constituencies; Belt and Road Initiative; Lobbying; Southeast Asia |
| JEL: | D72 F51 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:pri:esocpu:36&r=sea |
| By: | Bacic, Ryan; Zheng, Angela |
| Abstract: | We study whether racial disparities in economic opportunity appear at an early age. Using administrative education data linked to tax records, we study the income-achievement gap across different races and find important variation. The income-achievement gap is small for East Asian children while it is close to twice as large for Indigenous children. Sorting by income into schools accounts for a large portion of the variation in the income-achievement gap across all student groups. In addition, our results suggest that the large income-achievement gap for Indigenous students may be rooted in inequality in health outcomes and poor housing conditions. Our findings on income-achievement gaps across race could partially explain the different intergenerational mobility outcomes by race documented by others. |
| Keywords: | test scores, income-achievement gaps, race |
| JEL: | I20 I24 J15 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:clefwp:55&r=sea |
| By: | Arpino, Bruno |
| Abstract: | This paper examines the role of the community context in the estimation of the effect of fertility on households’ economic wellbeing in rural Vietnam. Contextual characteristics can strongly influence both fertility and economic wellbeing and therefore it is crucially important to account for them in order to draw valid causal inference. The multilevel dimension introduces statistical complications and stimulates interesting research questions. We implement multilevel propensity score matching (PSM) techniques and propose a weaker version of the traditional SUTVA assumption. This assumption is usually overlooked in causal inference studies in demographic research, but it may be violated in the presence of spillover effects (interference). We propose a version of SUTVA that allows the effect of fertility on economic wellbeing to also depend on the overall fertility level in the community. We find a negative and substantively important effect of fertility on economic wellbeing and that the effect is stronger in high-level fertility communities, denoting the presence of spillover effects. On the contrary, fertility measured at the community level does not have a significant effect per se on households’ economic wellbeing. |
| Date: | 2023–02–21 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:wap63&r=sea |