nep-sea New Economics Papers
on South East Asia
Issue of 2023‒04‒10
fourteen papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Control of Emerging-Market Target, Abnormal Stock Return: Evidence in Vietnam By Quyen Van; Vy Tran
  2. The Stock Price Relationship between Holding Companies and Subsidiaries: A Case study of Indonesia Multiholding Companies By Muhammad Aufaristama
  3. The Impact of Minimum Wages on Employment: Evidence from a Lower Middle-Income Country By Nguyen, Cuong Viet
  4. Growth, Intellectual Capital, Financial Performance And Firm Value : Evidence From Indonesia Automotive Firms By Putri, Indah Ayu Johanda
  5. Young Entrepreneur dalam Perspektif Model Bisnis By Melanie, Hanna Resti
  6. Technology and Wage Share of Older Workers By Park, Donghyun; Shin, Kwanho
  7. Political Connections, Business Groups and Innovation By Commander, Simon; Estrin, Saul; De Silva, Thamashi
  8. Envelope culture in the healthcare system: happy poison for the vulnerable By Vuong, Quan-Hoang; La, Viet-Phuong; Le, Tam-Tri; Hoang, Giang; Jin, Ruining; Quang-Loc, Nguyen; Vuong, Thu-Trang; Nguyen, Minh-Hoang
  9. Guiding policies and investments to reduce agriculture-led deforestation in Viet Nam – Expanding beef and dairy sectors, while reducing deforestation risks By Ilicic, Joanna; Crespi, Maria Giulia; Maggio, Giuseppe; Kwon, Jihae; Ngoc Nguyen, Hanh Thi; Mamidanna, Sravya; Ignaciuk, Adriana
  10. The causes, course and consequences of the surge in Venture Capital AgTech investments By Julian S. Rochea
  11. How Seven Cities Are Exploring Congestion Pricing Strategies By Colner, Jonathan P.; Cohen D’Agostino, Mollie
  12. Global Inequality in the Current Era By Susana Nudelsman
  13. Counting missing women: A reconciliation of the "flow measure" and the "stock measure" By Ebert, Cara; Klasen, Stephan; Vollmer, Sebastian
  14. Agricultural mechanization and sustainable agrifood system transformation in the Global South By Daum, Thomas

  1. By: Quyen Van; Vy Tran
    Abstract: Joining with the upward trend of Global Foreign direct investment and FDI in emerging economies and emerging Asian economies, FDI to Vietnam, especially M&As have increased significantly in both numbers and value of deals from 1995 to 2015...
    Date: 2023–02
  2. By: Muhammad Aufaristama
    Abstract: This study aimed to examine the correlation between the stock prices of two major Indonesian holding companies, MNC Group and Elang Mahkota Teknologi (Emtek) Group, and their respective subsidiaries as case studies. The data for the analysis were collected from 2013 to 2022, and Spearman correlation was used to determine the strength and direction of the relationship between the stock prices of the holding companies and their subsidiaries. The results of the analysis revealed that there were varying degrees of correlation between the stock prices of the holding companies and their subsidiaries. The strongest positive correlation was observed between BHIT and BMTR, while the weakest correlations were found between BHIT and IPTV, and BHIT and MSIN. The correlations were also found to have changed over time, possibly due to market conditions, company-specific events, or changes in industry sectors.In the case of Emtek Group, the analysis suggested that EMTK's stock price movements had a significant impact on the stock prices of its subsidiaries, with varying strengths of relationships. The negative correlation between EMTK and SCMA over the entire period suggested an inverse relationship, while positive correlations with BUKA, AMOR, BBHI, and RSGK indicated a tendency to move in the same direction as EMTK's stock price. The correlations were found to have increased over time, possibly due to market conditions and EMTK's ownership stake in these companies. Overall, the findings of this study suggest that there is a complex interplay between the stock prices of parent companies and their subsidiaries, and that there are a variety of factors that can influence these relationships over time. These findings may be useful for investors in making informed decisions about their investment portfolios, as changes in the correlations could impact their portfolio's performance.
    Date: 2023–03
  3. By: Nguyen, Cuong Viet
    Abstract: In this study, we examine the impact of minimum wages in Vietnam using individual-level data from the 2012-2020 annual Labor Force Surveys. During this period, the average real minimum wage increased by around 4% per year. Overall, we do not find significant effects from minimum wages on employment and monthly wages. However, we find a considerable negative effect on workers' total working hours. Working hours per week are reduced by 0.38% for a 1% increase in the minimum wage. Since total wages remain unchanged, a reduction in working hours results in an increase in hourly income. A 1% increase in the minimum wage leads to a 0.32% increase in hourly wages. Interestingly, for workers earning below minimum wage, we find a positive effect from minimum wages on their monthly income. A 1% increase in the minimum wage increases monthly income of workers earning below minimum wage by 0.83%.
    Keywords: minimum wages, employment, labor productivity, impact evaluation, Vietnam
    JEL: J31 J50 O12
    Date: 2023
  4. By: Putri, Indah Ayu Johanda
    Abstract: This study analyzes and explains empirical evidence of the effect of growth and Intellectual Capital respectively on financial performance and firm value, as well as the role of Financial Performance in mediating the influence of company growth and Intellectual Capital respectively on firm value. The benefits of this research are expected to be a reference that enriches the literature of Management Science, especially related to signaling theory and Resource Based Theory. In addition, this research is expected to provide benefits for automotive company managers in developing strategies that can improve financial performance and firm value, investors in automotive companies in making the right decisions in investing in automotive companies and the government in formulating policies related to automotive companies so that more investors invest in automotive companies. To test the hypothesis used Partial Least Square (PLS) analysis. The results of the hypothesis test show that: (1) the company's growth has a positive and insignificant effect on financial performance, (2) Intellectual Capital has a positive and significant effect on financial performance, (3) company growth has a positive and insignificant effect on firm value, (4) Intellectual Capital has a positive and insignificant effect on firm value, (5) financial performance has a positive and significant effect on firm value, (6) financial performance does not mediate the company's growth to the company's value and (7) financial performance mediates Intellectual Capital to the value of the company.
    Date: 2023–03–14
  5. By: Melanie, Hanna Resti
    Abstract: Jiwa wirausaha perlu dikembangkan pada generasi muda guna membantu dalam perkembangan ekonomi Indonesia. Melihat generasi muda merupakan agen terpenting dalam membuat perubahan, pemerintah telah memberikan fasilitas penunjang dengan menyiapkan dana bagi mahasiswa yang berkenan dalam membuka usaha, yaitu PKM-K. Dengan demikian, hal ini sejalan dengan kebijakan pendidikan untuk mendorong pengembangan kewirausahaan.
    Date: 2023–02–25
  6. By: Park, Donghyun (Asian Development Bank); Shin, Kwanho (Korea University)
    Abstract: Technological progress may be less beneficial for older workers than younger workers. In this paper, we empirically examine the impact of technological change on the wage share of older workers. More specifically, we look at five different types of technological advancement using data from 30 European and Asian countries that are at the forefront of global population aging. Our findings indicate that recent technological developments centered on information and communication technology, software, and robots do not adversely affect older workers. One possible explanation is that older workers may be more open to learning and adopting new technologies than widely presumed.
    Keywords: aging; older workers; wage share; capital; information communication technologies; robots
    JEL: E24 E25 J01 J11 O11
    Date: 2023–03–24
  7. By: Commander, Simon (IE Business School, Altura Partners); Estrin, Saul (London School of Economics); De Silva, Thamashi (Capital Economics)
    Abstract: It has been argued that Asia's remarkable economic achievements of the past 50 years build on institutional arrangements very different from the West, notably the central role of business groups (BGs). As Asian economies move from extensive to intensive growth, we enquire whether the business group organsational format will be as effective going forward. We argue that the ubiquity of BGs has been associated with the accretion of major market power, as well as overall concentration. Our empirical work, drawing on a sample of more than 9000 Asian firms, finds that while BGs are more innovative than non-affiliates, this is unsurprising given their access to additional resources. However, when we look at innovation at the country level, we find that the wider consequences of BGs on innovation may be negative.
    Keywords: innovation, R&D, Asian business groups, market power, overall concentration
    JEL: L22 O30 O53
    Date: 2023–03
  8. By: Vuong, Quan-Hoang; La, Viet-Phuong; Le, Tam-Tri; Hoang, Giang; Jin, Ruining; Quang-Loc, Nguyen; Vuong, Thu-Trang; Nguyen, Minh-Hoang
    Abstract: Bribing doctors for preferential treatment is rampant in the healthcare system of developing countries like Vietnam. Although bribery raises the out-of-pocket expenditures of patients, it is so common to be deemed an “envelope culture.” Given the little understanding of the underlying mechanism of the culture, this study employed the mindsponge theory for reasoning the mental processes of both patients and doctors for why they embrace the “envelope culture” and used the Bayesian Mindsponge Framework (BMF) analytics to validate our reasoning. Analyzing responses from 1042 Vietnamese patients, we discovered that bribing doctors can help patients reduce the destitution risk induced by treatment. Such effect of doctor bribery remains consistent among patients that have to pay high daily costs (e.g., accommodation and subsistence fees) regardless of their employment status. Nevertheless, for patients with no or unstable jobs, their risks of destitution increase if they have to pay more thank-you money. These findings suggest that doctor bribery is an adaptive strategy for patients in an environment where the healthcare supply cannot meet the actual demand. Moreover, healthcare equity is greatly exacerbated due to the envelope culture, as vulnerable individuals are exposed to a greater threat of poverty. At the same time, those with good economic conditions get preferential treatment by paying a higher amount of thank-you money. Healthcare workers’ ethics must be the top priority for an equitable and proper healthcare system.
    Date: 2023–02–22
  9. By: Ilicic, Joanna; Crespi, Maria Giulia; Maggio, Giuseppe; Kwon, Jihae; Ngoc Nguyen, Hanh Thi; Mamidanna, Sravya; Ignaciuk, Adriana
    Abstract: The study unpacks the potential, current and future, linkages between beef and dairy development and deforestation, using Nghe An and Ha Tinh provinces in Viet Nam as case study, where the beef and dairy production increases are important and potential impact on the primary forests is of particular concern. It shows how beef and dairy expansion creates demand for additional land, which combined with existing land constraints, increases risk of further deforestation. The study also proposes possible entry points for developing deforestation-free value chains, which are key for decision-makers to enact new policies to overcome the dual challenge of agriculture growth without forest loss, which is likely to intensify if no action is taken.
    Keywords: Agricultural and Food Policy
    Date: 2022–10–24
  10. By: Julian S. Rochea
    Abstract: Between 2018-2022, there was a significant surge of venture capital in Agtech. The causes were many: the rise in global population and its consequences, AgTech developments themselves, the search for new investment sectors by VCs themselves, and even the pandemic all played a part. The surge brought investment to locations that hitherto had been completely outside the VC radar, notably Asia but now also Africa. Now that the surge has ebbed, along with VC investment as a whole, it is possible to begin to take stock. The evidence to date suggests that the majority of investment during the surge has flowed into downstream companies with the opportunity for rapid growth and high valuations. No global champion has yet emerged for upstream AgTech, whether in plant genetics, animal health or even novel farming systems. The impact of the surge in raising yields therefore rests on exits to or partnerships with major corporates, as they have the capacity to deliver technology at scale.
    Keywords: Agricultural Finance
    Date: 2023–03–24
  11. By: Colner, Jonathan P.; Cohen D’Agostino, Mollie
    Abstract: Congestion pricing is a vehicle tolling system that imposes fees to drive within a congested area, typically a downtown district. Cities that already have congestion pricing policies in place have been studied extensively. Notable examples are Singapore, London, Stockholm, Milan, and Gothenburg. These cities have appreciated a range of benefits from congestion pricing, including reductions in peak traffic, vehicle miles traveled, and emissions, as well as increased revenues for transportation investments.
    Keywords: Engineering
    Date: 2023–03–29
  12. By: Susana Nudelsman
    Abstract: Abstract: One of the most vehement criticisms to the current global era refers to the issue of huge income disparities within and between countries. At present, global inequality is higher than it was 200 years ago but, at the same time, up to COVID 19, the Gini index marks the first time since the Industrial Revolution that it stopped rising. This downward trajectory has been driven by a decline in between-country inequality —the main explanatory factor for global income disparities— partially offset by a rise in within-country inequality. The downward trend between countries should not be unexpected, since low-income countries in Asia, particularly China, have experienced growth rates substantially above the world average in the context of a rapid industrialization process. The pandemic has revealed and worsened preexisting inequalities in both within and between countries, so that global inequality also appears to have increased since its outbreak. Resumen: Una de las críticas más vehementes a la actual era global se refiere a la cuestión de las enormes disparidades de ingresos dentro de los países y entre ellos. En la actualidad, la desigualdad mundial es mayor que hace 200 anos, pero, al mismo tiempo, hasta el COVID 19, el índice de Gini marca la primera vez desde la Revolución Industrial que dejó de aumentar. Esta trayectoria descendente se ha visto impulsada por un descenso de la desigualdad entre países —el principal factor explicativo de las disparidades de ingresos a nivel mundial— parcialmente compensado por un aumento de la desigualdad dentro de los países. La tendencia a la baja entre países no debería ser inesperada, ya que los países de bajos ingresos de Asia, especialmente China, han experimentado tasas de crecimiento sustancialmente superiores a la media mundial en el contexto de un rápido proceso de industrialización. La pandemia ha revelado y agravado las desigualdades preexistentes tanto dentro de los países como entre ellos, de modo que la desigualdad mundial también parece haber aumentado desde su estallido.
    Keywords: Inequality, International Economics, Economic Impacts of Globalization, International Economic Order (en)desigualdad, globalización, política económica (es)
    JEL: D3 F01 F6
    Date: 2022–07–28
  13. By: Ebert, Cara; Klasen, Stephan; Vollmer, Sebastian
    Abstract: Stock estimates' of missing women suggest that the problem is concentrated in South and East Asia and among young children. In contrast, `flow estimates' suggest that gender bias in mortality is much larger, is as severe among adults as it is among children in India and China, and is larger in Sub-Saharan Africa than in India and China. We show that the different stock and flow measure results rely on the choice of the reference standard for mortality and an incomplete correction for different disease environments in the flow measure. Alternative reference standards reconcile the results of the two measures.
    Keywords: Missing women, gender bias, mortality, disease, age, Sub-Saharan Africa, China, India
    JEL: J16 D63 I14 I15 O15
    Date: 2022
  14. By: Daum, Thomas
    Abstract: This paper provides an overview of the state of agricultural mechanization across the Global South – i.e. Eastern and South-eastern Asia, Southern Asia, sub-Saharan Africa, Latin America and the Caribbean – and explores the potentials and risks of agricultural mechanization for the sustainable transformation of agrifood systems. A wide range of technological and institutional solutions is identified to harness the potential of agricultural mechanization for sustainable agrifood system transformation, while at the same minimizing the risks. This working paper was developed as a background document for the FAO report "The State of Food and Agriculture 2022 – Leveraging automation in agriculture for transforming agrifood systems" (
    Keywords: Agribusiness, Agricultural and Food Policy, Research and Development/Tech Change/Emerging Technologies
    Date: 2022–11–02

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