nep-sea New Economics Papers
on South East Asia
Issue of 2023‒05‒08
seven papers chosen by
Kavita Iyengar
Asian Development Bank

  1. East Asia and the politics of global finance: a developmental challenge to the neoliberal consensus? By Pape, Fabian; Petry, Johannes
  2. Integrating of PLS-SEM and the Importance Performance Matrix Analysis to Exploring the Role of Provincial Competitiveness Index to Growth By Ho Dan Doan, Tam; Thai Thuong Le, Quan; Nguyen, Quyen Le Hoang Thuy To; Nguyen, Phong Thanh; Thi Ngoc Dang, The
  3. Developing a framework for scaling M-governance in Asia: Issues and Challenges By Maestracci, Aria
  4. Classroom Competition, Student Effort, and Peer Effects By Mark R. Rosenzweig; Bing Xu
  5. Money velocity, digital currency, and inflation dynamics By Hermawan, Danny; Lie, Denny; Sasongko, Aryo; Yusan, Richard
  6. Forecasting Soccer Matches With Betting Odds: A Tale of Two Markets By Whelan, Karl; Hegarty, Tadgh

  1. By: Pape, Fabian; Petry, Johannes
    Abstract: Recent IPE scholarship locates the key dynamics of financial globalization in two areas: public money flows between the US and Asia, or private banking flows between the US and Europe. This dichotomy presents the globalization of private finance as firmly anchored within transatlantic, neoliberal financial norms. We argue that this creates a blind spot regarding the growing role of East Asian finance within the global financial system. Combining CPE insights on institutional characteristics of Asian financial systems with a macro-financial analysis of the global financial system, this paper analyzes the global implications of the geographic shift towards East Asia. First, we demonstrate the growing importance of East Asia for global macro-financial flows, actors and markets that goes beyond the rise of China. Second, we explore how the institutional arrangements that underpin Asian financial systems differ significantly from transatlantic finance. By investigating the growing importance of global investors in Asian markets and Asian investors in global markets, we explore how the shift towards East Asia introduces a growing role of developmental characteristics within global finance. This calls for a reconsideration of conventional analyses of the global financial system which often assume its role as a force of neoliberal globalization.
    Keywords: comparative political economy; East Asia; global financial system; international political economy; comparative capitalism; developmentalism; global finance; macro-finance; neoliberalism; post-crisis; Warwick T&F agreement
    JEL: F3 G3 J1
    Date: 2023–03–15
  2. By: Ho Dan Doan, Tam; Thai Thuong Le, Quan; Nguyen, Quyen Le Hoang Thuy To; Nguyen, Phong Thanh; Thi Ngoc Dang, The
    Abstract: Provincial competitiveness was one of the engines of growth under the institutional theory. The Vietnam Provincial Competitiveness Index (PCI) has been surveyed since 2005 to reflect the perceptions of local business environments, categorized into 10 sub-indices with 128 indicators. The current PCI has challenged the governance due to its broad construction. This study aimed to reconstruct the indicators in each PCI sub-index to be more specific for improving governance. The paper further explored the importance-of performance of both the PCI sub-index and its indicators to the provincial growth in Vietnam. Secondary data of 63 provinces during the period of 2017-2020 have been used with the employment of Exploratory Factor Analysis (EFA), Partial Least Square Structural Equation Model (PLS-SEM), and the extension of the importance-performance matrix analysis (IPMA). Our results showed the reliability and validity of 21 measured items under 5 PCI sub-indices. The findings confirmed the positive impact of the PCI index on growth. Moreover, the highest importance but lowest performance of SLO (law and order) was implied. SLA (land access and security of tenure), on the contrary, peaked the performance with the lowest importance. The importance of STC (time costs and regulatory compliance), SPA (proactive provincial leadership), and SLP (labor quality) has been ranked with the former sharing the highest priority while similar performance of the four sub-indices has been found. The results implied that the provincial authorities should prioritize their efforts to improve governance based on the importance-performance analysis of PCI sub-indices. Moreover, the importance and performance of each sub-index indicator reflected the great governance improvement with an average performance of 50%. However, special attention should be focused on vocational training, effective state officials, and legal support to the business due to their high importance but low performance.
    Keywords: Exploratory factor analysis (EFA), importance-performance matrix, Partial Least Square (PLS), Structural Equation Model (SEM), provincial competitiveness index (PCI), Vietnam
    JEL: F63 H5 O1 O2 P25 R1
    Date: 2022–02
  3. By: Maestracci, Aria
    Abstract: In the world today, there is no doubt that a ubiquitous acceptance of m-governance has rocked the governing systems to a considerable degree with regards to the evolution of governance as a result of widespread global acceptance of electronic governance. As a way of achieving good governance through the implementation of m-governance, mobile technologies are being utilized in order to enable the delivery of public services that improve the quality of governance as part of m-governance. There have been dozens of mobile projects implemented in various ministries of various Asian governments over the past decade that have been initiated and implemented as of late. A number of these initiatives aim to improve basic infrastructure, increase mobile literacy among employees, develop skilled manpower, and enable certain services to be more mobile friendly in the future. These mobile projects are often the manifestation of a government that has started a journey with a strong focus on mobile at the state and national levels in order to pave the way for m-governance to be implemented in Asian countries in the near future. With the advancement of m-governance systems, we will witness transparency, reduced service delivery times, a reduction in poverty, corruption, and the strengthening of democratic practices through participation of the people and the promotion of good governance practices as the system progresses. Despite the challenges associated with implementing m-governance successfully in Asian countries, the purpose of this paper is to discuss the scope and challenges of implementing it successfully, as well as to offer some recommendations on how to accomplish this goal. A bird's eye view of the changing landscape of m-governance in Asia is provided by this research, and it provides a summary of the body of scholarship that has appeared in the recent past to provide a summary of all the recent research articles that have been published on the subject. As Asian as well as the rest of the world is developing, the emergence of m-governance projects and where they are headed will prove very useful and informative for the rest of the world as well. There is still a significant amount of effort being put into developing mobile technologies in Asia-Pacific countries to provide better financial management information and reporting, streamline the delivery of government services, enhance communication with the citizens, and serve as catalysts for empowering citizens to interact with their governments.
    Keywords: m-governance, m-governance benefits, m-government attributes, m-government challenges, effective m-governance
    JEL: O1 O19 O2 O21 O3 O31 O35 O38
    Date: 2023–04–02
  4. By: Mark R. Rosenzweig; Bing Xu
    Abstract: This paper studies how rewards based on class rank affect student effort and performance using a game-theoretic classroom competition model and data from the resettlement of Southeast Asian refugees in the US. The paper finds that variation in the presence of strong or weak students changes the incentives and test scores of incumbent students depending on their ability group in accord with the competition model, with increases in the number of strong students lowering effort among strong and weak incumbents but raising the test scores of weak incumbents. The results suggest that competition induced by rank-based rewards within homogeneous ability groups lowers overall effort levels, while the presence of strong students directly augments the performance, but not the effort levels, of weak students despite the competition. The paper also rules out a number of alternative explanations for these school composition effects, including disruptions, teacher-initiated changes in curriculum in response to changing class composition, selective incumbent-student school exit, and endogenous responses of refugee location choices to school performance.
    JEL: I21 I24 J15
    Date: 2023–04
  5. By: Hermawan, Danny; Lie, Denny; Sasongko, Aryo; Yusan, Richard
    Abstract: This paper empirically investigates the impact of transaction cost-induced variations in the velocity of money on inflation dynamics, based on a structural New Keynesian Phillips curve (NKPC) with an explicit money velocity term. The money velocity effect arises from the role of money, both in physical and digital forms, in reducing the aggregate transaction costs and facilitating purchases of goods and services. We find a non-trivial aggregate impact in the context of the Indonesian economy: our benchmark estimates suggest that a 10% decrease in money velocity, which might be facilitated by a new digital currency (e.g. CBDC) issuance, would reduce the inflation rate by 0.6-1.7%, all else equal. Using the estimates and within a small-scale New Keynesian DSGE model, we analyze the potential implications of a CBDC issuance on aggregate fluctuations. A CBDC issuance that conservatively lowers the velocity of money by 5% is predicted to permanently raise the GDP level by 0.8% and lower the inflation rate by 0.8%. Both nominal and real interest rates are also permanently lower. Our findings imply that central banks could potentially use CBDCs as an additional stabilization policy tool by influencing the velocity.
    Keywords: inflation dynamics; transaction cost; velocity of money; digital money; digital currency; central bank digital currency (CBDC); aggregate fluctuations;
    JEL: E31 E32 E41 E42 E50 E51 E58
    Date: 2023–03–29
  6. By: Whelan, Karl; Hegarty, Tadgh
    Abstract: We compare the properties of betting market odds set in two distinct markets for a large sample of European soccer matches. We confirm inefficiencies in the traditional market for bets on a home win, an away win or a draw as found in previous studies such as Angelini and De Angelis (2019), in particular that there is a strong pattern of favourite-longshot bias. Conversely, we document how a betting market that has emerged in recent years, the Asian handicap market, can generate efficient forecasts for the same set of matches using a new methodology for mapping its odds into probabilities.
    Keywords: Sports Forecasting, Betting Markets, Market Efficiency, Asian Handicap
    JEL: G14 L8 L83
    Date: 2023–02–23
  7. By: Heikkinen, Daan
    Abstract: Schools have been forced to introduce new learning styles due to the recent pandemic crisis as a result of the necessity to cope with the epidemic in order to cope with the situation. While this new learning environment will certainly result in a number of students being able to adapt to it successfully, the extent to which they will be able to do so will be different from student to student, since most of them are being exposed to this type of environment for the first time. In this research, the aim of the study was to assess the degree to which the students were able to adjust to the new ways of learning in order to assess the level of adaptation. Based on the availability of their schools in the survey, we conducted a survey of all students across all schools in Asia, out of which 850 of them were randomly sampled across all schools in Asia in accordance with their accessibility. Data was collected by means of a questionnaire that was developed by the researcher in order to collect the data required for the research project. It should be noted that the respondents in this study were not subjected to any coercions for participating in the study, and therefore all ethical issues were considered when participating. We answered the research questions by using means, and hypothesis one was tested by using quantitative techniques at a significance level of 0.08, in order for the hypothesis to be tested. The majority of the students found distance education to be an uncomfortable and a data-consuming experience at the beginning of the study, as it was established during the course of the study. According to the research conducted by the author, the ability of students enrolled in public schools compared to those enrolled in private schools to adapt to new learning methods was significantly different between those enrolled in public and private schools. In conclusion, it was found that students are getting used to the new learning style introduced by their schools as a result of the fact that they only have that option of learning in their schools.
    Keywords: Learners' adaptive abilities, learning economy, new learning styles; schoolchildren's learning, learning and development in the wake of the pandemic.
    JEL: D8 D83 O3 O33
    Date: 2023–03–20

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