nep-sea New Economics Papers
on South East Asia
Issue of 2023‒09‒25
twenty papers chosen by
Kavita Iyengar, Asian Development Bank

  1. Gender-responsive budgeting in the Philippines: Comparative review of best practices and challenges By Moreno, Frede G.
  2. Vietnam's energy security in 2023 global coal and LNG markets By Minh Ha-Duong
  3. Vietnam’s Just Energy Transition Partnership: a background report By Minh Ha-Duong
  4. The world's largest free trade agreement RCEP and its financial markets - A perspective on volatility and risk. By Marc Atkins; Christian Peitz
  5. Optimizing government services through alternative work arrangements: Evidence from the Department of Tourism in Zamboanga Peninsula, Philippines By Atilano-Tang, Lesley Ann; Antonio-Torres, Mary Grace
  6. Lexicographic Ordering and Loss Aversion among Low-Income Farmers By James Roumasset
  7. Asymptotics for Short Maturity Asian Options in a Jump-Diffusion model with Local Volatility By Dan Pirjol; Lingjiong Zhu
  8. MANAJEMEN STRATEGIS By Alaslan, Amtai
  9. Econometrics Modelling Approach to Examine the Effect of STEM Policy Changes on Asian Students Enrollment Decision in USA By Prathamesh Muzumdar; George Kurian; Ganga Prasad Basyal; Apoorva Muley
  10. Leaving the West Only to Return: The Ethnic Returns of 2nd Generation Vietnamese By Le, Dan
  11. Young Women in Cities By Koh, Yumi; Li, Jing; Wu, Yifan; Yi, Junjian; Zhang, Hanzhe
  12. Effects of Climate Vulnerability on Household Sanitation Access, Functionality and Practices in Rural Cambodia By Sattar, Rana Abdel; Rogla, Jennifer PhD; Toeur, Veasna; Kozole, Tyler; Nicoletti, Chris; Harper, James
  13. Priorities for Strengthening Key Revenue Sources in Asia By Sanjeev Gupta; João Tovar Jalles
  14. Youth Labor Force Participation, Education, and Human Capital in Asia, by Gender, 1990-2019 By Fraumeni, Barbara M.
  15. Occupational Aspirations and Investments in Education: Experimental Evidence from Cambodia By Esther Gehrke; Friederike Lenel; Claudia Schupp
  16. Meeting Health Challenges in Developing Asia with Corrective Taxes on Alcohol, Tobacco, and Unhealthy Foods By Chris Lane
  17. Fiscal Policy for Inclusive Growth in Asia By Benedict Clements; Sanjeev Gupta; João Tovar Jalles
  18. The Impacts of COVID-19 on Racial Inequality in Business Earnings By Fairlie, Robert W.
  19. Singapore: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Singapore By International Monetary Fund
  20. Optimization of sustainable E-waste management strategies in Philippine Coconut Authority By Atilano-Tang, Lesley Ann; , Montefalcon

  1. By: Moreno, Frede G.
    Abstract: This study focuses on the implementation of gender-responsive budgeting (GRB) in the Philippines, particularly in Region IX. The study provides a comparative review of the impacts of GRB on the different LGUs in the region. Through case studies on the performance of Zamboanga Peninsula and Zamboanga City in implementing GRB, as well as the most and least compliant municipalities in the region, the study identifies best practices and challenges in GRB implementation. It recommends ten strategies to improve GRB implementation, including developing a gender-responsive budget manual, strengthening gender analysis and planning, and increasing the participation of women in the budget process. The study also emphasizes the importance of political will, leadership, and capacity-building to achieve successful GRB implementation. The study contributes to the literature on GRB in the Philippines, particularly in the context of regional implementation. It highlights the need for further research and evaluation to enhance the effectiveness of GRB in promoting gender equality and women's empowerment. The study also emphasizes the significance of adopting a feminist public administration perspective in GRB implementation, which emphasizes the role of government in addressing gender inequalities and promoting women's rights.
    Date: 2023–07–25
  2. By: Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique)
    Keywords: energy crisis, international markets, vietnam
    Date: 2023–04–24
  3. By: Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique)
    Abstract: December 14th, 2022, Viêt Nam with G7 countries plus Denmark and Norway issued a political declaration to establish a Just Energy Transition Partnership. This nonbinding agreement aims to mobilize at least 15.5-billion-USD over the next 3 to 5 years, half as private finance and half as public sector finance. To be prepared by November 2023, the Resource Mobilization Plan (RMP) should support Vietnam's green transition, including these quantified objectives: peaking electricity sector emissions at 170-MtCO2e in 2030; peaking the coal-fired power generation capacity at 30.2-GW; producing 47% of electricity from renewable sources in 2030. This report aims to establish a common understanding to ease the next step: the RMP negotiation. The story is about a group of rich countries seeking to help a middle-income country switch to renewable energy. It starts with a reminder of Vietnam's energy transition context, which has shown impressive gains in the last four years. It then describes the JETP mechanism as a country platform, reviewing the South Africa pathfinder to introduce the Vietnam case, before examining how JETP fit in the international 3nance and climate diplomacy context. Next, it analyzes the two sides of the deal: the pledge to increase the public and private financial Bows into Vietnam's energy sector and the promise to boost Vietnam's GHG emissions reductions. Afer discussing Justice, Technology Transfer, and Finance, the report concludes with a summary of the vision implicit in the JETP political declaration. A comprehensive bibliography on Vietnam's JETP, the verbatim JETP Political Declaration, excerpts from Vietnam's COP26 implementation plan, and our interview protocol including a detailed vision for the JETP implementation are annexed.
    Keywords: JETP, Vietnam, Energy transition, Development, Cooperation, Climate Finance
    Date: 2023–05
  4. By: Marc Atkins (Paderborn University); Christian Peitz (Paderborn University)
    Abstract: We analyse the largest financial markets as well as the most a affected industries of the Regional Comprehensive Economic Partnership (RCEP) zone and examine them for their respective market risk and stability. Trade decisions with RCEP member countries are in uenced by the stability of financial markets within the RCEP free trade area. To this end, we examine the largest financial markets in terms of volatility and risk using various GARCH models. Our focus is on the financial markets of the largest of the 15 RCEP member countries, namely China, Japan, South Korea, Australia, Indonesia and Thailand. We consider whether RCEP's expected entry into force as well as this event itself have an impact on the respective financial markets by means of an event analysis. We further derive the most e ected industries by the agreement and extend our analysis to the sector-level. We examine the largest companies of the automotive industry, the computer, electronic and electrical equipment sector as well as the chemical industry and analyse their performance and volatility over time.
    Keywords: ARCH models, trade policy, RCEP, event analysis, financial risk
    JEL: C51 F13 G14 G32
    Date: 2023–08
  5. By: Atilano-Tang, Lesley Ann; Antonio-Torres, Mary Grace
    Abstract: This Capstone examines the effects of alternative work arrangements on public service delivery in the Department of Tourism in the Zamboanga Peninsula region of the Philippines. Using a mixed-methods approach, data was collected through surveys and interviews of government officials, tourism industry representatives, and customers. Results show that alternative work arrangements, such as flexible work hours and telecommuting, have a positive effect on the performance and job satisfaction of government employees, leading to better service delivery to tourists. Moreover, the adoption of alternative work arrangements is also found to be cost-effective for the government, resulting in lower overhead costs. The capstone is grounded in Public Administration theory, specifically, the Human Relations approach. The Human Relations approach posits that an organization's effectiveness depends on its ability to manage the needs and motivations of its employees. In this study, the adoption of alternative work arrangements is seen as a way to address the needs and motivations of government employees, resulting in increased job satisfaction and better service delivery. The findings have significant implications for the Department of Tourism in Zamboanga Peninsula and other government agencies in the Philippines. The adoption of alternative work arrangements can lead to improved public service delivery, increased employee satisfaction, and reduced costs. Further research is needed to explore the long-term effects of alternative work arrangements and to determine the optimal arrangement for different types of government services
    Date: 2023–04–20
  6. By: James Roumasset (University of Hawaii Manoa)
    Abstract: As Richard Day explained, expected utility theory suffers from procedural irrationality. This and other problems are illustrated here in the context of decision-making among low-income farmers. Farmers in developing countries are commonly thought to underinvest in modern techniques because their low incomes make them especially risk averse. In addition to the procedural leap of faith, highly restrictive assumptions are needed to apply expected utility theory to the problem. Nor does expected utility theory, as usually prescribed, fit the narrative of loss aversion. The reader is introduced to a procedurally rational substitute called lexicographic safety first. The model is illustrated for the case of rice fertilization in the Philippines, and policy implications are drawn. To illustrate the potential appeal of lexicographic ordering for other applications involving thresholds, a lexicographic model of rational addiction is also provided.
    Keywords: technology adoption, agricultural development, risk, subsistence, satisficing
    JEL: D21 D81 O33 Q16
    Date: 2023–09
  7. By: Dan Pirjol; Lingjiong Zhu
    Abstract: We present a study of the short maturity asymptotics for Asian options in a jump-diffusion model with a local volatility component, where the jumps are modeled as a compound Poisson process which are later extended to L\'evy jumps, that includes the exponential L\'{e}vy model as a special case. Both fixed and floating strike Asian options are considered. Explicit results are obtained for the first-order asymptotics of the Asian options prices for a few popular models in the literature: the Merton jump-diffusion model, the double-exponential jump model, and the Variance Gamma model. We propose an analytical approximation for Asian option prices which satisfies the constraints from the short-maturity asymptotics, and test it against Monte Carlo simulations. The asymptotic results are in good agreement with numerical simulations for sufficiently small maturity.
    Date: 2023–08
  8. By: Alaslan, Amtai
    Abstract: KATA PENGANTAR Segala Puji dan syukur atas kehadirat Allah SWT dalam segala kesempatan. Sholawat beriring salam dan doa kita sampaikan kepada Nabi Muhammad SAW. Alhamdulillah atas Rahmat dan Karunia-Nya penulis telah menyelesaikan Buku Manajemen Strategis ini. Buku Ini Membahas Pengantar manajemen strategis, Visi, Misi, Tujuan, Sasaran dan Falsafah Perusahaan, Model Deskriptif Manajemen Strategi, Pengambil Keputusan Strategis : Manajer Strategis Dan Corak Manajemen Strategis, Analisis Strategik : Pengkajian Lingkungan, Perumusan Strategi, Strategi Pertumbuhan Dan Pengembangan Pasar, Strategi Kooperatif, Strategy Analysis and Choices, Implementing Strategies: Management Issues, Audit Strategic, Implementasi Strategik, Evaluasi Dan Pengawasan. Proses penulisan buku ini berhasil diselesaikan atas kerjasama tim penulis. Demi kualitas yang lebih baik dan kepuasan para pembaca, saran dan masukan yang membangun dari pembaca sangat kami harapkan. Penulis ucapkan terima kasih kepada semua pihak yang telah mendukung dalam penyelesaian buku ini. Terutama pihak yang telah membantu terbitnya buku ini dan telah mempercayakan mendorong, dan menginisiasi terbitnya buku ini. Semoga buku ini dapat bermanfaat bagi masyarakat Indonesia. Padang, Juni 2023 Penulis
    Date: 2023–05–31
  9. By: Prathamesh Muzumdar; George Kurian; Ganga Prasad Basyal; Apoorva Muley
    Abstract: Academic research has shown significant interest in international student mobility, with previous literature primarily focusing on the migration industry from a political and public policy perspective. For many countries, international student mobility plays a crucial role in bolstering their economies through financial gains and attracting skilled immigrants. While previous studies have explored the determinants of mobility and country economic policies, only a few have examined the impact of policy changes on mobility trends. In this study, the researchers investigate the influence of immigration policy changes, particularly the optional practical training (OPT) extension on STEM programs, on Asian students' preference for enrolling in STEM majors at universities. The study utilizes observational data and employs a quasi-experimental design, analysing the information using the difference-in-difference technique. The findings of the research indicate that the implementation of the STEM extension policy in 2008 has a significant effect on Asian students' decisions to enroll in a STEM major. Additionally, the study highlights the noteworthy role of individual factors such as the specific STEM major, terminal degree pursued, and gender in influencing Asian students' enrollment decisions.
    Date: 2023–08
  10. By: Le, Dan
    Abstract: The subject of ethnic return migration has garnered growing attention within the realm of international migration research. While much of the existing literature has centered on the movement of individuals returning from low-income to high-income nations, this paper illuminates the inverse trajectory by scrutinizing the trend of second-generation, Western-born Vietnamese migrants who return to their ancestral country of Vietnam. Drawing on 32 in-depth interviews from participants from 11 different Western countries, the current online ethnography explores the phenomenon of ethnic return migration of the second generation. Through an analysis of the interplay between the birth home and ancestral home, identity and belonging, this paper elucidates the factors that both encourage and obstruct the ethnic return migration of Western-born Vietnamese migrants.
    Date: 2023–08–18
  11. By: Koh, Yumi (University of Seoul); Li, Jing (Singapore Management University); Wu, Yifan (Shanghai University); Yi, Junjian (Peking University); Zhang, Hanzhe (Michigan State University)
    Abstract: Young women outnumber young men in cities in many countries during periods of economic growth and urbanization. This gender imbalance among young urbanites is more pronounced in larger cities. We use the gradual rollout of special economic zones across China as a quasi-experiment to establish the causes of this gender imbalance. Our analysis suggests that a key contributor is gender-differential incentives to migrate due to rural women's higher likelihood of marrying and marrying up in cities when urbanization creates more economic opportunities and an abundance of high-income marriage-age men.
    Keywords: urbanization, migration, gender imbalance, labor market, marriage market
    JEL: O15 J12
    Date: 2023–07
  12. By: Sattar, Rana Abdel; Rogla, Jennifer PhD; Toeur, Veasna; Kozole, Tyler; Nicoletti, Chris; Harper, James
    Abstract: With climate events increasing in frequency and severity, effects on human life, particularly those most vulnerable, are projected to increase in coming decades. Defined as climate vulnerability, risks from climate events can take many forms, including flood damage to basic infrastructure, like household toilets. In this study of households in rural Cambodia, we investigate how climate vulnerability correlates with toilet dysfunction and abandonment using two household surveys, a latrine sales database, two flood-extent maps, and a composite climate vulnerability index. Using multiple linear regression and measures of association, we show that together and individually, increasing climate vulnerability and poverty increased toilet abandonment. Toilet dysfunction occurred more frequently in flood-prone regions during the rainy season and increased with more household members. How living in flood-prone regions affected households’ perceptions, practices, and experiences with sanitation was also characterized in detail. The results highlight the need for more scientifically rigorous evidence to improve climate-resilient toilet designs that provide access to a functional toilet year-round. Beyond technology, household behavior towards and maintenance of sanitation infrastructure is a critical concern, as unsafe practices were found to be more common among climate vulnerable households. Resources from the private, non-profit and government sectors must be re-routed to improve access to affordable sanitation in climate vulnerable regions. The sector should also strive to improve access to safely managed sanitation in rural communities, particularly ones who are most affected by climate change, in order to prevent pollution of natural resources and further protect public health.
    Date: 2023–08–15
  13. By: Sanjeev Gupta (Center for Global Development); João Tovar Jalles (University of Lisbon; IPAG Business School)
    Abstract: This paper discusses the evolution of key taxes in the past 20 years in developing Asia and fiscal challenges that these countries face in light of the COVID-19 pandemic. It presents estimates of tax capacity and tax potential and discusses the productivity of key taxes in the region. The paper finds that developing Asia has potential to raise more revenues—of up to 4 percent of GDP on average. While corporate income tax productivity is high vis-à-vis other regions, the same does not apply to personal income tax or the value added tax. There is potential to raise more revenues by improving the compliance and design of the value added tax. It is important to ensure that the tax systems in developing Asia become more progressive with expansion of personal income and property taxes. Increased allocations and better targeting of social spending would help offset some of the regressivity stemming from indirect taxes. An important source of revenue leakage is tax expenditures granted by countries in the region.
    JEL: C33 H20 H23 H30 N15 O53
    Date: 2022–04–06
  14. By: Fraumeni, Barbara M. (Central University of Finance and Economics)
    Abstract: Of great importance to the future World economy is the future labor force of Asia, as Asia is by far the most populous region in the World. Expected future levels of education, very young and youth population, youth employment and unemployment, dependency rates, human capital per capita, and the sources of growth in the potential future labor force are described in this paper with an emphasis on differences by gender and differences across regions. Some comparisons between China and India and between Asia and selected other regions and aggregates are also included. Gini human capital coefficients are constructed for regions in Asia and the selected other regions and aggregates are constructed to reinforce the importance of recognizing gender in any analysis.
    Keywords: labor, education, employment, human capital, Asia
    JEL: I21 J16 J21 J24 O53
    Date: 2023–08
  15. By: Esther Gehrke; Friederike Lenel; Claudia Schupp
    Abstract: Students in low-income contexts often lack guidance in their career decisions which can lead to a misallocation of educational investments. We report on a randomized field experiment conducted with 1715 students in rural Cambodia and show that a half-day workshop designed to support adolescents in developing occupational aspirations increased educational investments. We document substantial heterogeneity in treatment effects by baseline student performance. While the workshop increased schooling efforts of high-performing students, treated low-performing students reduced their educational investments. We develop a simple model that explains why an information intervention can affect educational aspirations and investments in opposing directions.
    Keywords: aspirations, career guidance, education, field experiment
    JEL: C93 D83 D90 I21 O15
    Date: 2023
  16. By: Chris Lane (Center for Global Development)
    Abstract: In developing Asia there is potential for higher corrective taxes to help prevent many non-communicable diseases (NCDs) and contribute revenue. The productivity loss from death and disability from alcohol, tobacco and diets high in sugar-sweetened beverages in purchasing power parity dollars is PPP$ 879 billion (2 percent of Developing Asia GDP) with close to half these costs arising in China (PPP$ 431 billion), and another 20 percent in India (PPP$ 187 billion). Corrective taxes applied to these products can be a powerful tool to reduce harmful consumption. But effective implementation needs to consider tax design, demand responses, distributional consequences, and the use of corrective tax revenues including the costs and benefits of earmarking revenue to the health sector. It is estimated that corrective taxes, primarily on alcohol and tobacco, could raise an additional 0.6-0.7 percent of GDP in revenues, while improving health outcomes and cutting medical costs.
    Date: 2022–04–20
  17. By: Benedict Clements (Universidad de Las Américas); Sanjeev Gupta (Center for Global Development); João Tovar Jalles (University of Lisbon; IPAG Business School)
    Abstract: This paper discusses how fiscal policy can help foster more inclusive growth in developing Asia. On average, government expenditures in developing Asia are higher, as a share of gross domestic product, than those in Latin America and the Caribbean. Relative to Latin America, developing Asia spends more on social benefits, but less on education and health. While general government revenues have risen since 2000, they are still not sufficient to fully fund targeted transfer programs and provide adequate in-kind benefits to the population. Against this background, this paper discusses priorities for policy reforms as countries in the region seek more inclusiveness and confront the effects of the coronavirus disease (COVID-19). The paper finds that eliminating inefficiencies in health, education, and public investment, for example, would generate the equivalent of 3 percent of gross domestic product. Savings from curtailing subsidies for fossil fuels would also generate resources for expanding redistributive spending. Reallocating health spending toward primary care, and education spending toward primary and secondary education, would help lead to more equitable growth. There is also scope to raise spending on social benefits and better target them to the poor.
    JEL: H5 H11 I14
    Date: 2022–04–06
  18. By: Fairlie, Robert W. (University of California, Los Angeles)
    Abstract: Many small businesses closed in the pandemic, but were economic losses disproportionately felt by businesses owned by people of color? This paper provides the first study of the impacts of COVID-19 on racial inequality in business earnings. Pandemic-induced losses to business earnings in 2020 were 16-19 percent for all business owners. Racial inequality increased in the pandemic: Black business owners experienced larger negative impacts on business earnings of 12-14 percent relative to white business owners. Regression estimates for Latinx and Asian business owners reveal negative point estimates but the estimates are not statistically significant. Using Blinder-Oaxaca decompositions and a new pandemic-focused decomposition technique, I find that the industry concentrations of Black, Latinx, and Asian business owners placed each of these groups at a higher risk of experiencing disproportionate business earnings losses in the pandemic. Higher education levels among Asian business owners helped insulate them from larger losses from COVID-19. In the following year of economic recovery, 2021, business earnings rebounded strongly for all groups except for Asian business owners who experienced large relative losses (which were partly due to industry concentrations). State-level variation in policies and disease spread does not explain racial differences in business earnings losses or rebounds.
    Keywords: entrepreneurship, COVID-19, racial inequality, business earnings, pandemic
    JEL: L26 J15
    Date: 2023–08
  19. By: International Monetary Fund
    Abstract: Singapore’s post pandemic recovery is nearly complete; underpinned by its strong economic fundamentals and the authorities’ decisive policies. While overall output surpassed pre-COVID levels in 2021, the growth momentum has slowed and activities in consumer-facing (except retail) and construction sectors remain below pre-pandemic levels. Inflation remains elevated but has started moderating. Risks to the outlook are tilted to the downside, arising mainly from an abrupt global slowdown or a recession in Singapore’s largest trading partners, tighter global financial conditions, and a deepening of geoeconomic fragmentation.
    Date: 2023–08–29
  20. By: Atilano-Tang, Lesley Ann; , Montefalcon
    Abstract: This capstone focuses on the optimization of sustainable e-waste management strategies in the Philippine Coconut Authority-Zamboanga Research Center (PCA-ZRC) in the Philippines. It is revealed that stakeholders' involvement, capacity building, policy alignment, data management, and innovative technology adoption were critical components in the successful implementation of e-waste management strategies. Through the analysis and discussion of the results, it is evident that the adoption of an ecosystem approach to e-waste management could lead to improved environmental, social, and economic outcomes. Furthermore, this study has identified five lessons learned that could be used to guide future e-waste management initiatives, including the need for stakeholder engagement, capacity building, policy coherence, data management, and technological innovation. These findings contribute to the existing literature on e-waste management in the public administration field and provide valuable insights for practitioners and researchers seeking to improve their e-waste management practices.
    Date: 2023–04–23

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