nep-sea New Economics Papers
on South East Asia
Issue of 2023‒10‒16
thirteen papers chosen by
Kavita Iyengar, Asian Development Bank

  1. Lợi ích của trí tuệ văn hóa trong việc giảm sự căng thẳng trong công việc của tiếp viên hàng không: Trường hợp nghiên cứu trên các chuyến bay quốc tế của các hãng hàng không Việt Nam By Vuong, Bui Nhat
  2. The G.I. Bill and Underemployment By Domnisoru, Ciprian
  3. Shaking up Foreign Finance: FDI in a Post-Disaster World By Robert Reinhardt
  4. The Impacts of Covid-19 on Racial Inequality in Business Earnings By Robert Fairlie; Robert W. Fairlie
  5. A Quality Dimension? A Re-appraisal of Financial Development and Economic Growth Nexus in a Quality-Quantity Setting By Rosen Azad Chowdhury, Dilshad Jahan, Tapas Mishra, Mamata Parhi; Dilshad Jahan; Tapas Mishra; Mamata Parhi
  6. Russia-Ukraine war and G7 debt markets: Evidence from public sentiment towards economic sanctions during the conflict By Zunaidah Sulong; Mohammad Abdullah; Emmanuel J. A. Abakah; David Adeabah; Simplice Asongu
  7. Asymmetric Interest Rate Pass-through and Its Effects on Macroeconomic Variables: Evidence from Thailand By THOSAPON TONGHUI; JIN SEO CHO
  8. Analyzing Economic Growth Within the Framework of the Knowledge Economy Ecosystem model By Dilaka Lathapipat
  9. Khủng hoảng khí hậu: Chiến tuyến nào? Đối phương nào? By La, Viet-Phuong; Nguyen, Minh-Hoang
  10. Climbing up global value chains: leveraging FDI for economic development By Crescenzi, Riccardo; Harman, Oliver
  11. Immigration and the Labour Market: An Empirical Investigation of Wages, Productivity and Workers’ Substitutability By Valentine Fays
  12. Causal Analysis of Policy Effects on Fertility By Rannveig Hart; Janna Bergsvik; Agnes Fauske; Wookun Kim
  13. The contribution of fungi to the global economy By Allen Grace T. Niego; Christopher Lambert; Peter Mortimer; Naritsada Thongklang; Sylvie Rapior; Miriam Grosse; Hedda Schrey; Esteban Charria-Girón; Arttapon Walker; Kevin Hyde; Marc Stadler

  1. By: Vuong, Bui Nhat (Vietnam Aviation Academy)
    Abstract: Mục đích của nghiên cứu này là kiểm tra đóng góp của trí tuệ văn hóa đối với giảm sự căng thẳng trong công việc. Bên cạnh đó, vai trò trung gian của năng lực giao tiếp đa văn hóa và sự phụ vụ chu đáo và vai trò điều tiết của chủ nghĩa vị chủng dân tộc cũng sẽ được xem xét. Dữ liệu khảo sát thu thập từ 132 tiếp viên hàng không (TVHK) phục vụ các chuyến bay quốc tế của các hãng hàng không Việt Nam (Vietjet Air; Pacific Airlines, Vietravel Airlines, Bamboo Airways, và Vietnam Airlines) được phân tích để cung cấp bằng chứng. Kết quả từ mô hình phương trình cấu trúc bình phương nhỏ nhất từng phần (PLS-SEM) chỉ ra rằng có trí tuệ văn hóa giúp giảm sự căng thẳng trong công việc; mối quan hệ này được trung gian một phần thông qua năng lực giao tiếp đa văn hóa và sự phụ vụ chu đáo. Hơn nữa, nghiên cứu này cũng tìm thấy những TVHK có chủ nghĩa vị chủng dân tộc cao làm giảm mối quan hệ tích cực giữa trí tuệ văn hóa và năng lực giao tiếp đa văn hóa. Phát hiện này cũng ngụ ý rằng các các hãng hàng không có chính sách phù hợp để phát triển trí tuệ văn hóa của TVHK, để giúp giảm bớt mức độ căng thẳng trong công việc.
    Date: 2023–09–04
  2. By: Domnisoru, Ciprian (Aalto University)
    Abstract: While the ill luck of graduating during a recession is understood to potentially result in job mismatch, less is known about the drivers of underemployment outside of business cycles. This paper shows that the college subsidy investments undertaken as part of the WWII, Vietnam War, and Post-9/11 G.I. Bills led to persistent and sizable increases in the underemployment rate among bachelor's degree holders. In turn, underemployment explains approximately a quarter of the earnings penalty experienced by recent college educated veterans, over and above lost labor market experience, lower rates of graduate school completion and combat exposure effects.
    Keywords: underemployment, veterans, subsidies
    JEL: I22 J24 J31
    Date: 2023–09
  3. By: Robert Reinhardt (Centre d'Economie de la Sorbonne - Université Paris1 Pantheon-Sorbonne)
    Abstract: This paper studies the effects earthquakes have on inward foreign direct investment (FDI) within a country. I use a dynamic difference-in-difference model to estimate the impact of geophysical disaster exposure in 416 Indonesian districts. The effects are only temporary: FDI inflows plummet by 90% on average in the first year an earthquake before recovering to pre-earthquake levels. The effect is largely driven by shocks through affected upstream industries within local supply chains, and centered within the manufacturing sector. This highlights the importance to also consider indirect earthquake effects through spatial and production networks, besides the direct effects on labor and capital
    Keywords: Foreign Direct Investment; Disasters; Risk; Input-Output
    JEL: F21 O12 Q54 C67
    Date: 2022–12
  4. By: Robert Fairlie; Robert W. Fairlie
    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, racial inequality, business earnings, pandemic
    JEL: L26 J15
    Date: 2023
  5. By: Rosen Azad Chowdhury, Dilshad Jahan, Tapas Mishra, Mamata Parhi (Department of Economics, Swansea University); Dilshad Jahan (Department of Economics, Swansea University); Tapas Mishra (Southampton Business School, University of Southampton); Mamata Parhi (Roehampton Business School, University of Roehampton)
    Abstract: Despite the existence of a robust body of theoretical and empirical literature on the subject, there is an unresolved ambiguity on the exact nature of the relationship between financial development and economic growth. In this context, this paper re-examines the relationship by emphasizing on the ‘quality’ essence of financial development - a role, notwithstanding its significance (especially for developing countries), has clearly been underemphasized. We advance a measure of this ‘quality’ attribute by degrees of cost efficiencies and profit functions. The quality proxy is combined with a measure of quantity attribute of financial development in the form of broad money growth and bank credit to the private sector. Both measures portend relative stability of banks concerning efficiency in fund channeling. Using data for 191 banks spread over eight South and South-East Asian countries for a period of ten years and employing System GMM panel estimations, we demonstrate that a mixture of both quality and quantity of financial development holds key information on the exact direction of travel of economic growth among these countries. Further, results from panel VAR estimation provide robustness to our predictions.
    Keywords: Quality and quantity of financial development; Economic growth; Efficiency; Developing countries; Panel VAR
    Date: 2023–09–12
  6. By: Zunaidah Sulong (Universiti Sultan Zainal Abidin, Malaysia); Mohammad Abdullah (Universiti Sultan Zainal Abidin, Malaysia); Emmanuel J. A. Abakah (University of Ghana Business School, Accra Ghana); David Adeabah (University of Ghana Business School, Accra Ghana); Simplice Asongu (Yaoundé, Cameroon)
    Abstract: War-related expectations cause changes to investors’ risks and returns preferences. In this study, we examine the implications of war and sanctions sentiment for the G7 countries’ debt markets during the Russia-Ukraine war. We use behavioral indicators across social media, news media, and internet attention to reflect the public sentiment from 1st January 2022 to 20th April 2023. We apply the quantile-on-quantile regression (QQR) and rolling window wavelet correlation (RWWC) methods. The quantile-on-quantile regression results show heterogenous impact on fixed income securities. Specifically, extreme public sentiment has a negative impact on G7 fixed income securities return. The wavelets correlation result shows dynamic correlation pattern among public sentiment and fixed income securities. There is a negative relationship between public sentiment and G7 fixed income securities. The correlation is time-varying and highly event dependent. Our additional analysis using corporate bond data indicates the robustness of our findings. Furthermore, the contagion analysis shows public sentiment significantly influence G7 fixed income securities spillover. Our findings can be of great significance while framing strategies for asset allocation, portfolio performance and risk hedging.
    Keywords: Russia-Ukraine war, economic sanctions, G7 debt, fixed income securities, quantile approaches
    Date: 2023–01
  7. By: THOSAPON TONGHUI (Yonsei University); JIN SEO CHO (Yonsei University)
    Abstract: This study employs the two-step Nonlinear Autoregressive Distributed Lag estimation method proposed by Cho, Greenwood-Nimmo, and Shin (2019) to identify the asymmetric impact of monetary policy on economic variables using monthly data from Thailand between 2001 and 2023. The primary objective is to investigate the effects of policy rate shocks on the economy. This study examines three key aspects: (i) the asymmetric pass-through of policy rates to commercial bank deposits and loan rates; (ii) pass-through variations across bank sizes; and (iii) the asymmetric macroeconomic effects on output and inflation. The empirical findings reveal the presence of asymmetry within the relationships between the variables. First, the study identifies an incomplete interest rate pass-through with deposit rates ranging from 28.1% to 102.7% and loan rates ranging from 12.7% to 89.6%. Notably, long-term upward asymmetry is observed for loan rates, whereas the evidence for deposit rates is limited. Second, regarding bank size, large banks exhibit a greater pass-through effect on loan rates, whereas small and medium-sized banks display higher responsiveness to short-term deposits or savings rates. Finally, this study provides strong evidence of long-term asymmetric macroeconomic impacts. Quantitatively, rate hikes have a more substantial effect on output growth, being 1.4 times larger than the impact of rate cuts. Conversely, rate decreases exhibit a more pronounced effect on inflation, being 3.4 times larger than the impact of rate increases. These findings suggest the presence of downward price rigidity associated with monetary policy shocks in the context of Thailand.
    Keywords: Interest rate pass-through; asymmetric impact; macroeconomic effects; Nonlinear Autoregressive Distributed Lag model.
    JEL: E43 E51 E52
    Date: 2023–09
  8. By: Dilaka Lathapipat
    Abstract: This paper builds on Chen and Dahlman (2006)’s Knowledge Economy concept by introducing the Knowledge Economy Ecosystem model consisting of five pillars: ICT infrastructure, innovation infrastructure, financial infrastructure, quality of institutions, and educated and skilled workers. The subindices for the first four pillars contribute to the Knowledge Economy Infrastructure (KEI) Index, while the human capital pillar is represented by the learning-adjusted years of schooling (LAYS), a measure introduced by the World Bank in 2018. The utilization of LAYS in our model is important, because it recognizes that mean years of schooling is a poor measure of human capital simply because the quality of education can differ greatly across countries. Employing a dynamic panel data framework, we empirically examine the influence of the KEI Index and LAYS on total factor productivity (TFP) and GDP per capita growth. Our findings affirm the substantial positive impact of both LAYS and the KEI Index on TFP and economic growth. This empirical evidence underscores the essential role of sustained investments in these five pillars for fostering long-term economic growth, offering vital insights for policymakers. Drawing on Thailand as a case study, the analysis illuminates the nation's specific challenges within the Knowledge Economy Ecosystem framework, especially in the realms of human capital development, innovation, and institutional quality. The study underscores the considerable obstacles Thailand encounters in these domains, impeding its transition toward a knowledge-based economy.
    Keywords: Human capital; Education; Knowledge economy; Productivity
    JEL: I25 O40
    Date: 2023–09
  9. By: La, Viet-Phuong; Nguyen, Minh-Hoang
    Abstract: Bài luận tóm lược ngắn các thông tin liên quan tới quan điểm kinh doanh, chính trị và môi trường xung quanh công nghiệp xe điện (EV) Mỹ, tỷ phú công nghệ số 1 thế giới Elon Musk, tổng thống Mỹ Joe Biden và yếu tố lợi ích chính trị, văn hóa doanh nghiệp.
    Date: 2023–09–05
  10. By: Crescenzi, Riccardo; Harman, Oliver
    Abstract: The fragmentation of production offers new opportunities to economies seeking to take part in global value chains (GVCs). With the help of foreign direct investment (FDI), some economies are shifting their GVC participation to an increasing number of higher value-added tasks. Bangalore - dubbed as the 'Silicon Valley' of India and one of the world's fastest growing regions - owes its success in part to policies that are sensitive to international developments and global value chains, and make the most of dynamic specialization and foreign direct investment. The two key factors – GVCs and FDI – created an ecosystem that enabled the region's economic ‘upgrading’. Following Bangalore’s precedence, the reconfiguration of FDI networks and GVCs offers much promise to other cities and regions across Asia. This report by Riccardo Crescenzi of London School of Economics and Oliver Harman of the University of Oxford sets out to build a wider evidence base for tackling the opportunities and challenges related to this reconfiguration. By offering a critical review of existing scholarly and policy literature on global value chains in Asia, the authors present in a systematic and critical manner the evolution of GVCs and their link to FDI and economic development. The report also examines the role of different types of firms and regions, the heterogeneous subnational geography of GVC functions, and the links between GVC indicators and regional indicators based on FDI. Lastly, in light of the conceptual and empirical gaps, the report sketches a policy framework designed to guide debates and public policies in Asia.
    JEL: F3 G3 L81 N0
    Date: 2022–06–07
  11. By: Valentine Fays
    Abstract: Labour market integration of migrant workers is key to show the integration of migrants in developed countries. Consequently, the literature regarding this topic has expanded during the last decades to better understand their situation. In this context, the main objective of this Ph.D. thesis is to fulfil gaps in the literature by investigating several aspects of the labour market integration of migrants on the Belgian labour market, namely i) the determinants of the origin-based wage gaps, and ii) the impact of migrants on natives’ employment.Chapter 1, based on a paper co-authored with Benoît Mahy, François Rycx and Mélanie Volral, estimates wage discrimination against non-EU15 workers depending on their region of origin, their tenure and the product market competition faced by the firms they work in. Using a merged employer-employee panel dataset of more than 13, 000 firms relative to the Belgian private sector for the 1999–2010 period, results highlight large disparities in wage discrimination against foreign-born migrants depending on their countries of birth (especially against workers born in Asia, Eastern Europe and Africa) and hence confirm the adequacy of dividing non-EU15 workers into subgroups, as they appear to be treated very differently in the Belgian labour market depending on their regions of birth. They also suggest that wage discrimination against migrants vanishes as their firm-specific labour market experience (i.e. tenure) increases and tends to disappear in highly competitive product market situations, these results being in line with statistical and monopsonistic discrimination theories.Next, Chapter 2, based on a paper co-authored with Benoît Mahy and François Rycx, examines the influence of firm’s upstreamness (i.e. the average distance from final use, to be understood as the average number of steps/transactions before firms’ production of goods and/or services meets either domestic or foreign final demand) on wages according to workers’ origin. Based on a unique linked employer-employee cross-sectional dataset regarding the Belgian manufacturing industry covering the 2002-2010 timespan, our estimates show that firms that are further up in the value chain pay higher wages, even after controlling for a large set of worker and firm characteristics, and time fixed effects. However, the wage premium associated with upstreamness is also found to vary substantially depending on workers’ origin along the wage distribution. Unconditional quantile estimates further suggest that those who benefit the most from being employed in more upstream firms are (high-wage) workers born in developed countries, whereas workers born in developing countries, irrespective of their earnings, appear to be unfairly rewarded. Quantile decompositions further show that, while differences in average values of upstreamness according to workers’ origin play a limited role, differences in wage premia associated with upstreamness account for a substantial part of the origin-based wage gap, especially at the top of the wage distribution.Finally, Chapter 3, using detailed Belgian matched employer-employee panel data covering the 1999-2016 period, investigates whether 1st- and 2nd-generation migrants and natives are complements or substitutes in the production function at quite disaggregated micro levels of the labour market, i.e. at the firm and firm-occupation levels. Our estimates show that 2nd-generation migrants have a significant and positive impact on the employment of natives, regardless of the level of aggregation under analysis. Next, our findings suggest a smaller complementarity in the hiring and lay-off of 1st-generation migrants and natives. Moreover, our findings suggest that the complementarity between 1st- and 2nd-generation migrants and native workers is only observed when they have the same level of education, and that their positive relationship is even greater when workers have a higher level of education. For workers with different levels of education, results rather suggest a segmentation of the labour market. Next, the complementarity is stronger when 1st- and 2nd-generation migrants originate from developed countries and when a higher level of skills is required for a particular occupation.
    Keywords: Migration; Salaires; Substituabilité
    Date: 2023–08–30
  12. By: Rannveig Hart (Norwegian Institute of Public Health); Janna Bergsvik (Statistics Norway); Agnes Fauske (University of Oslo); Wookun Kim (Southern Methodist University)
    Abstract: This chapter reviews the literature on the causal effects of policies on fertility. It focuses on evidence from experiments and quasi-experiments in low fertility contexts, including studies from Europe, Northern America, Oceania, and Asia. Making no a priori restrictions on policy type, the review encompasses evaluations of parental leave, childcare, health insurance, and financial incentives such as child transfers. Childcare expansions increase completed fertility. Financial incentives had positive effects on fertility across contexts, both in the short and long run. Expansions of parental leave rights in Central Europe and the introduction of parental leave in the U.S. also had positive effects. The distributional effects of these policies are very different, with parental leave compensation benefiting high-earning couples, while expansions of childcare programs had potential to reduce social inequalities.
    Keywords: pro-natalist policies, cash transfer, parental leave, childcare, healthcare, fertility.
    JEL: H40 H75 J13 J16 J18
    Date: 2023–09
  13. By: Allen Grace T. Niego (MFU - Mae Fah Luang University [Thaïlande]); Christopher Lambert (Technische Universität Braunschweig = Technical University of Braunschweig [Braunschweig]); Peter Mortimer (KIB - Kunming Institute of Botany [CAS] - CAS - Chinese Academy of Sciences [Beijing]); Naritsada Thongklang (MFU - Mae Fah Luang University [Thaïlande]); Sylvie Rapior (CEFE - Centre d’Ecologie Fonctionnelle et Evolutive - UPVM - Université Paul-Valéry - Montpellier 3 - EPHE - École Pratique des Hautes Études - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique - IRD [France-Sud] - Institut de Recherche pour le Développement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Miriam Grosse (Technische Universität Braunschweig = Technical University of Braunschweig [Braunschweig]); Hedda Schrey (Technische Universität Braunschweig = Technical University of Braunschweig [Braunschweig]); Esteban Charria-Girón (Technische Universität Braunschweig = Technical University of Braunschweig [Braunschweig]); Arttapon Walker (MFU - Mae Fah Luang University [Thaïlande]); Kevin Hyde (MFU - Mae Fah Luang University [Thaïlande]); Marc Stadler (Technische Universität Braunschweig = Technical University of Braunschweig [Braunschweig])
    Abstract: Fungi provide ecological and environmental services to humans, as well as health and nutritional benefits, and are vital to numerous industries. Fermented food and beverage products from fungi are circulating in the market, generating billions of USD. However, the highest potential monetary value of fungi is their role in blue carbon trading because of their ability to sequester large amounts of carbon in the soil. There are no conclusive estimates available on the global monetary value of fungi, primarily because there are limited data for extrapolation. This study outlines the contribution of fungi to the global economy and provides a first attempt at quantifying the global monetary value of fungi. Our estimate of USD 54.57 trillion provides a starting point that can be analysed and improved, highlighting the significance of fungi and providing an appreciation of their value. This paper identifies the different economically valuable products and services provided by fungi. By giving a monetary value to all important fungal products, services, and industrial applications underscores their significance in biodiversity and conservation. Furthermore, if the value of fungi is well established, they will be considered in future policies for effective ecosystem management.
    Keywords: Fungi-based food, Medicinal mushrooms, Market value, Environmental biotechnology
    Date: 2023

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