nep-sea New Economics Papers
on South East Asia
Issue of 2024‒05‒20
sixteen papers chosen by
Kavita Iyengar, Asian Development Bank

  1. Digitalization and Indonesia’s Changing Policy Community (Japanese) By AIZAWA Nobuhiro
  2. Unintended Consequences of Business Digitalization among MSMEs during the COVID-19 Pandemic: The Case of Indonesia By Oikawa , Keita; Iwasaki , Fusanori; Sawada, Yasuyuki; Shinozaki, Shigehiro
  4. Gender-Differentiated Determinants of Rice Farmers' Choice of Strategies to Adapt to Salinity Intrusion in the Mekong Delta, Vietnam By Dang, Hoa Le; Pham, Thuyen Thi; Pham, Nhung Thi Hong; Nam, Pham Khanh
  5. The Impact of Internet Access on COVID-19 Spread in Indonesia By Kunz, Johannes; Propper , Carol; Trinh, Trong-Anh
  6. Education and Adult Cognition in a Low-income Setting: Differences among Adult Siblings By Yuan S. Zhang; Elizabeth Frankenberg; Duncan Thomas
  7. Disentangling the influence of female directors in the banking industry By Idris Adamu Adamu
  8. Merchants of Migrant Domestic Labour: Recruitment Agencies and Neoliberal Migration Governance in Southeast Asia By Chee, Liberty
  9. Divulging the Smart City Concept in the Perspective of Community By Nurul Afiqah Azmi
  10. Entrepreneurship as a Driver of Innovation in the Digital Age: Analysis of Data from 17 ADB Regional Members By Autio , Erkko; Park, Donghyun
  11. Children's Psychological Needs in Furniture Development toward Satisfaction and Marketability: A Literature Review By Hassan Alli
  12. The Social Meaning of Mobile Money: Earmarking Reduces the Willingness to Spend in Migrant Households By Jean N. Lee; Jonathan Morduch; Saravana Ravindran; Abu S. Shonchoy
  13. Tác động của thuê tài chính đến hiệu quả hoạt động kinh doanh của các công ty cho thuê tài chính trong hệ thống ngân hàng thương mại Việt Nam By Nam, Nguyễn Hoàng
  14. Gender differences in adaptation strategies to salinity intrusion in the Mekong Delta, Vietnam: An intra-household analysis By Dang, Hoa Le; Pham, Thuyen Thi; Hong Pham, Nhung Thi; Pham, Nam Khanh
  15. The Effects of Patient Cost-Sharing on Adolescents' Healthcare Utilization and Financial Risk Protection: Evidence from South Korea By Kim, Seonghoon; Koh, Kanghyock; Lyou, Wonjun
  16. Green Preference, Green Investment By Gao, Zhenyu; Luo, Yan; Tian, Shu; Yang, Hao

  1. By: AIZAWA Nobuhiro
    Abstract: The research addresses how the impact of digitalization of the economy and society would reshape the nature of governance and politics. The paper focuses on Southeast Asia, and primarily Indonesia, the largest and one of the most diverse societies in the region. The analysis in this paper focuses on the effect of digitalization on the political process of redesigning government institutions and rearranging policy coalitions, rather than on the influence and control that social media has in terms of political information and electoral campaigns. I argue that the mutual infiltration of digital entrepreneurs and government institutions is a political process of finding a power equilibrium and stabilizing democracy while adjusting the state-society relationship within the changing nature of the digital economy and digital society. This paper highlights President Joko Widodo’s new recruitment policy and patterns of activity of new tech entrepreneurs as an attempt at state infiltration, while renewing the health services through the use of digital technology is an example of the politics of substitution. In the end, this paper demonstrates the formation of a “new digital elite†in Indonesia.
    Date: 2024–03
  2. By: Oikawa , Keita (Economic Research Institute for ASEAN and East Asia); Iwasaki , Fusanori (Economic Research Institute for ASEAN and East Asia); Sawada, Yasuyuki (University of Tokyo); Shinozaki, Shigehiro (Asian Development Bank)
    Abstract: The coronavirus disease (COVID-19) pandemic disrupted businesses, economies, and societies worldwide. This study employs unique data from Indonesia to investigate whether and how digitalization of micro, small, and medium-sized enterprises (MSMEs) helped them weather the adverse shocks from the pandemic and resulting lockdowns. The main empirical result is that, in the pandemic’s early phases, digitalized MSMEs disproportionately encountered negative effects on their business outcomes. The seemingly harmful elements of digitalization disappeared during later stages. Moreover, COVID-19 restrictions initially had a “positive” impact on the business environment. This is counterintuitive. But when considering the panic buying at the onset of restrictions and large share held by the essential sector in our dataset, particularly the wholesale and retail sectors, the positive impact from the restrictions is not unreasonable. These findings suggest that the digital transformation had not yet been stably established among MSMEs by the start of the pandemic. Our findings provide critical implications for industrial and competition policies related to MSMEs during the COVID-19 recovery process.
    Keywords: digitalization; digital financial services; access to finance; SME development; SME policy; Indonesia
    JEL: D22 G20 L20 L50
    Date: 2024–05–02
  3. By: Kien Ngoc Do (FTU - Foreign Trade University, Hanoi, Vietnam); Huong Nguyen Giang (FTU - Foreign Trade University, Hanoi, Vietnam); Le Huy (FTU - Foreign Trade University, Hanoi, Vietnam); Nguyen Kim Phuong Thuy (FTU - Foreign Trade University, Hanoi, Vietnam)
    Abstract: This study disentangles the relationship between GVC participation and the technical efficiency of SMEs in Vietnam. We combine panel data obtained from the GSO Enterprise Census survey of SMEs in Vietnam including 567, 866 enterprises observations from 2015 to 2018. Regarding global value chain participation (GVC), TiVA databases by OECD are used to track GVC integration at sectoral level. We employ Stochastic frontier analysis (SFA) to gauge the relationship between a firm's technical efficiency and GVC participation in two modes of participation: backward integration and forward integration. The findings show the positive impacts of backward participation in rising technical efficiency levels. However, SMEs in sectors with deeper forward participation tend to have low technical efficiency. We find the heterogeneity in firm efficiency regarding firm-specific factors and location.
    Keywords: GVC participation, SMEs, Technical efficiency
    Date: 2023–10
  4. By: Dang, Hoa Le (Faculty of Economics, Nong Lam University); Pham, Thuyen Thi (Nong Lam University); Pham, Nhung Thi Hong (Nong Lam University); Nam, Pham Khanh (University of Economics Ho Chi Minh City)
    Abstract: This study investigates gender-differentiated determinants of rice farm households’ adaptive measures to salinity intrusion in three rice-producing provinces in the Mekong Delta, Vietnam. The sample covered 430 farm households (274 male-headed and 156 female-headed). A multivariate probit model was used to identify factors affecting male and female farmers’ choices of adaptive measures. The six adaptive measures most commonly used by these households were: changing from rice to other crops, saving rainwater for daily use, digging ponds for water storage in the garden, reducing the number of rice crops per year, seeking other income sources, and purchasing agricultural inputs on credit. We found that demographic, socioeconomic, and farming characteristics, as well as institutional conditions and salinity related variables, influenced female farmers’ adaptation choices. Female farmers have to overcome more barriers to undertaking adaptive measures than male farmers. They are also less likely to seek other income sources due to limited access to education and training. Attending agricultural extension services increases the probability that female farmers will change from rice to other crops or will seek other income sources. Therefore, extension services, educational opportunities, training on adaptation strategies, and income-generating opportunities should be made accessible for all farmers, especially women, to increase their resilience to climate change and salinity intrusion.
    Keywords: adaptation; farmers; gender; Mekong Delta; salinity intrusion; Vietnam
    JEL: Q15 Q54
    Date: 2022–07–22
  5. By: Kunz, Johannes (Monash University); Propper , Carol (Imperial College London); Trinh, Trong-Anh (Monash University)
    Abstract: The coronavirus disease (COVID-19) pandemic has highlighted the crucial role of Internet access in pandemic prevention and response. Internet access has facilitated the rapid dissemination of vital information, provided telemedicine services, and enabled remote work and education. This study uses a wide range of data sources to investigate the geographic variation of Internet access proxied by 3G mobile broadband during the COVID-19 pandemic in Indonesia. We employ several approaches to account for potential confounding factors, including using lightning strikes as an instrumental variable, to confirm the significant role that the Internet played in the spread of COVID-19 cases. Our findings suggest that increasing Internet access could positively impact pandemic prevention and response efforts, particularly in regions with limited connectivity. Therefore, improving Internet infrastructure in developing countries may be crucial in preventing future pandemics.
    Keywords: health emergencies; Internet access; information; COVID-19 spread
    JEL: H41 I12 I15 I31 L96 O18
    Date: 2024–04–26
  6. By: Yuan S. Zhang; Elizabeth Frankenberg; Duncan Thomas
    Abstract: The relationship between completed education and adult cognition is investigated using data from the Indonesia Family Life Survey. We compare adult siblings to account for shared, difficult-to-measure characteristics that likely affect this relationship, including genetics and parental preferences and investments. After establishing the importance of shared family background factors, we document substantively large, significant impacts of education on cognition in models with sibling fixed effects. In contrast, the strong positive correlation between education and adult height is reduced to zero in models with sibling fixed effects, suggesting little contamination in the education-height association beyond factors common to siblings.
    JEL: C33 I21 O12
    Date: 2024–04
  7. By: Idris Adamu Adamu (Department of Accounting, Faculty of Management Sciences, Federal University Dutsin-Ma, Nigeria. Author-2-Name: Irma Tyasari Author-2-Workplace-Name: Department of Accounting, Faculty of Economics and Business, Universitas PGRI Kanjuruhan Malang, Indonesia. Author-3-Name: Ahmad Haruna Abubakar Author-3-Workplace-Name: "Faculty of Business and Management and Professional Studies, Management and Science University Shah Alam, Malaysia. " Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: " Objective - This study examined the effect of female directors and their banking expertise on corporate reputation in Nigeria. Methodology/Technique - This study employs ordinary least square regression on sample data from 2009 to 2018. The sample consists of 11 banks from 2009 to 2018, which resulted in 110 observations of the listed banks from the main floor of the NSE market. The data used in the study were extracted from Bloomberg DataStream. Findings - In line with our hypothesis, we documented that female directors on the board and female directors with banking expertise are positively related to corporate reputation, suggesting that female directors on the board and with banking expertise led to a higher corporate reputation. Novelty - Our findings add to the existing body of literature on gender and corporate reputation. as well as resource dependency theory. The findings also corroborate the existing CBN policy on gender diversity. Hence, the study's findings offer additional awareness to the corporate stakeholders. Type of Paper - Empirical"
    Keywords: Female directors, female directors' banking expertise, and corporate reputation.
    JEL: M14 M19
    Date: 2024–03–31
  8. By: Chee, Liberty (Ca' Foscari University of Venice)
    Abstract: This draft contains parts of the conclusion of the book manuscript with the same title as above. The book unpacks the “market logic” of private recruitment and employment agencies as actors in migration governance. It looks into why these actors play such an outsized role in domestic worker migration, and examines their relations with employers, workers and state apparatuses. The book argues that these relations comprise neoliberal migration governance – a governmental rationality that cedes authority to the market.
    Date: 2024–04–12
  9. By: Nurul Afiqah Azmi (Studies of Real Estate, School of Real Estate and Building Surveying, College of Built Environment, Universiti Teknologi MARA, 40450, Shah Alam, Selangor Darul Ehsan, Malaysia. Author-2-Name: Ahmad Tajjudin Rozman Author-2-Workplace-Name: Department of Real Estate, Faculty of Built Environment and Surveying, Universiti Teknologi Malaysia, 81310, Johor Bahru, Johor, Malaysia. Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: " Objective - This paper aims to investigate the relationship between smart city elements and performance from the community's perspective in Petaling Jaya City. Methodology - This paper adopted PLS-SEM techniques, and 128 respondents were collected through questionnaire surveys. PLS-SEM is required to determine the reliability and validity of the model in terms of measurement and structural model. Findings - The results found that our model is reliable and valid regarding measurement and structural model. Our R-square values achieve satisfactory results, where two of the three dependent variables acquire a moderate benchmark. The hypotheses results show that only a few of the Smart City Elements significantly affect Smart City Performance. Novelty - Novelty in this research is identified when we can refer to the understanding of the needs of the Smart City model from the community's perspective. The Smart City concept created by the government undoubtedly sustains the city towards a better and more progressive life. In this study, we have evaluated the value of the Smart City concept from the community. Type of Paper - Empirical"
    Keywords: Smart City; Elements; Performances; Perspective; Community; Petaling Jaya.
    JEL: R11 R58
    Date: 2024–03–31
  10. By: Autio , Erkko (Imperial College Business School); Park, Donghyun (Asian Development Bank)
    Abstract: This paper explores economy- and regional-level determinants of the productivity potential of new entrepreneurial firms using data from Asian Development Bank regional members. Results show that new entrepreneurial firms constitute a highly heterogeneous group in terms of their productivity potential and that this potential is shaped by the economy’s national system of entrepreneurship. This system consists of both economy level institutional conditions, as well as the resource and knowledge dynamics that operate at the level of regional entrepreneurial ecosystems. Economy-level institutional conditions shape the productivity potential of the economy’s population of new entrepreneurial firms through their effect on who chooses to become an entrepreneur and what strategic goals the resulting new firms decide and are able to pursue. The regional level entrepreneurial dynamics condition the extent to which new entrepreneurial ventures are able to realize this potential through business model innovation. This recognition is important because it suggests that to be effective, an economy’s entrepreneurship policy framework needs to address both economy-level institutional conditions as well as regional-level entrepreneurial ecosystem dynamics. The two require different policy approaches and pose distinctive challenges.
    Keywords: digital entrepreneurship; productivity; entrepreneurial policy; new firms
    JEL: L26 M13 O30 O38
    Date: 2024–04–22
  11. By: Hassan Alli (" Faculty of Design and Architecture, University Putra Malaysia 43400 UPM Serdang Selangor, Malaysia" Author-2-Name: Author-2-Workplace-Name: Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: " Objective - Children's furniture has gradually become essential to China's furniture market. Recently, the domestic children's furniture market in China has paid less attention to children's psychological needs and more to practical considerations like safety, health, size, and material. Methodology/Technique - In children's furniture, fulfilling children's psychological needs is worthy of product satisfaction and marketability. The study aimed to evaluate the variables of children's psychological needs towards satisfaction and marketability of children's furniture. Findings - A comprehensive literature review was conducted to provide new insights into the topic under investigation and define the valuable variables of psychological needs for children's furniture design. Novelty - The results acknowledged 12 variables of children's psychological needs that designers and manufacturers must consider during the design and development of children's furniture to promote product satisfaction and marketability. Type of Paper - Review"
    Keywords: New product development, children's furniture, children's psychological needs and product satisfaction
    JEL: J1 J2 M39
    Date: 2024–03–31
  12. By: Jean N. Lee (World Bank); Jonathan Morduch (Robert F. Wagner Graduate School of Public Service, New York University); Saravana Ravindran (Lee Kuan Yew School of Public Policy, National University of Singapore); Abu S. Shonchoy (Department of Economics, Florida International University)
    Abstract: Behavioral household finance shows that people are often more willing to spend when using less tangible forms of money like debit cards or digital payments than when spending in cash. We show that this “payment effect†cannot be generalized to mobile money. We surveyed families in rural Northwest Bangladesh, where mobile money is mainly received from relatives working in factories. The surveys were embedded within an experiment that allows us to control for the relationships between senders and receivers of mobile money. The finding suggests that the source of funds matters, and mobile money is earmarked for particular purposes and thus less fungible than cash. In contrast to the expectation of greater spending, the willingness to spend in the rural sample was lower by 24 to 31 percent. In urban areas, where the sample does not receive remittances on net, there are no payment effects associated with mobile money.
    Keywords: payment effect, digital finance, willingness to pay, social meaning of money, earmarks
    JEL: O15 G41 G50 D91 D14
    Date: 2024–04
  13. By: Nam, Nguyễn Hoàng
    Abstract: Công ty cho thuê tài chính là tổ chức tài chính phi ngân hàng, đáp ứng vốn trung và dài hạn cho hoạt động sản xuất và kinh doanh, đầu tư máy móc thiết bị, phương tiện vận tải, … dưới hình thức thuê tài chính. Bài viết tập trung phân tích, đánh giá tác động của thuê tài chính đến hiệu quả hoạt động kinh doanh của công ty cho thuê tài chính. Dữ liệu nghiên cứu được lấy từ 5 công ty cho thuê tài chính trực thuộc các ngân hàng thương mại tại Việt Nam, dữ liệu được thu thập theo từng quý từ quý 1 năm 2020 đến quý 4 năm 2022. Nghiên cứu sử dụng phương pháp định lượng bằng mô hình hồi quy tuyến tính bội thông qua phần mềm thống kê phân tích SPSS 22. Kết quả nghiên cứu cho thấy thuê tài chính có tác động tích cực đối với hiệu quả hoạt động tài chính của các công ty cho thuê tài chính. Ngoài ra, các chỉ số tài chính khác được sử dụng trong nghiên cứu cũng có tác động đến kết quả hoạt động kinh doanh của các công ty cho thuê tài chính thuộc hệ thống Ngân hàng Thương mại Việt Nam. Cụ thể, quy mô và lợi nhuận có tác động tích cực đến hiệu quả hoạt động kinh doanh. Ngược lại, dư nợ tín dụng gây ra tác động tiêu cực đến hiệu quả kinh doanh.
    Date: 2024–03–09
  14. By: Dang, Hoa Le (Nong Lam University); Pham, Thuyen Thi (Nong Lam University Ho Chi Minh City); Hong Pham, Nhung Thi (Nong Lam University); Pham, Nam Khanh (University of Economics Ho Chi Minh City)
    Abstract: There has been a growing interest in gender differences in adaptation strategies to climate change, due to the significant disparity in both knowledge and access to various resources between male and female farmers. The existing studies on gender differences have mostly examined the adaptation strategies of maleheaded and female-headed farm households. Fewer studies have looked at the coping strategies of wives and husbands in response to climate change. This study investigates the opinions of wives and husbands in farm households concerning desirable adaptive responses to salinity intrusion. Data were collected via a survey of farm households in three coastal provinces in the Mekong Delta, Vietnam. The sample includes 117 married couples who have been growing rice for several years. The findings indicate that wives and husbands have different opinions on adaptation strategies. Different factors affect wives’ and husbands’ choices of adaptive measures as well as the number of adaptive measures that they would consider taking. We focus on the role of wives’ access to education, participation in formal institutions, and training on adaptation to salinity intrusion because those factors affect both the type and number of adaptive measures that wives indicate they would take. To equalize women’s access to information, wives in farming households should be given timely and adequate support, be encouraged to join more social activities and associations, and receive learning opportunities equal to those for their husbands.
    Keywords: Adaptation; Gender; Intra-household; Mekong Delta; Salinity intrusion
    JEL: Q10
    Date: 2024–02–19
  15. By: Kim, Seonghoon (Singapore Management University); Koh, Kanghyock (Korea University); Lyou, Wonjun (Ohio State University)
    Abstract: We examine the effects of patient cost-sharing on adolescents' healthcare utilization and out-of-pocket medical expenditures by exploiting the healthcare reform in South Korea that lowered the coinsurance rate for inpatient care from 20% to 5% for children under 16. We apply a difference-in-regression-discontinuities design using administrative claims data. We find that the reform increased adolescents' inpatient care utilization. It also reduced out-of-pocket healthcare expenditures. This effect was larger among low-income households, facilitating income redistribution. However, the lack of evidence on health improvements and household consumption spending responses suggests that generous patient cost-sharing for adolescent healthcare may cause efficiency losses.
    Keywords: patient cost-sharing, healthcare utilization, out-of-pocket expenditure, income redistribution, consumption spending, difference in regression discontinuities design
    JEL: I12 I13 I18
    Date: 2024–03
  16. By: Gao, Zhenyu (Chinese University of Hong Kong); Luo, Yan (Fudan University); Tian, Shu (Asian Development Bank); Yang, Hao (Fudan University)
    Abstract: Based on Alibaba’s renowned “green” initiative, the Ant Forest program, we develop a novel measure to reveal an individual investor’s nonpecuniary green preference and link it to an individual’s investment actions. We present compelling evidence that supports nonfinancial incentives for investing in green mutual funds while divesting from “brown” funds. Concerns over climate physical and regulatory risks further reinforce this influence. Individuals’ green preferences do not lead to financial gains from trading. Moreover, we mitigate the endogeneity issue by employing the development of a local subway network as a source of variations in green preferences.
    Keywords: nonpecuniary preference; revealed preference; sustainable finance; FinTech
    JEL: G11 G50 Q55
    Date: 2024–04–24

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