nep-sea New Economics Papers
on South East Asia
Issue of 2024‒06‒10
eleven papers chosen by
Kavita Iyengar, Asian Development Bank


  1. The effect of financial development on the gender unemployment differential in ASEAN4 economies By Yicheng LIN
  2. Labour market inequality in two Asian giants: Indonesia and India compared By Kunal Sen
  3. Assessing the enabling conditions for investment in water security: Scorecard pilot test in Asian countries By Delia Sanchez Trancon; Allison Woodruff; Xavier Leflaive; Lylah Davies; Sigurjon Agustsson
  4. Distortions, Producer Dynamics, and Aggregate Productivity: A General Equilibrium Analysis By Stephen Ayerst; Loren Brandt; Diego Restuccia
  5. When petroleum revenue transparency policy meets citizen engagement reality: Survey evidence from Indonesia By Christa Brunnschweiler; Päivi Lujala; Primi Putri; Sabrina Scherzer; Indah Wardhani
  6. "Ambivalent Aspirations : Okinawans' Collaboration with the Greater East Asia Co-Prosperity Sphere" By Yuri Okubo
  7. “Education and Ethnic Intermarriage: Evidence from Higher Education Expansion in Indonesia” By Antonio Di Paolo; Khalifany-Ash Shidiqi
  8. Faraway, so close: the impact of the Russia-Ukraine war on political violence in Asian countries By Michele Di Maio; Patricia Justino; Valerio Leone Sciabolazza; Cecilia Nardi
  9. A Bayesian semi-parametric approach to stochastic frontier models with inefficiency heterogeneity By Deng, Yaguo
  10. Why Does Working from Home Vary across Countries and People? By Pablo Zarate; Mathias Dolls; Steven J. Davis; Nicholas Bloom; Jose Maria Barrero; Cevat Giray Aksoy
  11. Inference in a Stationary/Nonstationary Autoregressive Time-Varying-Parameter Model By Donald W. K. Andrews; Ming Li

  1. By: Yicheng LIN (University of Exeter)
    Abstract: The study aims to analyse the short and long-run effect of financial development on the gender unemployment differential within the ASEAN4 (Thailand, Malaysia, the Philippines, and Indonesia) economies. The panel regression analysis includes a short-run period from 2009 to 2019 and a long-run period from 1980 to 2019. The results depicted a negative effect on financial development in the long run. In addition, inflation affects the unemployment differential negatively in the short and long run, while HCI depicts a positive effect.
    Keywords: Financial Development, Gender unemployment differential, Human Capital Index
    JEL: E44
    URL: http://d.repec.org/n?u=RePEc:sek:iefpro:14116018&r=
  2. By: Kunal Sen
    Abstract: We examine the nature of labour market inequality in Indonesia and India, using a common conceptual approach drawing from the job ladder framework. In the framework, we differentiate between self-employment and wage-informal and between formal, upper tier informal, and lower tier informal jobs. We find that both countries have a large proportion of workers in lower tier jobs, though the importance of wage-employment is larger in Indonesia. There are more workers in formal wage-employment in Indonesia than India.
    Keywords: job ladder, Labour market, Inequality, Informality, Indonesia, India
    Date: 2024
    URL: http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-29&r=
  3. By: Delia Sanchez Trancon; Allison Woodruff; Xavier Leflaive; Lylah Davies; Sigurjon Agustsson
    Abstract: This report outlines results from the initial pilot-testing of a Scorecard to assess the enabling environment for investment in water security, referred to as "the Scorecard”. Developed in collaboration with the Asian Development Bank and partners, the Scorecard aims to identify conditions for attracting and maintaining investment in water security. The report outlines the Scorecard's rationale, scoring methodology, and presents its main components. It also provides results from seven Asian countries, namely, Bangladesh, Mongolia, Nepal, Pakistan, the Philippines, Uzbekistan, and Sri Lanka. Armenia's findings from a subsequent Eastern European pilot test are also incorporated. This is the first in a sub-set of working papers within the Environment Working Paper series presenting research on the enabling environment for investment in water security. It marks the beginning of a process to apply the tool and support policy reforms. The report refrains from offering policy recommendations, focusing on testing the scorecard's ability to assess conditions to attract and sustain investing in water security. For an illustration of country-specific policy recommendations, please refer to the forthcoming Environment Working Paper “Enabling environment for investment in water security: Pilot test in the EU’s Eastern Partner Countries - Armenia case study”.
    Keywords: Asia, data, enabling environment, investment, Pacific, policy, public and private finance, regulation, sanitation, tool, wastewater, water resource management, water security, water supply
    JEL: H23 H41 H51 H54 L32 L38 L50 L95 L98 Q25 Q53 Q54 Q58
    Date: 2024–05–16
    URL: http://d.repec.org/n?u=RePEc:oec:envaaa:235-en&r=
  4. By: Stephen Ayerst; Loren Brandt; Diego Restuccia
    Abstract: In less developed economies the allocation of factor inputs to more productive farms is often hindered. To analyze how distortions to factor reallocation affect farm dynamics and agricultural productivity, we develop a model of heterogeneous farms that make cropping choices and invest in productivity improvements. We calibrate the model using detailed farm-level panel data from Vietnam, exploiting regional differences in agricultural institutions and outcomes. We focus on south Vietnam and quantify the effect of higher measured distortions in the North on farm choices and agricultural productivity. We find that the higher distortions in north Vietnam reduce agricultural productivity by 41%, accounting for 61% of the observed 2.5-fold difference between regions. Moreover, two-thirds of the productivity loss is driven by farms' choice of lower productivity crops and reductions in productivity-enhancing investment, which more than doubles the productivity loss from static misallocation.
    Keywords: Farm dynamics, productivity, size, distortions, misallocation, Vietnam.
    JEL: O11 O14 O4
    Date: 2024–05–10
    URL: http://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-775&r=
  5. By: Christa Brunnschweiler (Department of Economics, Norwegian University of Science and Technology); Päivi Lujala (Geography Research unit, University of Oulu); Primi Putri (Geography Research unit, University of Oulu); Sabrina Scherzer (Department of Geography, Norwegian University of Science and Technology); Indah Wardhani (Department of Politics and Government, Universitas Gadja Mada, Yogakarta, Indonesia)
    Abstract: Transparency in natural resource revenue (NRR) management is crucial in theory to avoid misuse and corruption, but there is little evidence that information reaches citizens and engages them in revenue governance. We collect survey data from Bojonegoro in Indonesia, which has a strong transparency and accountability policy in petroleum revenue governance. We investigate who receives information and what shapes attitudes and behavior regarding NRR management. We find that respondents are poorly informed about NRR management, concerned about the environmental consequences of resource extraction, but have rarely made their voice heard. Their preferred way of being informed about the issue is through fellow citizens or the internet. Our empirical analysis shows that proximity to an extraction site and interest in environmental issues and politics influence attitudes; greater interest in politics and belief in individual citizens’ ability to influence policy also increase the likelihood of self-declared past and future action for better NRR management. Finally, self-declared past – though not intended future – action is linked to receiving information on petroleum management. Engaging intrinsically motivated people in more active resource governance through clear information and pathways for action could eventually make the issue relevant to a wider share of the population.
    Keywords: accountability, survey analysis, citizen engagement, petroleum revenues, Indonesia
    Date: 2024–04–26
    URL: http://d.repec.org/n?u=RePEc:nst:samfok:20024&r=
  6. By: Yuri Okubo (CIRJE, Faculty of Economics, The University of Tokyo)
    Abstract: Focusing on Okinawan collaboration in the policy of migration to Southeast Asia in the 1940s to construct the "Greater East Asia Co-prosperity Sphere, " this presentation aims to explore the tension between the Okinawan people's aspirations for the empire and their resistance to it. Okinawan intellectuals emphasized the importance of Okinawa as the “pioneer region of the southward advancement†based on its rich experience of their migration to Southeast Asia, because they wanted to be recognized a member of the Japanese Empire. The Okinawa Prefectural Office showed their collaboration by establishing training centers for southern migrants upon a request from the Ministry of Colonial Affairs which conducted the policy However, such collaboration was sometimes in conflict with the Okinawan identity. In its twilight years, what did the Japanese Empire demand the Okinawans to construct the Co-Prosperity Sphere, and what did the Okinawans offer? How did the contradiction and ambiguity appear discursively? My presentation examines the idea of the southward advancement in the early 1940s proposed by Okinawan intellectuals in Gekkan Bunka Okinawa and explores the two training centers above by using newspapers, movies, and official documents.
    Date: 2024–05
    URL: http://d.repec.org/n?u=RePEc:tky:fseres:2024cf1228&r=
  7. By: Antonio Di Paolo (AQR-IREA, University of Barcelona); Khalifany-Ash Shidiqi (Universitas Muhammadiyah Yogyakarta and University of Barcelona)
    Abstract: In this paper, we analyse the effect of educational attainments on interethnic marriages in Indonesia, a multi-ethnic emerging country. The empirical analysis is based on data from the Java Island obtained from the 2014 wave of the Indonesian Family Life Survey, combined with administrative data about the location and year of establishment of Higher Education Institutions (HEI). To estimate causal effects, we exploit variation in exposure to HEI by birth year and district of residence in an IV/TSLS framework. Specifically, we employ as instrument for education the number of HEI located in a radius of 10 kilometres from the centroid of the district of residence at age 18. The analysis is carried out at the individual level, with separate estimations for males and females. The results indicate that years of schooling, college attendance and completion positively affect the likelihood of exogamy, i.e. having a partner from a different ethnicity. The estimated coefficients are somewhat larger for females than for males, and all the robustness checks provide stable results, supporting their causal interpretation. The effect of schooling does not appear to be heterogeneous depending on parental education, and mixed parental ethnicity. However, it is lower for individuals with Javanese ethnicity compared to those belonging to other ethnic groups. We also analyse potential mechanisms, highlighting that migration/residential location and changes in social norms could be significant channels underlying the causal chain between higher education expansion, educational attainments, and interethnic marriages. Overall, the results reported in this paper point out that the increase in educational attainments induced by the expansion of higher education could contribute to the reduction of ethnic segregation.
    Keywords: Education, interethnic marriages, higher education expansion, Indonesia JEL classification: I21, I23, J12
    Date: 2024–05
    URL: http://d.repec.org/n?u=RePEc:aqr:wpaper:202403&r=
  8. By: Michele Di Maio; Patricia Justino; Valerio Leone Sciabolazza; Cecilia Nardi
    Abstract: We show that the Russia-Ukraine-war-induced changes in the international price of wheat affected political violence in Asia. Using data from 13 countries and more than four million cell-level observations, we show that a higher wheat price increases political violence in areas that are more suitable to produce that crop. We interpret this evidence as consistent with a rapacity effect being at play: the higher value of agricultural output increases the incentive to violently appropriate it. Our result is robust to a number of falsification and robustness tests.
    Keywords: War, Commodity shocks, Trade, Political violence, Agricultural market performance, Asia
    Date: 2024
    URL: http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-30&r=
  9. By: Deng, Yaguo
    Abstract: In this chapter, we present a semiparametric Bayesian approach for stochastic frontier (SF) models that incorporates exogenous covariates into the inefficiency component by using a Dirichlet process model for conditional distributions. We highlight the advantages of our method by contrasting it with traditional SF models and parametric Bayesian SF models using two different applications in the agricultural sector. In the first application, the accounting data of 2, 500 dairy farms from five countries are analyzed. In the second case study, data from forty-three smallholder rice producers in the Tarlac region of the Philippines from 1990 to 1997 are analyzed. Our empirical results suggest that the semi-parametric Bayesian stochastic frontier model outperforms its counterparts in predictive efficiency, highlighting its robustness and utility in different agricultural contexts.
    Keywords: Bayesian semi-parametric inference; Efficiency; Heterogeneity; Production function; Stochastic frontier analysis
    Date: 2024–04–23
    URL: http://d.repec.org/n?u=RePEc:cte:wsrepe:43837&r=
  10. By: Pablo Zarate; Mathias Dolls; Steven J. Davis; Nicholas Bloom; Jose Maria Barrero; Cevat Giray Aksoy
    Abstract: We use two surveys to assess why work from home (WFH) varies so much across countries and people. A measure of cultural individualism accounts for about one-third of the cross-country variation in WFH rates. Australia, Canada, the UK, and the US score highly on individualism and WFH rates, whereas Asian countries score low on both. Other factors such as cumulative lockdown stringency, population density, industry mix, and GDP per capita also matter, but they account for less of the variation. When looking across individual workers in the United States, we find that industry mix, population density and lockdown severity help account for current WFH rates, as does the partisan leaning of the county in which the worker resides. We conclude that multiple factors influence WFH rates, and technological feasibility is only one of them.
    Date: 2024
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_11081&r=
  11. By: Donald W. K. Andrews (Yale University); Ming Li (National University of Singapore)
    Abstract: This paper considers nonparametric estimation and inference in first-order autoregressive (AR(1)) models with deterministically time- varying parameters. A key feature of the proposed approach is to allow for time-varying stationarity in some time periods, time-varying nonstationarity (i.e., unit root or local-to-unit root behavior) in other periods, and smooth transitions between the two. The estimation of the AR parameter at any time point is based on a local least squares regression method, where the relevant initial condition is endogenous. We obtain limit distributions for the AR parameter estimator and t-statistic at a given point T in time when the parameter exhibits unit root, local-to-unity, or stationary/stationary-like behavior at time T. These results are used to construct confidence intervals and median- unbiased interval estimators for the AR parameter at any specified point in time. The confidence intervals have correct uniform asymptotic coverage probability regardless of the time-varying stationarity/ nonstationary behavior of the observations.
    Date: 2024–05
    URL: http://d.repec.org/n?u=RePEc:cwl:cwldpp:2389&r=

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