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on South East Asia |
| By: | Laborde, David; Olivetti, Elsa; Piñeiro, Valeria; Illescas, Nelson |
| Abstract: | This study identifies food system interventions with high transformational potential for Indonesia by utilizing the MIRAGRODEP a multi-region, multisector computable general equilibrium model to analyze policy scenarios. Our findings reveal a range of economic, social, and environmental impacts. Initiatives such as social safety nets and food stamps can enhance affordability, while repurposing farm subsidies can improve socio-economic sustainability. Comprehensive policy packages that include social safety nets, repurposing agricultural supports, environmental regulation and investment in sustainable production, can lead to substantial GDP growth, poverty reduction, and dietary enhancements. However, each intervention presents distinct trade-offs between economic gains and environmental implications. This analysis underscores the need for a holistic policy approach when trying to achieve multiple sustainability goals. Implementing a blend of policies designed to promote environmental, social, and economic sustainability simultaneously could drive Indonesia towards a sustainable and resilient food system, addressing the complex interplay between economic development, environmental conservation, and improved nutrition. |
| Keywords: | food systems; computable general equilibrium models; policies; social safety nets; sustainable development; agriculture; economic development; nutrition; poverty; South-eastern Asia; Asia; Indonesia |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:ifprid:2265 |
| By: | Park, Jaeyoung |
| Abstract: | The escalating global demand for Asian movies and TV shows indicates a shift away from a Western-centric focus, particularly the United States, with Korean intellectual properties playing a pivotal role. Since the late 1990s, Korean productions have established a regional network within East Asia and, with the advent of digital platforms, achieved a transnational reach. However, investments from global platforms like Netflix, while fostering Korean intellectual properties, often result in these platforms retaining complete content rights, limiting further utilization by local producers. Additionally, there are concerns that platform-driven production may diminish the innovativeness of content by standardizing storytelling and formats. Therefore, Korean content productions need to develop their own transnational network to fully leverage the benefits of transnationalization. Among transnationalization strategies, this paper focuses on transnational inbound innovation as a valid strategy, given that acquiring innovative IP is critical in the content business. To address this, the study proposes a decision model for Korean productions to source original intellectual properties from Asian countries using the Analytic Hierarchy Process (AHP). Focusing on select Asian countries—Indonesia, Thailand, and India—known for significant Korean content consumption and collaboration experience, the study aims to measure the priorities of alternatives and criteria influencing this decision-making process. |
| Keywords: | Transnationalization, innovation management, inbound innovation, Korean content production, Asian original IP, analytic hierarchy process (AHP), multicriteria decision-making |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302479 |
| By: | Dan Pirjol; Lingjiong Zhu |
| Abstract: | We derive the short-maturity asymptotics for Asian option prices in local-stochastic volatility (LSV) models. Both out-of-the-money (OTM) and at-the-money (ATM) asymptotics are considered. Using large deviations theory methods, the asymptotics for the OTM options are expressed as a rate function which is represented as a two-dimensional variational problem. We develop a novel expansion method for the variational problem by expanding the rate function around the ATM point. In particular, we derive series expansions in log-moneyness for the solution of this variational problem around the ATM point, and obtain explicit results for the first three terms. We give the ATM volatility level, skew and convexity of the implied volatility of an Asian option in a general local-stochastic volatility model, which can be used as an approximation for pricing Asian options with strikes sufficiently close to the ATM point. Using numerical simulations in the SABR, Heston and an LSV model with bounded local volatility, we show good performance of the asymptotic result for Asian options with sufficiently small maturity. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.08377 |
| By: | Benfica, Rui; Hossain, Marup; Davis, Kristin E.; Boukaka, Sedi Anne; Azzarri, Carlo |
| Abstract: | Sustainable agrifood systems (AFS) provide food security and nutrition without compromising economic, social, and environmental objectives. However, many AFS generate substantial unaccounted for environmental, social, and health costs. True cost accounting (TCA) is one method that adds direct and external costs to find the “true cost†of food production, which can inform policies to reduce externalities or adjust market prices. We find that for Kenya— considering the entire food system, including crops, livestock, fishing, and value addition sectors at the national level—external costs represent 35 percent of the output value. Social costs account for 73 percent of the total external costs, while environmental costs are 27 percent. In contrast, in Viet Nam, where total external costs represent 15 percent of the output value, the environmental costs (75 percent) dominate social costs. At the subnational level, in the three Kenyan counties (Kisumu, Vihiga, and Kajiado) covered by the CGIAR Research Initiative on Nature-Positive Solutions (NATURE+), external costs (or the true cost gap) represent about 30 percent of all household crop production costs. Those external costs are overwhelmingly dominated by social (84 percent) over environmental (16 percent) externalities. In Viet Nam's Sa Pa and Mai Son districts, external costs represent about 24 percent of all household crop production costs. Environmental externalities (61 percent) are greater than social ones (39 percent). In Kenya, forced labor is the main social (and overall) external impact driven by factors ranging from "less severe" financial coercion to "more severe" forms of physical coercion. Land occupation is the most important environmental impact, resulting from occupation of lands for cultivation rather than conservation, while underpayment (low wages) and low profits are important social costs that are closely associated with the prevailing gender wage gap and occurrence of harassment. Soil degradation is the only other environmental impact, linked with the use of inorganic fertilizers (60 percent of households) and pesticides (36 percent). In Viet Nam, land occupation is the most important external impact, followed by soil degradation and contributions to climate change, primarily due to widespread use of inorganic fertilizers (98 percent of households) and pesticides (93 percent). Underpayment and insufficient income are significant social costs, followed by the gender wage gap and child labor. Crop production systems in Kenya exhibit relatively high labor-related costs compared with nonlabor inputs, with relatively lower intensity in the use of inorganic fertilizer and other chemical inputs and lower crop yields. This production system leads to relatively greater social externalities. Conversely, crop yields in Viet Nam are significantly higher than those in Kenya, likely due to the extensive use of inorganic fertilizers representing the largest direct cost component and leading to a relatively higher level of environmental externalities. Because external costs represent a significant part of the total cost of food production, policy and investments to minimize these costs are essential to a nature-positive AFS that is environmentally sustainable and socially equitable. Strategies to reach this goal include regulatory adjustments, investments in resource efficient infrastructure and technologies that minimize costs, and the prudent management of environmentally impactful production inputs and factors. |
| Keywords: | agrifood systems; environment; food security; sustainability; true cost accounting; food production; Africa; South-eastern Asia; Asia; Eastern Africa; Kenya; Vietnam |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:ifprid:2269 |
| By: | Hossain, Mobarak; Jukes, Matthew C. H. |
| Abstract: | This paper examines the emergence of gender differences in socioemotional skills and traits during adolescence, and the socioeconomic and cultural factors that may explain such gaps, in Ethiopia, India, Peru and Vietnam. Findings from Young Lives longitudinal data showed that the gender gap in self-efficacy emerges around age 19, with males scoring more highly than females in Ethiopia, India and Vietnam. Similar, but less consistent, patterns were observed for self-esteem and peer relations. At age 22, males also scored more highly than females, in at least one country, in emotional stability, conscientiousness, grit, and teamwork. In India and Ethiopia, the two countries with higher poverty and more unequal gender attitudes, we found gender differences in a greater number of socioemotional skills or traits. A predictive analysis of self-efficacy, emotional stability and teamwork found that time spent in paid and unpaid household activities, having a more equal attitude to gender roles, and socioeconomic status were associated with the gender gap in socioemotional skills. These covariates explained gender gaps more in India and Ethiopia than in other countries. However, substantial portions of gender differences remained unexplained by available variables. Our findings may help clarify the origins of gender inequalities in life outcomes and how they can be addressed through socioemotional programmes in adolescence. |
| Keywords: | socioemotional skills; LMICs; young lives; longitudinal analysis; Taylor & Francis deal |
| JEL: | N0 |
| Date: | 2024–08–27 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:124441 |
| By: | Haris, Faldi; Rahadi, Raden Aswin |
| Abstract: | VC investment has undergone a substantial transition, particularly in emerging countries, where there is a growing entrepreneurial culture. Southeast Asia (SEA) has emerged as an image of trust due to its remarkable accomplishments in venture capital funding. Notwithstanding, the VC success rate is quite low, with up to 75 percent of venture-backed businesses failing to return cash to their investors and 30 to 40 percent of those 75 percent liquidating their assets, resulting in their investors losing their entire investment (Ghosh, 2012). In light of this context, this study sets out to investigate the behavior of venture capital firms in Southeast Asia and the complex decision-making processes involved. This research aims to enhance the success rate of VC firms and contribute to the advancement of VC literature by precisely identifying the relevant parameter. This study seeks to analyze the complex landscape of venture capital activities in a highly dynamic entrepreneurial ecosystem, using the complete framework created by Gompers et al. (2023). A case study, a widely recognized method in exploratory research, is used as the primary methodology to reveal novel themes and insights obtained from respondents in venture capital firms. Using a semi-structured interview, this study implies that VC fund structure and strategy, start-up screening criteria, start-up valuation, exit, and risk management have a significant effect on determining SEA VC firm investment decisions. This study is one of the first efforts to utilize Gompers et al.'s (2023) framework in the specific setting of Southeast Asia. This study contributes to the current research on venture capital decision-making by providing innovative measurement parameters, with a particular emphasis on the notion of "runway." These features, which relate to a startup's expenditure rate and its long-term viability offer a broader understanding of the financial factors that impact investments made by SEA VC companies. |
| Date: | 2024–09–05 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:t3byd |
| By: | Kim, Seonghoon (Singapore Management University); Wang, Lanjie (Singapore Management University) |
| Abstract: | This study investigates the short-term impacts of unemployment in Singapore, a setting without public unemployment insurance. Using monthly panel data from the Singapore Life Panel, we analyze dynamic effects on major life outcomes such as income, spending, health, and subjective well-being over two years post-unemployment. Our findings reveal substantial initial earnings losses with incomplete recovery, as income remains 50.6% below pre-unemployment levels after 24 months. Despite this persistent income gap, consumption responses are modest, with total household expenditure decreasing by 13–17% over two years. The two-year marginal propensity to consume is about 0.2 which is smaller than estimates in countries with more extensive social insurance, suggesting robust self-insurance mechanisms. We observe increased retirement and self-employment but no significant spousal earnings response. While health status remains largely unchanged, we find substantial declines in life satisfaction. Our study provides insights into unemployment dynamics in a UI-free environment, suggesting modest welfare gains from introducing unemployment benefits in Singapore. |
| Keywords: | unemployment shock, consumption spending, event study design, monthly panel |
| JEL: | J14 J60 E24 D12 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17299 |
| By: | Alec Morton (Saw Swee Hock School of Public Health, National University of Singapore; Strathclyde Business School, University of Strathclyde); Jamaica Briones (Saw Swee Hock School of Public Health, National University of Singapore); Anastassia Demeshko (Center for Global Development); Pete Baker (Center for Global Development); Tom Drake (Center for Global Development) |
| Abstract: | As Gavi embarks on its next strategic phase, “Gavi 6.0, ” it faces multiple challenges: shifting donor priorities, rising costs of new vaccines, incomplete vaccine coverage, and economic constraints in supported countries. Additionally, health ministries face increasing pressures related to universal health coverage, complex disease burdens, and fragmented aid systems. This paper proposes that Gavi’s transition approach would benefit from adopting a New Compact underpinned by a marginal aid framework. The New Compact is based on three pillars that reflect a shared responsibility between a country and its donors: (1) evidence-informed, locally led prioritization; (2) domestic-first resource allocation with donor support for marginally cost-effective interventions; and (3) consolidated supplementary aid. We suggest five policy shifts for Gavi to enhance the New Compact’s effectiveness: focusing country financing on high-priority vaccines while using Gavi funds at the margins; ensuring comprehensive coverage for underserved populations; improving donor coordination; adapting pooled procurement; and strengthening market shaping through value-based commitments. We conclude with recommendations for Gavi’s transition, emphasizing the need for strategic dialogue and adaptive policies to align with the New Compact and achieve sustainable vaccination outcomes. |
| Date: | 2024–09–11 |
| URL: | https://d.repec.org/n?u=RePEc:cgd:ppaper:338 |
| By: | Oikawa, Keita; Iwasaki, Fusanori; Ueki, Yasushi; Urata, Shujiro |
| Abstract: | The study conducted a comprehensive examination of the digital divide in the ASEAN region through a large-scale questionnaire survey targeting regional MSMEs. Two types of surveys, web and phone, were employed to capture a diverse range of responses, considering company size, industry, and geographical location. Findings reveal that before COVID, basic digital devices and e-payment systems were widely adopted, even by entry-level firms, while other digital tools saw limited adoption, widening the digital divide. Post-COVID, digitally developed firms accelerated their adoption of digital tools, especially web conferencing and e-commerce, while entry-level firms showed little progress. The study identifies a five-stage progression in digital tool adoption, highlighting the need for tailored support at each stage. Firm attributes significantly influenced adoption: economic development levels positively affected smaller firms, firm size consistently impacted adoption, and rural firms were not disadvantaged. FDI and ownership structure also played crucial roles, with FDI firms adopting a broader range of tools but lagging in advanced tools. Participation in global value chains positively influenced adoption, especially at higher stages. Public and private support benefited digitally developed firms but was less effective for entry-level firms, indicating a need for targeted support mechanisms. The study underscores the connection between digital tool adoption and improved business performance post-COVID, with digitally developed firms experiencing positive growth and entry-level firms showing increased robustness. The findings suggest that policymakers should provide targeted assistance, enhance support access, and address stage-specific challenges to ensure all firms benefit from digital transformation initiatives. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302492 |
| By: | Andrey Itkin; Yerkin Kitapbayev |
| Abstract: | In this paper, we propose a semi-analytical approach to pricing options on SOFR futures where the underlying SOFR follows a time-dependent CEV model. By definition, these options change their type at the beginning of the reference period: before this time, this is an American option written on a SOFR forward price as an underlying, and after this point, this is an arithmetic Asian option with an American style exercise written on the daily SOFR rates. We develop a new version of the GIT method and solve both problems semi-analytically, obtaining the option price, the exercise boundary, and the option Greeks. This work is intended to address the concern that the transfer from LIBOR to SOFR has resulted in a situation in which the options of the key money market (i.e., futures on the reference rate) are options without any pricing model available. Therefore, the trading in options on 3M SOFR futures currently ends before their reference quarter starts, to eliminate the final metamorphosis into exotic options. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.04903 |
| By: | Jiao, Yang (Singapore Management University); Kwon, Ohyun (Drexel University); Lee, Saiah (Ulsan National Institute of Science & Technology) |
| Abstract: | We investigate the internationalization of Renminbi (IoR) since 2006 by examining its increased utilization among Korean exporters to China. Employing proprietary data fromKorean customs, which includes detailed invoicing information, our analysis reveals that products invoiced, either fully or partially, in RMB have experienced more rapid export growth. Furthermore, firms adopting RMB invoicing also exhibit faster export growth to China after controlling for relevant observables. Our findings remain robust when employing an instrumental variable approach to address potential endogeneity concerns. With the help of a currency invoicing model that demonstrates different impact channels, we show that the increased trade volume is due to Chinese importers facing lower currency costs when purchasing RMB-invoiced products compared to USD-invoiced products. |
| Keywords: | RMB internalization; invoicing currency; international trade |
| JEL: | D22 F14 F31 |
| Date: | 2024–09–06 |
| URL: | https://d.repec.org/n?u=RePEc:ris:drxlwp:2024_013 |
| By: | Ms. Maria-Angels Oliva; Nika Khinashvili |
| Abstract: | In a 157 emerging markets and developing countries sample, remittances continue to grow fast, outpacing other financial inflows (as a share of GDP), particularly in Asia. Without alternative policy instruments, foreign exchange interventions (FXIs) have often been the authorities’ go-to tool to manage the short-term effects of these remittance inflows. However, this practice comes at a cost. This paper shows that FXIs are quick, temporary solutions that often may hinder the development of the recipient country’s financial sector and may not support financial stability over the medium term. The analysis suggests that FXIs act as an insurance tool that, by mitigating FX volatility, protect remittance recipients and tradable sectors from FX risks, encouraging less bank deposits (consistent with more spending) and lower buffers in the banking sector. These costs add to other direct FXI-related costs already identified in the literature. The development of private sector market risk management tools should support longer-term structural reforms required to increase the absorptive capacity of additional FX inflows. |
| Date: | 2024–09–06 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/191 |
| By: | Ed Cornforth; Patricia Sánchez Juanino |
| Abstract: | The National Institute Global Econometric Model (NIGEM) serves globally as a key macroeconomic instrument for economists and policymakers to understand the intricate economic dynamics across countries, with a specific focus on examining scenarios. Within NIGEM, countries can exhibit differences in specification, particularly regarding the labour market, government sector, and components of domestic demand. Models with a complete specification are defined as "full country models, " while those with a more simplified specification are named "reduced country models". In this paper, we analyse how this differentiation impacts NIGEM outputs and identify the primary driving forces in each model type, using as examples the recent expansions of the Malaysian and Romanian models. |
| Keywords: | modelling, macroeconomics |
| JEL: | C51 E37 F47 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nsr:niesrd:558 |
| By: | Charles Yuji Horioka (Center for Computational Social Science and Research Institute for Economics & Business Administration (RIEB), Kobe University, Asian Growth Research Institute, Institute of Social and Economic Research, Osaka University, and National Bureau of Economic Research, JAPAN) |
| Abstract: | In this paper, I analyze detailed data on intergenerational transfers in 4 countries (China, India, Japan, and the United States) from the "Japan Household Panel Survey on Consumer Preferences and Satisfaction (JHPS-CPS)" which has been conducted by the Institute of Social and Economic Research of Osaka University in these 4 countries since 2003, in order to shed light on the impact of intergenerational transfers on household wealth disparities and on possible reasons for the substantial differences in household wealth disparities among the 4 countries. Almost all of the evidence I present suggests that intergenerational transfers have a disequalizing impact on household wealth disparities and promote the transmission of household wealth disparities from generation to generation in all 4 countries although the magnitude of these effects varies considerably from country to country. Moreover, the evidence I present sheds considerable light on possible reasons for the substantial differences in household wealth disparities among the 4 countries. |
| Keywords: | Bequests; Estates; Household wealth; Inheritances; Inter vivos transfers; Intergenerational mobility; Intergenerational transfers; Wealth disparities; Wealth distribution; Wealth inequality; China; India; Japan; United States |
| JEL: | D12 D31 D64 E21 E24 J16 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:kob:dpaper:dp2024-31 |