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on South East Asia |
| By: | Briones, Roehlano M.; Albert, Jose Ramon G.; Rivera, John Paolo R. |
| Abstract: | The Philippines is aiming to become a predominantly middle-class society, free of poverty, by 2040. However, this goal faces challenges due to global headwinds that could impact the country's development. Developing the middle class is more closely tied to creating new wealth, rather than focusing solely on poverty reduction or redistribution. This background paper for the 2024 Philippine Institute for Development Studies Annual Public Policy Conference provides an updated profile of the Philippine middle class. By using an income-based definition that identifies the middle class as households with per capita incomes between 2 to 12 times the official poverty line, the paper reveals that the middle class grew from 28.5 percent of the population in 1991 to 39.8 percent in 2021. However, this growth has not been steady, as the COVID-19 pandemic has reversed some of the progress made in recent years. Drawing on data from the 2021 Family Income and Expenditure Survey and the July 2021 round of the Labor Force Survey, this paper describes the key socio-economic characteristics of the middle class. The middle class is primarily urban, more educated, and more involved in formal employment compared to lower-income groups. However, there are significant regional differences in the size and profile of the middle class. To harness the potential of the middle class as a driver of inclusive growth, this APPC background paper proposes a multipronged strategy that includes (1) promoting social justice in natural resource management and climate change transition, (2) capitalizing on new opportunities in trade and investments for MSMEs, (3) ensuring a future-ready workforce and social protection, and (4) improving digital governance and public service delivery. This paper argues that achieving the vision of a predominantly middle-class society will require bold and coordinated action in these priority areas. It will also necessitate effective leadership, coordination, and collaboration among the government, the private sector, civil society, and development partners. By implementing a comprehensive agenda for middle class expansion, the Philippines can build a more resilient, equitable, and prosperous future for all Filipinos. Comments on this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | middle class;inclusive growth;Philippines;income distribution;poverty;social protection;digital economy;climate change;MSMEs |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:phd:dpaper:dp_2024-10 |
| By: | Tabuga, Aubrey D.; Vargas, Anna Rita P.; Baino, Madeleine Louise S.; Astilla-Magoncia, Danika; Patalinghug, Epictetus E. |
| Abstract: | This study assesses the Philippine Retirement Authority's (PRA) current program and business model. Established by Executive Order No. 1037 in 1985, the PRA aims to position the Philippines as a prime retirement destination, contributing to the country's social and economic development. Utilizing GAP and SWOT analyses, the research explores potential enhancements to PRA’s business strategy, guided by Porter's competitive advantage model and Prahalad and Hamel's core competencies framework. In addition, the analysis supplements the analytical frameworks with a strategic agenda that covers a discussion of five strategic dimensions: 1. PRA's goal; 2. PRA’s source of market or competitive advantage; 3. PRA's major source of core competence; 4. PRA's current business model; and 5. PRA's strategies in specific management functions. The findings reveal PRA's commendable financial performance from 1986 to 2021, achieving fiscal autonomy in 1993. As of December 31, 2021, the agency reported significant financial metrics per retiree. The GAP analysis suggests two pathways for performance improvement: intensifying efforts to meet targets or recalibrating targets to align with available resources, with the SWOT analysis supporting the latter. Recommendations include enhancing SRRV benefits with a focus on efficient processing and registration, developing a medium-term plan detailing corporate goals and necessary initiatives, promoting a brand identity synonymous with exceptional customer service and the warmth of Philippine hospitality, collaborating with the Department of Tourism to support retirement promotion, and adopting a specialization model to better serve targeted customer segments and regions. Comments on this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | Philippine Retirement Authority (PRA);GAP analysis;SWOT analysis;business model;competitive advantage;retirement |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:phd:dpaper:dp_2024-12 |
| By: | Tabuga, Aubrey D.; Quimba, Francis Mark A.; Vargas, Anna Rita P.; Baino, Madeleine Louise S.; Ruiz, Mark Gerald C.; Astilla-Magoncia, Danika |
| Abstract: | The Philippines has introduced initiatives to attract retirement migrants, including visa and residence permit programs and various incentives. Central to these efforts is the Special Resident Retiree’s Visa (SRRV), managed by the Philippine Retirement Authority (PRA). The SRRV offers a nonimmigrant visa to foreign nationals and former Filipinos, allowing for indefinite stays and multiple entries. This paper, part of a three-part research series, aims to assess the competitiveness of PRA’s retirement program compared to neighboring countries, profile prospective retirees, and identify ways to enhance program effectiveness. Using a mixed-methods approach, the study integrates quantitative and qualitative analyses, including competitor SWOT analysis, customer feedback, and value chain evaluation. It examines literature on retirement migration trends and conducts key informant interviews with retirees and PRA-affiliated entities. Findings reveal that while the Philippines' SRRV program is attractive due to lower financial requirements and indefinite stay privileges, it lags behind countries like Thailand and Malaysia in attracting retirees. Issues such as visa processing delays, unclear requirements, and limited post-visa services detract from its appeal. Additionally, retirees are often younger than expected, and most come from high-income backgrounds. To improve, the PRA must address processing delays, enhance after-sales services, and expand the retirement care industry. Collaboration with stakeholders and better information dissemination are essential. The study concludes that a comprehensive industry roadmap is needed to position the Philippines as a leading retirement destination amidst evolving global trends and local challenges. Comments on this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | retirement migration;competitiveness;retirement visa program;retirement care industry |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:phd:dpaper:dp_2024-11 |
| By: | Cabuay, Christopher James; Bayudan-Dacuycuy, Connie; Luzon, Paola Ellaine |
| Abstract: | Public higher education institutions in the Philippines have experienced expansions in campuses, programs, and enrollments. However, these expansions come with challenges that may hinder their capacity to deliver quality education and ensure access for disadvantaged groups. This study analyzes the nature of these expansions in state and local universities and colleges, identifies the associated issues and challenges, and offers policy recommendations to ensure that growth in public higher education institutions includes measures that safeguard the quality of educational offerings while guaranteeing access for disadvantaged groups. Comments on this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | access;quality;LUCs;expansion in public HEIs;affirmative action;higher education institutions |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:phd:dpaper:dp_2024-16 |
| By: | Wladislaw Mill; Tobias Ebert; Jana B. Berkessel; Thorsteinn Jonsson; Sune Lehmann; Jochen E. Gebauer |
| Abstract: | Does war make people more religious? Answers to this classic question are dominated by the lack of causality. We exploit the Vietnam Draft Lottery -- a natural experiment that drafted male U.S. citizens into military service during the Vietnam War -- to conclusively show that war increases religiosity. We measure religiosity via religious imagery on web-scraped photographs of hundreds of thousands of gravestones of deceased U.S. Americans using a tailor-made convolutional neural network. Our analysis provides compelling and robust evidence that war indeed increases religiosity: people who were randomly drafted into war are at least 20% more likely to have religious gravestones. This effect sets in almost immediately, persists even after 50 years, and generalizes across space and societal strata. |
| Keywords: | War, Religion, Vietnam Draft Lottery, Grave |
| JEL: | Z12 N30 N40 P00 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2024_614 |
| By: | Orbeta, Aniceto Jr. C.; Paqueo, Vicente B.; Maddawin, Ricxie B.; Abrigo, Michael R.M.; Sister, Johanna Marie Astrid A.; Sarne, Solomon R.; Lavega, Marie Louissie Ynez U. |
| Abstract: | Thirty-two years ago, the First Congressional Commission on Education (EDCOM I) established a trifocalized Philippine Educational and Training System (PETS) to ramp up the achievement of the country’s educational and training goals. EDCOM I aimed to raise the system’s performance by transforming the PETS from a centralized Department of Education, Culture and Sports (DECS) into a system comprising three separate national education agencies, each vested with the responsibility and authority to lead on education and training matters. These agencies are the Department for Basic Education (DepEd), the Commission on Higher Education (CHED), and the Technical Education and Skills Development Authority (TESDA). Despite well-intentioned reform efforts advocated by EDCOM I, the PETS is not performing as well as education and development leaders had hoped. This state of affairs has led some influential leaders and advisers of EDCOM II to call for a reversal or modification of the current trifocalized PETS. This study seeks to address the aforementioned concerns and to analyze the proposal to reverse or modify trifocalization. To this end, the analysis aims to determine the impact of trifocalization on desired education and skills development outcomes in the Philippines using a combination of quantitative and qualitative methods. This study finds that trifocalization has had no statistically significant impact on education outcomes at conventional confidence levels. The empirical results are consistent with findings from key informant interviews. Furthermore, the study discusses why a trifocalized PETS might not work as expected. Given its findings, the report offers several reform ideas that EDCOM II may want to consider to enable and incentivize the trifocalized system to function more effectively, especially regarding coordination and other issues that key informants regard as fundamental. One recommendation is the establishment of an independent agency with oversight responsibilities and powers to hold DepEd, CHED, and TESDA and other related agencies accountable for their performance in the PETS. Comments on this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | education;Philippines;basic education;governance and finance;PETS;higher education;TVET;technical and vocational education and training;Philippine educational and training system |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:phd:dpaper:dp_2024-15 |
| By: | AMBASHI Masahito; IWASAKI Fusanori |
| Abstract: | The Association of Southeast Asian Nations (ASEAN) faces the urgent environmental challenge of reducing CO2 emissions from fossil fuels to limit the damage from climate change. Meanwhile, in addition to the climate change issues, ASEAN has the critical responsibility of ensuring energy security, including the need to supply stable and affordable energy. To determine how this climate change−energy security nexus has evolved in ASEAN, we examine statement documents released by the ASEAN Minister on Energy Meetings and its associated meetings. Our quantitative text analysis shows that: (1) as the discussions towards achieving carbon neutrality have progressed, the climate change issues have been increasingly highlighted, (2) the decarbonization of coal and diversification to renewable energy has received increasing attention, while energy efficiency and conservation discussions have stalled, (3) innovative technologies such as clean coal, renewable energy, and hydrogen have gained strong attention. Our analysis also finds that individual energy ministerial meetings feature different attitudes toward the climate change−energy security nexus, including in terms of their selection of energy technologies. Our study provides an opportunity to reflect on the direction that ASEAN’s climate change and energy policies should take in future. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:24078 |
| By: | Elhan-Kayalar, Yesim (Asian Development Bank); Kucheryavyy, Konstantin (CUNY Baruch College); Nose, Manabu (International Monetary Fund); Sawada, Yasuyuki (University of Tokyo); Shangguan, Ruo (Jinan University); Thanh Tung, Nguyen (National Economics University) |
| Abstract: | In developing economies, foreign direct investment (FDI) plays a crucial role by providing resources that facilitate participation in international trade and support economic development. Focusing on Viet Nam as a case study, this research aims to quantify the distributional effects of the United States–People’s Republic of China trade dispute across different regions in Viet Nam. By utilizing detailed firm-level and customs data, we demonstrate that FDI in Viet Nam is geographically concentrated in the northern, central, and southern regions. Access to road and port networks significantly influences the choice of FDI locations. Furthermore, we highlight the important role that the foreign affiliates of multinational firms from East Asia and the United States have played in reshaping Viet Nam’s trade flows in the aftermath of the trade dispute between the United States and the People’s Republic of China. This study sheds light on the interplay between transport infrastructure, FDI, and international trade. |
| Keywords: | trade; ports; roads; US–PRC trade dispute; Viet Nam; PRC |
| JEL: | F10 F13 F14 R40 R41 |
| Date: | 2024–12–17 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:0761 |
| By: | Margolies, Amy; Pather, Kamara; Namara, Rebecca; Sehgal, Mrignyani; San Valentin, Carleneth; Olney, Deanna |
| Abstract: | Child stunting is a persistent problem in the Philippines. While stunting prevalence is higher in rural than in urban areas, it still affects one in four children under the age of five in urban areas and coexists with rising overweight in school-age children, adolescents, and adults. Some urban nutrition interventions have focused on reducing diet-related noncommunicable disease (NCD) risks, but they have not addressed the challenges of the double burden of malnutrition (DBM) (e.g., the coexistence of problems of undernutrition and overnutrition) in school-age children and adolescents. Likewise, the lack of evidence on interventions in the urban food environment (FE) signals a need for studies to better understand the role of FEs in driving unhealthy dietary changes and the DBM and to test approaches to shift consumption patterns toward healthier diets and lifestyles. NCDs are the leading cause of mortality in the Philippines, and NCD risks are higher in urban areas than rural ones. National policies support nutrition with multisectoral approaches, particularly through urban farming and gardening to promote healthy and affordable urban diets. Yet the urban-specific programs must be evaluated. Evaluations of urban agricultural initiatives are needed to document any impact on diets and nutrition and to assess the potential for scale up, especially given land scarcity in dense urban areas. Additionally, multisectoral double-duty actions must be developed to address all forms of malnutrition. |
| Keywords: | agriculture; child stunting; diet; nutrition; malnutrition; urban areas; Asia; South-eastern Asia; Philippines |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:cgiarp:159838 |
| By: | Tabuga, Aubrey D.; Ortiz, Ma. Kristina P.; Baino, Madeleine Louise S.; Ruiz, Mark Gerald C.; Astilla-Magoncia, Danika; Patalinghug, Epictetus E. |
| Abstract: | This study's third phase evaluates the regulatory impact analysis (RIA) of policy recommendations aimed at enhancing the Philippine Retirement Authority's (PRA) retirement program, focusing on competitiveness and sustainability. Utilizing methodologies such as benefit-cost analysis, breakeven analysis, cost-effectiveness analysis, and regression analysis, the study compares targeting foreign retirees aged 40 and above with those aged 50 and above, assesses the cost-effectiveness of current PRA policies, and determines breakeven volumes. Findings reveal that lowering the minimum retirement age to 35 (as a proxy for 40) improved the benefit-cost ratio compared to when the age requirement was 50. However, since 2017, the benefit-cost ratio for the 35+ program has declined due to rising costs outpacing benefits. Cost-effectiveness analysis shows a significant increase in cost-to-retiree ratios post-2017. Breakeven analysis indicates that the number of retirees required ranges from 652 to 759, with breakeven sales volumes between PHP 35 million and PHP 39 million, though these figures have escalated post-2017. Regression analysis identifies that consumer sentiment, exchange rates, and real estate expenditures positively impact foreign retiree volumes, with forecasts showing an upward trend, though lower than pre-pandemic levels. The study concludes that the Philippine retirement industry remains economically viable and attractive. It suggests that PRA's competitiveness does not hinge on being a low-cost provider but rather on a targeted market strategy that builds customer loyalty. Embracing a younger retiree age requirement should be balanced with managing public perceptions and legislative concerns regarding program viability and social impacts. Comments on this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | Philippine Retirement Authority;regulatory impact analysis;benefit-cost analysis;breakeven analysis;cost-effectiveness analysis;minimum retirement age;PRA |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:phd:dpaper:dp_2024-13 |
| By: | Ana María Ibáñez; Maria Adelaida Ortega; Gauthier Marchais; Patricia Justino; Teresita Narvaez; Manuel de Vera; Ryan Tangalin; Benjamin Crost; Jorge Maldonado |
| Abstract: | This paper analyses the impact of armed groups and their taxation practices on the municipal fishing sector of the Zamboanga Peninsula in Mindanao, Philippines. Leveraging novel qualitative and quantitative data, we find clear evidence of armed group presence, social implantation, and taxation in the coastal communities of Zamboanga. We analyse these taxation practices in light of the complex relationship between armed groups and the fishing sector and situate them in the historical context. |
| Keywords: | Armed conflict, Taxation, Fisheries, environmental impact, Philippines, Mixed methods |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-67 |
| By: | Serafica, Ramonette B.; Oren, Queen Cel A. |
| Abstract: | The Philippine Development Plan 2023–2028 recognizes innovation as one of the drivers of growth in the services sector, creating a strategic framework to reinvigorate the sector and strengthen creativity and innovation. To help formulate the appropriate strategies and policies, this paper examines the evidence on innovation in service industries using the 2021 Survey of Innovation Activities of Establishments, which provided broader sector coverage. The survey was conducted during the pandemic when firms had to pivot to new modes of service delivery to survive. It gives a more nuanced profile and innovation behaviors of services firms and seeks to identify the effects and determinants of innovation across the services subsectors. Among the four types of innovation, organizational innovation was the most common type of innovation introduced in most service sectors, followed by marketing, process, and product innovation. For most of the services subsectors, the most common innovation activity of the establishments was “Training for innovative activities”. Across all services subsectors, cost factors are identified as the most common barrier considered of high significance. Organizations that employ at least one FIRe technology, obtain funding, use platforms, engage in R&D activities (whether outsourced or in-house), or use knowledge management methods are more likely to be innovation active and produce at least one type of innovation. The survey also reveals greater reliance on internal and market sources of information while the utilization of institutional and other sources of information, such as incubators, scientific journals or technical publications, and regulatory bodies was low for most subsectors. Universities or other higher education institutions were also not popular cooperation partners. In terms of knowledge management, regularly updating internal databases or manuals was the most popular practice while a policy to bring in external experts from universities, research institutes, or other establishments to participate in project teams was the least common practice across the subsectors. The Philippine Innovation Act (RA 11293) provides different interventions to address the various impediments related to cost factors, knowledge factors, market factors, and legal or regulatory factors (Albert et al. 2023). Given the diversity of services, a one-size-fits-all strategy will not be effective. While this study presents a snapshot of the innovation profiles of the different subsectors, in-depth analysis of the innovation ecosystem is required to develop industry-specific innovation roadmaps. Comments on this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | innovation;services;product innovation;process innovation;marketing innovation;organizational innovation |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:phd:dpaper:dp_2024-14 |
| By: | Theepakorn Jithitikulchai; Sittisak Leelahanon |
| Abstract: | The objective of this study is to analyze changes in the income distribution of Thailand between 2013 and 2019 and between 2019 and 2021. Using the growth incidence curve analysis and the delta Lorenz curve analysis developed by Ferreira et al. (2019), not only can we analyze changes in income distribution through its summary statistics, but we can also analyze the income level growth and income share of Thai households in every quantile of the distribution. We found that changes in Thailand’s inequality were different in these two time periods. There were heterogeneous income growths that reduced Thailand’s income inequality during 2013–2019. The improvement mainly comes from the structure effect, not the composition effect. On the other hand, the income growth incidences of middle- and upper-middle-income households worsened in 2019–2021. This caused a slight increase in income inequality, and it contributed to the structure effect as well. The impact of the government’s assistance programs is evaluated in both periods. The study found that these programs benefit lower quantile households more than upper quantile households, and hence they reduce income inequality effectively. |
| Keywords: | Growth Incidence Curve; Delta Lorenz Curve; Inequality |
| JEL: | C14 O15 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:pui:dpaper:227 |
| By: | Tani , Massimiliano (University of New South Wales); Avendano, Rolando (Asian Development Bank); Tolin, Lovely (Asian Development Bank) |
| Abstract: | In this paper, we examine whether, and if so how, an economy’s deliberate policy choices of regional cooperation and integration influence underlying determinants of economic growth. Building on models of growth and innovation, we analyze the role of regional integration on labor productivity and firms’ probability to innovate using data from a panel of 170 economies and 60, 000 firms over a period of two decades. Our results suggest that regionalism, as captured by metrics of regional cooperation and integration, can positively contribute to labor productivity and innovation, in addition to known factors of production. |
| Keywords: | regional integration; productivity; innovation; Asia |
| JEL: | F02 F15 O30 O40 |
| Date: | 2024–12–13 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:0760 |
| By: | Meg Adachi-Sato (Research Institute for Economics & Business Administration, Kobe University, JAPAN and Faculty of Business Administration and Accountancy, Khon Kaen University, THAILAND) |
| Abstract: | This study examines how for-profit firms obtain capital from values-based, socially responsible investors by undertaking environmental, social, and governance (ESG) actions within a search model. In this model, the two parties are matched and benefit from informational advantages throughout the search process. The paper shows that an increase in the number of socially responsible investors encourages the for-profit firms capable of taking ESG actions to consistently take such actions, even if doing so may result in negative marginal pecuniary returns. Consequently, the paper concludes that regulators aiming to encourage firms to adopt more ESG actions should incentivize investors to prioritize ESG performance in their investment decisions. It also demonstrates that strengthening shareholder rights or promoting corporate governance reforms does not necessarily motivate firms to pursue ESG actions. |
| Keywords: | ESG; Search; Social impact; Socially responsible investor; Competitive capital market; Bargaining; Value versus values motivations |
| JEL: | D83 G23 G32 M14 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:kob:dpaper:dp2025-01 |
| By: | Olivetti, Claudia (Dartmouth College); Pan, Jessica (National University of Singapore); Petrongolo, Barbara (University of Oxford) |
| Abstract: | This chapter traces the evolution of the study of gender in the labor market, focusing on how academic thinking on this topic has evolved alongside real world developments in gender inequality from the 1980s to the present. We present a simple model of female labor supply to illustrate how various forces discussed in the literature (e.g., productivity differentials, unequal gender roles, wage markdowns) affect the gender earnings gap. A major development in the literature is a clearer distinction between intrinsic differences in preferences and skills between men and women versus differential constraints in driving gender gaps. We discuss insights from research on the relative importance of these explanations, and the implications for economic efficiency. We highlight that much of the literature today emphasizes the relevance of gendered constraints, where women and men typically face differential trade-offs between family and career, with implications for job sorting, job search, and earnings. These constraints have their roots in gender roles within the household that are shaped by wider societal norms. We review recent research that establishes the relevance of identity and norms for understanding gender inequalities in the labor market, both on the supply-side and on the demand-side, as well as what drives the formation and evolution of these norms. Finally, we conclude with suggestions for future research. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17559 |
| By: | Udayan Mukherjee; Harry Nicholls (The Treasury) |
| Abstract: | This paper introduces economic frameworks for assessing the impact of artificial intelligence (AI). It then provides a qualitative assessment of the implications of AI for New Zealand, given what we know about the underlying economic trends here. This note is intended to be a conversation starter, highlighting key areas that could be explored in more detail. The paper addresses three issues, summarised as follows: Impacts of AI on productivity and investment: Our understanding of the impacts of AI on productivity and investment is emerging as the technology develops. AI can be seen as a “General Purpose Technology”, that slowly diffuses across a range of sectors, but it may also serve as an “Invention of a Method of Invention”, transforming innovation across a wide range of fields. However, New Zealand’s traditionally slow diffusion of new technology and low levels of investment in intangible capital could be a barrier to realising AI’s benefits. Impacts of AI on employment and the labour market: The net impact of AI on employment and the labour market, balancing job destruction (“displacement”) with creation (“reinstatement”) remains uncertain. AI’s disproportionate impact on higher-skilled tasks might mean employment in higher-skilled, advanced economies like New Zealand is more exposed to the impacts of AI. A focus on skills will be important both to help workers transition to a labour market where AI is widely used, and to support the diffusion of AI. Development of regulatory approaches for AI: Globally, regulatory approaches to AI can broadly be divided between countries that have adopted comprehensive AI-specific legislation (in the European Union and China), and countries that rely on existing regulatory frameworks (the United Kingdom, the United States, Singapore, Japan). For New Zealand, existing regulatory frameworks, like copyright laws, may need to be updated to address the challenges of AI. Over time, aligning our regulations with other countries, where it makes sense for New Zealand, will be important to support the diffusion of AI. This paper addresses AI more broadly, but also discusses generative AI specifically at points. The emergence of new forms of generative AI technology has been striking, perhaps most of all because it appears that many of the recent tools have been able to demonstrate rapid advances in higher-skill and creative tasks that were previously imagined to be harder to replicate, and so thought to be uniquely ‘human’. But the technologies underpinning this recent shift have been progressing for a number of years. And concern about the policy implications of new technologies is a classic topic in the history of economic thinking. This note therefore places AI in the context of that ongoing debate on technology. |
| JEL: | O33 J24 L86 |
| Date: | 2024–07–15 |
| URL: | https://d.repec.org/n?u=RePEc:nzt:nztans:an24/06 |