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on South East Asia |
| By: | Katariina Nilsson Hakkala (Asian Development Bank) |
| Abstract: | This study examines the effects of special economic zones (SEZs) on firm growth and the regional business environment in Viet Nam, highlighting their key role as a policy tool to attract foreign investors. Using detailed panel data from Viet Nam’s 63 provinces from 2006 to 2020 and instrumental variables (IV) estimations, this study provides new insights into how SEZs impact firm growth and several dimensions of economic governance. SEZs are found to play a dual role. Provinces with broader SEZ coverage experienced increases in employment, revenues, and the number of foreign-invested enterprises. In contrast, domestic private firms faced declines in both revenues and numbers. SEZ exposure had negative effects on several aspects of provincial economic governance including land access, transparency in policy-making, and informal charges. In addition, the approval of the first SEZ was also associated with increased prevalence of informal charges and preferential treatment of foreign-invested enterprises and other big companies, which may indicate heightened inefficiencies and rent-seeking concerns. |
| Keywords: | special economic zones;foreign direct investment;business environment and development |
| JEL: | F21 F23 L53 |
| Date: | 2026–05–29 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:022604 |
| By: | Goeb, Joseph; Minten, Bart; Reardon, Thomas; Zu, A Myint; Htar, May Thet |
| Abstract: | Increased vertical integration and coordination are defining features of transforming and modernizing agricultural value chains in low- and middle-income countries, with important implications for market efficiency and farm-level transformation. However, research documenting these processes in modernizing domestic value chains is limited, and tends to focus on foreign direct investment and high-value food products. We study the rice value chain – the most important staple in Southeast Asia – in Myanmar and use unique data from domestic rice mills and farmers to analyze millers’ expansion into other businesses and services. We show that both modern and traditional mills serve as key nodes in local rice value chains, fulfilling diverse roles beyond processing at both the farm and post-farm levels and highlighting a co-development of modern processing and vertical integration. Yet, statistical tests that control for mill and farmer characteristics, respectively, show that modern mills are more engaged in vertical integration and coordination, particularly in post-farm value chain segments, highlighting the co-development of modern processing and business expansion. Consistent with this pattern in the miller data, farmers using a modern mill are more likely to receive complementary services – especially post-farm – and to adopt modern production practices more broadly. However, this expansion is uneven, reaching large farms more frequently than small and medium farms. |
| Keywords: | value chains; agricultural value chains; rice; agro-industrial sector; vertical integration; modernization; milling; Myanmar; Asia; South-eastern Asia |
| Date: | 2026–04–23 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:ifprwp:182623 |
| By: | Kyong Hyun Koo (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | This study analyzes how workers were reallocated across industries or occupations during the process of labor demand adjustment in South Korean domestic industries following exogenous trade shocks caused by the economic rise of China and Vietnam. It examines whether Korea's labor market was sufficiently effective in terms of labor movement from comparative disadvantage sectors to comparative advantage sectors in response to changes in trade. Through this analysis, the study aims to understand the mechanisms by which inefficiencies in Korea's labor reallocation process lead to workers' income decline and derive policy implications. |
| Keywords: | Trade Shock; Labor Reallocation; China; Vietnam |
| Date: | 2025–09–18 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kiepwe:022496 |
| By: | Gopal K. Sarangi (TERI School of Advanced Studies, New Delhi, India); Han Phoumin (Economic Research Institute for ASEAN and East Asia (ERIA)); Rabindra Nepal (University of Wollongong, Australia) |
| Abstract: | India’s energy transition and net zero ambitions are expected to generate substantial demand for critical minerals, particularly to support its target of 500 GW of renewable energy capacity by 2030. However, India continues to face major challenges in domestic sourcing, processing, and refining, while external procurement is increasingly shaped by geopolitical dynamics. This paper analyses the policies and regulations governing critical minerals in India and assesses key supply chain-related risks within the policy landscape. The findings show that India’s approach combines domestic production measures with international partnerships, while resource concentration and geopolitical risks remain key challenges to achieving resilient and secure critical mineral supply chains. |
| Keywords: | - |
| Date: | 2026–06–04 |
| URL: | https://d.repec.org/n?u=RePEc:era:wpaper:dp-2026-01 |
| By: | Tatsuya Abe (Graduate School of Economics, Hitotsubashi University, 2-1 Naka, Kunitachi, Tokyo, Japan.); Arlan Brucal (The World Bank Group, 1818 H Street, NW, Washington, DC, USA.); Yuta Toyama (School of Political Science and Economics, Waseda University, 1-6-1 Nishi-Waseda, Shinjuku-ku, Tokyo, Japan.) |
| Abstract: | How does directed technological change toward energy efficiency shape the effects and design of carbon pricing? We estimate a structural production function that separates energy-augmenting productivity from Hicks-neutral productivity using Indonesian manufacturing microdata. Exploiting energy-price variation from fossil-fuel subsidy reforms, we find that higher energy prices induce energy-augmenting productivity growth. Counterfactual simulations show that heterogeneity in energy-augmenting productivity, rather than Hicks-neutral productivity, drives the welfare advantage of carbon pricing over uniform regulation. When carbon pricing induces energy-augmenting innovation, aggregate emissions fall further, although a rebound effect partially offsets this additional abatement. Effective carbon-pricing design should account for productivity heterogeneity, induced innovation, and rebound effects. |
| Keywords: | Energy-augmenting productivity, production function, rebound effect, induced innovation, structural estimation, carbon pricing, production microdata |
| JEL: | D24 O33 Q41 Q54 |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:was:dpaper:2603 |
| By: | Sabeer, V.C.; Raju, Sunitha; Shah, Ninad |
| Abstract: | We analyse the potential market access opportunities provided by CETA structured into two stages : (i) identify untapped export potential in India-UK bilateral trade and assess their export prospects; (ii) analyse how India’s exports respond to tariff reductions based on CES demand function. Together these dimensions explain why India’s global export performance for these products has not translated into expansion in UK market. We identified 140 export potential products and based on spatial-infrastructural perspective, our results show that tariff liberalization only provides a favourable price environment but India must build export linkages and strengthen supply chain capacities to convert this potential into tangible trade gains. The simulation results show that CETA results in an increase of USD 1.59 billion gain in India’s exports and the largest gains are concentrated in Textile and Apparel (HS 61–63), Aluminium (HS 76), Prepared food products (HS 20) and Cereal preparations (HS 19) with modest gain in other sectors. For unlocking substantial export potential gains it is necessary to overcome both demand- and supply-side hurdles. Exporters must align with UK market requirements, while policymakers should focus on facilitating B2B partnerships, supporting compliance with UK standards, and addressing non-tariff barriers. |
| Keywords: | Trade Policy, FTA, CETA, Partial equilibrium, India, U.K. |
| JEL: | F13 F14 F17 |
| Date: | 2025–11–29 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:129178 |
| By: | Hawladar, Monami; Sen, Topon |
| Abstract: | This study provides a comprehensive rearticulation of Bangladesh’s development trajectory, examining its evolution from pre-independence stagnation and post-war fragility to a resilient and expanding South Asian economy. It evaluates macroeconomic reforms, trade and investment strategies, agricultural modernization, and the stabilizing influence of remittance inflows. From a socio-economic standpoint, it analyzes demographic shifts, education, healthcare, gender relations, and rapid urbanization. Persistent structural challenges—including poverty, inequality, environmental vulnerability, and governance limitations—are critically assessed. The paper identifies the policy foundations underlying Bangladesh’s growth and outlines strategic priorities for sustaining long-term development. |
| Keywords: | Bangladesh; Growth; Economy; Development; History |
| JEL: | D0 D20 E0 F0 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:129109 |
| By: | Hyeun Seok Kim (Korea Institute for Industrial Economics and Trade) |
| Abstract: | This study investigates the substitutability and complementarity between digital capital and labor in the context of an aging workforce in South Korea, focusing on information and communications technology (ICT) capital. ICT capital encompasses both tangible and intangible assets that facilitate digital transformation (DX), and firms in every sector of the economy have rapidly accumulated this kind of capital. Digitalization has never been more intense than it is now, and this makes it essential to assess whether labor is complemented or substituted by such capital. Using a multi-product joint cost function, we estimate cross-price elasticities among ICT capital, non-ICT capital, and two groups of labor: older and younger workers.<p> The empirical results indicate that ICT capital substitutes for older workers, though the magnitude of this effect has weakened over time. In contrast, the substitutability between ICT capital and younger workers is statistically insignificant. Furthermore, non-ICT capital generally complements both age groups in the labor force. These findings carry major implications for policy, and can help inform measures designed to facilitate DX in industries with aging demographics. |
| Keywords: | demographics; population aging; demographic change; labor; labor force dynamics; digital capital; labor force analysis; labor economics; digital transformation; DX; aging |
| JEL: | J11 J18 J24 J28 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kieter:022848 |
| By: | Megumi NAOI; Banri ITO; Naoto JINJI |
| Abstract: | Rising geopolitical tensions have led governments to restrict trade and investment under economic security justifications. While these restrictions are costly for firms, opposition to protectionism is not universal among them. Why? We demonstrate a demand-side mechanism in which geopolitical tensions increase global firms’ demand for government restrictions to coordinate and facilitate collective adjustment of supply chains. We predict that firms facing higher supply chain coordination costs are more likely to support restrictive economic security policies and test this prediction using an original survey of Japanese manufacturing firms merged with confidential microdata documenting supply chains. The results suggest that firms with deeper integration into global supply chains are more likely to support government restrictions, especially among firms with overseas contract manufacturing and a high number of affiliates in China. Global firms may demand government intervention due to the social costs of supply chain adjustments. |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:26049 |
| By: | Learmouth, Tom |
| Abstract: | This paper analyses the broadening out of Japanese industrialisation into new sectors after the Russo-Japanese War. It does so by compiling new evidence to analyse the emergence of a rubber industry in Kobe – one which later swept global markets with rubber footwear in the inter-war period. Rubber manufacturing knowledge was seeded in Japan by British trading company H. & W. Greer, who established factories in Kobe for J. G. Ingram and Dunlop. In a process adhering closely to Steven Klepper’s heritage theory, workers who had acquired tacit rubber compounding knowledge from Ingram and Dunlop formed a string of Japanese spin-off firms which clustered around the two factories. This study emphasises the role of firm-specific foreign knowledge compatible with local conditions in latecomer development. It also improves our understanding of the role of British trading companies in the global spread of industrial knowledge during the first era of globalisation. |
| Keywords: | Japenese industrialisation; British trading companies; rubber industry; Kobe; H. & W. Greer; J. G. Ingram; Dunlop; heritage theory |
| JEL: | N0 R14 J01 |
| Date: | 2026–05–25 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:138071 |
| By: | Barry Eichengreen (University of California, Berekley) |
| Abstract: | This article is part of a special series of contributions to Industrial Economic Review in celebration of KIET's 50th anniversary. This article was written by Barry Eichengreen, George C. Pardee and Helen N. Pardee Chair and Distinguished Professor of Economics and Political Science. Professor Eichengreen has written many influential books and papers on monetary policy and macroeconomics.<p> South Korea faces multiple economic and geopolitical challenges: threats to globalization, fissures between the United States and China, global financial volatility, demographic headwinds, and disruptive changes in technology. The country’s model of export-led growth based on manufacturing investment will have to change to meet these challenges. No single reform offers a magic bullet to solve these problems. Rather, reform will have to proceed on multiple fronts, something that is a challenge for any country but especially for one as politically divided as Korea. |
| Keywords: | globalization; global value chains; global trade; competition; competition policy; macroeconomic policy; macroeconomics; competitiveness; competition policy; demographics; geopolitics; immigration; im |
| JEL: | F52 F23 F13 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kieter:022844 |
| By: | Laeven, Luc; Popov, Alexander; Cozariuc, Catalina |
| Abstract: | Analyzing more than 300, 000 articles across 40 top-tier journals between 2000 and 2022, this study demonstrates that China’s 2006 National Medium-and Long-Term Plan for the Development of Science and Technology catalyzed a surge in publication volume and citations, propelling China past the United States as the world’s leading producer of scientific research. Controlling for national income, population, and human capital, we find these gains are concentrated in fields explicitly targeted by the government’s plan—physics, chemistry, biology, and medicine—while fields excluded from the plan, such as mathematics and economics, show significantly less growth. Our findings suggest that targeted state-led investment can effectively drive scientific progress, at least within a centrally planned economy. JEL Classification: F63, H52, I28, O38, P27 |
| Keywords: | China, government spending, international competitiveness, research and development |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20263241 |
| By: | Wang, Xuelu; Liu, Tao; Wang, Xize (National University of Singapore) |
| Abstract: | Despite growing interest in how the urban built environment influences mental health, few studies have examined them across indoor-outdoor domains and subgroups. Using survey data from Beijing, we find that both residential crowding (indoor) and neighborhood green space (outdoor) are linked to depression risk. Specifically, residential crowding mainly affects local residents, while green space mainly affects migrants, with these effects varying by gender and family structure. The findings highlight that built environment inequality leads to health disparities, and planning strategies promoting mental health should address both indoor and outdoor factors and be tailored to the needs of specific vulnerable groups. |
| Date: | 2026–05–29 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:8nkp5_v1 |
| By: | Jieun Jung (Korea Institute for Industrial Economics and Trade) |
| Abstract: | As the advanced biopharmaceutical industry becomes a cornerstone of health security, cell and gene therapy (CGT) has emerged as a major sub-field with significant industrial and economic growth potential.<p> This paper analyzes the industrial competitiveness of the CGT sector in seven major countries, revealing that the South Korean CGT sector lags in terms of industrial competitiveness, with an industrial competitiveness index score of just 4.81 points, trailing the first-place United States (9.61) by a significant margin. The study also finds that Korea suffers from a brain drain of doctoral talent and a clinical trial structure skewed toward legacy therapies, and finds a lack of Korean products approved by the Food and Drug Administration (FDA) of the United States.<p> Korea also offers fewer government subsidies compared to its competitors. Furthermore, 12 of 16 key items in the materials, parts, and equipment (MPE) sector are import-dependent, creating a potentially fatal supply chain vulnerability.<p> To address these issues, Korea must focus on three short-term goals: cultivating a skilled workforce, localizing the production of key MPE, and diversifying imports. In the medium to long term, it is essential to foster domestic talent with skills across disciplines and promote mission-oriented R&D to widen competitive advantages and establish global supply chain leadership. |
| Keywords: | biotech; biotechnology; biotech industry; pharma; R&D; competitiveness; competition policy; South Korea; cell therapy; gene therapy |
| JEL: | L65 O34 O38 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kieter:022843 |
| By: | Ritika Juneja (Indian Council for Research on International Economic Relations (ICRIER)); Ashok Gulati; Sachchida Nand; Emil Thomas Johny |
| Abstract: | The report highlights how escalating geopolitical tensions, particularly in West Asia, have intensified risks to India's fertiliser and energy security. Disruptions in the Gulf region and the Strait of Hormuz have contributed to sharp spikes in global fertiliser and LNG prices, increasing import costs, domestic production costs, and fiscal pressures through a rising fertiliser subsidy burden. At the same time, structural distortions within India's fertiliser subsidy regime have encouraged excessive nitrogen use, imbalanced nutrient application, declining soil health, and inefficiencies in nutrient-use efficiency. |
| Keywords: | fertiliser security, food security, feedstocks, Import, prices, West Asia crisis, icrier |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:bdc:report:26-r-15 |