|
on South East Asia |
| By: | Orbeta, Aniceto Jr. C.; Gonzales, Kathrina G. |
| Abstract: | The study presents a summary of the six-country study on managing international labor migration in the Association of Southeast Asian Nations (ASEAN). The countries are grouped into sending (Cambodia, Indonesia, Philippines) and receiving (Malaysia, Singapore, Thailand). The objective was to share international migration management issues from the perspective of a sending or a receiving country. The country research teams were asked to identify and study a specific migration management issue that is deemed current and reflective of the primary migration management experience of the country. For sending countries, the Cambodia research team studied the high frequency cross-border crossings into Thailand that is dominated by irregular migrants. The Indonesian research team looked at the role of local governments in migration management as the country embarked into substantial decentralization process. The Philippine research team looked at the management of massive deployment flows spanning thirty years with special attention to the most vulnerable group – the household service workers. For receiving countries, the Malaysian research team looked at their experience in the continuing running battle with irregular migrants. The Singaporean research team looked at the close interaction between the needs of the economy for migrant workers and their desire not to be too dependent on them. The Thai research team described the experience at the crossroad of being both a receiving and still a sending country. The studies have highlighted seven important themes on international labor migration management in ASEAN, namely: (a) the importance of integrating international migration into national and regional development efforts; (b) the importance of both bilateral and multilateral agreements; (c) the importance of recognizing differences in labor market policies in sending and receiving countries in designing protection for migrant workers; (d) the need to consider general administrative capacities in designing migration regulatory efforts; (e) the importance of involving subnational bodies in migration management; (f) the need to broaden cooperation in handling irregular migration; and (g) the recognition that the protection envisioned by the state need not be the one "desired" by the migrant, hence, the need to check often to find out the effectiveness of protection measures. |
| Keywords: | ASEAN, Philippines, international labor migration |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-26&r=sea |
| By: | Rifin, Amzul; Nauly, Dahlia |
| Abstract: | The government of Indonesia implemented an export tax policy on cocoa beans since April 2010 in order to develop cocoa processing industry. The objective of this article is to analyze the effect of export tax on Indonesia’s cocoa export competitiveness. The results indicate that with the implementation of export tax, cocoa export product composition shift from cocoa beans to processed cocoa products. On the other hand, Indonesia’s cocoa export growth is lower than the growth of cocoa world demand which is mainly caused by the decrease of competitiveness. Comparing the three cocoa beans producer, Ghana has gain competitiveness in 2011 compare to 2009. |
| Keywords: | cocoa, export tax, competitiveness, Crop Production/Industries, Demand and Price Analysis, International Relations/Trade, Production Economics, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare13:152175&r=sea |
| By: | Doshi, Amar; Pascoe, Sean |
| Abstract: | In mid-2010, an impact assessment was undertaken to ascertain the non-market value of coral reefs to scuba divers in Thailand, Malaysia and Indonesia. A travel cost method was employed and it was found that divers had a consumer surplus of about US$590 per dive. However, given the sample consisted of a much larger proportion of international visitors (84%), an analysis was undertaken to ascertain the effects of the sample heterogeneity on the economic value estimates. The results indicated that the pooled results were biased towards the international sub-sample. Domestic visitors had a much lower consumer surplus of about US$130 per dive. In addition, the split-sampling suggested that the assumption of endogenous stratification using count data models was not appropriate for the international sub-sample. Applying the split-sampling based to the three separate countries illustrated further large disparities in consumer surplus, with Thailand the highest at US1200 per dive and Malaysia the lowest at US$260 per dive. This proves consequential in determining the appropriate user fee structure given the different resulting effects on returning divers based on their origins and diving destinations. |
| Keywords: | Travel cost method, coral diving, sample heterogeneity, Demand and Price Analysis, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare13:152146&r=sea |
| By: | Woosik Moon (Asian Development Bank Institute (ADBI)) |
| Abstract: | As cross-border movements of goods, capital, and labor are intensifying, it is likely that goods markets in East Asia will become increasingly integrated. This study investigates the current state of goods market integration in East Asia by measuring the extent of cross-border price differentials. Specifically, this study shows that compared with the European Union (EU), East Asian markets are neither sufficiently integrated nor are they showing any price convergence over time. Examining the factors and hurdles that prevent East Asian countries from approaching the European level of market integration, this study also shows that such wide price differentials could be explained largely by greater exchange rate volatilities and wider intra-regional income gaps, together with insufficient regionalization efforts. This result highlights the importance of a three-pronged integration strategy covering trade, money, and development policies, and of East Asia-wide regional institutions which, incorporating both developed and developing Asian countries, help promote more free trade agreements (FTAs) and prevent financial crises. |
| Keywords: | Goods market integration, East Asia, cross-border price differentials, price convergence, regionalization, integration strategy |
| JEL: | F15 F36 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:eab:govern:23433&r=sea |
| By: | Sanjaya, Muhammad Ryan |
| Abstract: | Many conventional economic analyses assume that risk preference is taken as given and do not give much scrutiny on it. However, empirical studies show that risk preference is not random: shocks and predetermined characteristics can determine risk preference. This study tried to see if these potential determinants together affect risk aversion in Indonesia using 2007 micro data. The author found that there is limited evidence that shocks and predetermined characteristics can affect risk preference. There is a preliminary indication that risk preference was not only driven by the individual's wealth and demographic factors (that can be easily controlled), but also by the individual's time preference. -- |
| Keywords: | risk aversion,preference,Indonesia,microeconometrics |
| JEL: | O12 D81 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201333&r=sea |
| By: | Yap, Josef T.; Majuca, Ruperto P. |
| Abstract: | The Philippines continues to demonstrate a development puzzle. Despite abundant natural and human resources, its development record pales in comparison with its neighbors in East Asia. This study presents a SWOT analysis to explain the economic development of the Philippines. To overcome the threats and weaknesses, the Philippines should aspire for BRISK development: balanced, rapid, inclusive, sustainable, and capital-intensive economic growth. Policy recommendations include standard reforms related to expanding fiscal space and improving infrastructure. However, Philippine history requires that special attention be given to strengthening institutions and weakening the grip of oligarchs. The rapid rise of China and India and the establishment of the ASEAN Economic Community provide an opportunity to attract more foreign direct investment, diversify the productions base, and expand the role of small and medium-sized enterprises. |
| Keywords: | Philippines, ASEAN Economic Community (AEC), development puzzle, SWOT analysis, critical development constraints, balanced, rapid, sustainable, inclusive, and capital-intensive economic growth |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-27&r=sea |
| By: | Azis, Iwan J. (Asian Development Bank) |
| Abstract: | Although growth deceleration in the People’s Republic of China (PRC) is inevitable, if the country’s new direction of financial policy (on exchange rate, capital flows, banking, capital market) can be achieved, it will be good not only for the country but also for the rest of Asia. This is consistent with the increased degree of Asia’s integration and interdependence. But given the nature of financial contagion and spillovers across countries and asset classes, the financial headwinds from global crisis may require regional cooperation in safety nets provision, as the domestic policy in the PRC and other Asian countries is likely insufficient. Equally essential is the cooperation among Asian regulators to secure financial stability and enhance market liquidity. If coordinated well, such cooperation can also strengthen Asia’s collective voice to ensure that harmonization of international rules does not mean applying the same laws in all jurisdictions, and that the global debates on bank-centric regulations do not have adverse consequences on Asian capital markets. |
| Keywords: | PRC financial policy; global headwind; Asia interdependence; regional cooperation; financial regulation |
| JEL: | E52 E58 F31 F36 G15 G18 |
| Date: | 2013–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbrei:0114&r=sea |
| By: | Tabuga, Aubrey D.; Mina, Christian D.; Reyes, Celia M.; Asis, Ronina D. |
| Abstract: | Regional economic integration in East Asia is characterized initially as a market-driven process of increased trade and foreign direct investment (FDI) inflows, and eventually by formal arrangements to liberalize trade and integrate economic activities through free trade agreements (FTAs) among East and Southeast Asian countries (Balboa and Medalla 2011). This has led to a more intensified regional production networks participated in by East and Southeast Asian countries, including the Philippines. Set against the backdrop of continuing economic integration in the region, it seems that the growth in the Philippines has not been as inclusive as in the other countries as manifested in the increase in the magnitude of poverty. This paper examines how we can improve our record on poverty reduction by looking at how we can generate greater demand for the labor services of the poor. Specifically, this paper looks into the linkage between regional production networks and inclusive growth in the Philippines through employment generation for the poor. The manufacturing sector can provide employment opportunities for the poor and can offer relatively higher wages. However, expected high-productivity employment opportunities from the manufacturing sector were not fully realized due to some bottlenecks in the sector. This partly explains the persistence of poverty in the Philippines. To promote inclusive growth and reduce poverty, the manufacturing sector has to be made more competitive and, at the same time, productivity in the agriculture sector (the major employer of poor) has to be increased. |
| Keywords: | poverty, Philippines, employment, regional economic integration, agriculture, inclusive growth, chronic poor, manufacturing, less educated, labor force survey (LFS) |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-10&r=sea |
| By: | Robert F. Owen (Asian Development Bank Institute (ADBI)) |
| Abstract: | This paper assesses the nexus between changes in governance structures—at national and cooperative international levels—and evolutionary processes of economic integration in light of regional policy targets in Asia. The analysis highlights the importance of improved governance as an essential condition for effectively attaining an “Asian Economic Community†while arguing that the experience of the European Union (EU) offers valuable insights regarding the process of integration. |
| Keywords: | governance structure, economic integration, Asian Economic Community |
| JEL: | F15 P48 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:eab:govern:23432&r=sea |
| By: | Ghislando, S; Manachotphong, W; Perego, VME |
| Date: | 2013–06–07 |
| URL: | http://d.repec.org/n?u=RePEc:imp:wpaper:11200&r=sea |
| By: | Jeongmeen Suh (Korea Institute for International Economic Policy (KIEP)); Jong Duk Kim |
| Abstract: | This study provides a conceptual framework to explain what kinds of difficulties a late-follower will suffer from when it tries to join pre-existing International Production Networks (IPNs). We consider the total production cost minimization problem by a multinational company (MNC) in allocating locations of fragmented production processes across borders. From the clarification of IPNrelated costs, we draw out what structural disadvantages late-follower countries have and provide several policy implications to overcome these disadvantages with more targeted efforts. Especially we put India’s case in the conceptual framework of the IPNs and then look at the hurdles that make India’s participation in the East Asian IPNs hard and sluggish. Relevant data are provided in order to support the theoretical explanations. |
| Keywords: | Multinational Corporations, International Production Networks, East Asia, India, Production cost advantage, analytical model of international production networks |
| JEL: | F23 F12 L22 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:eab:microe:23434&r=sea |
| By: | Milo, Melanie S. |
| Abstract: | As 2015 draws near, assessing ASEAN`s progress toward the ASEAN Economic Community (AEC) defined by the AEC Blueprint is necessary and instructive. This paper constitutes the Mid-Term Review (MTR) of the AEC Blueprint for the Philippines. The Philippines Country Report presents the results of the surveys related to the MTR on areas including trade liberalization and facilitation, services and investment liberalization, labor mobility, and agriculture. In assessing the progress of implementation of the country`s commitments under the AEC, a scorecard mechanism is applied. The report also covers two case studies as well as discussions on the role of the private sector and SMEs, and concludes with recommendations to raise the implementation rate of the AEC measures in the country. Overall, the survey results demonstrate how the AEC and the AEC Blueprint could address some of the issues that have constrained private sector response to the opportunities provided by greater openness in the Philippines, particularly the complex and inefficient administrative processes and procedures, and lack of effective competition in key sectors of the economy. While the Philippines has demonstrated its commitment to the AEC and the AEC Blueprint, key measures still need to be realized, particularly those that relate to services liberalization, customs integration, and ratification of transport protocols and agreements. The analyses of the study have demonstrated the benefits of the accomplishment of AEC measures in the Philippines, particularly those that precisely addressed the key institutional weaknesses faced by the private sector. Further delays in implementation could be costly for the country. |
| Keywords: | labor mobility, Philippines, agriculture, investment facilitation, ASEAN economic integration, AEC scorecard, services liberalization, standards and conformance |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-02&r=sea |
| By: | Toshiyuki Nakanishi (Graduate School of Economics, Kobe University) |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:1308&r=sea |
| By: | Israel, Danilo C.; Medalla, Erlinda M.; Milo, Melanie S.; Aldaba, Rafaelita M.; Briones, Roehlano M.; Llanto, Gilberto M.; Rosellon, Maureen Ane D.; Galang, Ivory Myka R.; Navarro, Adoracion M.; Ledda, Veredigna; de Guzman, Reinier |
| Abstract: | As 2015 draws near, assessing ASEAN`s progress toward the ASEAN Economic Community (AEC) defined by the AEC Blueprint is necessary and instructive. This paper constitutes the Mid-Term Review (MTR) of the AEC Blueprint for the Philippines. The Philippines Country Report presents the results of the surveys related to the MTR on areas including trade liberalization and facilitation, services and investment liberalization, labor mobility, and agriculture. In assessing the progress of implementation of the country`s commitments under the AEC, a scorecard mechanism is applied. The report also covers two case studies as well as discussions on the role of the private sector and SMEs, and concludes with recommendations to raise the implementation rate of the AEC measures in the country. Overall, the survey results demonstrate how the AEC and the AEC Blueprint could address some of the issues that have constrained private sector response to the opportunities provided by greater openness in the Philippines, particularly the complex and inefficient administrative processes and procedures, and lack of effective competition in key sectors of the economy. While the Philippines has demonstrated its commitment to the AEC and the AEC Blueprint, key measures still need to be realized, particularly those that relate to services liberalization, customs integration, and ratification of transport protocols and agreements. The analyses of the study have demonstrated the benefits of the accomplishment of AEC measures in the Philippines, particularly those that precisely addressed the key institutional weaknesses faced by the private sector. Further delays in implementation could be costly for the country. |
| Keywords: | labor mobility, Philippines, agriculture, investment facilitation, ASEAN economic integration, AEC scorecard, services liberalization, standards and conformance |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-01&r=sea |
| By: | Orbeta, Aniceto Jr. C. |
| Abstract: | It is clear from data that worker movements in the Association of Southeast Asian Nations (ASEAN), like elsewhere, are dominated by unskilled and semiskilled workers. It is also well-known that movements of these types of workers are dominated by irregular migration mainly because of lack of avenues for legal migration for them (Abella 2006). Yet discussions either globally (within and outside GATS) and regionally such as under AFAS/AEC are all focused on professionals and highly skilled workers. This attitude continues even if both back-of-the-envelope and systematic calculations using general equilibrium models show that movements of workers, in general, and lower-skilled workers, in particular, are beneficial not only for sending but for host country citizens as well (Walmsley et al. 2007). The paper provides recommendations based on known initiatives/measures to facilitate freer labor movements in ASEAN. The focus is lower-skilled workers because existing discussion such as the ASEAN Economic Community (AEC) Blueprint does not yet cover them. To achieve this, the paper provides a description of (a) the policy and institutional arrangements, both at the national and regional level, that currently govern the cross-country labor movement within ASEAN for both skilled and unskilled workers; and (b) the analytical framework that supports the discussions in deriving the recommendations. The paper also pointed out that not only can existing arrangements be extended to cover lower-skilled workers but also that there are already experiences on these types of worker movements. |
| Keywords: | labor migration, ASEAN, Philippines, unskilled workers |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-17&r=sea |
| By: | Ikumo Isono (Economic Research Institute for ASEAN and East Asia); Satoru Kumagai (Institute of Developing Economies, Japan External Trade Organization (IDEJETRO)) |
| Abstract: | We discuss the long-run economic impact of natural disasters on the countries concerned by examining the case of Thai flooding in 2011. If the damage caused by disasters is really serious, industries will move out from the countries in question, and this outflow leads to a negative impact on the national economies in the long run. By using IDE/ERIA-GSM and utilizing short-run forecast for the basic setting, we estimate the seriousness of the flooding in terms of the long-term economic performance. Simulation results show that negative long-run impacts of the flood will be moderate, because many companies’ first reaction to the flood was to seek possible relocation of their production sites within Thailand |
| Keywords: | Thailand, flood, new economic geography, computable general equilibrium models, disaster management |
| JEL: | O53 Q54 R13 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2013-08&r=sea |
| By: | Wit, J.W. de |
| Abstract: | After the Doi Moi (‘renovation’) reforms in Vietnam from 1986, land ownership rules were adjusted, effectively terminating former land collectivisation efforts. While land ownership remained fully under the control of the state, a 1993 land law conferred 20-year leaseholds to most farmers. They could now utilize farm land individually, and sell, swap and mortgage the land in a situation similar to private ownership. These leaseholds are now expiring and a new 2013 land law is in the making. This paper was initially written for UNDP Vietnam which supports Vietnam to help formulate a strong new land law, and brings out the complexities of land governance in the suburban areas of fast expanding Vietnamese cities. It first considers the present and changing land use of suburban areas and the key stakeholders involved here – powerful State Owned Enterprises, farmers, bureaucrats and communist party leaders. Planning practices are then assessed – and seen to be both rigid and complex, with different departments at various levels working at cross purposes under conditions of conflicting rules, laws and weak capacities. This is one reason for the dominance of informal arrangements and widespread corruption, where powerful actors benefit hugely and illegally from conditions of opacity and informal networks. Overall outcomes are that cities expand in a haphazard (‘leapfrog’) and inefficient manner, with insufficient attention for timely and adequate infrastructure, the environment and for people’s welfare as in social amenities and parks. As a result of lopsided incentive systems, it is the state which foregoes huge incomes and faces more costly investments, while many suburban farmers are affected through (arbitrary) land acquisition and inadequate compensation. |
| Keywords: | planning;Vietnam;environment;urban housing;land governance;suburban land |
| Date: | 2013–06–28 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:euriss:561&r=sea |
| By: | Aldaba, Rafaelita M. |
| Abstract: | The paper examines the state of investment liberalization and facilitation in the Philippines and suggests policy measures to enable the country to comply with its ASEAN Economic Community commitments. Based on interviews and surveys, the results indicated that investment incentives, low tax rates and time/cost of starting a business are critical factors affecting firms` decision to invest in the Philippines. The respondents noted significant improvements in political stability and level of corruption. A great majority of the firms also indicated future expansion of their operations and the ASEAN market as a significant factor in their investment decision. In evaluating the quality, servicing, policy, and strategy of investment promotion agencies (IPAs), the Philippines obtained a quite respectable score of 71 percent. The firms rated government agencies` investment facilitation and promotion activities as satisfactory. They cited bureaucracy and slow processing of permits as most problematic issues affecting their operations. They also pointed out the lack of transparency in guidelines and procedures, corruption, and the nonuniformity of investment incentives given by the major IPAs. Meanwhile, according to IPAs, the most problematic procedures that investors face in establishing business are permits from local government units (LGUs), environmental compliance certificate from the DENR-Mines and Geosciences Bureau, and visa from the Bureau of Immigration. To reduce the gap between policy and implementation and boost the country`s competitiveness, the paper suggests the unification and centralization of the investment promotion and facilitation efforts by all IPAs under one agency. It is also necessary to strengthen the current efforts of the Philippine Investment Promotion Plan (PIPP) interagency committee to coordinate the various IPAs` actions and plans. To improve the operational environment and investment climate, IPAs should closely collaborate with national agencies and LGUs particularly in the automation and streamlining of business procedures. Currently, the DTI and the DILG are intensifying their efforts to improve the business permit and licensing system. PEZA`s experience in effectively streamlining its procedures is also worth emulating. To face the challenges and take advantage of the opportunities arising from AEC 2015, the reforms suggested above must be accompanied by substantial increases in infrastructure investment particularly in power and logistics to reduce the cost of doing business in the country. Modern and efficient air, land, and sea infrastructure should be built fast enough. A comprehensive review of the constitutional limitations on foreign equity particularly the 60-40 rule should also be pursued. |
| Keywords: | Philippines, investment facilitation, ASEAN Economic Community (AEC), promotion and liberalization, investment promotion agencies (IPAs) |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-03&r=sea |
| By: | Pierre-Andre Chiappori; Krislert Samphantharak; Sam Schulhofer-Wohl; Robert Townsend |
| Abstract: | We show how to use panel data on household consumption to directly estimate households’ risk preferences. Specifically, we measure heterogeneity in risk aversion among households in Thai villages using a full risk-sharing model, which we then test allowing for this heterogeneity. There is substantial, statistically significant heterogeneity in estimated risk preferences. Full insurance cannot be rejected. As the risk sharing, as-if-complete-markets theory might predict, estimated risk preferences are unrelated to wealth or other characteristics. The heterogeneity matters for policy: Although the average household would benefit from eliminating village-level risk, less-risk-averse households who are paid to absorb that risk would be worse off by several percent of household consumption. |
| Keywords: | Thailand |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedmsr:483&r=sea |
| By: | Garnaut, Ross |
| Keywords: | International Development, International Relations/Trade, Resource /Energy Economics and Policy, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare13:152187&r=sea |
| By: | Ikumo Isono (Economic Research Institute for ASEAN and East Asia); Satoru Kumagai (Institute of Developing Economies, Japan External Trade Organization (IDEJETRO)) |
| Abstract: | Myanmar has entered a new era of all-round reforms. Donors and foreign investors are mainly interested in Yangon, while there has been a delay in the Dawei deep sea project, the Dawei Special Economic Zone project and the road connection to Thailand. The change in circumstances poses a question about whether the Dawei project is still needed in the era of a reforming Myanmar. Our geographical simulation analysis clearly shows that the Dawei project has significant additional benefit for the whole Mekong region and points out the importance of international cooperation. |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:pb-2013-01&r=sea |
| By: | Llanto, Gilberto M.; Zen, Fauziah |
| Abstract: | This paper discusses governmental fiscal support for financing long-term infrastructure projects in ASEAN countries. More specifically, it discusses the role of guarantees and subsidies in promoting public-private partnership (PPP) projects. It draws on case studies of Philippine and Indonesian PPPs, and information from secondary sources to highlight the critical role of such fiscal support in making feasible the financing of long-term infrastructure projects that may be economically beneficial but commercially or financially unviable without such support. The paper points out the need for a strong fiscal position and analyzes the implications of guarantees and subsidies on fiscal management. An important insight is the need to secure budgets for long-term infrastructure projects, which may be done through a medium-term expenditure framework. Based on the analysis of Philippine and Indonesian case studies, it provides specific recommendations to improve the implementation of PPP projects. |
| Keywords: | infrastructure, subsidy, government guarantee, Philippines, public-private partnership (PPP), concessions, fiscal space, contingent liabilities, affermage, turnkey contracts, medium-term expenditure framework |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-08&r=sea |
| By: | Dessi, Roberta (IDEI, Toulouse School of Economics); Miquel-Florensa, Pepita (Toulouse School of Economics) |
| Abstract: | We study the role of status in an experimental Principal-Agent game.Status is awarded to subjects based on either talent or luck. In each randomly matched principal-agent pair, the principal chooses the agent's status-contingent piece rate for a task in which talent matters for performance (an IQ test). We perform the experiment in Cambridge (UK) and in HCMV (Vietnam). We find that in Cambridge piece rate others are significantly higher for high-status agents (only) when status signals talent. However, these higher offers are not payoff-maximizing for the principals.In contrast, Vietnam piece rate offers are significantly higher for high-status agents (only) when status is determined by luck. We explore possible explanations, and the implications for status and incentives. |
| Keywords: | , , incentives, status, identity, piece rate, principal-agent, signaling, culture. |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:ide:wpaper:27274&r=sea |
| By: | Aldaba, Rafaelita M.; Aldaba, Fernando T. |
| Abstract: | The paper aims to assess and determine the capacity-building needs required to liberalize trade in services in the Philippines. Through the ASEAN Framework on the Trade in Services, the Philippines has committed to liberalize various sectors including air transport, maritime transport, construction, financial services, and telecommunications. The country has also signed seven Mutual Recognition Agreements in engineering, nursing, architecture, land surveying, medical, dental practice, and accountancy. The overall progress of services liberalization has been modest compared to trade in goods. Due mainly to constitutional restrictions, limitations on market access and national treatment are still imposed and foreign service providers continue to be subject to limits on equity participation, participation in the Board of Directors, acquisition of land, and practice of professions. Apart from these constitutional and legal constraints, the other obstacles to services liberalization include high cost of doing business, inadequate infrastructure, and governance issues affecting the competitiveness of industries; inefficient coordination among government agencies involved in trade in services; lack of awareness among key stakeholders of the benefits from services reforms; lack of a comprehensive strategy on services liberalization; and lack of capable staff members in key government agencies. Clear gaps in the capacity of national agencies and regulators to effectively implement the country`s services liberalization commitments exist. To address these, the paper suggests capacity-building and technical assistance activities covering the crafting of an overall trade in services strategy as part of a more comprehensive trade strategy covering both goods and services; formulating roadmaps for the various services sectors; and enhancing current coordination mechanisms among government agencies and the private/civil society sectors. |
| Keywords: | ASEAN, capacity building, Philippines, services |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-06&r=sea |
| By: | Medalla, Erlinda M.; Ledda, Veredigna M. |
| Abstract: | While it is too early to undertake rigorous quantitative analysis on the impact of the Philippines-Japan Economic Partnership Agreement (PJEPA) on the Philippines, this initial ex-post study concludes that based on several key indicators the country has not suffered major adjustment costs because of the PJEPA. There is also evidence to show that the Philippines was able to secure concessions comparable to other partner countries of Japan in similar EPAs. The study echoes earlier research that indicated the short-run impact of the PJEPA on GDP would be small but the dynamic benefits could be very significant. On the whole, indicators are positive, although more could be done especially in terms of labor protection, attracting Japanese investments, and taking advantage of the cooperation elements of the agreement. |
| Keywords: | tariff, Philippines, trade, Philippines-Japan Economic Partnership Agreement (PJEPA), bilateral trade agreements |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-12&r=sea |
| By: | Vanzetti, David; Peters, Ralf |
| Abstract: | Trade negotiators are frequently concerned about the possible negative effects of trade liberalisation on employment in specific sectors. The agricultural sector in developing countries has characteristics that make it different from industrial or service sectors. These characteristics are an informal labour force, low productivity, absence of regulations and a tie to land. These features affect adjustment costs. A global computable general equilibrium model, GTAP, is used to analyse employment and wage effects of trade liberalization in three developing countries — Indonesia, Bangladesh and Guatemala. The ability to fully utilize all resources, including labour, is important. The results highlight the advantage of a functioning and flexible labour market that can readily adjust to trade shocks. |
| Keywords: | agriculture, trade, employment, Agricultural and Food Policy, International Relations/Trade, F13, Q17, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare13:152182&r=sea |
| By: | Anderson, Kym; Strutt, Anna |
| Abstract: | Rapid economic growth in some emerging economies in recent decades has significantly increased their global economic importance. If this rapid growth continues and is strongest in resource-poor Asian economies, the growth in global demand for imports of primary products also will continue, to the on-going benefit of natural resource-rich countries. This paper explores how global production, consumption and trade patterns might change over the next two decades in the course of economic development and structural changes under various scenarios. We employ the GTAP model and Version 8 of the GTAP database, along with supplementary data from a range of sources to support projections of the global economy from 2007 to 2030. We first project a baseline assuming trade-related policies do not change in each region but that factor endowments and real GDP grow at exogenously-estimated rates. That baseline is compared with two alternative scenarios: one in which the growth rates of China and India are lower by one-quarter, and the other in which this slowdown in emerging economies leads to slower productivity growth in the primary sectors of all countries. Throughout the results, implications for natural resource-abundant economies including Australia and New Zealand are drawn out. |
| Keywords: | Global economy-wide model projections, Asian economic growth and structural change, booming sector economics, food security, Food Security and Poverty, International Relations/Trade, Public Economics, D58, F13, F15, F17, Q17, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare13:152134&r=sea |
| By: | Briones, Roehlano M. |
| Abstract: | Agriculture confronts several challenges over the decade, i.e., meeting burgeoning food requirements with limited farm land, and balancing the need to import with the provision of livelihoods. The current policy regime leans heavily toward import substitution, with supply side interventions to boost production, combined with protectionism toward sensitive products (particularly rice). The study conducts a scenario analysis to examine the likely evolution of Philippine agriculture to 2020, as well as the implications of pursuing alternative policies. It finds that, under a business-as-usual scenario: Agricultural growth continues with dramatic increases for rice production in the offing. Likewise per capita consumption of most food items would continue increasing. Import growth is curtailed, with substantial price increases for meat products and rice. The alternative scenario involves liberalization and re-allocation of expenditure support toward export-oriented agricultural subsectors. Under this scenario, imports of rice, yellow maize, and poultry increase, with faster increases in per capita consumption than under business-as-usual, and lower retail prices. While consumers gain, producers of import-competing products face harsher competition and cut back on their production. Deepest cuts are expected for rice. Export-oriented commodities experience a production and export boost, with brightest prospects for other crops, banana, aquaculture products, and even coconut. This study recommends the outward-oriented policy, with concomitant measures to compensate losers, ease the burden of adjustment, and facilitate the transition toward a more diversified and dynamic agricultural sector. |
| Keywords: | Philippines, agricultural development, scenario analysis, trade policy, expenditure support |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-14&r=sea |
| By: | Newby, J.C.; Manivong, V.; Cramb, R.A. |
| Abstract: | The cultural and economic importance of paddy rice production for households in the lowlands of Lao PDR cannot be overstated. Annual rice production is viewed by households and the Government alike as an indicator of poverty and food security. Over the past decade the adoption of new technologies has resulted in productivity improvements in lowland rice systems, yet further gains are being sought to maintain national rice self-sufficiency. The Government of Laos has established optimistic yield targets for both the lowland rainfed and irrigated rice production systems. However, survey evidence shows that, despite the adoption of improved technologies, most rainfed farmers remain subsistence-oriented and there is a significant yield gap between the current situation and the proposed targets. The diversification of household livelihoods through wage migration has reduced farm labour availability and increased farm wages. At the same time, price fluctuations due to supply shocks and government responses have created a further disincentive to the intensification of rice production systems. An economic analysis of rainfed rice production suggests that given current conditions we are likely to continue to see the adoption of low-input, labour-efficient, and relatively stable rice production systems for most households, with small areas of high-input, commercially-oriented systems in favourable conditions. We argue that research and extension efforts should recognise this diversity of production systems and household livelihood strategies. |
| Keywords: | Rainfed lowland rice, fertility management, risk analysis, Lao PDR, Crop Production/Industries, Farm Management, International Relations/Trade, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare13:152172&r=sea |
| By: | Gazi Mainul Hassan (University of Waikato); Arusha Cooray (University of Wollongong) |
| Abstract: | This paper uses the Extreme Bounds Analysis (EBA) to examine the comparative growth effects of gender disaggregated and level-specific enrolment ratios in a panel of Asian economies. To test our hypotheses, at first we employ an endogenous growth type framework where education has externality effects and then we compare the results with those obtained from an alternative neoclassical exogenous growth type model where education’s effect is transmitted only via total factor productivity (TFP). It is found that the externality effects of education are positive and robust for both male and female and that these are relatively large and significant at the primary, secondary as well as tertiary level. Furthermore, in the endogenous type framework, a gender gap is observed wherein the male growth effect of education is consistently larger than that of female at all levels. Compared to these, in the neoclassical type model we find that only the male and female primary and secondary enrolment ratios have robust growth effects. In contrast to the externality effects, these growth effects are small. |
| Keywords: | education and growth; endogenous growth; Solow growth model; extreme bounds analysis; total factor productivity. |
| JEL: | O11 O15 |
| Date: | 2013–07–08 |
| URL: | http://d.repec.org/n?u=RePEc:wai:econwp:13/10&r=sea |
| By: | Aldaba, Rafaelita M. |
| Abstract: | The paper aims to review our trade liberalization policy and its contribution to the country`s industrial growth and performance. After more than twenty years of liberalization, the overall performance of the manufacturing industry has been weak, growth has been slow, and contribution to value added and employment has been limited. Total factor productivity growth declined from 1996 to 2006. The industrial structure has remained "hollow" or "missing" in the middle and medium enterprises have never seriously challenged the large entrenched incumbents. The linkages between SMEs and large enterprises have also remained limited. SMEs have continued to face competitiveness problems along with difficulties in finance and market access. Trade indicators show the heavy concentration of Philippine exports on three major products groups: electronics, garments and textiles, and auto parts. Within these major product groups, exports are highly concentrated in low value-added and labor-intensive products sectors. Our experience has shown that trade liberalization does not automatically lead to a competitive domestic market economy. Imports are effective in disciplining domestic manufacturing firms. However, to sustain the competitive gains derived from the presence of imports, the government has an important role to play particularly in creating and maintaining a competitive environment. The government needs to coordinate policies to implement continued liberalization in tandem with necessary support measures that will address the obstacles to the entry, exit, and growth of domestic firms, particularly small and medium enterprises. |
| Keywords: | trade liberalization, Philippines, Philippine manufacturing, strategic industrial policy |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-21&r=sea |
| By: | Daigneault, A.; Brown, P. |
| Abstract: | Invasive species pose an enormous threat in the Pacific: not only do they strongly affect biodiversity, but they also potentially affect the economic, social, and cultural wellbeing of Pacific peoples. Invasive species can potentially be managed and their impacts can potentially be avoided, eliminated, or reduced. However, neither the costs nor the numerous benefits of management are well understood in the Pacific. Thus, we undertook cost-benefit analyses (CBAs) of managing five species that are well established on Viti Levu, Fiji: spathodea campanulata (African tulip tree), herpestus javanicus (small Asian mongoose), papuana uninodis (taro beetle), pycnonotus cafer (red-vented bulbul), and merremia peltata (merremia vine). These CBAs are informed by extensive survey data that record the incidence, management, and impacts of the five species in Fiji. We find that the most cost-effective management option varies by species, precluding a universal solution. Nevertheless, the benefits of management often exceed the costs of management by a wide margin, arguing for a more concerted effort to control the spread of invasive species in the Pacific. |
| Keywords: | invasive species, cost-benefit analysis, non-market valuation, Crop Production/Industries, Demand and Price Analysis, Land Economics/Use, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare13:152140&r=sea |
| By: | Kyophilavong, Phouphet; Shahbaz, Muhammad; Salah Uddin, Gazi |
| Abstract: | This study aims to test the existence of J-curve phenomenon in Laos economy using quarterly data over the period of 1993-2010. The ARDL bounds testing approach to cointegration is used to examine short run as well as long run impact of real depreciation of Lao kip on Lao trade balance. The empirical results suggest that there is J-curve effect in case of Laos. The impact of real depreciation of the Lao kip on Lao trade balance is insignificant in long run. In short-run, real depreciation has inverse impact on Lao’s trade balance. The long-run trade balance is determined by domestic income. |
| Keywords: | J-curve, ARDL approach, Laos |
| JEL: | C5 |
| Date: | 2013–05–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:48084&r=sea |
| By: | JINJI Naoto; Xingyuan ZHANG |
| Abstract: | In this study, we investigate how the innovative performance of local firms in host countries affects the structure of foreign direct investment (FDI) by multinational enterprises (MNEs) using Japanese firm-level data and patent application data for host countries of Japanese FDI at the United States Patent and Trademark Office for the period from 1995 to 2006. The structure of FDI is measured by the shares of local transactions and transactions with the source country and a third country by foreign affiliates of Japanese MNEs. Our estimation results imply that innovation by local firms in the same and related industries in host countries in Asia and Europe strengthens forward and backward linkages. We also find that innovation in the host country encourages transactions with the source country when the former is technologically advanced. Finally, our findings suggest that, in Asia, the innovative performance of local firms contributes to the development of regional production networks. |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:13060&r=sea |
| By: | Aldaba, Rafaelita M. |
| Abstract: | The paper aims to identify the facilitating and deterring factors affecting the implementation of the ASEAN Mutual Recognition Arrangements (MRAs) in engineering, nursing, architecture, surveying, medical, dental practice, and accountancy. On the overall, the progress of MRA implementation in the Philippines has been slow. For all professions, the issue of enacting new rules and/or regulations has been difficult due to the constitutional and other restrictions. Clear procedures and guidelines should be formulated for the implementation of the reciprocity provision. For temporary special permits, the law needs to be revised to allow complete borderless practice. Interviews and survey results on the facilitating factors affecting MRA implementation include the following: making MRA implementation a vital component of the national government agenda, awareness programs, close coordination between professional bodies and government, and projects to facilitate improvements in the quality of practice and address sector issues. The important deterring factors affecting MRA implementation include absence of a comprehensive program to implement the MRAs; lack of comprehensive databases, research studies on best practices, and review of foreign reciprocity; and absence of a coordinating body. Both the Professional Regulatory Commission (PRC) and the Department of Labor and Employment are currently in the process of putting policy measures in place to facilitate MRA implementation in the country. To move the implementation of the MRAs forward, the paper highlights the need to continue efforts to improve the process and create clear criteria for the labor market test and the skill shortage list. The paper also suggests the formulation of clear rules and guidelines in implementing the foreign reciprocity provision; strengthening the capacity of PRC as the central body coordinating the different MRA activities; and crafting of a comprehensive and strategic framework on MRA implementation. |
| Keywords: | professional services, Philippines, ASEAN mutual recognition arrangements |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-04&r=sea |
| By: | Macaranas, Federico M.; Lasala, Norma; Maulion, Alain M.; Furagganan, Brenda B. |
| Abstract: | This paper studies the optimization in the use of scarce budgetary resources available to the Philippine national government in fulfilling its role in the three pillars of foreign policy (traditional political-security areas, economic and social development concerns, and more recent engagement on the assistance to nationals). The lack of consistent data for longer-term analysis of benefits and costs in these three pillars and the inadequately defined value-addition of the Department of Foreign Affairs (DFA) in the One Country Team approach may have been brought in part by the misallocation of human resources; career officers must be trained further in knowledge management, benefit-cost and cost-effectiveness analysis, especially in the management of the International Commitments Funds for international organizations. Rationalization of procedures in the retention of financial proceeds from consular services, centralization of accounting and monitoring Foreign Service Posts funds, and write-offs of collections from other agencies for advances made by the DFA for administrative overhead are also suggested. |
| Keywords: | Philippines, economic diplomacy, knowledge management, foreign relations budget |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-33&r=sea |
| By: | S. Quimbo; X. Javier (School of Economics, University of the Philippines Diliman) |
| Abstract: | Using data from the 2008 National Demographic and Health Survey, we ask whether women's economic empowerment -defined alternatively as having the ability to decide on (i) daily needs, (ii) major purchases, and (iii) spending own income - protects women against domestic violence. Using a simple model of choice of conflict resolution technology among spouses, we find evidence that economic empowerment protects women in a non-linear way. Low and high levels of empowerment reduce the likelihood of women experiencing domestic violence, possibly reflecting traditional gender roles in Philippine society. |
| Keywords: | Economic empowerment; domestic violence; Philippines |
| JEL: | J12 J16 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:phs:dpaper:201305&r=sea |
| By: | Manasan, Rosario G. |
| Abstract: | This study presents an evaluation of the National Expenditure Program for 2013. First, this paper projects that the fiscal targets set out in the Budget of Expenditures and Sources of Financing (BESF) for 2013 are likely to be met. Specifically, fiscal deficit is projected to be PHP 9.6 billion lower than the BESF at PHP 231 billion, while government revenue is estimated to be equal to PHP 1.8 trillion in 2013 which is also higher than the BESF projection. This is despite the expectation that the BOC collections and nontax revenues will be just equal to the 2011 and 2012 levels. Additional revenues is thus sourced from the BIR collections, which is estimated to reach PHP 1.26 trillion in 2013, exceeding the President`s Budget`s estimate of PHP 1.24 trillion. Second, although a more balanced distribution of the budget between the social services and economic services sectors is emphasized in the 2013 National Expenditure Program, the services sector still accounts for more than half of the increase in expenditure program in 2013. Finally, the improving debt profile of the country will continue in 2013. National government borrowing will continue to be biased in favor of domestic borrowings. |
| Keywords: | fiscal deficit, tax effort, fiscal sustainability, expenditure program, Philippines, budget share, revenue program, financing program |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-31&r=sea |
| By: | Anita Prakash (Economic Research Institute for ASEAN and East Asia) |
| Abstract: | Myanmar has opened up to democratic and economic reforms. Bureaucracy is one of the chosen agents of reforms, both political and economic. Bureaucracy faces the difficult task to reform itself for optimum delivery of reforms. Structural changes are required in transforming the bureaucracy into a development agent. Capacity building of the bureaucracy, without compromising its independence, is required for the effective implementation of reforms. A restructured and informed bureaucracy should be Myanmar’s preferred agent of change. |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:pb-2013-02&r=sea |
| By: | Paschou, Eleni; Metaxas, Theodore |
| Abstract: | City branding is a relatively new topic gaining extreme interest and a promising and practical field of marketing. Due to global competition, even more regions and cities around the world, are seeking solutions in place branding’s methods and practices, which now consists a main urban development tool. Having a significant amount of information, the study will focus on the city of Stockholm. Being capital of Sweden and city with strong economic and political background, the case study will focus on the factors which contribute to an attractive external image. Studying its economic structure, business environment, educational system, how residents and foreigners see and respect the city, as well as the existing city branding methods, we will try to identify the way in which city will be attractive in tourists, investors and residents, as well as whether the city manages to fulfill its objectives about Vision 2030, targeting on a “World-Class city”. |
| Keywords: | City Branding, Place Marketing, Stockholm, Vision 2030, World-Class city, Brand Name |
| JEL: | R58 R59 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:48118&r=sea |
| By: | Navarro, Adoracion M. |
| Abstract: | The Sitio Electrification Program (SEP) and the Household Electrification Program (HEP) are two ongoing rural electrification programs of the government. To assist the Department of Budget and Management in implementing its zero-based budgeting approach, we assessed the 2011 SEP and HEP implementation. Using benchmarking for the efficiency and effectiveness assessment of program implementation, we find that the programs were able to achieve their 2011 targets and at reasonable costs. Using an econometric regression for studying the poverty reduction impacts of rural electrification in the Philippines, we also find evidence of a positive relationship between rural electrification and poverty reduction. However, in order to meet the national electrification targets, the SEP and HEP implementation designs need to be improved. The SEP targeting system can be improved by using households as the ultimate basis for setting targets and then using the sitios as location identifiers for the household connections being targeted. Monitoring SEP and HEP accomplishments can be improved by including household dwelling units connected and households served in field reports. The social preparation component can also be strengthened by specifically identifying what constrains the households from connecting despite the presence of subsidies and then addressing the constraints in the program design. Prioritization can also be improved by giving importance to the presence of local enterprises that can raise economic activities and employment when prioritizing areas to be assisted. The Expanded Rural Electrification Team should also be re-activated, but it should have a streamlined setup and the responsibilities of members should be assigned to positions in offices rather than to specific officials (so that the performance of duties can be sustained even after the officials have left). Lastly, given that the 2012 experience in the accelerated implementation of the SEP raises red flags on the absorptive capacity of the National Electric Administration and the electric cooperatives, decisionmakers may have to downscale the annual targets to more realistic levels and extend the implementation period to a more realistic duration. |
| Keywords: | poverty reduction, Philippines, zero-based budgeting, highest benefit approach, household electrification, least cost approach, rural electrification, sitio electrification |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-32&r=sea |
| By: | Llanto, Gilberto M.; Rosellon, Maureen Ane D. |
| Abstract: | The slow progress of the Cadastral Survey Program in the Philippines has been associated with implementation issues that have affected the effectiveness and efficiency of the program. A review of the processes, procedures, and existing institutional set-up in the conduct of cadastral surveys helped identify factors behind the slow progress and delays in implementation. These factors include the tedious procurement process and procedures; slow verification of survey reports/returns; peace and order situation in areas subject to cadastral survey; lack of cooperation from the local government units; and inaccurate and dated land database. The paper assessed the accomplishments of the cadastral survey program and estimated the funding requirements needed to finish the remaining surveys based on data and information made available by the Department of Environment and Natural Resources/Land Management Bureau and other government agencies. Based on the findings, recommendations on how the program may be improved were presented. |
| Keywords: | land management, Philippines, cadastral survey, boundary agreement process, land parcel, public land subdivision survey, land titling |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-24&r=sea |
| By: | Manasan, Rosario G. |
| Abstract: | Given the importance of tertiary education in promoting human development and improving the economy`s competitiveness, the state universities and colleges (SUCs) in the Philippines have always faced issues on the quality of education, management, and access. This study aims (i) to review and assess the programs being offered by SUCs vis-Ã -vis their mandates, the courses being offered by other SUCs in the region, and the quality of graduates produced; and (ii) given the findings, to recommend courses of action to improve the relevance and quality of course offerings of the SUCs. A review of the mandates of the various SUCs in the selected regions covered by this study (Regions IV-A, VII, XI, and VI, respectively) indicates that the mandates of a number of SUCs are fairly broad to start with. Also, many SUCs offer programs outside of their core mandates because the charters of most SUCs allow them to. Given these broad mandates, it is expected that there is substantial duplication in their program offerings relative to those of private higher education institutions (HEIs) and other SUCs in the same region. Moreover, high rates of program duplication appeared to be associated by an increase in the number of programs offered by SUCs. Program duplication may be considered a problem because of its tendency to increase per student cost of SUCs and the issue of SUCs crowding out private higher education institutions (PHEIs). Many PHEI officials also report that while the Commission on Higher Education (CHED) strictly enforces its Policies, Standards and Guidelines (PSGs) on PHEIs, the same rules are not applied as strictly on SUCs. Furthermore, the low quality of instruction is evident in the poor performance in the professional board examinations (PBEs). The median passing rate for 36 PBEs for 2005-2010 ranged from 40 percent to 45 percent during the period. Additionally, only 7 out of these 36 PBEs had average passing rates above 60 percent and only two have passing rates above 70 percent. There is also a preponderance of SUCs/PHEIs with zero passing rate in many PBEs and passing rates that are below the national average passing rate in 2005-2010. Given these findings, it is recommended that (i) the CHED enforces more vigorously its policy of closing existing programs of SUCs and PHEIs alike where these HEIs` performance is under par year after year; (ii) the CHED ensures that SUCs` program offerings comply with its PSGs; (iii) the CHED weighs the advantages/disadvantages of centralization over decentralization with respect to the monitoring of SUCs; (iv) the CHED regional director becomes a regular member of the SUC Board; (v) the normative funding formula is adjusted so that SUCs do not get an additional subsidy from the national government for the additional enrollment resulting from their offering popular programs (i.e., SUCs may be allowed to offer popular programs provided they meet CHED standards and shoulder the full cost of doing so); and (vi) in order to uplift the overall quality of instruction, the more effective measures, such as faculty development and facilities upgrading, be considered. |
| Keywords: | Philippines, state universities and colleges (SUCs), private higher education institutions (PHEIs), program offerings, mandates, duplication, board exam, passing rates, quality, budget |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-29&r=sea |
| By: | Crost , Benjamin (University of Colorado Denver); Felter, Joseph (Stanford University); Mansour, Hani (University of Colorado Denver); Rees, Daniel I. (University of Colorado Denver) |
| Abstract: | Previous studies have documented a positive association between election fraud and the intensity of civil conflict. It is not clear, however, whether this association is causal or due to unobserved institutional or cultural factors. This paper examines the relationship between election fraud and post-election violence in the 2007 Philippine mayoral elections. Using the density test developed by McCrary (2008), we find evidence that incumbents were able to win tightly contested elections through fraud. In addition, we show that narrow incumbent victories were associated with an increase in post-election casualties, which is consistent with the hypothesis that election fraud causes conflict. We conduct several robustness tests and find no evidence that incumbent victories increased violence for reasons unrelated to fraud. |
| Keywords: | election fraud, conflict |
| JEL: | D72 D73 D74 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7469&r=sea |
| By: | Aldaba, Rafaelita M. |
| Abstract: | The paper aims to examine how trade liberalization affects wage premium at the firm level. Using effective protection rate as trade proxy, the paper assumes that in the face of increasing competition, an import-substituting firm may decide to remain at the low value-added stage of the production process which requires relatively less skilled workers and suggests a decline in the wage premium. On the other hand, a firm may move away from the product whose protection rate has fallen and shift and expand toward a higher value-added activity. This would require relatively more skilled workers suggesting an increase in the wage premium. The main findings of the paper show that: First, trade liberalization lowers the wage premium. A firm responds to import competition by shifting to the manufacture of products with lower value added and importing intermediate inputs rather than producing these within the plant. Second, using ASEAN tariff rates as trade proxy, the same results are obtained, however, when ASEAN tariff is interacted with skill intensity, the results show that tariff reduction on skill-intensive products is associated with rising wage skill premium. Third, firm characteristics such as skill intensity, firm size, and capital labor ratio matter in assessing the impact of trade reform on the wage premium. Lastly, exports are associated with increasing wage premium at the firm level the higher their skill intensity. In the literature, greater openness is associated with skill-biased technological change with export-oriented and technology-intensive activities as channels. |
| Keywords: | trade liberalization, labor market, Philippines, Philippine manufacturing, wage skill premium |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-25&r=sea |
| By: | Llanto, Gilberto M.; Kelekar, Uma |
| Abstract: | It has only been in the recent years that developing countries are increasingly decentralizing the provision of health care to their local governments. This paper explores some key issues related to health decentralization in the Philippines identified in literature and in course of interviews with country officials working in the health care area. Issues of planning and budgeting of health plans, revenue and expenditure assignments in a decentralized health system are discussed. In addition, issues specific to the determinants of local government health spending are closely examined. One of the key questions closely examined is whether there are any incentives for local governments to compete through spending on health in a decentralized system. The question of spatial competition is addressed through an empirical analysis that attempts to test the presence of horizontal and vertical fiscal interactions among local governments in the Philippines using local government health expenditures data. While there is a consistent positive interaction among municipalities in health spending, the interaction of municipalities with provinces is positive but weakly significant. The positive fiscal interaction among local governments is explained as a result of potential competition for health care inputs. |
| Keywords: | Philippines, local health care, health decentralization, fiscal competition, horizontal fiscal interaction, vertical fiscal interaction, Local Government Code of 1991 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-20&r=sea |
| By: | Ogura, Seiritsu |
| Abstract: | Objectives: Recent studies suggest the need to adjust the construct of the Caregiver Reaction Assessment Scale among the family caregivers according to different social norms and differential public services. The aim of this study is to examine the reliability of the original five-subscale CRA and to evaluate the four-subscale CRA proposed by Malhotra, Chan, Malhotra, and Ostbye (2012) among the Japanese family caregivers of old people. Method: I conducted confirmatory factor analysis of the original Given’s Caregiver Reaction Assessment scale among Japanese family caregivers for older persons and found its fit to be less than satisfactory. I then conducted exploratory factor analysis and modified CRA scale for a better fit. Results: The second confirmatory factor analysis of a modified four-factor CRA model, similar to the one developed by Manhotra et al., (2012), showed an acceptable fit. Furthermore, I checked group invariance between the two important groups of family caregivers in Japan-married women caring for parents-in-law and women caring for own parents-and confirmed configural and metric invariance of the modified (18-item four-factor) scale. Conclusion: Thus I believe my 18-item four-factor CRA is a good empirical instrument for evaluating both positive and negative effects of informal caregiving in Japan, and possibly in some other countries in Asia. |
| Keywords: | family caregivers, Caregiver Reaction Assessment, confirmatory factor analysis, group invariance, psychometrics |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:hit:cisdps:604&r=sea |
| By: | Ballesteros, Marife M.; Egana, Jasmine V. |
| Abstract: | This paper examines the effectiveness and efficiency of implementation of the National Housing Authority (NHA) resettlement programs. The review focuses on the recent operations of NHA covering the period between 2003 and 2011, which covers one of the largest resettlement projects of NHA involving about 93,000 families for the North and South Rail infrastructure project. During this period, the resettlement program received about 85 percent of NHA budget. NHA has executed the development of 88 resettlement projects nationwide of which 45 project sites are located in Metro Manila and the peripheral areas (or the Greater Manila Area) and 43 in the regions. The dominant scheme in GMA is the Completed Housing Project (CHP) with more than 70 percent (32 sites) of total projects developer constructed. The balance consists of Incremental Housing Projects (IHP) (6 sites) and mixed projects (7 sites), which combined the CHP and IHP methods. By location, there are more in-city projects (68 sites) than off-city projects (20 sites). However, in-city projects are dominant only in the regions and provinces outside Metro Manila. In the highly urbanized cities of Metro Manila, large-scale resettlement was not provided due to land constraints. Based on actual cost per unit, it costs less to produce a unit of housing using the CHP scheme than IHP by about 17 percent or about PHP 25,000 per unit, on the average. However, cost benefit ratio analysis shows that IHP is more cost effective considering the value of developments and the greater participation and investments of households and community in maintenance of housing estates. Between in-city and off-city CHP projects, the average total project cost is higher for in-city projects compared to off-city projects mainly due to higher cost of land but in-city projects are more sustainable and acceptable to both households and local government units (LGUs). It is recommended that the most effective and efficient approach to resettlement is a combined approach of in-city and incremental housing. However, there are necessary conditions that require specific actions not only from NHA but other stakeholders as well to implement this approach such as: (1) land for socialized housing has to be made available by the LGU or national government especially in highly urbanized cities such as Metro Manila; (2) the feasibility of vertical developments in-city should be considered; and (3) the need for the NHA to improve the production process for incremental housing. |
| Keywords: | Philippines, housing, resettlement program |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-28&r=sea |
| By: | Tabuga, Aubrey D.; Mina, Christian D.; Reyes, Celia M.; Asis, Ronina D. |
| Abstract: | The year 2013 marks the fifth year of the Pantawid Pamilyang Pilipino Program (4Ps) implementation in the country since its inception in 2008. The first batch of beneficiaries will be graduating from the program in several months` time. Meanwhile, the government continues to expand the implementation devising along the way several variants that it deems necessary to address the many facets of poverty. The 4Ps is by far the largest poverty reduction and social development program the Philippine government has ever conceived. Approximately PHP 120 billion have already been allocated to the program up to 2013. The program`s dual objectives are social assistance and social development. It provides cash assistance to poor families to alleviate their immediate needs and aims to "break the intergenerational poverty cycle through investments in human capital." As program graduation nears, many questions arise of what to expect from this program. It is rather fitting at this point to draw together assessments that have been conducted so far and to look into some important issues in terms of design and implementation. The paper seeks to answer whether expanding the program would likely yield better results or not. It discusses the outstanding issues most especially those on the aspects that have a bearing on the program`s ability to facilitate inclusive growth. |
| Keywords: | poverty, education, Philippines, school attendance, conditional cash transfer (CCT) program, proxy means test, Pantawid Pamilyang Pilipino Program (4Ps), propensity score matching, social assistance |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-09&r=sea |
| By: | Llanto, Gilberto M. |
| Abstract: | The paper argues the case for developing more innovative financing schemes for the water supply sector. The use of traditional ODA-dependent financing channeled through government lending institutions has a somewhat moderate success record in developing and improving the water supply sector. There are limitations to the use of public funds and public institutions in financing water delivery systems and it will be helpful to think of PPP or PSP arrangements or schemes that can come up with innovative solutions to address the issues in this sector. The Philippine Water Revolving Fund (PWRF) is one such innovative financing model and there could be others but developing and establishing such models will require the collaborative effort of the concerned stakeholders. Government lending institutions must be forced by policymakers to collaborate with the private sector in solving the long-standing water supply problem for a very large segment of the population. Those government lending institutions have the advantage of ODA funds, which they traditionally use to lend to target borrowers. The ODA funds can be blended with private sector resources, including credit guarantees that have been demonstrated as good credit enhancements, to lower the cost of financing water supply projects. |
| Keywords: | Philippines, waterless municipalities, local government units, water supply systems, LWUA, MDFO, government financial institutions, output-based aid, MDG |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-34&r=sea |
| By: | Mina, Christian D. |
| Abstract: | Persons with disability (PWDs) are among the vulnerable groups in the country that need utmost attention from the government. This is perhaps the reason why the institutional and legal environment has been made favorable to this particular group, especially in the area of employment. However, earlier reports note that the quality of employment of PWDs still needs improvement. This paper examines the employment profile of PWDs in the Philippines using the 2008 and 2010 disability surveys in selected cities of Metro Manila (urban) and Rosario, Batangas (rural), respectively. Key findings of this paper are as follows: (1) Proportion of employed among PWD respondents in the urban area is relatively higher than that in the rural area; (2) Roughly half of working PWDs are underemployed; (3) Employed PWDs in the urban area are dominated by the visually-impaired while the hearing-impaired has the highest proportion of employed in the rural area; (4) The leading occupation among PWDs in the urban area is masseur while farmer/farm worker/livestock and poultry raiser in the rural area, although many respondents in both areas are also engaged in entrepreneurial activities (e.g., managing a sari-sari store, e-load business, among others) and are working as helpers/utility workers or laborers; (5) The majority of employed respondents in both areas are considered as vulnerable workers--self-employed and unpaid family workers; (6) Some PWDs who are wage/salary workers are considered as informally employed as they are working as temporary workers without formal contract, seasonal workers, or hired on a daily basis; (7) Multiple Correspondence Analysis (MCA) suggests that being a member in a Disabled People`s Organization and being at least high school graduate strongly correlate with being employed; and (8) MCA also revealed that PWDs who are at least college graduates are more closely related to being officers/managers/supervisors, professionals, and technicians/associate professionals while those who are at most elementary graduates tend to be laborers/unskilled and agricultural workers. |
| Keywords: | education, Philippines, employment, labor force participation, Metro Manila, occupation, rural, Rosario, Batangas, source of personal income, class of worker, urban, Multiple Correspondence Analysis |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-13&r=sea |
| By: | Kasey Buckles; Andreas Hagemann; Ofer Malamud; Melinda S. Morrill; Abigail K. Wozniak |
| Abstract: | We exploit exogenous variation in college completion induced by draft-avoidance behavior during the Vietnam War to examine the impact of college completion on adult mortality. Our preferred estimates imply that increasing college completion rates from the level of the state with the lowest induced rate to the highest would decrease cumulative mortality by 28 percent relative to the mean. Most of the reduction in mortality is from deaths due to cancer and heart disease. We also explore potential mechanisms, including differential earnings, health insurance, and health behaviors, using data from the Census, ACS, and NHIS. |
| JEL: | I12 I23 J24 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19222&r=sea |
| By: | Siar, Sheila V. |
| Abstract: | Strong negative reactions have been raised against the continuing and steadily increasing migration of highly skilled people from developing countries. There is, however, growing evidence that this outflow of skills and knowledge may not necessarily mean a loss for sending countries based on the concept of knowledge exchange and circulation. This concept argues that any apparent loss of skills and knowledge can be restored through the exchange or circulation of knowledge and skills between the highly skilled diaspora and their home country. Studies of transnationalism and diaspora have further emphasized the ways in which migrants can remain not only connected but also deeply committed to development processes in their home countries. Knowledge exchange poses a lot of potential for a number of reasons: the advances in communication and transportation technologies which reduce cross-border distance; the growing appreciation by governments of the network approach as a conceptual guide and strategy to thrive in a globalized world; and the increasing desire of migrants to connect with their home countries. The three cases (China, India, Philippines) presented in this paper show the wealth of knowledge assets that the highly skilled diaspora can contribute: as source of expertise in terms of skills, technologies, and markets; as source of venture capital; and as intermediary or middle person in providing language skills, cultural know-how, and contacts for building business relationships or collaborative projects. However, as these cases also show, the success of tapping the intellectual, economic, and social capital of the diaspora depends on consistent, well-defined, and well-supported policies and programs. |
| Keywords: | Philippines, knowledge exchange, knowledge circulation, diaspora model, transnationalism |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-18&r=sea |
| By: | Velarde, Orlee; Pede, Valerien |
| Abstract: | This study focuses on the pattern between investment in chemical inputs such as fertilizer, pesticides and herbicides and technical efficiency of farm households in Laguna, Philippines. Using a one‐stage maximum likelihood estimation procedure, the stochastic production frontier model was estimated simultaneously with the determinants of efficiency. Results show that farmers with a low technical efficiency score have a high investment share in chemical inputs. Farmers who invested more in chemical inputs relative to other variable inputs attained the same or even lower output and were less efficient than those farmers who invested less. The result shows that farmers who invested wisely in chemical inputs can encourage farmers to apply chemical inputs more optimally. |
| Keywords: | Agricultural Management, Agricultural Productivity, Farm Household, Fertilizer Use, Rice, Crop Production/Industries, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, Q12, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare13:152203&r=sea |
| By: | Arie Krampf |
| Abstract: | During the 20th century, the institution called central bank was diffused globally. However, central banking practices differed significantly between European market-based economies and developing economies. This paper traces the ideas and norms that shaped and legitimized central banking practices in the two areas. The paper argues that during the period from the 1940s to the 1970s two central banking policy norms existed: the liberal norm, which emerged in Europe, and the developmental central banking norm, which emerged in Latin America and diffused to East Asia. The paper seeks to trace the life cycles of the two norms: to specify the ideational content of each norm and to identify the actors and networks that produced, promoted and diffused them. The paper makes two contributions. First, theoretically, on the basis of Finnemore and Sikkink’s theory of international norms’ dynamics, it introduces a mechanism that explains the emergence and internationalization of an alternative international norm in the periphery that challenges the standard international norm. Second, it contributes to the literature on comparative regionalism by historicizing the liberal/European standard of central banking practices and by identifying the existence of an alternative standard for central banking practices in developing countries. The paper covers the period from the 1940s to the 1970s. |
| Keywords: | regulations; European Central Bank; European Central Bank; economics; history |
| Date: | 2013–04–23 |
| URL: | http://d.repec.org/n?u=RePEc:erp:kfgxxx:p0049&r=sea |
| By: | Tabuga, Aubrey D. |
| Abstract: | The Philippines had laid down the groundwork for improving the welfare of persons with disability (PWDs) two decades ago when it enacted the Magna Carta for Persons with Disability. Several other policies have been formulated since then to ensure that PWDs can have the chance to live the way they so desire. However, recent surveys reveal that despite this, PWDs rarely benefit from these legislations and other programs that have been developed for their advancement. There is a multitude of interplaying factors that constrain them from benefiting from such efforts and these have to be addressed first. This paper discusses the current situation of PWDs in terms of awareness and participation with the objective of identifying the various constraints that they face. |
| Keywords: | Philippines, disability, persons with disability (PWDs), survey, visual impairment, blind, mobility impairment, deaf persons |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-11&r=sea |
| By: | Briones, Roehlano M. |
| Abstract: | Expenditures on agriculture have been rising over time, as expression of the state`s commitment to reduce poverty, raise rural incomes and household welfare, and promote food security. However, agriculture continues to exhibit disappointing performance, namely, laggard growth, lack of diversification and competitiveness, tepid productivity growth, and persistent poverty among farmers. There is basis for attributing this performance at least in part to faulty design and execution of agricultural programs. Private goods provided as production support, most notably input subsidies, are contra-indicated based on case studies of past failures. Moreover, a series of audit reports document leakages and anomalies in these types of programs. This is consistent with international evidence that favors a shift in public expenditure from provision of private goods to provision of public goods. Extension is flagged owing to problems in quality of services provided. Production support should be limited in duration and scope to goods characterized by market failure, most notably those embodying new technologies. Support for postharvest and processing facilities should be limited to strategic investments toward addressing coordination problems and facilitating market development. Among public goods (or goods with public good features), irrigation has not been found to be effective based on econometric evidence. This places in question the current plan to ramp up investment in irrigation, making it by far the largest single item for public spending on agriculture. Such investment plans should be reviewed given studies point to design flaws and other implementation problems in past irrigation projects. The public goods that do show evidence of impact on agricultural incomes and productivity are infrastructure such as roads, ports, electrification (under other infrastructure), regulatory services, and R&D for technological change and agricultural modernization. |
| Keywords: | Philippines, public goods, farm subsidies, agricultural production support, impact assessment |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-23&r=sea |
| By: | Tabuga, Aubrey D. |
| Abstract: | The Philippines is at par with developed economies in terms of creating and passing laws that protect and uphold the rights of, and mainstream persons with disability (PWDs) into the society. However, pioneering surveys on the condition of PWDs reveal that they rarely take advantage of the privileges provided for by the law because of various constraints they face, and the lack of implementation and enforcement of these laws, among others. An empirical analysis of the participation of PWDs in discount privileges shows that lack of awareness is a major problem and that many PWDs have not been issued proof of identification for them to be eligible to avail of these privileges. These aspects are more problematic in relatively poorer localities than in more affluent ones. Moreover, despite awareness and possession of identification, many PWDs are not able to participate given their special circumstances; many of them have low self-esteem, are unemployed and immobile. |
| Keywords: | Philippines, disability, participation, persons with disability (PWDs), Bivariate Probit, biprobit, discount privileges |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-07&r=sea |
| By: | Israel, Danilo C.; Lintag, Jeffrey H. |
| Abstract: | The main purpose of the study was to determine if the reforestation program of the Department of Environment and Natural Resources (DENR) over the years has been successful in attaining its stated objectives and in mitigating the adverse impacts of climate change on forest resources and the natural environment. The corollary goal was to develop recommendations to improve reforestation activities in light of the National Greening Program (NGP) of the current administration. The study used secondary data generated from institutional sources and primary data gathered through key informant interviews and focus group discussions conducted in some selected NGP sites in the Caraga region in Mindanao. In summary, the study found the following: a) At the national level, the reforestation program of the DENR has only partially attained its replanting targets; b) Also at the national level, it appears to have become relatively inefficient in the conduct of replanting activities over the years; and c) At the individual site level, it may have been effective to some degree in increasing incomes and livelihood opportunities, improving the natural resource and environmental situation, and achieving the other objectives of reforestation in many areas. Based on the findings, some recommendations for improvements particularly related to the implementation of the NGP were put forward by the study. In conclusion, the study asserts that other than the infusion of sufficient financial and manpower resources, a reforestation program would have a better chance of attaining its objectives if its implementers can sufficiently monitor activities and effectively implement changes in operations to address the problems encountered. |
| Keywords: | Philippines, zero-based budgeting, Department of Environment and Natural Resources, National Greening Program, Caraga Region, reforestation, reforestation programs, reforestation laws |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-22&r=sea |
| By: | Briones, Roehlano M. |
| Abstract: | To illuminate the role of agro-export industry in inclusive growth, this case study on Philippine mango focuses on the role of market structure in the distribution of export benefits. It is based on review of industry trends and related studies, open-ended interviews of key informants, and structured interviews of respondents situated along the value chain. The distribution of trade benefits is hypothesized to depend on both vertical and horizontal market structure. The former implies that a contracting relationship or vertical integration is a mechanism to elevate product quality to export grade. The latter implies that economies of scale are a factor in mango exporting at the marketing and processing stages. It is noteworthy that there are no discernible economies of scale at the primary level, which accounts for the prevalence of smallholder growing at the production stage. Quantitative analysis confirms that vertical linkages are an important factor in raising mango quality to export grade. Moreover, enterprise size is an important factor in producing or procuring export grade mango. This in turn accounts for the prominence of horizontal market structure in the export sector. However, the importance of scale economies in the industry should not be overstated. Investment requirements do rule out small-scale operations, but are perfectly within reach of medium-size firms. Considerably, more entry is possible with adequate and stable supply of quality raw material at reasonable cost. In fact entry has been recorded in both fresh and processed exports, though exits are also frequent; the largest firms, especially among processors, tend to be the longest lived. To facilitate entry, encourage diversity, and widen distribution of benefits from exporting, concerned stakeholders must focus on relieving the key constraint, which is availability of stable and affordable supply of fresh mango of export grade for either fresh or processed sectors. This requires regulatory reforms, reliable database of mango growers, investments in R&D, and improvements in the extension system to offer technical assistance and technology transfer. |
| Keywords: | distribution, Philippines, market structure, agricultural exports, vertical linkages |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-16&r=sea |