Journal of the Asia Pacific Economy最新文献

{"title":"ESG scoring and forecasting in China: advancing sustainable business with multidimensional modeling","authors":"Lemuel Kenneth David, Jianling Wang, Vanessa Angel, Nosheen Amjad","doi":"10.1080/13547860.2023.2273017","DOIUrl":"https://doi.org/10.1080/13547860.2023.2273017","url":null,"abstract":"AbstractThe triad of Environmental, Social, and Governance (ESG) determinants in the contemporary global business environment has become integral to corporate longevity and ethical performance. With China’s significant economic influence and unique socio-cultural tapestry, understanding its ESG dynamics is crucial for domestic and international stakeholders. This comprehensive research introduces an innovative multidimensional ESG scoring paradigm designed for the Chinese market. Built on a robust data foundation from Bloomberg, this model encompasses an 11-year trajectory of 1,496 companies, making it one of the most exhaustive studies in this domain. Integrating advanced mathematical and machine learning models and techniques augments the model’s predictive accuracy and ensures its resilience to rigorous validation processes. By delving deep into the complexities of China’s ESG landscape, this study elucidates the intricate interdependencies of these factors, thereby offering a roadmap for sustainable business practices in China.Keywords: ESG dynamicsChinese business environmentmultidimensional ESG modelpredictive machine learningsustainable corporate practices Disclosure statementNo potential conflict of interest was reported by the author(s).Additional informationFundingThis research was generously supported by the National Social Science Foundation of China (Grant Number 21BGL183) and Fundamental Research Funds for the Central Universities (Grant Number SK2022130).","PeriodicalId":46618,"journal":{"name":"Journal of the Asia Pacific Economy","volume":"45 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135271318","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Can India universalize social insurance before its demographic dividend ends?","authors":"Santosh Mehrotra","doi":"10.1080/13547860.2023.2264645","DOIUrl":"https://doi.org/10.1080/13547860.2023.2264645","url":null,"abstract":"AbstractAbout 91% of India’s workforce of 520 million is informal, lacking social insurance. However, this paper finds the Social Security Code 2020 wanting, but with potential for universalizing social insurance. The paper spells out the principles that should guide social insurance for informal workers; and presents the design and architecture for extending coverage. It shows how realistically, over the next 10–15 years, social insurance could cover the entire workforce, in accordance with ILO Conventions. It also estimates the fiscal cost of social insurance, for the first five years, and spells out the political economy, fiscal and administrative challenges to universalisation.Keywords: Retirement PoliciesJ 32 Non-wage Labour costs and benefitsJ46 Informal J26 labour markets Competing interestsThe authors report there are no competing interests to declare.Disclosure statementNo potential conflict of interest was reported by the author(s).Notes1 No Consumption Expenditure Survey was conducted between 2012 and 2017–18. The 2017–18 survey was cancelled by the government, and new ones are underway at the time of writing (in 2022–23 and 2023–24). A debate has raged over the last few years on the extent of poverty. The 22% head count ratio remains the only official estimate for poverty. For our purposes, we have rounded off the estimate to 20% for this paper, as our own estimates of poverty suggest that there has been only a marginal decline in the poor as defined by the (Tendulkar) national poverty line, and given the lower GDP growth rate, poorer job creation, and stagnant or falling wages, the absolute number of poor has not fallen (Mehrotra and Parida Citation2021).2 The labour force survey questionnaire allows us to even find out what proportion of the workforce has a written contract or gets paid leave, but for our purposes we ignore those estimate.3 The author believes that Chopra and Puduserry (Citation2014) present a very balanced assessment of these pensions, since would see the effects of these pensions at the ground level as the head of Rural Development, Planning Commission of India soon after they were extended to poor widows and disabled, in addition to the elderly as a response to the global economic crisis (2008–09) on the poor.4 These are counted among the formal workforce of about 10% of the total workforce.5 These are governed by The Building and Other Constructions Workers (Regulation of Employment and Conditions of Service) Act, 1996; and Beedi Workers Welfare Cess Act 1976, pursuant to which Acts were also framed by Parliament to.6 Unorganised sector coverage through commercial schemes is only 1.2 per cent for personal accident insurance, 0.5 per cent for private health insurance, and 23 per cent for life insurance (O’Keefe Citation2006). These numbers have changed significantly for health insurance, as we have noted. They have also been increasing for life insurance as well, as private insurers have entered the market since ","PeriodicalId":46618,"journal":{"name":"Journal of the Asia Pacific Economy","volume":"216 ","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136023240","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Social networks and earnings differential of internal migrants in Indonesia: a switching regression","authors":"Siti Parhah, Armida S. Alisjahbana, Mohamad Fahmi, Raden Muhamad Purnagunawan","doi":"10.1080/13547860.2023.2271701","DOIUrl":"https://doi.org/10.1080/13547860.2023.2271701","url":null,"abstract":"AbstractThis study examines the earnings differential between users and non-users of networks of Indonesian internal migrants. By exploiting the Indonesian Family Life Survey wave 5, we employ endogenous switching regression to handle the self-selection bias in the model. We find evidence that the inherent characteristics of the migrants create a tremendous earnings gap between the two agents. Users of networks experience a wage penalty compared to non-users of network. We also find that education has a dominant impact on increasing the earnings discrepancy for migrants. These suggest that network users find it difficult to catch up on the earnings of their non-user counterparts. In addition, the study reveals that networks are not necessarily the only influencing factor of earnings differential. Moreover, the study specifically suggests that hiring channel through networks supports migrants in securing employment. However, the low education levels of the migrants restrict them from enjoying higher earnings.Keywords: Social networksearnings differentialinternal migrantswitching regressionJEL CLASSIFICATION: J01J31J61 Disclosure statementNo potential conflict of interest was reported by the authors.Additional informationNotes on contributorsSiti ParhahSiti Parhah is a lecturer and researcher at the Department of Economic Education, Universitas Pendidikan Indonesia (Indonesia University of Education). She earned her bachelor degree in Economic Education from Universitas Pendidikan Indonesia (2003), a Master degree in Economics from Universitas Indonesia (2006) and a Ph.D in Economics from Universitas Padjadjaran, Indonesia (2020).Armida S. AlisjahbanaArmida Salsiah Alisjahbana was appointed Under-Secretary-General of the United Nations and Executive Secretary of the Economic and Social Commission for Asia and the Pacific (ESCAP) on 13 September 2018. Prior to joining ESCAP, Ms. Alisjahbana was Professor of Economics at Universitas Padjadjaran in Bandung, Indonesia, a position she assumed in 2005.Mohamad FahmiMohamad Fahmi is a lecturer and researcher at the Department of Economics, Universitas Padjadjaran. Fahmi earned his bachelor degree in Economics from Universitas Padjadjaran, Indonesia (1997), a Masters degree in Industrial Economics from ITB, Indonesia (2002), and a Ph.D in Economics of Education from La Trobe University, Australia (2010).Raden Muhamad PurnagunawanRaden Muhamad Purnagunawan is a Senior lecturer and researcher at the Department of Economics, Universitas Padjadjaran. Purnagunawan earned his bachelor degree in Economics from Universitas Padjadjaran, Indonesia (2007), a Masters degree in Industrial Management from ITB, Indonesia (2001), and a Ph.D in Economics from Australian National University, Australia (2011).","PeriodicalId":46618,"journal":{"name":"Journal of the Asia Pacific Economy","volume":"32 5","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135413077","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The factors affecting rural residents’ willingness to burden-share costs of local infrastructure supply in developing countries: evidence from China","authors":"Weiling Jiang, Yangyi Fan, Igor Martek, Huixin Qi, Ying Li","doi":"10.1080/13547860.2023.2271698","DOIUrl":"https://doi.org/10.1080/13547860.2023.2271698","url":null,"abstract":"AbstractRural infrastructure is fundamental to rural development in developing countries. Yet, rural governments endure heavier fiscal constraints than their urban counterparts. Thus, the capacity of rural residents to subsidize infrastructure supply is critical to facilitating provision. While this capability has increased, the willingness of rural inhabitants to absorb cost burdens remains low. However, the factors impacting willingness remains unexamined. This study addresses this deficiency by identifying influencing factors through the lens of “public goods theory.” A field survey of 266 rural Chinese residents is conducted. Results reveal that opinions on affordability are shaped by government policy, perceptions of equitable burden-sharing, and group behavior. Situational cognition plays an important intermediary role in affecting rural residents’ willingness. The “free-rider effect” is also confirmed as a factor. The findings of this study offer strategies for increasing the affordability of rural infrastructure investment in developing countries by raising the pay-for-use willingness of beneficiaries.Keywords: Rural infrastructureaffordabilitywillingness to paytheory of public goodsSEM Disclosure statementNo potential conflict of interest was reported by the author(s).Data availability statementThe data that support the findings of this study are available from the corresponding author upon reasonable request.Additional informationFundingThis work was supported by the National Natural Science Foundation of China under grant [numbers 72201185, 2022].Notes on contributorsWeiling JiangWeiling Jiang is a lecturer in Construction Management at School of Architecture and Urban-Rural Planning, Sichuan Agricultural University, China. She received her B.Eng. and Ph.D. from Sichuan University. Dr. Jiang focuses her research on risk management in infrastructure investment, and affordability of rural infrastructure.Yangyi FanYangyi Fan is an undergraduate student majoring in construction management at the School of Architecture and Urban-Rural Planning, Sichuan Agricultural University. He has a strong research interest in rural infrastructure development, and he is good at mathematical modeling.Igor MartekIgor Martek is a Senior Lecturer in in Construction Management at Deakin University, Australia. He earned his PhD in “Enterprise Strategies in International Construction” from the University of Melbourne. He has an MBA from the Australian Graduate School of Management, NSW, and an MA in International Relations from the Australian National University, Canberra. He has worked extensively in industry in evaluating, generating and managing large capital projects in various locations around the world. He has worked in Europe, including Eastern Europe, the Maghreb, Levant, China, Korea, and was managing director, Far East, of a British consultancy firm based in Tokyo, for 10 years. His research interests include the procurement and facilitation of capita","PeriodicalId":46618,"journal":{"name":"Journal of the Asia Pacific Economy","volume":"35 5","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135368649","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Crop-insurance adoption and impact on farm households’ well-being in India: evidence from a panel study","authors":"Dinamani Biswal, Chandra Sekhar Bahinipati","doi":"10.1080/13547860.2023.2266204","DOIUrl":"https://doi.org/10.1080/13547860.2023.2266204","url":null,"abstract":"AbstractDespite several benefits, the crop insurance adoption rate is observed as low in India. Numerous studies have, therefore, enquired about the reason behind low adoption, and further, a few cross-section studies have estimated its impact on farmers’ well-being, and the findings are mixed in nature. Using data from both rounds of the India Human Development Survey (IHDS), i.e. 2004–2005 and 2011–2012, this study aims to identify the major determinants of adoption and to evaluate its impact on farm households’ well-being. In the case of the former, we find the major determinants, namely, education of the household head, livestock ownership, outstanding debt, landholding, membership in credit groups, access to several government benefits, and previously experienced disasters. Employing a difference-in-difference (DID) model for the latter, we observe that crop insurance improves farmers’ well-being, i.e. per-capita consumption expenditure was 12–28% more for the insured farmers between 2004–2005 and 2011–2012. Hence, this study advocates for further scaling up crop insurance adoption in India as it supports the farmers to diversify risks and smoothening consumption.Keywords: Crop insuranceadoptiondeterminantsimpactfarm householdsIndiaJEL: Q22Q180Q160 AcknowledgementsAcknowledge the comments and suggestions provided by Dr. Rahul A. Sirohi and anonymous reviewers on the previous version of the manuscript. The usual disclaimers apply.Disclosure statementNo potential conflict of interest was reported by the author(s).Notes1 Since it is largely subsidized in the developing nations, Budhathoki et al. (Citation2019) find that premium amount is not a barrier for low adoption of crop insurance among the farmers in Nepal.2 INR means Indian Rupee3 US$ 1 = INR 82 approximately as of May 20234 Migration refers to seasonal migration. It denotes that any family members migrated for some time period and again back to home, and not permanently migrated.","PeriodicalId":46618,"journal":{"name":"Journal of the Asia Pacific Economy","volume":"37 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136013312","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Exploring precise poverty alleviation policies based on causal inference: a case study from China","authors":"Qing Guo, Youyang Liu, Min Zhu","doi":"10.1080/13547860.2023.2264091","DOIUrl":"https://doi.org/10.1080/13547860.2023.2264091","url":null,"abstract":"AbstractTo explore the effect of targeted poverty alleviation policies in Guangdong Province from the perspective of causal inference, this paper conducts quantitative research based on panel data of poverty-stricken counties in Guangdong Province from 2013 to 2020. Specifically, breakpoint regression is used to analyze the initial effect of the policy, instrumental variables are used to analyze the long-term effect of the policy implementation, and finally, the generalized comprehensive control method is used to make a comparative study. The results show that: (1) The targeted poverty alleviation policy in Guangdong Province has a remarkable effect on poverty reduction; (2) The effect of targeted poverty alleviation policy is still remarkable by comparing the implemented policy with the unimplemented one in Guangdong Province; (3) The improvement of market economic activity can effectively promote the increase of farmers’ personal net income in poor areas of Guangdong Province.Keywords: Breakpoint regressioncomparative evaluationeffect assessmentgeneralized integrated control methodinstrumental variables Author contributionsConceptualization, Qing Guo; methodology, Qing Guo; software and formal analysis Youyang Liu and Min Zhu; writing—original draft preparation, Qing Guo and Youyang Liu; writing—review and editing, Qing Guo, Youyang Liu and Min Zhu; supervision and funding acquisition, Qing Guo. All authors have read and agreed to the published version of the manuscript.Disclosure statementNo potential conflict of interest was reported by the author(s).Data availability statementThe data and estimation commands that support the findings of this paper are available on request from the first and corresponding authors.Additional informationFundingThis research is supported by the National Social Science Foundation (21CJL007); the Humanities and Social Science Project of China’s Ministry of Education (20YJC790036); the Natural Science Foundation of Guangdong Province (2020A1515010629); the Basic and Applied Basic Research Project of Guangzhou (202102021185).","PeriodicalId":46618,"journal":{"name":"Journal of the Asia Pacific Economy","volume":"51 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135093026","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Trade credit and corporate investment: enhancing value creation","authors":"Bahadır Karakoç","doi":"10.1080/13547860.2023.2266271","DOIUrl":"https://doi.org/10.1080/13547860.2023.2266271","url":null,"abstract":"AbstractThis study explores the moderating role of trade credit in the value-creation process of firms. Through panel data analysis of annual data from publicly listed firms in ten developing Asian economies, we found that both investing in capacity expansion and engaging in trade credit activity positively impact the value creation process. However, the combination of capacity expansion and trade credit leads to enhanced value creation. The findings highlight the roles played by both borrowed and supplied trade credit in this process. By examining the role of trade credit as a catalyst between corporate investment and value creation, this study provides valuable insights for policymakers and practitioners. The results suggest that firms in these economies should consider increasing their trade finance activity to achieve higher value through capacity expansion. To ensure the validity of the findings, the study conducts a series of robustness checks, including alternative regression specifications, different measures of the key variables, and diverse sample compositions.Keywords: Alternative financingcorporate growthdeveloping economiestrade creditvalue creationJEL CLASSİFİCATİON: G01G30G32 Disclosure statementNo potential conflict of interest was reported by the authors.Notes1 The current research utilizes the term “growth” to denote the increase in value-added, which is computed using the following formula: growthijt= (EBITDAijt−EBITDAijt−1)EBITDAijt−1. Hence, the terms “value creation” and “growth” are used interchangeably, as has been demonstrated in studies by Ferrando and Mullier (2013) and Tingbani et al. (Citation2022).2 EBITDA, Sales and TC variables are adjusted for inflation.3 The difference GMM estimations are executed in Stata using the “xtabond2” command developed by Roodman (Citation2009).4 To avoid overcrowding this table, we will report the coefficients for the remaining control variables including once-lagged dependent variable in the next section in Table 2, while keeping the reader's attention focused on the key variables.5 All estimations are conducted with the rest of the explanatory variables, constant and times dummies.Additional informationNotes on contributorsBahadır KarakoçDr. Bahadır Karakoç is a finance scholar with a Ph.D. degree in the field. His research interests include corporate finance, corporate governance, financial management, and financial literacy. He has published several papers on these subjects, which have appeared in reputable peer-reviewed journals. He has been invited to speak at numerous conferences and seminars, where he has shared his insights on the latest developments in finance. He has also served as a reviewer for several academic journals. Currently, Dr. Karakoç is a faculty member at Samsun University, Economics and Finance Department, where he teaches finance courses to undergraduate and graduate students.","PeriodicalId":46618,"journal":{"name":"Journal of the Asia Pacific Economy","volume":"53 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135146689","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"A Markov switching approach to business cycles in India","authors":"Mathew Koshy Odasseril, K. R. Shanmugam","doi":"10.1080/13547860.2023.2266269","DOIUrl":"https://doi.org/10.1080/13547860.2023.2266269","url":null,"abstract":"AbstractThis is the first empirical study that analyzes the nature of business cycles in India using quarterly GDP growth data from 1998Q1 to 2022Q4 and the Markov Switching Auto-regressive model. In order to capture the impact of exclusion and inclusion of post pandemic period data, it has developed two alternative models. Based on these models, the study provides the forecast of quarterly GDP growth and cumulative real output losses due to the pandemic. It also provides alternative scenarios and trajectories of the Indian economy towards the US$ 5 trillion milestone. It is our hope that these results will be useful to policymakers and other stakeholders to understand the business cycle issue in India and take appropriate strategies to overcome the problems associated with these cycles.Keywords: Indian economybusiness cyclesMarkov switchingturning pointsforecastsJEL CLASSIFICATION: C22C51E32E37E66 AcknowledgmentBoth authors are thankful to anonymous referees of the journal for their useful comments and suggestions.Disclosure statementNo potential conflict of interest was reported by the authors.Notes1 The switching model dates back to Quandt (Citation1958), Goldfeld and Quandt (Citation1973), Barber, Robertson, and Scott (Citation1997), and Lindgren (Citation1978).2 The economic interpretation of these three regimes is as follows: a low growth regime is characterized by a negative/low growth rate, and is therefore associated with the classic recession phases; an intermediate growth regime or a regime of moderate expansion in which the economic growth rate is below the trend growth rate without recession; and a high expansion regime where the economic growth rate is above the trend, representing a strong phase of the growth cycles.3 In India, the nation-wide lockdown was implemented on 25th March 2020 (MHA 2020). As suggested in Srivastava et al. (Citation2021), we assume that the small number of days of lockdown in March 2020 would not severely affect the GDP figure in that quarter. Hence, our sample period ends at 2020Q4 (corresponds to March 2020).4 The GDP quarterly data are available with different base year. From 1998Q1 to 2004Q4, the base is 1999-00; from 2005Q1 to 2011Q4, the base is 2004-05 and after that the base is 2011–12. Since this study uses the growth rate, the base change does not affect the analysis.5 The ADF test values are -3.963 (p = 0.002) for the data without COVID period and -3.390 (p= 0.0137) for the data including the COVID period data.6 This is in line with Dua and Sharma (Citation2016) who used MS(3)-AR(0) specification.7 To check the validity of the model, the sample size is restricted to 1983Q1 to 2016Q4 for estimating the Model 1, which is used to make the forecast from 2017Q1 to 2020Q4. While the real GDP had fluctuated between 2.94 per cent (2020Q4) and 9.66 per cent (2017Q2) during the forecast period, a comparison of the forecasts with the actual data reveals that the RMSE is just 0.72 per cent whereas the mean ","PeriodicalId":46618,"journal":{"name":"Journal of the Asia Pacific Economy","volume":"47 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135092799","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Productivity loss and misallocation of resources in Southeast Asia","authors":"Francesca de Nicola, Norman Loayza, Ha Nguyen","doi":"10.1080/13547860.2023.2258015","DOIUrl":"https://doi.org/10.1080/13547860.2023.2258015","url":null,"abstract":"AbstractThis article examines within-sector resource misallocation in three Southeast Asian countries—Indonesia, Malaysia, and Vietnam. The methodology accounts for measurement error in revenues and costs. The firm-level evidence suggests that measurement error is substantial, resulting in an overestimation of misallocation by as much as 30%. Nevertheless, resource misallocation across firms within a sector remains large, albeit declining. The findings imply that there are considerable potential gains from efficient reallocation—above 80% for Indonesia and around 20% to 30% for Malaysia and Vietnam. Private domestic firms and firms with higher productivity appear to face larger distortions that prevent them from expanding.Keywords: Productivitydistortionsresource misallocationJEL classification: D24L11O30O47 Disclosure statementNo potential conflict of interest was reported by the authors.Notes1 There is a large literature on each of these potential sources of misallocation; the suggested references rely on data from Southeast Asia, the region at the center of this paper. Interestingly, although not surprisingly, none of the individual channels by itself is able to explain the magnitude of misallocation estimated using the indirect approach discussed later. A given economy may suffer from multiple sources of misallocation at once.2 HK measures misallocation without precisely identifying the sources of misallocation. They broadly classified the sources of distortions as capital and output market related distortions. The essence of their findings is that resource misallocation affects productive firms’ access to sufficient resources (in terms of capital and labor) needed for expansion, and this results in lower aggregate productivity. Therefore, reallocation of resources through the elimination of distortions in the markets is productivity enhancing as this allows productive firms to grow larger, and the less productive ones to either contract their operations or exit from the sector.3 As acknowledged by HK, their approach relies on restrictive assumptions such as CES aggregation of differentiated products within a narrowly defined sector (allowing to derive TFPQ from revenue data in the absence of information on input and output quantities), and hence constant mark-ups within the same sectors. Under these conditions, any variation in TFPR is attributable to resource misallocation.4 Assuming additive rather than multiplicative measurement error yields more conservative estimates.5 Elasticity of substitution between products is related to the mark-ups σsσs−1=1+μs, where μs is the markup. An elasticity of substitution of 3 corresponds to a markup of 50%.6 The subscript t for time is omitted, to simplify the notation.7 The circumflex sign indicates measured values.8 To understand how the results in Table 5 and Table 4 are related, it is useful to recall that in BKR sectoral TFP can be decomposed into the product of four terms: allocative efficiency, a","PeriodicalId":46618,"journal":{"name":"Journal of the Asia Pacific Economy","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135829931","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The impact of trade with ASEAN on India’s employment in industrial sector","authors":"Devasmita Jena, Swati Saini","doi":"10.1080/13547860.2021.1976000","DOIUrl":"https://doi.org/10.1080/13547860.2021.1976000","url":null,"abstract":"Abstract This paper examines the impact of trade with ASEAN on industry-level employment in India during the period of 1996–1997 to 2016–2017. Using the KLEMS and CMIE databases, we construct a unique dataset covering fifteen industrial sectors in India. We employ the Pooled Mean Group (PMG) approach to estimate the long-run relationship between employment and trade. For the full period of our study, we find that import penetration had a detrimental effect on employment while we find little evidence of any significant effect of export intensity on employment. There exists a structural break at 2004–2005, after which industrial sector has registered a decline in the rate of employment growth as well as India saw worsening of trade balance with ASEAN. Our results suggest that while export and import have had favorable impact on industrial sector employment prior to 2004–2005, AIFTA led to decline in industrial sector employment post 2004–2005.","PeriodicalId":46618,"journal":{"name":"Journal of the Asia Pacific Economy","volume":"9 1","pages":"1497 - 1519"},"PeriodicalIF":1.4,"publicationDate":"2023-10-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139324834","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}