Journal of Southeast Asian Economies Vol. 30/1 (Apr 2013) [formerly ASEAN Economic Bulletin]

Journal of Southeast Asian Economies Vol. 30/1 (Apr 2013) [formerly ASEAN Economic Bulletin]
Date of publication:  April 2013
Publisher:  Institute of Southeast Asian Studies
Number of pages:  108
Code:  AE30/1


  • Journal of Southeast Asian Economies Vol. 30/1 (Apr 2013) [formerly ASEAN Economic Bulletin]
    [Whole Publication]
  • Preliminary pages
  • Economic Governance: What Can the EU and ASEAN Learn From Each Other After the Economic Crises?, by Petr Blizkovsky, author
    In studying the policy responses to economic crises in ASEAN and the EU, this paper addresses three issues: the financial crisis of 1997-98 in Southeast Asia, and the European Union's financial crisis of 2008 followed by the sovereign debt crisis; policy adjustment actions in both regions in the area of economic coordination; and areas of mutual policy inspiration for both regions. <br>Both crises studied were regionally risk-intensive. However, their natures were different. The Asian crisis was mainly externally driven by capital flows, while the EU one - especially the sovereign debt part of it - was predominantly of an internal nature due to imbalances in the euro area and a worsening of the situation in public finances in some euro members. On top of it, the pre-crisis economic governance structure differed with a light one in ASEAN and a deeper one in the EU; however, economic policy was still based dominantly on coordination. <br>The policy adjustment corresponds to the nature of the crisis and original governance structures. In ASEAN, it is characterized somewhat both by a deepening of regional cooperation and a widening of risk-pooling beyond the borders of the region (ASEAN Plus). On the EU side, the policy response privileges a strong deepening of policy cooperation coupled with more narrow-looking geographical coverage. <br>The crises offer a unique window for policy adjustment. ASEAN could consider: deepening multi-lateralization in the single market; a gradual and low-intensity monetary cooperation; and enhancing its institutional capacity. The EU can, on its side, fully implement its new rules and put them under the EU-27 roof. It can go beyond this and consider a broader economic partnership with some of the new instruments with the EFTA countries. Finally, it can also reflect on the ASEAN success with the enlargement of its regional influence - how to strengthen its leadership in its closest neighbourhood (Balkans, North Africa, Eastern Partnership) by ensuring an area of stability and prosperity. <br>
  • Determinants of Market Integration and Price Transmission in Indonesia, by Gonzalo Varela, Enrique Aldaz-Carroll, Leonardo Iacovone, authors
    This paper investigates the determinants of price differences and market integration among Indonesian provinces using data from retail cooking oil, rice, and sugar markets during the period 1993-2007; and wholesale maize and soybean markets during the period 1992-2006. We measure the degree of integration across provinces using cointegration techniques and calculate average price differences and use regression analysis to understand the drivers of price differences and market integration. For rice and sugar, we find wide market integration&nbsp; and low price differences in the range of 5-12 per cent. For maize, soybeans, and cooking oil, we find less integration and higher price differences (16-22 per cent). Integration across&nbsp; provinces is explained by the remoteness and quality of transport infrastructure of a province. Price differences across provinces respond to variations in provincial characteristics, such as remoteness; transport infrastructure; output of the commodity; land productivity; and income per capita. <br>
  • Trends in Output and Income Disparities Across the States of Malaysia, 1972-2009, by George Hooi, Nguyen Duc-Tho, Jen Je Su, authors
    In this paper, we investigate trends in the disparities in output and income across the states of Malaysia during the past four decades, using several different methods - including the log-t test proposed by Phillips and Sul (2007, 2009) - and data for a range of variables. The results indicate that output (GDP) per capita at the state level generally diverged over the study period, although there was convergence within each of the three statistically identifiable&nbsp; "clubs". By contrast, disparities with regard to average household income for Malaysian citizens appear to have decreased generally across all the states as a group.
  • Is Contract Farming in the Indonesian Oil Palm Industry Pro-poor?, by Eko Ruddy Cahyadi, Hermann Waibel, authors
    This paper assesses the impact of contract farming in the oil palm industry in Indonesia on smallholders’ well-being and investigates its implication for poverty reduction. Data were collected using random sampling from 245 smallholders in the province of Jambi, Sumatra. A treatment effects model was applied in order to capture endogeneity and selection bias. Results show that participation in contract farming is significantly associated with type of household, age of household head, size of oil palm plot, and the time of plantation establishment. While contract farming has a significant positive effect on smallholder income overall, it discriminates against poorer smallholders. It is recommended that the agro industry and government review contractual arrangements in order to increase the chances of the poor benefiting from oil palm expansion in Indonesia.
  • Trade Liberalization Effects on Myanmar's Oilseed Markets, by Khin Myo Nyein, Prapinwadee Sirisupluxana, Boonjit Titapiwatanakun, authors
    Oilseeds and oilseed products are economically crucial in the Union of Myanmar. The free transaction of major oilseeds like groundnut, sesame, and palm oil has been restricted by the government’s agricultural trade policies, which undermine the market forces of the domestic oilseeds sector. This study examines the impact of alternative trade liberalization policies on the social welfare of Myanmar’s oilseed sector using a partial equilibrium multi-market model. Welfare is analysed by evaluating producer and consumer surplus changes. Simulation results suggest that liberalizing groundnut seed trade has a positive net effect on the whole oilseed sector, while sesame trade liberalization is better for the major edible oils sector. An import quota expansion affects the total edible oil sector positively while negatively affecting the two major oilseed sectors. Therefore, policy-makers should not ban potential groundnut and sesame trade. Palm oil quota restrictions should be liberalized for domestic poor groups, but policies that compensate the losses of disadvantaged sectors or minimize the negative<br>impacts on those groups are also required. <br>
  • Cambodia's Garment Industry: A Case Study in Governance, by Sophal Ear, author
    Cambodia has struggled to diversify its economy in the past decade despite nearly double-digit growth per annum. Chinese interest and investment during this time comes at a critical juncture. This investment is driven from Taiwan and Hong Kong and has spilled into multiple industries, but most notably the garment industry which represents 14 per cent of Cambodia's<br>GDP and is by far its largest foreign exchange earner. The specific investment in garments demonstrates hand-in-hand governance, where governments and firms work together to create an environment generating growth, and thus far has produced positive results. Surprisingly, Cambodia has been able to achieve significant growth with foreign investment despite the minimal enforcement of policies. The garment industry is an exception to the rule and may have enjoyed good enough governance to succeed.
  • Reflections on the Dynamics of the Indonesian Economy, by Siwage Dharma Negara, author
    A review article for the books:<br>"An Economic History of Indonesia 1800-2012",by Jan Luiten van Zanden and Daan Marks (London: Routledge, 2012), pp. xviii, 263;<br>"Macroeconomic and Monetary Policy Issues in Indonesia", by Akhand Aktar Hossain (London and New York: Routledge, 2012), pp. xxviii, 401; and<br>"Diagnosing the Indonesia Economy: Toward Inclusive and Green Growth", edited by Hal Hill, Muhammad Ehsan Kahn, and Juzhong Zhuang (London: Anthem Press, 2012), pp. xxi, 482.
  • BOOK REVIEW: State Structure, Policy Formation, and Economic Development in Southeast Asia: The political Economy of Thailand and the Philippines. By Antoinette R. Raquiza. , by Nhu Truong, author
  • BOOK REVIEW: From Our Eyes: Mekong Migrant Reflections, 2000-2012. By Mekong Migration Network and Asian Migrant Centre. , by Robert L Curry, Jr., author

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