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Income volatility in adolescence and university enrollment: The case of South Korea Asian Economic Journal (IF 1.121) Pub Date : 2023-12-19 Bo-hui Kwon, Gyeahyung Jeon
This study examines the relationship between parental income volatility and children's university enrollment. It measures parental income instability using the following indicators: (1) transitory income volatility, (2) standard deviation of the arc percent change, and (3) coefficient of variation. These metrics are derived from the total household income data collected from the child's first year
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Does outward foreign direct investment improve the performance of domestic firms? Case of Korea Asian Economic Journal (IF 1.121) Pub Date : 2023-12-18 Soomin Han, Sunghyun Kim
In this article, we use firm-level data in Korea from 2010 to 2019 to analyze whether outward foreign direct investment (OFDI) affects the productivity of domestic firms, known as reverse knowledge spillovers. Using propensity score matching and difference-in-difference regressions, we verify that OFDI improves the productivity of parent companies. Considering the characteristics of OFDI and the parent
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The synchronization between Korea's and Japan's business cycles Asian Economic Journal (IF 1.121) Pub Date : 2023-12-18 Keun Yeong Lee
This article analyzes the evolution of the dynamic interactions between Korea's and Japan's business cycles. The logarithmic industrial production is first decomposed into trends and cycles using bounceback models. The estimation results of the two-state Markov switching model show that the synchronization coefficient of Korea–Japan is positive and time-varying. However, according to the estimation
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Social safety nets and productivity outcomes: Evidence and implications for Bangladeshi rice growers Asian Economic Journal (IF 1.121) Pub Date : 2023-11-02 Md Abdus Salam, Asif Reza Anik
Using national representative cross-sectional data from 8846 rice growing plots in Bangladesh, we analyze the impact of social safety net programs (SSNPs) on rice farmers' productivity and efficiency. This study applied the propensity score matching (PSM) approach to correct the possible self-selection biases arising from observed and unobserved factors affecting a household's SSNP participation decisions
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The effect of the Bank of Japan's Exchange-Traded Fund purchases on firm performance Asian Economic Journal (IF 1.121) Pub Date : 2023-10-22 Hiroshi Gunji, Kazuki Miura, Yuan Yuan
Since December 2010, the Bank of Japan has been purchasing exchange-traded funds (ETFs) that track the Nikkei 225 and TOPIX. In this study, we examine how the Bank of Japan's purchase of ETFs affects companies' profits, innovation investment, and governance using a difference-in-differences method. The results show that the ETF purchase policy lowered the return on assets for TOPIX and Nikkei 225 companies
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Effect of sovereign wealth funds in commodity-exporting economies when commodity prices affect interest spreads Asian Economic Journal (IF 1.121) Pub Date : 2023-10-02 Shigeto Kitano, Kenya Takaku
We reconsider the role of a sovereign wealth fund in commodity-exporting economies facing recent volatile fluctuations of commodity prices due to the COVID-19 shock. We examine the welfare-improving effect of a sovereign wealth fund from the new perspective of the link between commodity prices and interest rate spreads, which is unique to emerging economies. We show that a sovereign wealth fund becomes
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How do changes in household economic conditions affect cognitive function? Asian Economic Journal (IF 1.121) Pub Date : 2023-08-06 Yumi Ishikawa
This study examines the effects of changes in household economic conditions on cognitive function using individual panel data from the National Survey of the Japanese Elderly. This study captures the objective and subjective economic conditions and examines which aspects of economic conditions affect cognitive function. The results demonstrate that deterioration in economic conditions damages cognitive
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Birth order and intergenerational income mobility in Japan: Is the first-born child different? Asian Economic Journal (IF 1.121) Pub Date : 2023-08-02 Zhi-xiao Jia
This study examines how birth order affects intergenerational income mobility (IGM) in Japan, focusing on the difference in IGM between firstborn and later-born children. The elasticities of sons’ income with respect to fathers’ income are separately estimated for sons who are firstborn and sons who are later born by family size using a two-sample, two-stage least squares approach. For sons born in
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Effect of grandchildren on the happiness of grandparents: Does the grandparent's child's gender matter? Asian Economic Journal (IF 1.121) Pub Date : 2023-07-24 Eiji Yamamura, Giorgio Brunello
Using a representative sample from Japan and a difference-in-differences strategy, we investigate whether the effect of having grandchildren on the happiness of grandparents varies with the gender of their (own) single child. In line with our expectations, we find that maternal grandmothers have more to lose or less to gain from having grandchildren than paternal grandmothers. In contrast, grandfathers’
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Distributional Effects of Freedom and Income on Life Satisfaction: Evidence from East Asian Chinese Societies Asian Economic Journal (IF 1.121) Pub Date : 2023-04-16 Hock-Eam Lim, Daigee Shaw, Le-Yu Chen, Pei-Shan Liao
We estimate the distributional effects of freedom and income on life satisfaction (LS) for East Asian Chinese societies through an ordinal parametric quantile regression approach. The results show that freedom and income exhibit positive and mostly significant effects across societies and LS levels. The freedom effects generally become larger for those at higher LS quantiles. However, the income effects
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Firm size-specific trade effects of regional trade agreements: Estimating extensive and intensive margins of trade Asian Economic Journal (IF 1.121) Pub Date : 2023-04-14 Soonchan Park, Innwon Park
We estimate the impacts of Korean firms’ participation in regional trade agreements (RTAs) on the extensive and intensive export margins by identifying exporting firms based on their firm size—small and medium-sized enterprises (SMEs) and large enterprises (LEs) at the 5 399 HS six-digit commodity level—and specifying characteristics of RTAs from 2004 to 2015. We apply the EK Tobit estimation technique
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Disparity in high school enrollment between native and immigrant children in Japan Asian Economic Journal (IF 1.121) Pub Date : 2023-04-13 Risa Hagiwara, Yang Liu
Using nonlinear decomposition, this study examines the gap in high school enrollment between native and immigrant children based on data from the 2010 Population Census. The school attendance probability of immigrant children is significantly lower than that of native children. Factors contributing to the gap are the length of stay in Japan, parental employment status, and home ownership. The total
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Effect of Korean trade union on wage discrimination between regular and irregular workers Asian Economic Journal (IF 1.121) Pub Date : 2023-03-23 Myounghwan Kim, Giseung Kim
Whether the dual labor market structure implied by employment type and unionization causes wage discrimination is an intriguing and relevant policy question in the context of South Korea. This study examines the effect of trade unions on wage discrimination against irregular workers by extracting and comparing the ratios of the discriminatory wage gap by employment type between unionized and non-unionized
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Aging and labor share of income in Korea Asian Economic Journal (IF 1.121) Pub Date : 2022-12-19 Donghyun Park, Kwanho Shin
A growing body of evidence points to a decline in the labor share of income. A sizable empirical literature delves into the relationship between technological progress, globalization, and market concentration and labor's declining income share, which can exacerbate income inequality. Population aging has often been put forth as a factor that worsens income inequality. However, few studies have empirically
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What causes house prices to fluctuate? Evidence from South Korea Asian Economic Journal (IF 1.121) Pub Date : 2022-12-07 Jinwoong Lee, Jihee Ann, Cheolbeom Park
In this study, we build a structural vector autoregressive model of the housing market with supply and demand shocks to determine the main causes of house price movements in South Korea. We include housing permits, basic housing demand, and the growth rates of real housing prices in the model. Changes in house prices are decomposed into three structural components: housing supply shocks, shocks to
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The impact of family size on child investment in Thailand: Revisiting with an alternative approach Asian Economic Journal (IF 1.121) Pub Date : 2022-11-21 Aeggarchat Sirisankanan
Most economics research have concentrated on testing the quality–quantity (QQ) model through the relationship between family size and children's schooling. Much less effort has been given to comparing the child quality and child quantity income elasticities. Using the Thai household socioeconomic panel surveys, this paper examines the trade-off between the quality and quantity of children by comparing
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Does Smoking Keep You Slim? Evidence from Japan's Smoking Ban in the Workplace Asian Economic Journal (IF 1.121) Pub Date : 2022-11-04 Junchao Zhang
Long-term time-series data show a strong negative correlation between obesity and smoking prevalence, which may not reflect the causality. Many heavy smokers claim that smoking helps them maintain a slim body and keep smoking despite the health risks. Using the Japan Household Panel Survey, this study investigates the causal effect of smoking on body shapes by exogenous variations of Japan's smoking
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Labor market impact of COVID-19 on migrants in South Korea: Evidence from local outbreaks Asian Economic Journal (IF 1.121) Pub Date : 2022-10-21 Seonho Shin
Despite the growing importance of migrants and their role in the South Korean economy, how much and in which ways COVID-19, as an adverse labor market shock, has affected them has received too little attention, with no single study published to date yet. Motivated by such a paucity, this paper investigates the impact of the COVID-19 pandemic crisis on employment for migrants in South Korea, with special
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Card or cash? Evidence regarding consumers' cooperative value-added tax compliance Asian Economic Journal (IF 1.121) Pub Date : 2022-10-03 Youngrok Kim, Hongyu Wan, Minjo Kang
Cashless payments discourage value-added tax (VAT) evasion through transaction records; and they essentially require cooperation from consumers and small business owners. As indirect VAT payers, consumers' payment methods decisively influence the final VAT declaration. However, the literature has yet to investigate consumers' collusive VAT evasion. This study uses data from approximately 7300 taxpayers
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Cyclical shocks and spatial association of Indonesia's district-level per capita income Asian Economic Journal (IF 1.121) Pub Date : 2022-10-03 Mitsuhiko Kataoka
Our exploratory spatial data analysis covered Indonesia's district-level per capita incomes for 2004–2018 and found statistical evidence of a weak but monotonically increasing positive spatial association. The spatial income clusters/outliers were scattered nationwide and expanded geographically. Applying the filtering method, we found that regional cyclical shocks significantly influenced spatial
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How Industrial Design Matters for Firm Growth at Different Stages of Development: Evidence from Korea, 1970s to 2010s Asian Economic Journal (IF 1.121) Pub Date : 2022-06-27 Keun Lee, Raeyoon Kang, Donghyun Park
The traditional literature on the role of intellectual property rights (IPR) in innovation highlights the strength of IPR protection in the context of the tradeoff between innovation and diffusion. More recent literature analyzes the role of diverse forms of IPR in promoting innovation and growth and delves into not only regular patents but also utility models (or petite patents) and trademarks. Using
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Does Aid for Trade Promote Vertical Specialization? Asian Economic Journal (IF 1.121) Pub Date : 2022-06-27 JunYun Kim, Hongshik Lee, Joonhyung Lee
We study the impact of Aid for Trade (AfT) and analyze whether aid recipients participate in bilateral vertical specialization. Using data from 15 donors and 106 recipients for the years 2002 to 2018, we investigate whether bilateral AfT increases bilateral vertical specialization. To focus on the variation between donors and recipients over time, we absorb other sources of variation through donor–year
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Heterogeneous Effects on Private Education Spending in Latent Groups in Korea Asian Economic Journal (IF 1.121) Pub Date : 2022-06-17 Jaeram Lee, Jungjoon Ihm
This study examines people's response to well-known determinants in private education spending (PES). Based on the Korean Education Longitudinal Study, we divided the private education decision-making process into two parts: whether to spend and how much to spend. Due to omitted environmental factors, latent subgroups that share the same PES effects were classified using a clustering methodology. Empirical
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An Empirical Assessment of Collusion in the Negotiable Certificates of Deposit Market in Korea: A Discriminant Analysis Asian Economic Journal (IF 1.121) Pub Date : 2022-06-17 Jiyoung Lee, Jung Jae Kim, Jinook Jeong
This paper econometrically evaluates if collusion actually occurred in the negotiable certificates of deposit (CD) market during the period of Korea Fair Trade Commission's (KFTC) investigation. We propose a general mixture regression model to discriminate the collusion period from the competitive period. We apply our method to Korean CD market data from 1 January 2009 to 23 May 2019 and forecast the
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Long-Term Effects of Vietnam War: Agent Orange and the Health of Vietnamese People After 30 Years Asian Economic Journal (IF 1.121) Pub Date : 2022-05-17 Nobuaki Yamashita, Trong-Anh Trinh
This article examines the long-term health effects of Agent Orange, a military herbicide containing the hazardous chemical compound dioxin that was widely disseminated in South Vietnam during the Vietnam War (1959–1975). Based on data from US military archives on the herbicide operations, we estimate the prevalence of disabilities among Vietnamese people using the 2009 Population Census. The results
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Effects of Heat on Mathematics Test Performance in Vietnam Asian Economic Journal (IF 1.121) Pub Date : 2022-03-28 Tien Manh Vu
We examine the effects of average test-day temperature on the mathematics test performance of all Vietnamese students who took the national university and college entrance examinations in 2009. Using individual fixed effects, we find that an increase of 1°F results in an approximate 0.006 standard deviation loss of in standardized test scores by age and test problem. The negative effects are persistent
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Monetary Policy Regimes in Small Open Economies: The Case of Sri Lanka* Asian Economic Journal (IF 1.121) Pub Date : 2021-10-25 Harsha Paranavithana, Leandro Magnusson, Rod Tyers
This paper quantifies the performance of five alternative monetary policy regimes in controlling macro volatility in a small open, emerging economy. The effects of supply, demand and external shocks are analyzed using a generic structural macro model and Monte Carlo simulation, calibrated to the case of Sri Lanka. Investigated regimes separately target the exchange rate, monetary aggregates, nominal
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Does a Mother's Early Return to Work after Childbirth Improve Her Future Employment Status?* Asian Economic Journal (IF 1.121) Pub Date : 2021-08-19 Wataru Kureishi, Colin McKenzie, Kei Sakata, Midori Wakabayashi
We examine whether a mother's early return to work after her first birth improves her employment status in the short term and the long term (3 and 10/12 years after the child's birth). Specifically, this research investigates whether a mother is more likely to be in full-time employment if she returns to work within 1 year of childbirth (i.e. without using her allowable parental leave to the full)
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Is the Bank Lending Channel of Monetary Policy Evident in the Philippines? A Dynamic Panel Data Approach* Asian Economic Journal (IF 1.121) Pub Date : 2021-09-21 Jean Christine A. Armas
The paper examines the bank lending channel of the monetary transmission mechanism in the Philippines. Using the dynamic panel generalized method of moments (GMM) model on quarterly individual bank data from Q1:2006 to Q4:2017, the study finds that the bank lending channel of monetary policy in the Philippines is rather weak as highly liquid banks tend to react more to monetary tightening than less
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Testing for Pricing Behavior in the Mortgage Loan Market Asian Economic Journal (IF 1.121) Pub Date : 2021-08-25 Haerang Park
This study examines the pricing behavior of banks in the mortgage loan market. Firstly, the paper compares the loan pricing behavior of banks between two periods, one of which is marked as a more competitive state due to regulatory intervention. Secondly, the paper also test for the stock market reaction to model-implied collusive profits. Using data from banks in Korea, the paper find that mortgage
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Political Instability, Civil War and Cost Efficiency of Banking Firms: A Case Study in Sri Lanka* Asian Economic Journal (IF 1.121) Pub Date : 2021-09-21 Lalith Seelanatha
This paper investigates the effects of political instability resulting from successive regime changes and the 30-year civil war on the cost efficiency of local banks in Sri Lanka. A translog cost function was used to estimate bank cost efficiency, and a multivariate regression model was used to investigate the determinants of bank cost inefficiency. On average, the cost efficiency of banks in Sri Lanka
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New Developments in International Production Networks: Impact of Digital Technologies* Asian Economic Journal (IF 1.121) Pub Date : 2021-06-22 Ayako Obashi, Fukunari Kimura
We conducted a standard gravity exercise using worldwide disaggregated trade data to shed light on the influence of digital technologies on network trade. We found that growing investment in industrial robots in relatively lagging economies, together with imported digitally deliverable services, is enhancing bilateral network trade flows in East Asia, but not necessarily in other parts of the world
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Determinants of Earnings and Gender Earnings Gaps among Highly Educated Workers within Major Cities in Asian Countries* Asian Economic Journal (IF 1.121) Pub Date : 2021-07-07 Mamiko Takeuchi
The present paper analyzes determinants of earnings and the gender earnings gap among highly educated younger workers from nine major cities in Asian countries. We identify skill premiums for both men and women in each city, such as holding a postgraduate degree or degrees in specific fields and experience working or studying abroad. These results show that competition for earnings among highly educated
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Do ‘Boss Effects’ Exist in Japanese Companies? Evidence from Subordinate–Supervisor Matched Panel Data* Asian Economic Journal (IF 1.121) Pub Date : 2021-04-29 Yuko Okajima, Hisakazu Matsushige, Yuwei Ye
This article investigates whether supervisors can significantly enhance their subordinates' performance using a five‐waves panel dataset from a medium‐sized Japanese firm comprising around 400 employees. The dataset includes all regular non‐managerial employees working in one manufacturing company. About 40 supervisors were matched to their subordinates, and the evaluation outcomes were used to evaluate
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Impact of New Public Management on the Efficiency of Japanese Museums* Asian Economic Journal (IF 1.121) Pub Date : 2021-04-29 Miyuki Taniguchi
The aim of the present paper was to determine how small government policies have changed the management of Japanese prefectural museums since 2006. To reconstruct the budget positions of local governments, the Koizumi Government advocated a policy of ‘small’ government and cuts in the costs of public facilities. One example is the introduction of the designated manager system (DMS) into museums. The
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Reflections on a Journey * Asian Economic Journal (IF 1.121) Pub Date : 2021-03-01 Hal Hill
Publishing can be a tough business. To commemorate its first half-century, the Asian Development Bank (ADB) set itself the worthy goal of writing an analytical survey of the economic development of its member countries since the1960s. However, just as the volume was launched at the beginning of 2020 and its staff was preparing to go on various road shows to publicize the volume,COVID-19 struck, and
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Is Homo Economicus An Ideal to be Pursued? Using US and Japan Survey Data* Asian Economic Journal (IF 1.121) Pub Date : 2021-02-05 Shoko Yamane, Hiroyasu Yoneda, Yoshiro Tsutsui
This study investigated how the various characteristics of Homo economicus (intellectual ability, self‐control, selfishness, fairness and pursuit of monetary gain) correlate with individual performance. We adopted income and happiness as measures of individual performance. Using large‐scale survey data from Japan and the USA, we found that: (i) generally, Homo economicus is an ideal person from the
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Does Trade Elasticity Vary Across Regimes? New Evidence from Korean Exports, Incorporating Regime Changes* Asian Economic Journal (IF 1.121) Pub Date : 2021-02-05 Sei‐Wan Kim, Moon Jung Choi
We examined whether the elasticities of Korean exports with respect to global GDP and to the exchange rate vary depending on exports’ expansionary or contractionary regimes. Our empirical analysis incorporated regime changes and cointegration into a multivariable smooth transition autoregressive vector error correction model. Our estimation results revealed asymmetries in the short‐run elasticities
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Trade Liberalization and Income Distribution in Vietnam: Dynamic CGE Approach* Asian Economic Journal (IF 1.121) Pub Date : 2021-02-05 Manh Toan Nguyen, Tung Lam Dang, Thi Hong Hanh Huynh
This study examines the influence of trade liberalization on income distribution among different household groups in Vietnam using the dynamic computable general equilibrium (CGE) framework. To accomplish this objective, we developed a multi‐sector, multi‐household dynamic CGE model and the corresponding social accounting matrix for Vietnam. Our simulation results show that in the long run, all household
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Erratum Asian Economic Journal (IF 1.121) Pub Date : 2020-11-27
The Publisher would like to draw the readers’ attention to an error in the following article: Akiyama, Y., H. Hill, S. Ichimura, A. Kohsaka and S. Urata, 2020, Professor Yasuhiko Torii: An Obituary. Asian Economic Journal, 34, pp. 233‐36. The received and accepted dates of this article should be deleted as they were not present in the original manuscript. The Publisher apologizes for the error and
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Determinants of Corporate Bankruptcy: Evidence from Chaebol and Non‐Chaebol Firms in Korea Asian Economic Journal (IF 1.121) Pub Date : 2020-11-27 Jounghyeon Kim
Using a panel dataset for the period of 1991–2001, the present paper explores the significant determinants that indicate the likelihood of bankruptcy for chaebol and non‐chaebol firms in Korea, and identifies the differences in the determinants between the two types of firms, with an emphasis on their ownership and financial structures. Logit bankruptcy regressions show that largest shareholder ownership
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Access to Antenatal Care in Laos: Analysis Using National Level Survey* Asian Economic Journal (IF 1.121) Pub Date : 2020-11-27 Phanhpakit Onphanhdala, Vanvisa Philavong, Yoshihiko Kadoya, Mostafa S. Rahim Khan
Laos has the highest maternal mortality rate in Southeast Asia. The present study examines antenatal care and birth location in relation to the residence, household education levels, wealth, ethnicity, age and media interest of pregnant women. The logit and OLS regression results show that pregnant women living in urban areas and rural areas with roads, from wealthy families, in the Lao ethnic group
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Gender Difference in Returns to Education Independent of Gender Wage Gap in Korea* Asian Economic Journal (IF 1.121) Pub Date : 2020-08-11 Jaeram Lee, Jungjoon Ihm
This study examined the difference between male and female groups’ return on investment (ROI) in education independent of the average gender wage gap. Women’s additional ROI in education was significant and positively estimated. Furthermore, the ROI in women’s education was consistently higher than that in men regardless of educational stage, except for graduate education. These gender differences
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Economic Effect of Zoning Regulations on Korea's Small and Medium‐Sized Retailers* Asian Economic Journal (IF 1.121) Pub Date : 2020-08-11 Hahn Shik Lee, Jinhwa Chung, Woohyoung Kim
In this paper, we investigated the economic effects of zoning regulations on the retail industry in Korea. We estimated the changes in the number of sales for retail stores using a panel regression analysis for stores in traditional markets. This analysis was conducted to examine the benefit of zoning regulations on retail stores. Our results show that the zoning regulations (called Traditional Commercial
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Fiscal Sustainability of Local Governments in Japan† Asian Economic Journal (IF 1.121) Pub Date : 2020-08-11 Motonori Yoshida
The total amount of Japan's local government (LG) expenditures exceeds its central government (CG) expenditures. Japan's LG and CG are responsible for the worst general government's debt situation among the G7 countries. The paper elucidated the fiscal reactions of Japan's prefecture governments (PGs) based on Bohn's (1998a, 2005) method with a panel dataset (44PGs, fiscal years 1974–2016), addressing
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Consumers' Valuation of Geographical Indication‐Labeled Food: The Case of Hom Mali Rice in Bangkok* Asian Economic Journal (IF 1.121) Pub Date : 2020-06-09 Ji Yong Lee, Noppawong Pavasopon, Orachos Napasintuwong, Rodolfo M. Nayga
This study investigated consumers' valuation of geographical indication (GI) and protected geographical indication (PGI)‐labeled rice in Bangkok using a non‐hypothetical experimental auction in a field setting. We also examined the effects of sequentially providing information about geographical indications on product valuation. The results suggest that consumers are willing to pay premiums for rice
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Intranational Consumption Risk Sharing in South Korea: 2000–2016 Asian Economic Journal (IF 1.121) Pub Date : 2020-06-09 Joongsan Ko
This paper examines consumption risk sharing among 16 regions in South Korea over the 2000–2016 period. The empirical results show that 91.8 percent of shocks to gross regional domestic product are smoothed in South Korea. Capital markets, the tax‐transfer system and credit markets absorb 29.9, 28.9 and 33.0 percent of shocks to gross regional domestic product, respectively. Most notably, South Korea
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Price‐Setting Behavior of Korean Firms† Asian Economic Journal (IF 1.121) Pub Date : 2020-06-09 SungJu Song, Myung‐Soo Yie, Chang‐Gui Park
This paper investigates a pattern of price revision by firms in Korea and sheds light on the cause of price stickiness by providing reliable statistical estimates for calibration of the parameters of the widely‐used macro‐models. Based on firm‐level survey data and using a probit model, we identify the firm characteristics or market conditions that discourage firms from carrying out state‐dependent
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Pandemic (COVID‐19) Policy, Regional Cooperation and the Emerging Global Production Network† Asian Economic Journal (IF 1.121) Pub Date : 2020-06-09 Fukunari Kimura, Shandre Mugan Thangavelu, Dionisius Narjoko, Christopher Findlay
In this paper, we explore the possible policy responses to the COVID‐19 pandemic shock as well as the related economic (financial crisis) shocks on trade and global value chains (GVC) in East Asia. We find that regional policy coordination is critical to mitigate and isolate the pandemic shock. It is important to identify the pandemic events early to flatten the pandemic curve at the national and regional
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Professor Yasuhiko Torii: An Obituary Asian Economic Journal (IF 1.121) Pub Date : 2020-06-01 Yutaka Akiyama,Hal Hill,Shin‐ichi Ichimura,Akira Kohsaka,Shujiro Urata
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Convergence and Intercountry Inequality within Asia: A Combined Approach Using Decomposition Techniques and Transitional Dynamics Analysis Asian Economic Journal (IF 1.121) Pub Date : 2020-02-19 Lafang Wang, Tsun Se Cheong, Yanrui Wu, Jianxin Wu
This study provides a comprehensive analysis of intercountry inequality and convergence in Asia by using a combined approach that is based on decomposition techniques and transitional dynamics analysis. The research is divided into three stages. First, decomposition by regional subgroups is conducted to estimate the contributions of the interregional component and the five spatial groupings to overall
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Shift from Input‐based Growth to Productivity‐based Growth in Korean Manufacturing Industry Asian Economic Journal (IF 1.121) Pub Date : 2020-02-19 Chao Wu, Taegi Kim, Keunyeob Oh
The Korean economy has entered a period of relatively sluggish growth after experiencing very dynamic and high economic growth since the 1970s. The recent growth rate has been around 3 percent, which is similar to that in many advanced countries. According to growth accounting, economic growth is possible because of input increases and productivity increases. Productivity growth is much more important
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Local Governance: Impacts of Fiscal Decentralization on Government Size and Spending Composition in Vietnam* Asian Economic Journal (IF 1.121) Pub Date : 2020-02-19 Su D. Thanh, Nguyen P. Canh
The study provides an understanding of the impacts of fiscal decentralization and local governance on government size and spending composition. We use a balanced panel data set of 63 provinces of Vietnam over the 2006–2015 period. By estimating the spatial Durbin model, we find that local public spending and government size grow over time and have spatial spillovers. Fiscal decentralization significantly
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Analyzing the Dynamic Relationships between Physical Infrastructure, Financial Development and Economic Growth in India Asian Economic Journal (IF 1.121) Pub Date : 2020-02-19 Ranjan K. Mohanty, N. R. Bhanumurthy
This paper investigates the dynamic relationships between physical infrastructure, financial development and economic growth in the case of India, using the autoregressive distributed lag and the Toda–Yamamoto causality approach for the period 1980 to 2016. A physical infrastructure index and a financial development index are constructed using the principal component analysis. The empirical results
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Determinants of Smallholder Farmers' Marketing Channel Choice: Evidence from the Vietnamese Rice Sector Asian Economic Journal (IF 1.121) Pub Date : 2019-11-28 Thai Thuy Pham, Ludwig Theuvsen, Verena Otter
Cash crops such as specialty rice and other high‐value varieties produced for domestic and international markets are considered an increasing source of income for smallholder farmers in many Asian countries. The present study focuses on the factors affecting Vietnamese specialty rice farmers' choice of marketing channel and how their choice influences farm performance. The analysis has been conducted
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Does Air Pollution Affect Consumption Behavior? Evidence from Korean Retail Sales* Asian Economic Journal (IF 1.121) Pub Date : 2019-11-28 Hyunju Kang, Hyunduk Suh, Jongmin Yu
Using monthly regional panel data on air quality and large retail store sales in Korea, we empirically examine the effect of air pollution on retail sales. We account for regional heterogeneity in air pollution and control for various macroeconomic and climatic factors that can affect retail sales. We also use the air quality indicator in the west coastal islands (affected by trans‐border pollution
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Do Non‐exporting Plants Benefit from Exporting Peer Plants?* Asian Economic Journal (IF 1.121) Pub Date : 2019-11-28 Hyunbae Chun, Jung Hur, Nyeong Seon Son, Haeyeon Yoon
This study examines indirect spillover effects at plant level within firms by analyzing the performance of non‐exporting plants with exporting peer plants by using Korean plant–firm matched data from 2007 to 2013. Our results show that there are no significant differences in growth between non‐exporting plants and their exporting peer plants in the same firms, whereas significant differences exist
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Roles of Income Polarization, Income Inequality and Ethnic Fractionalization in Social Conflicts: An Empirical Study of Indonesian Provinces, 2002–2012 Asian Economic Journal (IF 1.121) Pub Date : 2019-08-21 Indra, Suahasil Nazara, Djoni Hartono, Sudarno Sumarto
Previous studies have cited inequality as a major factor relating to conflicts in Indonesia, while consideration of polarization and fractionalization as drivers of conflict is limited. The current paper examined the roles of three indices (polarization, inequality and fractionalization) in explaining the incidence of conflicts in Indonesian provinces over 2002–2012. This study used income (proxied
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What Factors Determine Whether Small and Medium Enterprises Obtain Credit from the Formal Credit Market? The Case of Vietnam Asian Economic Journal (IF 1.121) Pub Date : 2019-08-21 Nguyet Thi Khanh Cao
Using a survey of Vietnamese small and medium enterprises (SMEs) conducted during 2005–2013, this paper examines the process of applying for a formal loan and the level of satisfaction (credit needs) obtained by SMEs. The empirical results show that banking relationships and the business environment are important factors when applying for and obtaining formal credit. However, positive measures of firms'
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Aging Workforce, Firm Productivity and Labor Costs in Korea: Are Older Workers Costly to Firms? Asian Economic Journal (IF 1.121) Pub Date : 2019-08-21 Joobong Kim
Are older workers costly to firms? This study aims to investigate the relationship between an aging workforce on firm productivity and labor costs using a unique Korean firm‐level panel dataset (WPS) covering the period from 2007 to 2011. The primary results show no evidence of a negative relationship between the proportion of older workers and firm productivity, and no significant relationship between