Recent research

Publication type: Working paper

Title: Measuring trade in value added: How valid is the proportionality assumption?

Author(s): Arianto A. Patunru,Prema-chandra Athukorala

Excerpt:

The validity of the ‘proportionality assumption’ made in estimating value added in exports using aggregate input-output tables is tested using separately compiled domestic- and imported-input matrices for Indonesia, Thailand, Malaysia, Taiwan, and Australia. The results show that the use of the proportionality assumption results in overestimation of value-added exports, and that the magnitude of the bias becomes amplified when the export composition of a country shifts from primary products to manufactured goods through integration into global production networks.

Date of publication: 2019

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Publication type: Working paper

Title: Does international reserve accumulation crowd out domestic private investment?

Author(s): Wishnu Mahraddika

Excerpt:

Foreign exchange reserve accumulation is one of the preferred strategies to protect against susceptibility to financial crises. At the same time, maintaining a healthy international reserve position has the potential to promote domestic investment by reducing the cost of foreign borrowing through improving international creditworthiness. However, contractionary monetary policy in the form of sterilization operations implemented as part of reserve accumulation strategy could crowd out financing for domestic investment.

Date of publication: 2019

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Publication type: Working paper

Title: The impact of blackouts on the performance of micro and small enterprises: Evidence from Indonesia

Author(s): Anna T. Falentina,Budy P. Resosudarmo

Excerpt:

Reliability of electricity supply is one of pressing challenges to many micro and small enterprises (MSEs) in developing countries. MSEs play a pivotal role in employment generation in these countries, but productivity of MSEs is relatively low. Little is known about how blackouts affect performance of MSEs. This paper is the first study to estimate the impact of power blackouts on productivity of manufacturing MSEs and to discuss the role of the government in addressing problem.

Date of publication: 2019

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Publication type: Publications

Title: Closures of coal-fired power stations in Australia: local unemployment effects

Author(s): Paul J. Burke,Rohan Best,Frank Jotzo

Excerpt:

Around one-third of Australia’s coal-fired power stations closed between 2012 and 2017, with most of the remainder expected to close over coming decades. Current investment in generation capacity is primarily in the form of alternative power, especially wind and solar. In this paper, we conduct an event study to assess the local unemployment effects of Australia’s coal-fired power station closures, an issue of considerable interest given the prominence of coal-fired power stations in local economies.

Date of publication: 2019

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Publication type: Publications

Title: Global and regional financial integration in East Asia and the ASEAN

Author(s): Renée Fry-McKibbin,Cody Yu-Ling Hsiao,Vance L.Martin

Excerpt:

Financial integration is East Asia and the ASEAN nations is investigated using a new approach based on entropy theory. An important advantage of the proposed framework is that it takes into account changes in integration arising from higher order moments including coskewness and cokurtosis as well as more traditional measures based on second order moments. The analysis focusses on the role of the U.S. in understanding changes in global integration over time, as well as changes in regional integration arising from China.

Date of publication: 2018

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Publication type: Working paper

Title: Electricity subsidy reform in Indonesia: Demand-side effects on electricity use

Author(s): Paul J Burke,Sandra Kurniawati

Excerpt:

Indonesia’s budget has for years been burdened by large subsidies for electricity consumption. A series of recent reforms has delivered a substantial reduction in these subsidies. In this paper we estimate demand-side effects of these reforms on electricity use. Our analysis utilizes a three-dimensional dataset covering six consumer groups, 16 regions, and 1992–2015. We control for various fixed effects, and use an instrumental variable approach.

Date of publication: 2018

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Publication type: Working paper

Title: Macroeconomic impacts of the 2010 earthquake in Haiti

Author(s): Rohan Best,Paul J Burke

Excerpt:

In this paper we use the synthetic control method to estimate the macroeconomic losses from the 2010 earthquake in Haiti, one of the most severe natural disasters in the modern era. The macroeconomic effects of the earthquake were equal to an average loss of up to 12 percent of gross domestic product over the period 2010–2015. While surges in imports and foreign aid supported a temporary increase in aggregate consumption, aggregate investment and services-sector output experienced large contractions. The road transport sector was severely affected.

Date of publication: 2017

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Publication type: Working paper

Title: Economic corridors and regional development: The Malaysian experience

Author(s): Prema-chandra Athukorala,Suresh Narayanan

Excerpt:

This paper examines prerequisites for a successful inter-state economic corridor development program in a country with a federal system of government through an in-depth study of the design, implementation and the developmental impact of the Northern Corridor Economic Region (NCER) in Malaysia that encompasses the states of Penang, Kedah, Perak and Perlis.

Date of publication: 2017

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