Regional growth and sustainable development in asia

New Frontiers in Regional Science: Asian Perspectives Amitrajeet A Batabyal Peter Nijkamp Editors Regional Growth and Sustainable Development in Asia New Frontiers in Regional Science: Asian Perspectives Volume Editor in Chief Yoshiro Higano, University of Tsukuba, Tsukuba, Ibaraki, Japan Managing Editors Makoto Tawada (General Managing Editor), Aichi Gakuin University Kiyoko Hagihara, Bukkyo University Lily Kiminami, Niigata University Editorial Board Sakai Yasuhiro (Advisor Chief Japan), Shiga University Yasuhide Okuyama, University of Kitakyushu Zheng Wang, Chinese Academy of Sciences Yuzuru Miyata, Toyohashi University of Technology Hiroyuki Shibusawa, Toyohashi University of Technology Saburo Saito, Fukuoka University Makoto Okamura, Hiroshima University Moriki Hosoe, Kumamoto Gakuen University Budy Prasetyo Resosudarmo, Crawford School of Public Policy, ANU Shin-Kun Peng, Academia Sinica Geoffrey John Dennis Hewings, University of Illinois Euijune Kim, Seoul National University Srijit Mishra, Indira Gandhi Institute of Development Research Amitrajeet A Batabyal, Rochester Institute of Technology Yizhi Wang, Shanghai Academy of Social Sciences Daniel Shefer, Technion - Israel Institute of Technology Akira Kiminami, The University of Tokyo Advisory Board Peter Nijkamp (Chair, Ex Officio Member of Editorial Board), Free University Amsterdam Rachel S Franklin, Brown University Mark D Partridge, Ohio State University Jacques Poot, University of Waikato Aura Reggiani, University of Bologna New Frontiers in Regional Science: Asian Perspectives This series is a constellation of works by scholars in the field of regional science and in related disciplines specifically focusing on dynamism in Asia Asia is the most dynamic part of the world Japan, Korea, Taiwan, and Singapore experienced rapid and miracle economic growth in the 1970s Malaysia, Indonesia, and Thailand followed in the 1980s China, India, and Vietnam are now rising countries in Asia and are even leading the world economy Due to their rapid economic development and growth, Asian countries continue to face a variety of urgent issues including regional and institutional unbalanced growth, environmental problems, poverty amidst prosperity, an ageing society, the collapse of the bubble economy, and deflation, among others Asian countries are diversified as they have their own cultural, historical, and geographical as well as political conditions Due to this fact, scholars specializing in regional science as an inter- and multidiscipline have taken leading roles in providing mitigating policy proposals based on robust interdisciplinary analysis of multifaceted regional issues and subjects in Asia This series not only will present unique research results from Asia that are unfamiliar in other parts of the world because of language barriers, but also will publish advanced research results from those regions that have focused on regional and urban issues in Asia from different perspectives The series aims to expand the frontiers of regional science through diffusion of intrinsically developed and advanced modern regional science methodologies in Asia and other areas of the world Readers will be inspired to realize that regional and urban issues in the world are so vast that their established methodologies still have space for development and refinement, and to understand the importance of the interdisciplinary and multidisciplinary approach that is inherent in regional science for analyzing and resolving urgent regional and urban issues in Asia Topics under consideration in this series include the theory of social cost and benefit analysis and criteria of public investments, socioeconomic vulnerability against disasters, food security and policy, agro-food systems in China, industrial clustering in Asia, comprehensive management of water environment and resources in a river basin, the international trade bloc and food security, migration and labor market in Asia, land policy and local property tax, information and communication technology planning, consumer “shop-around” movements, and regeneration of downtowns, among others More information about this series at http://www.springer.com/series/13039 Amitrajeet A Batabyal • Peter Nijkamp Editors Regional Growth and Sustainable Development in Asia Editors Amitrajeet A Batabyal Department of Economics Rochester Institute of Technology Rochester, NY, USA Peter Nijkamp Department of Spatial Economics Tinbergen Institute Amsterdam, The Netherlands ISSN 2199-5974 ISSN 2199-5982 (electronic) New Frontiers in Regional Science: Asian Perspectives ISBN 978-3-319-27587-1 ISBN 978-3-319-27589-5 (eBook) DOI 10.1007/978-3-319-27589-5 Library of Congress Control Number: 2016959989 © Springer International Publishing Switzerland 2017 This work is subject to copyright All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made Printed on acid-free paper This Springer imprint is published by Springer Nature The registered company is Springer International Publishing AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland One’s days were too brief to take the burden of another’s errors on one’s shoulders Each man lived his own life and paid his own price for living it The only pity was one had to pay so often for a single fault One had to pay over and over again, indeed In her dealings with man, destiny never closed her accounts The Picture of Dorian Gray, Oscar Wilde Acknowledgments This book would not have been possible without the assistance of several scholars dispersed throughout the world Hence, we would like to thank the contributors of the individual chapters of this book for their enthusiastic participation in this timeconsuming project The enthusiasm of the contributors is richly on display in the high quality chapters they have written on various aspects of regional growth and sustainable development in Asia, the subject matter of this book Batabyal would like to acknowledge the support he received from Swapna B Batabyal and Sanjana S Batabyal during the long gestation period of this book In addition, he would like to recognize the financial support he received from the Gosnell endowment at the Rochester Institute of Technology Finally, he would like to dedicate this book to the memory of Balarka A Batabyal (1966–2010) Nijkamp thanks the Tinbergen Institute in Amsterdam and A Mickiewicz University in Poznan, Poland, for providing an intellectually stimulating environment during the preparation of this book Rochester, New York Amsterdam, The Netherlands August 2016 Amitrajeet A Batabyal Peter Nijkamp vii Contents Part I Introduction to Regional Growth and Sustainable Development in Asia Amitrajeet A Batabyal and Peter Nijkamp Part II Poverty Spatial Disparities and Poverty: The Case of Three Provinces in the Philippines Ronald U Mendoza, Rosechin Olfindo, and Camille Regina Maala Decomposing Poverty Change in India: Withinand Between-Group Effects Across Regions, 2004–2005 and 2009–2010 Srijit Mishra Pathways Out of Rural Poverty and the Role of Agriculture in Four Rice Ecosystems in the Rural Philippines Nobuhiko Fuwa and Esther B Marciano Part III Introduction 23 41 63 Energy and Climate Change Reducing Petroleum Subsidy in Indonesia: An Interregional General Equilibrium Analysis Arief A Yusuf, Arianto A Patunru, and Budy P Resosudarmo 91 An Evaluation of Energy-Environment-Economic Efficiency for Asian Countries: A Proposal for a Time-Series Target-Oriented DFM Model in Data Envelopment Analysis 113 Soushi Suzuki and Peter Nijkamp ix x Contents Climate Change and Threats to Sustainability in South East Asia: Dynamic Modelling Approach for Malaysia 133 Gamini Herath and Akram Hasanov Part IV Money and Macroeconomics Learning About the Role of Market Micro-Structure from HighFrequency Data on Asian Banks 151 Biplob Chowdhury, Mardi Dungey, Nagaratnam Jeyasreedharan, and Mohammad Abu Sayeed Dynamic Macroeconomic Performance of Indian States: Some Post-Reform Evidence 181 Debashis Acharya and Biresh K Sahoo Part V Ageing, Education, Production, and the Internet 10 Dynamic Impact of Population Aging on Regional Economies in Korea Using a Recursive-Dynamic Interregional CGE-Population Model 201 Euijune Kim, Geoffrey J.D Hewings, and Changkeun Lee 11 Educational Attainment and Learning in India, 2004–2012 221 Farzana Afridi and Bidisha Barooah 12 SME Participation in Global Production Networks: Analytical Issues and Evidence from Penang, Malaysia 237 Prema-Chandra Athukorala 13 The Internet in Nepal: WiMAX Broadband Service 263 Jitendra Parajuli and Kingsley E Haynes Index 283 Contributors Debashis Acharya School of Economics, University of Hyderabad, Hyderabad, India Farzana Afridi Economics and Planning Unit, Indian Statistical Institute, New Delhi, India Prema-chandra Athukorala Arndt-Corden Department of Economics, Crawford School of Economics and Government, College of Asia and the Pacific, Australian National University, Canberra, ACT, Australia Bidisha Barooah International Initiative for Impact Evaluation, New Delhi, India Amitrajeet A Batabyal Department of Economics, Rochester Institute of Technology, Rochester, NY, USA Biplob Chowdhury Tasmanian School of Business and Economics, University of Tasmania, Hobart, TAS, Australia Mardi Dungey Tasmanian School of Business and Economics, University of Tasmania, Hobart, TAS, Australia Nobuhiko Fuwa Graduate School of Public Policy, University of Tokyo, Tokyo, Japan Akram Hasanov School of Business, Monash University Malaysia, Jalan Lagoon Selatan, Bandar Sunway 46150, Selangor, Malaysia Kingsley E Haynes Schar School of Policy and Government, George Mason University, Arlington, VA 22201, USA Melbourne Sustainable Society Institute, University of Melbourne, Australia Gamini Herath School of Business, Monash University Malaysia, Jalan Lagoon Selatan, Bandar Sunway 46150, Selangor, Malaysia Geoffrey J.D Hewings Regional Economics Applications Laboratory, University of Illinois, Urbana-Champaign, IL, USA xi The Internet in Nepal: WiMAX Broadband Service 275 Fig Distribution of WiMAX base stations Source: NT (2015) Table Summary statistics Variable definition Dependent variable lwimax: log of base stations Independent variables lpcincppp: log of per capita income lpopden: log of population density ltotroadlen: log of total road length lelevation: log of elevation of the district centroid Observations Mean Standard deviation Minimum Maximum 73 1.2661 0.8472 0.0000 4.2341 73 6.9222 0.3549 6.1883 8.0602 73 5.0991 1.1801 1.0685 8.3929 73 5.0100 0.5658 3.1781 5.9292 73 6.6026 1.1489 4.5643 8.3941 Source: Authors’ calculations on average, about 47 % less WiMAX base stations than the districts in the far-western development region, ceteris paribus Similarly, controlling for other variables, the districts in the central development region estimated to have, on average, 39 % less WiMAX compared to the districts in the far-western development region The adjusted-R square of Model was larger than that of Model and suggested that the inclusion of region variables improved the predictive power of Model Finally, between the two competing models, Model had the lower AIC value indicating that it provided a better fit compared to Model NT could be capable of providing ubiquitous WiMAX infrastructure in the country However, infrastructure investment is capital-intensive and resources are scares such that over- or under-provisioning of Internet infrastructure can lead to 276 J Parajuli and K.E Haynes Table Correlation matrix lwimax lpcincppp lpopden ltotroadlen lelevation lwimax 1.0000 0.3628 0.5955 0.3990 À0.4963 lpcincppp lpopden ltotroadlen lelevation 1.0000 À0.0072 À0.1047 À0.0051 1.0000 0.4707 À0.6095 1.0000 À0.4354 1.0000 Source: Authors’ calculations Table Regression models Intercept lpcincppp lpopden ltotroadln lelevation Dependent variable: lwimax Model (restricted) À7.0574*** (À3.88) 0.9139*** (4.61) 0.2992*** (3.84) 0.2554* (1.77) À0.1224 (À1.56) Eastern development region Central development region Western development region Midwestern development region Observations R sq Adj-R sq Shapiro–Wilk test Breusch–Pagan test Mean variance inflation factor AIC 73 0.5376 0.5104 0.9830 χ 2(1) ¼ 0.53 1.45 135.64 Model (unrestricted) À8.0776*** (À4.44) 1.0963*** (4.85) 0.3614*** (4.75) 0.2251* (1.69) À0.1408* (À1.94) À0.6416** (À2.47) À0.4963* (À1.84) 0.0802 (0.31) À0.1905 (À0.79) 73 0.6359 0.5904 0.9655 χ 2(1) ¼ 1.27 2.25 126.18 Note: t-statistics in parentheses *Significant at the 10 % level, **significant at the % level, and ***significant at the % level Source: Authors’ calculations The Internet in Nepal: WiMAX Broadband Service 277 inefficient allocation of resources (see Parajuli and Haynes 2012) Thus, the provision of WiMAX infrastructure is likely to be contingent upon the demand and supply of WiMAX Internet services Insomuch that a district at a lower elevation having individuals with high income and population density and a pervasive road network, it is likely to demand more WiMAX services and that the district is likely to have a large number of Internet users NT, on the other hand, is likely to supply WiMAX services in such districts as they are more lucrative in terms of investment and returns Hence, it can be argued that the districts with a large number of WiMAX base stations (supply) are also the districts that have a large number of WiMAX Internet users (demand) in Nepal Based on these arguments, the results of this study are consistent with the earlier findings Garcia-Murillo (2005) and Wallsten (2005) had noted that per capita personal income is positively associated with the number of Internet users, which was also true in the case of Nepal Likewise, Garcia-Murillo (2005) had found that population density is significant and positively associated with the percentage of Internet users It can be inferred that districts with high population densities are likely to enjoy a larger share of Internet infrastructure and thus Internet users That is, in developing economies, alternative infrastructure and the Internet demand are likely to complement each other According to Goodman et al (2000) and Ulrich (2012), the shortage of alternate infrastructure, such as electric power, hinders the use of the Internet It can also be argued that electronic commerce services need transportation networks to distribute merchandizes and services Hence, the availability of alternate infrastructure is likely to be attractive for Internet infrastructure investment and districts with different types of alternate infrastructure probably have more Internet users It is often a big challenge to provide information services in rural, mountainous regions (see Peha 1999; Poudel 2010) unless there are possibilities of substantial returns on investment (see Sutherland 2011) Equipment installation, network expansion, line-of-sight propagation, and repair and maintenance are also problematic in harsh terrain Thus, with the increasing elevation, NT is deterred to invest in WiMAX infrastructure and that the number of Internet users in districts at higher elevation is probably small Finally, the availability of the Internet and number of users vary across regions (see Andres et al 2010; Xiaoming and Kay 2004), which is also true in the case of Nepal Conclusion This chapter examined two aspects of Internet growth in Nepal with reference to WiMAX services First, ARIMA models were calibrated to forecast the growth of the Internet subscribers At the national level, it was found that the number of WiMAX subscribers will continue to grow in the short run Second, regression models were estimated to test the association between WiMAX base stations and various determinants of Internet development At the district level, per capita 278 J Parajuli and K.E Haynes income, population density, and total road length were positively associated with WiMAX infrastructure Elevation, on the other hand, was negatively associated with WiMAX base stations In addition, the availability of WiMAX infrastructure varied significantly across the regions of Nepal In Nepal, the number of Internet subscribers is steadily increasing Government, businesses, healthcare services, and others are using the Internet to streamline their activities and to provide online services Community centers as well as social initiatives are also helping to expand Internet access and facilities However, based on the findings of this study, it can be argued that [WiMAX] Internet services are likely to be concentrated in districts with higher per capital income, population density, and the availability of alternate infrastructure, and lower elevation Moreover, the number of Internet users is also likely to grow in such districts These findings suggest that digital inequality will continue to persist and that a large number of people will not be able to reap the benefits of the Internet revolution unless the public sector takes some responsibility for expanded access The Broadband Policy of 2015 recognizes the importance of high-speed Internet services However, NT has the infrastructural and financial leverage that other providers lack (see NT 2014) In addition to WiMAX service, NT is also the sole provider of high-speed Internet service based on digital subscriber lines ISPs provide cable/optical fiber-based Internet services, but they are mostly urbancentric (see NTA 2015a) Moreover, some recent studies have noted that ISP licensing fees are exorbitant and hinder the growth of ISPs (Shields 2009); local contents are limited or nonexistent (Poudel 2010); males are the dominant users of this technology (Lee and Sparks 2013); bad governance favors corruption instead of market competition (Sutherland 2011) in the country Addressing these issues is still a big challenge to the government Because of data limitations, this study used WiMAX 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Agricultural growth, 65, 68–70, 84 Agricultural income, 70 Agricultural vs non-agricultural pathways, 70, 74, 75 Agriculture, Philippines, 9, 10 Akaike information criterion (AIC) value, 142, 275 AKN Technologies, 250 Ancillary industries, 247, 248 Archipelago, 10 Armington approach, 203 Asia, 3, 5, 6, 11, 12, 18, 122, 126, 134, 221 climate policy, 145 Asian countries, 121, 122, 125–128 banking markets, 151 energy-environment-economic efficiency, 11, 121–128 CCR and DFM models, 125, 126 database and analytical framework, 121 super-efficiency CCR-I model, 122 TS-TO-DFM model, 126–128 Asian crisis of 1997–98, 152 Asian Drama, Augmented Dickey-Fuller (ADF) test, 270, 271 Autocorrelation function (ACF), 270 Autonomous Region of Muslim Mindanao (ARMM), 24 Autoregressive integrated moving average (ARIMA) method, 269, 272, 274 B Banker, Charnes and Cooper (BCC) DEA model, 187 Barndorff-Neilsen jump test, 163 BCM Electronics, 251 Below poverty line (BPL), 224, 225 Beta, 13 Between-group effects, 8, 57 Bipower variation (BV), 157, 162, 164, 165, 167, 168 Bosch, 246 Box-Jenkin method, 269 Broadband Policy of 2015, 265, 278 Broadband technologies, 268 Brownian motion, 156 Budget recycling mechanisms, 104 C Calmfors index, 182 Capital asset pricing model (CAPM), 158 Catching up (CU), 187, 188, 192 Center for Economics and Development Studies (CEDS), 100 Ceteris paribus, 273, 275 China, 91 Clarion, 246 Climate change, 6, 12, 37, 38, 133–139 adaptation systems, 38 energy-environment-economic efficiency in Asian nations, 11 food security, 136–138 © Springer International Publishing Switzerland 2017 A.A Batabyal, P Nijkamp (eds.), Regional Growth and Sustainable Development in Asia, New Frontiers in Regional Science: Asian Perspectives 7, DOI 10.1007/978-3-319-27589-5 283 284 Climate change (cont.) impacts, 137 natural disasters, 138, 139 Malaysia, 12 petroleum subsidies in Indonesia, 10–12 SEA deforestation, 134, 135 globalization and rapid economic growth, 135, 136 Commodity, 96 Constant elasticity of substitution (CES) technology, 101 D Data and analysis, 43, 44 incidence, 55 region-specific growth, inequality and population effects, 56–57 within-group and between-group effects, 57 Data envelopment analysis (DEA), 6, 11, 113, 182, 183 efficiency improvement projection, 129 super-efficiency, 130 Decision making units (DMUs), 11, 114, 117, 118, 120–122, 128, 130 Decomposition, 6, 43, 44, 159, 160, 167, 174 poverty in India, 8, Deforestation, SEA, 134, 135 Demographic dividend, 9, 221, 223 Diffusion beta, 161 Distance Friction Minimisation (DFM) model, 114, 119, 120 CCR and, 125 overview, 115–117 time-series target-oriented, 117–120 Downward mobility, 74 Dynamic Macroeconomic Performance (DMEP), India, 187–190 catching up, 192 data, 186 economic linkage with FDI, 194 environmental change, 192 inequality, 193 methodology, 186 Malmquist-type approach, 187–189 measuring MEP, 187 poverty, 193 present study, 185 results, 189–193 states ranked, 190 volatility, 191, 194 Index E East Asian crisis of 1997–98, 151 Eastern Samar, 24, 28, 30–37 characteristics, 28–29 high vulnerability to shocks, 32, 33 lack of supporting policy environment, 35–37 limited connectivity with markets, 33–35 low skills and education, 30–32 small entrepreneurs, 34 good governance index, 36 poverty, 29, 30 Economic growth, 3, 4, 153, 223 analysis, harmonious, in India, Economic linkage with FDI, 194 Economy-wide policies, 241–243 Education, 6, 7, 24, 27, 28, 30–33, 38, 93, 95, 109, 201, 203, 204, 207, 208, 210, 211, 214, 222, 223, 233, 234, 236, 266, 268 parental, 233 participation, 225, 226 Educational attainment and learning, India, 15, 16, 225–227, 229, 233, 235 data, 224, 225 empirical analysis learning, 227, 229, 233, 235 participation in education, 225, 226 learning scores, 234, 235 math skills, 230 proportion, 226, 227 reading skills, 229 schooling attained, 228 statistics, 224, 226 Educational interventions, 222 Educational investment, 15, 207–210 Efficiency improvement projection CCR and DFM models, 125 DEA and, 129 TS-TO-DFM model, 126, 128 Electromagnetic compatibility (EMC) laboratory, 258 Electronic Government Master Plan of 2006, 265 Electronics industry, 245 Elsoft Research, 250 Empirical analysis learning, 227, 229, 233, 235 participation in education, 225, 226 Index Employment creation, 94 Energy consumption, 121 efficiency, 96 energy-environment-economic efficiency in Asian nations, 11 petroleum subsidies in Indonesia, 10–12 Energy-environment-economic efficiency, 11, 121–128 CCR and DFM models, 125, 126 database and analytical framework, 121 super-efficiency CCR-I model, 122 TS-TO-DFM model, 126–128 Energy subsidy, 10, 91, 93 employment creation, 94 environmental issue, 96 fiscal pressure, 95 industrial competitiveness and development, 93–94 rural economy and small enterprises, 94–95 supporting politics, 95–96 Eng Teknologi Holdings, 249 Environmental change (EC), 187, 188, 192 Estimated Income Tax Return System, 265 Export hub, evolution, 246–247 F Fiscal balance, 186 Fiscal pressure, 95 Fiscal Responsibility and Budget Management (FRBM), 184 Flex circuit board assembly (FCBA), 246 Food security, climate change, 136–139 impacts, 137 natural disasters, 138, 139 Foreign direct investment (FDI), 14, 184, 185, 195, 239, 242, 268 DMEP, 194 Foundation for Advanced Studies on International Development (FASID), 67 Free disposal hull (FDH) model, 183 Free-port status, 244 Free trade zones (FTZs), 245 Fuel subsidy, removal, 105 G Global environmental governance (GEG), 145 Globalization and rapid economic growth, SEA, 135, 136 Global production networks, 7, 16–17, 237, 238, 240–244, 258 Global production sharing, SMEs, 16, 17, 237–244, 246, 258 285 phenomenon, 238–241 policy options, GPNs, 241–244 Global Supplier Development Programme (GSDP), 257 Green-house gas (GHG), 133, 134, 145, 146 Gross domestic product (GDP), 15 Gross regional product (GRP), 207 Gross state domestic product (GSDP), 14, 181–183, 185, 187 Growth, 23, 25–27, 39, 41–44, 56–58, 63–70, 75, 77, 78, 83–86, 113, 114, 134–136, 144, 151–153, 176, 177, 181–184, 186, 187, 193–195, 201–203, 207, 208, 210, 221–223, 237, 244, 248, 257, 264, 265, 267, 268, 270, 277, 278 elasticity, 66 GDP, 209 GSDP, 182 investment, 207 Growth-inequality-population, 42 Growth-population-inequality, 42 H Hausman test, 191, 194 Hayami-Kikuchi village, 67 HealthNet project, 266 Hewlett Packard, 246 High frequency data, 154, 155 Highly urbanized areas, 23 Hitachi, 246 Horizontal trade, 237 Household-survey data, 69 Human capital, 7, 16, 27, 33, 37, 38, 195, 202, 203, 211, 213, 214, 217, 236, 265 I Iloilo in Panay island, 67 Income mobility agricultural vs non-agricultural pathways, 70, 74, 75 identifying specific non-agricultural pathways, 78–82 India, 14, 42–57, 66, 83, 84, 86, 91, 92, 126, 127, 136, 145, 146, 151–153, 155, 162, 163, 165, 169, 171, 175–177, 185–194, 224–230, 233–235, 268 decomposition of poverty in, 8, DMEP, 190 catching up, 192 data, 186 economic linkage with FDI, 194 environmental change, 192 inequality, 193 286 India (cont.) methodology, 186–189 poverty, 193 present study, 185 results, 189–193 states ranked, 190 volatility, 191, 194 educational attainment and learning, 15, 16 data, 224–225 empirical analysis, 225–227, 229, 233, 235 learning scores, 234, 235 math skills, 230 proportion, 226, 227 reading skills, 229 schooling attained, 228 statistics, 224, 226 farmers, 145 macroeconomics performance, 14 poverty change in data and analysis, 43–57 method, 42–43 Indian Human Development Survey (IHDS), 223–225, 231 Indian Planning Commission, Indonesia, 91, 96–100, 155 energy price regime, 97 fuel subsidy, 93 petroleum subsidy and its reform, 10–12, 96 Joko “Jokowi” Widodo’s period, 99, 100 Megawati’s reform period, 97 Megawati’s setback period, 97 SBY’s final year period, 99 SBY’s reform period, 98 SBY’s setback period, 98, 99 Wahid and Megawati’s period, 96, 97 Indonesian banking sector, 152 Indonesian banks for sub-sample periods, 173 Indonesian Stock Exchange (ISE), 162, 163 IndoTERM, 10, 100–103 database and its construction, 102–103 regions, 102 scenario and simulation design, 103 simulations, 110–111 theoretical structure, 101, 102 Industrial Census of 2006, 253 Industrial transformation and SMEs, 251, 253, 255 Inequality, 8, 14, 18, 32, 41–44, 56–57, 134, 181, 182, 185, 192–194, 278 digital, 268 DMEP, 193 Index regional, 182 rural, 181 Inequality-growth-population, 42 Inequality-population-growth, 42 Information and Communication Technology Policy of 2015, 265 Intel, 246 Intergovernmental Panel on Climate Change (IPCC), 133 International Center for Integrated Mountain Development (ICIMOD), 264 International Monetary Fund (IMF), 97 International Rice Research Institute (IRRI), 64, 67 International Telecommunication Union (ITU), 264 Internet, 264, 266, 268–273, 275, 277 Nepal, 17, 18, 263 analysis and results, 270–273, 275, 277 methodology and data, 269, 270 research background, 264–266, 268, 269 SAARC region, 267 Internet-based services, 268 Internet Service Providers (ISPs), 267 Interregional CGE-Population (ICGEP) model, Korea, 15, 202, 206, 211–218 equations capital accumulation, 212–214 government, 212 household, 212 market equilibrium, 212 production and faction inputs, 211–214 trade, 211 overview, 202–205 private savings by region, 216 ROK region, 216 simulation, 206–208, 210 SMA region, 215 specification and parameter estimates consumption and saving functions, 214–218 private consumption by age cohort, 206, 215–216 wage function, 218 IT Policy of 2010, 265 J Jakarta Stock Exchange (JSE), 163 Japan, 155 Japanese banking sector, 152 Job creation in rural areas, 38 Index Joko “Jokowi” Widodo’s period, 99, 100 Jump detection methodology, 156–158 diffusion and jump betas, 160–162 diffusion and jump components, 158–160 K Korea, ICGEP model, 202, 206, 211–218 equations capital accumulation, 212–214 government, 212 household, 212 market equilibrium, 212 production and faction inputs, 211–214 trade, 211 overview, 202–205 private savings by region, 216 ROK region, 216 simulation, 206–208, 210 SMA region, 215 specification and parameter estimates consumption and saving functions, 214–218 private consumption by age cohort, 206, 215–216 wage function, 218 Korean Labor and Income Panel Study (KLIPS), 204 Kumari Bank, 266 L Lead firm, 239 Letter of intent (LOI), 97 Light emitting diodes (LED), 247 Linear expenditure demand system (LES), 101 Livelihood diversification, 145 LKT Industrial, 249, 250 Log price process, 160 Long-term Policy of Information and Communication Sector of 2002, 265 M Macroeconomic performance (MEP), 182 Macroeconomics, 6, 102, 153, 154, 204, 211 See also Dynamic Macroeconomic Performance (DMEP), India market microstructure and Asian banks, 13–14 performance of Indian states, 13, 14 Maguindanao, 24, 28, 30–37 characteristics, 28–29 287 high vulnerability to shocks, 32, 33 lack of supporting policy environment, 35–37 limited connectivity with markets, 33–35 low skills and education, 30–32 small entrepreneurs, 34 good governance index, 36 poverty, 29, 30 Malaysia, 6, 7, 133, 139, 140, 142, 144, 238, 244, 247, 249, 251, 253, 255, 257, 258 case study, 134 data, methodology, 139, 140, 142, 144 results of analysis, 140, 144 rice economy, 139 climate change, 12 global production networks, 16–17 manufacturing sector, 256 Malaysian Industrial Development Authority (MIDA), 257 Malmquist-type approach, 187–189 Malmquist-type index, 184 Manufacturing sector, Malaysia, 254, 256 Market microstructure, 156–162 and Asian banks, 13–14 daily volatilities and jumps, 166, 168 descriptive statistics, 163–165 high frequency data, 154, 155 indices, 165 Indonesian banks for sub-sample periods, 173 jump and continuous beta results, 167, 169–172, 174–176 methodology, 155 decomposing systematic risks, 158–160 diffusion and jump betas, 160–162 jump detection, 156–158 realized volatilities, bipower variations and jump, 167 sample and data, 162, 163 Market risk, 159 Math skills, 230 Megawati’s reform period, 97 Megawati’s setback period, 97 Methodology, DMEP, 186 Malmquist-type approach, 187–189 measuring MEP, 187 Mincerian earning function, 203 Mobility patterns, interpreting, 83, 84 Money market microstructure and Asian banks, 13–14 288 Money (cont.) performance of Indian states, 14 Monthly per capita expenditure (MPCE), 43 Multinational enterprises (MNEs), 17, 238, 241, 242, 249–253 in electronics, 239 location choice, 242 Penang, 249 affiliates operating, 252, 253 AKN Technologies, 250 BCM Electronics, 251 Elsoft Research, 250 Eng Teknologi Holdings, 249 LKT Industrial, 249 public policy in fostering MNE-SME links, 255, 257, 258 Multiple Objective Linear Programming (MOLP), 114 Multiple Objective Quadratic Programming (MOQP) model, 116 Multivariate log-log model, 270 N National Planning Commission (NPC), 270 National Sample Survey (NSS), 8, 43, 44, 55, 58 National Stock Exchange (NSE), 162, 163 Natural disasters, 138, 139 Nepal, Internet, 17, 18, 263–266, 268–273, 275, 277 analysis and results, 270–273, 275, 277 methodology and data, 269, 270 research background, 264–266, 268, 269 Nepal Telecom (NT), 263 Nepal Telecommunications Authority (NTA), 263 The Nepal Wireless Project (NWP), 267 Nested demand system, 101 Network trade, 237 NGO workers, 78 Non-agricultural growth, 65 Non-agricultural income, 70, 75 Non-agricultural pathways agricultural vs., 70, 74, 75 identifying specific, 78, 80 Non-energy-intensive sectors (NEISs), 114 Non-government organizations (NGOs), 264 Non-parametric beta estimation technique, 161 Index O Oil extraction and refinery sectors, 104 Okun’s misery index, 182 Onshoring, 241 Osrum, 246, 247 Overlapping Generation (OLG) framework, 202 Overseas Filipino workers (OFWs), 78, 85 P Panel regressions, 185, 191, 192, 194 Pangasinan, 24, 28, 30–37 characteristics, 28–29 high vulnerability to shocks, 32, 33 lack of supporting policy environment, 35–37 limited connectivity with markets, 33–35 low skills and education, 30–32 small entrepreneurs, 34 good governance index, 36 poverty, 29, 30 Partial autocorrelation function (PACF), 270 Participation, 7, 16, 145, 214, 222, 223, 231, 236, 242 education, 225, 226 Penang, 249–253 global production networks, 16–17 initial conditions and policy reforms, 244–246 manufacturing sector, 254 MNEs, 249 affiliates operating, 252, 253 AKN Technologies, 250 BCM Electronics, 251 Elsoft Research, 250 Eng Teknologi Holdings, 249 LKT Industrial, 249, 250 Penang Development Corporation (PDC), 17, 245 Penang Skill Development Centre (PSDC), 248, 255, 257 Petroleum subsidy, 96–100 and its reform in Indonesia, 10–12, 96 Joko “Jokowi” Widodo’s period, 99, 100 Megawati’s reform period, 97 Megawati’s setback period, 97 SBY’s final year period, 99 Index SBY’s reform period, 98 SBY’s setback period, 98, 99 Wahid and Megawati’s period, 96, 97 Philippines, 28–37, 63, 66, 68–71, 74–86, 136, 138, 246, 249 administrative divisions, 25 economic growth, 23 highly urbanized areas, 23 provinces, 6, 28 characteristics, 28–29 good governance index, 36 high vulnerability to shocks, 32, 33 lack of supporting policy environment, 35–37 limited connectivity with markets, 33–35 low skills and education, 30–32 poverty, 29, 30 small entrepreneurs, 34 regional disparities and poverty in, 7–8 rice-ecosystems, 64 rural poverty and agriculture, 9, 10 sample villages, 67 characteristics, 68 household mobility, 71 income mobility, 70, 74, 75, 78–82 interpreting mobility patterns, 83, 84 poverty reduction and agricultural growth, 68–70 sectoral income source, 76, 77 spatial economic disparities, 25–27 Policy implications, 37–40, 144–146 climate change adaptation systems, 38 connectivity across provinces and regions, 39 human capital, 37, 38 job creation in rural areas, 38 local communities in policy-making, 39 local governance and stronger institutions, 39 national-local government coordination, 39 risk reduction management, 38 Poor households, Philippines high vulnerability to shocks, 32, 33 lack of supporting policy environment, 35–37 limited connectivity with markets, 33–35 low skills and education, 30–32 Population, 6, 8, 11, 14–18, 24–29, 35, 38, 41–44, 55, 57, 58, 68, 94–96, 98, 115, 121, 126, 127, 134, 136–139, 145, 201–203, 205–208, 210, 213, 289 221–223, 225, 228, 236, 244, 245, 263, 268, 270, 272, 273, 278 ageing/aging, 14, 15, 201, 202, 205–208, 210 density, 268–270, 277 effects, 56–57 school-age, 222 working age, 222–224 Population-growth-inequality, 42 Population-inequality-growth, 42 Poverty, 42–57, 70, 74, 75, 78–82, 139, 144, 145, 182, 185, 191–195, 224–230, 233 change in India data and analysis, 43–57 method, 42–43 changes in, 30 decomposition in India, 8, DMEP, 193 household, 76, 77 income mobility agricultural vs non-agricultural pathways, 70, 74, 75 identifying specific non-agricultural pathways, 78–82 population by regions, 26 profile of selected provinces, 29 reduction, 64–66, 68–70 regional disparities in Philippines, 7–8 rural poverty and agriculture in Philippines, 9, 10 status and income source, 71 Printed circuit board assembly (PCBA), 246 Program for International Student Assessment (PISA), 222 Public policy in fostering MNE-SME links, 255, 257, 258 Public sector, 146 Q Quad-power variation, 158 R Reading skills, 229 Realized volatility, 158, 167 Recursive-dynamic CGE model, 201–211 Regional economic growth, 201, 202 Regional growth, 25, 63 Regional income ratio, 209 Region-specific growth, 56–57 290 Reshoring, 241 Rest of Korea (ROK) region, 15, 202, 203, 207–210, 214–216, 218 Rest of the world (ROW) region, 15, 203 Revenue recycling, 10 Revenue systems, Nepal, 265 Reverse offshoring, 241 Rice, 9, 12, 35, 63, 64, 67–70, 75, 83, 84, 134, 137 economy of Malaysia, 139 ecosystem, 63, 67 yields, 69, 70 Risk reduction management, 38 S Sectoral linkage, 64–66 Seoul Metropolitan Area (SMA) region, 15, 202, 203, 207–210, 214, 215, 217, 218 Service link cost, 242 Service links, 239 Shared Services Centre (SSC), 258 Siangtronics Technologies, 250 Singapore Aerospace Manufacturing (SAM), 250 Slacks-based measure (SBM), 130 Small and medium enterprises (SMEs), 7, 16, 17, 237–244 emergence of ancillary industries, 247, 248 global production sharing phenomenon, 238–241 policy options, GPNs, 241–244 industrial transformation, 251, 253, 255 public policy in fostering MNE-SME links, 255, 257, 258 SME-specific policies, 243–244 Small business support programs, 38 Small enterprises, 94–95 Small entrepreneurs, 34 Social Accounting Matrix (SAM), 205 Socio-economic gaps, 16, 225, 226, 229, 230 South Asian Association for Regional Cooperation (SAARC), 267 South East Asian (SEA) countries, climate change, 133–136 deforestation, 134, 135 globalization and rapid economic growth, 135, 136 South Korea, population ageing, 14, 15 Spatial disparity, Philippines, 6, 25–27 Standard Chartered Bank, 175 Structural transformation, 64–66 Index Subsidy, 91, 92 Super-efficiency CCR-I model, 122 Susilo Bambang Yudhoyono (SBY), 98 final year period, 99 reform period, 98 setback period, 98, 99 Sustainable development (SD), 3–5, 134 T Target-efficiency score (TES), 115, 117 Target-Oriented (TO) model, 117–120 Tax Deduction at Source, 265 Telecommunications Act of 1997, 265 Telecommunications Policy of 2004, 265 Thailand, 246 floods, 138 The Enormous Regional Model (TREM), 100 Third Generation (3G) WCDMA services, 265 Thompson Reuters Tick history (TRTH) database, 162 Time-series (TS) approach, 11, 115, 136, 167, 269–271 Time-Series TO-DFM (TS-TO-DFM), 117–120, 126, 128 Tokyo Stock Exchange (TSE), 162 U United Nations Development Programme (UNDP), 266 W Wage peak system, 210 Wahid and Megawati’s period, 96, 97 Wideband Code Division Multiple Access (WCDMA) services, 265 Within-group effect, 8, 41–44, 57 World Bank study, 181 World Food Summit, 136 Worldwide Interoperability for Microwave Access (WiMAX) broadband Internet service, 7, 17, 263 analysis and results, 270–273, 275, 277 base stations, 272, 273, 278 methodology and data, 269, 270 research background, 264–266, 268, 269 subscribers, 271–274 Y Yeast’s approach, 240 ... concerning regional growth and sustainable development in Asia that are directly or indirectly related to the questions examined in this book Introduction to Regional Growth and Sustainable Development. .. shares Introduction to Regional Growth and Sustainable Development in Asia A basic policy prescription emanating from the analysis in the chapter “Decomposing Poverty Change in India: Within- and. .. development and refinement, and to understand the importance of the interdisciplinary and multidisciplinary approach that is inherent in regional science for analyzing and resolving urgent regional and