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Begin New Search Publishing Institution Economic Research Institute for ASEAN and East Asia (ERIA) Publication Year within 25 Years

31. Robotics Technology and Firm-level Employment Adjustment in Japan

Author:
Bin Ni and Ayako Obashi
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Unlike studies that analyse the impact of robotics technology on employment at the industry or firm level, this study investigates cross-division employment adjustment within a firm in an industry with large penetration and diffusion of robotics technology. By examining the changes in the composition of employment, we measured job creation and destruction at the division level and explored whether robotics technology, as a leading example of automation, not only displaces workers but also introduces new jobs in favour of labour. We made use of unique, division-level employment data for Japan’s manufacturing firms, together with industry-level data on the installation of industrial robots. We found that industry-level adoption of robots positively affects the rates of firm-level job creation and job destruction. Because the magnitude of the impact is larger for job destruction, robot adoption has an overall negative impact on firms’ net employment growth. Our finding suggests that the labour displacement effect of robotics technology and the emergence of new jobs due to technological change coexist even at the firm level.
Topic:
Science and Technology, Manufacturing, Artificial Intelligence, and Job Creation
Political Geography:
Japan and Asia

32. Energy Reality and Emissions in ASEAN: Energy Modelling Scenarios and Policy Implications

Author:
Han Phoumin, Fukunari Kimura, and Jun Arima
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The Association of Southeast Asian Nations (ASEAN) faces tremendous challenges regarding the future energy landscape and how the energy transition will embrace a new architecture – including sound policies and technologies to ensure energy access together with affordability, energy security, and energy sustainability. Given the high share of fossil fuels in ASEAN’s current energy mix (oil, coal, and natural gas comprise almost 80%), the clean use of fossil fuels through the deployment of clean technologies is indispensable for decarbonising ASEAN’s emissions. The future energy landscape of ASEAN will rely on today’s actions, policies, and investments to change the fossil fuel-based energy system towards a cleaner energy system, but any decisions and energy policy measures to be rolled out during the energy transition need to be weighed against potentially higher energy costs, affordability issues, and energy security risks. This paper employs energy modelling scenarios to seek plausible policy options for ASEAN to achieve more emissions reductions as well as energy savings, and to assess the extent to which the composition of the energy mix will be changed under various energy policy scenarios. The results imply policy recommendations for accelerating the share of renewables, adopting clean technologies and the clean use of fossil fuels, and investing in climate-resilient energy quality infrastructure.
Topic:
Energy Policy, Science and Technology, Green Technology, Renewable Energy, and Fossil Fuels
Political Geography:
ASEAN

33. Potential Renewable Hydrogen from Curtailed Electricity for ASEAN’s Clean Energy: Policy Implications

Author:
Han Phoumin, Jun Arima, and Fukunari Kimura
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The power generation mix of the Association of Southeast Asian Nations (ASEAN) is dominated by fossil fuels, which accounted for almost 80% in 2017 and are expected to account for 82% in 2050 if the region does not transition to cleaner energy systems. Solar and wind power is the most abundant energy resource but contributes negligibly to the power mix. Scalable electricity production from wind and solar energy faces tremendous challenges due to system integration practices in ASEAN. Investors in solar or wind farms face high risks from electricity curtailment if surplus electricity is not used. Technologies for battery storage (lithium-ion batteries) have been developed to handle surplus electricity production from wind and solar energy but they remain costly. Hydrogen produced from electrolysis using surplus electricity, however, has numerous advantages that complement battery storage, as hydrogen can be stored as liquid gas, which is suitable for many uses and easy to transport. Employing the policy scenario analysis of the energy outlook modelling results, this paper examines the potential scalability of renewable hydrogen production from curtailed electricity in scenarios of high share of variable renewable energy in the power generation mix. The study intensively reviewed potential cost reduction of hydrogen production around the world and its implications for changing the energy landscape. The study found many social and environmental benefits as hydrogen can help increase the share of renewables in decarbonising emissions in ASEAN.
Topic:
Energy Policy, Science and Technology, Renewable Energy, and Fossil Fuels
Political Geography:
ASEAN

34. Measuring the Pro-Poorness of Urban and Rural Economic Growth in Indonesia, 2004–2014

Author:
Takahiro Akita and Sachiko Miyata
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study measures the pro-poorness of urban and rural economic growth by region from 2004 to 2014 in Indonesia using pro-poor growth indexes, with data from the National Socio-Economic Survey (Susenas). It also conducts a probit analysis to explore the determinants of poverty. All regions (Sumatra, Java–Bali, Kalimantan, Sulawesi, and East Indonesia) experienced a substantial increase in expenditure inequality in both urban and rural areas; thus, the change in poverty incidence due to redistribution effects is positive. Apart from East Indonesia, they reduced the incidence of poverty in both areas, but their growth was not pro-poor in the strict sense. According to the pro-poor growth indexes, urban areas performed better than rural areas; in most regions, the growth of urban areas was moderately pro-poor, while that of rural areas was weakly pro-poor or anti-poor. The government needs to take urban–rural and regional differences into account when formulating poverty alleviation policies and programs since these differences would affect economic growth and changes in inequality.
Topic:
Poverty, Inequality, Economic growth, Urban, and Rural
Political Geography:
Indonesia, Asia-Pacific, and Indo-Pacific

35. Effects of Business Continuity Planning on Reducing Economic Loss due to Natural Disasters

Author:
Takahiro Ono and Venkatachalam Anbumozhi
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The Association of Southeast Asian Nations (ASEAN) economy has developed rapidly since the 1980s, centred on the automobile industry, and has been connected to economic regions around the world, including Japan, through supply chains. However, the ASEAN region is one where natural disasters frequently occur, and a region damaged by a disaster will have an impact on the region's economy, and the region’s supply chain will have a major impact on the world.　Protecting the fast-growing and supply chain-connected ASEAN region from frequent natural disasters and reducing economic damage are important to Japan and the rest of the world. In 2015, the 3rd United Nations World Conference on Disaster Risk Reduction adopted the Sendai Framework, which focused on economic loss. To reduce economic loss caused by natural disasters, companies’ capability to continue doing business must be strengthened. Japan’s government has promoted business continuity planning to minimise economic loss. This paper examines the policy, reviews several devastating disaster case studies, and recommends policies for utilising the policy to reduce economic loss in the ASEAN region.
Topic:
Science and Technology, Natural Disasters, Business, and Supply Chains
Political Geography:
ASEAN

36. Intergenerational Transmission of Human Capital: The Case of Thailand

Author:
Sasiwimon W. Paweenawat
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study provides evidence of intergenerational transmission of human capital in Thailand, using data from the Thailand Labor Force Survey of 1985–2017. Employing the instrumental variable approach using Thailand’s compulsory educational reform of 1978 as the instrumental variable to minimise bias caused by the endogeneity of parental education, this study estimates the effect of parental education on children’s education and their labour market outcomes. Besides reaffirming the conventional positive link between parental and children’s years of education, new and intriguing evidence is put forth on the negative link between parental education and the child’s brawn skill, based on the industry and occupation adopted by the child in the labour market. The influence of paternal education is found to outweigh that of maternal education, in contrast to the evidence from developed countries. High intergenerational educational persistence and low intergenerational mobility indicate unequal opportunities in the country, as individual welfare is largely tied to parental background. Therefore, it is recommended that the Government of Thailand weaken this linkage to improve equality in the country.
Topic:
Education, Reform, Children, and Parenting
Political Geography:
Asia and Thailand

37. he Effects of Prenatal Exposure to Plentiful Rainfall on Cognitive Development in Viet Nam

Author:
Nobuaki Yamashita and Trong-Anh Trinh
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
We examine the impact of exposure to plentiful rainfall while in utero on the cognitive development of the same children from ages 5 to 15 from the Young Lives Project in Viet Nam. Using variations in the month and place of birth, we show that positive income shocks, proxied by above-average rainfall, are associated with better cognitive development up to age 8. The effect is more pronounced when positive shocks occurr early in gestation. However, we find that such positive effects are not sustained in the longer term and are completely absent at ages 10, 12, and 15. Our results call for effective and early policy interventions providing a sustained pathway for the cognitive development of children in weather disaster-prone regions.
Topic:
Environment, Natural Disasters, and Weather
Political Geography:
Asia and Vietnam

38. Determinants of School Enrolment: Relationship between Minimum Wage and Human Capital Investment

Author:
Dyah Pritadrajati
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Most economic research on minimum wage has focused on employment effects. Research analysing the effects of minimum wage on skill acquisition and educational investment is limited, especially in developing countries. To fill the gap in the literature, this paper investigates the relationship of minimum wage and human capital investment using the National Socioeconomic Survey (Susenas). This study is an effort to further analyse whether the minimum wage policy supports or even hinders recent government efforts to keep students in school. The government may be unaware of the possible interaction of different policies, especially in a developing country where inter-sectoral policy coordination is limited. This paper finds that minimum wage legislation has significant negative substitution effect on educational investment, i.e. individuals are more likely to drop out of senior secondary school due to an increase in minimum wage. There is no evidence of gender bias in human capital investment, at least as a response to increasing minimum wage. Even though the response to an increase in minimum wage amongst low-income households is positive, the results of a regression incorporating an interaction term suggest that the substitution effect is the dominant factor. Therefore, the positive result amongst low-income households might be generated by a fall in the probability of obtaining low-skilled employment that offsets the substitution effect.
Topic:
Education, Children, Human Capital, and Minimum Wage
Political Geography:
ASEAN

39. The Role of Innovation in Skill Development: Evidence from Small and Medium-Sized Enterprises in Viet Nam

Author:
Duc Anh Dang and Vuong Ahn Dang
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Using the Small and Medium Enterprise Survey in Vietnam and three proxies of innovation, we study the impact of firm innovation on on-the-job training in the manufacturing sector from 2007 through 2015. To address potential measurement errors and omitted variable problems, we use the average level of innovation in the same sector in other districts as an instrument for firms’ innovations. We find that firms provide additional training for existing workers when introducing new technology, and high-value-added firms provide additional training for existing workers. Moreover, government assistance may not be the main reason that encourages firms to provide training. The results also show that firms hire more skilled workers when implementing innovations.
Topic:
Development, Training, Innovation, and Skilled Labor
Political Geography:
Asia and Vietnam

40. Vientiane-Hanoi Expressway Project

Author:
Masahito Ambashi
Publication Date:
06-2019
Content Type:
Commentary and Analysis
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The Vientiane–Hanoi Expressway (VHE) has been one of the most anticipated transportation projects between Lao PDR and Viet Nam. This report (1) explores the potentiality of the corridor between Hanoi and Vientiane as designated by the Greater Mekong Subregion Economic Development Program; (2) illustrates impacts on economies and industries of Lao PDR and surrounding countries of the VHE; (3) sets out industrial development strategies for Lao PDR, Viet Nam, and Thailand that take maximum advantage of the VHE; and (4) suggests appropriate financial mechanisms to construct the VHE. Thus, this report focuses on how Lao PDR and neighbouring countries can benefit from the expressway by strengthening relevant industries and forming a Bangkok–Vientiane–Hanoi industrial corridor from the perspective of global value chains and production networks developed in the Mekong region
Topic:
International Affairs
Political Geography:
Global Focus