Index. Note: Page numbers followed by n refer to notes.

Transcription

1 Reproduced from Managing Globalization in the Asian Century: Essays in Honour of Prema-Chandra Athukorala, edited by Hal Hill and Jayant Menon (Singapore: ISEAS Yusof Ishak Institute, 2016). This version was obtained electronically direct from the publisher on condition that copyright is not infringed. No part of this publication may be reproduced without the prior permission of ISEAS Yusof Ishak Institute. E-book is available at < Index Note: Page numbers followed by n refer to notes. A agriculture development in Myanmar access to land, agricultural credit system, 342 causes of, 339 factors of, 341 marketing of, 340 massive infrastructure investment, 340 official data on, 339 performance of, 342 Annual Survey of Industries (ASI), 390n15 Aquino, Corazon, 144 Aquino III, Benigno, 144, 158 Armed Forces of the Philippines (AFP), 142 ARMM. See Autonomous Region of Muslim Mindanao (ARMM) Arroyo, Gloria, 144 ASEAN Economic Community (AEC), 287 Asian Development Bank (ADB), 249 Asian economic growth issues, 1 4 Asian financial crisis (AFC), 458, 462 Indonesia s experience with, 486, 488, 490, 517n3 Asian growth dynamics, 16 Asia-Pacific region bilateral remittance matrix, 102, 107 inclusive growth. See inclusive growth international openness. See international openness orthodox approach, 241 remittance-recipient countries in, 102, remittance-sending countries for, 104, 106 workers remittances, Association of Southeast Asian Nations (ASEAN), 277, 287 Athukorala, Prema-Chandra, 95n2 access to higher education, 5 6 applied policy analyst, 11 area of interest, article on Antimicrobial Resistance, 15 Bachelor of Commerce, 7 early life of, 4 5 English language deficiency, 7 General Certificate of Education Ordinary Level, 6 7 interests in political activism, 7 8 interviews with top executives, Lee s autobiography, 13 literary contributions, 11 as Mahaguru, 9 11 PhD study in Australia, 8 research work on Malaysia, work on Sri Lanka, ch19 ManagingGlobal-Index-3P.indd /10/16 9:55 am

2 526 Index Australia Athukorala s PhD study in, 8 economic policymaking in, 16 Australian Case for Protection, Australian climate change policy benefits of mitigation, complications with, costs of mitigation, Hotelling rate, 69 normative discount rate, Office of Budget Management approach, 72 optimal carbon price, 67 public discussion model, rate of return on investment, 68 69, social rate of time preference, 72 Australian economic reform, Australian trade policy Brigden Committee, economic rationalism, 62 Free Trade Agreement with U.S., Industries Assistance Commission, 60 in New South Wales and Victoria, 59 political culture, changes in, Productivity Commission, theory of comparative advantage, 58 automobile industry, 18, 165 automotive industry, in China and India, 164 Most Favoured Nations tariff rates in, 167 profile, trade policy reform, Autonomous Region of Muslim Mindanao (ARMM), 134, 144 economic development of, fiscal transfers for, 148 investment level in, 148, 149 unemployment-employment rates in, 145 B balanced budget rule, 506 Balance of Payments Yearbook (IMF), 100, 115 balance sheet recession, 300, 301, 324 Bandaranaike, Sirimavo, , 401 2, 406 Bandaranaike, S.W.R.D., 397, 401 Bangsamoro Autonomous Government, 134 Bank of Japan (BOJ), Bilateral Investment Treaty (U.S.), 281 bilateral remittance matrix, 102, 107 Brigden Committee on trade policy, Broad Economic Category (BEC) classification, 169, Bulletin of Indonesian Economic Studies, 517n2 Bumiputera policies (Malaysia), 279 Bureau of Economic Analysis (BEA), 49 Business Council of Australia, The, 62 C Canada trading condition for, 29 U.S. tariff rates on imports, 28 29, capital accumulation, 40 capital goods, 379 manufacturing sector, 366 Open General Licence imports of, total factor productivity in, 371 Central Bank of Sri Lanka (CBSL), Central Provident Fund (CPF) contributions, 228 Centre of Policy Studies (CoPS), 69 ceteris paribus, 2, 111 Chamber of Young Lankan Entrepreneurs (COYLE), 440 Chavez, Hugo, 199 Chile, 197

3 Index 527 China debates on, Indonesia vs., China, automotive industry in, 164 Most Favoured Nations tariff rates for, 167 multinational enterprises in. See multinational enterprises (MNEs) trade destinations of, trade flow data analysis, in transport equipment, 176 Transport Equipment exports, 171 chronic economic dropout, 23, 485 chronic price deflation, climate change policy, complications with, Clinton, Hilary, 286 comparative advantage in Australian economic analysis, 58 dynamics of, complementary policy variables, female employment participation by, 266, 267, 270n7 Comprehensive Economic Partnership Agreement (CEPA), Computable General Equilibrium (CGE) model, 28, 40 41, 55n10, 58 consumer goods, 378 manufacturing sector, 366 Open General Licence imports of, quantitative restrictions (QRs) on, 361 total factor productivity (TFP) in, 371 consumer price index (CPI), , 299 contract manufacturers, 165 corporate investment, Corruption Eradication Commission (KPK), 513 Corruption Perceptions Index (CPI), Cyclone Nargis, 340, 355n4 D Das, Pilu Chandra, 390n15 Deng Xiaoping, 2 Department of Industrial Policy and Promotion, 177 Dutch disease, 109, 335, 341, 403, 464, 494 Dutch East Indies, 149 dynamic mechanisms, types of, dynamic ordinary least squares (dynamic OLS) estimation, 233, 234 E East Asia consumer price index in, Cubs, 196, 206 economic growth, 334, 335 economy, 201 fiscal surplus in, 209, 211 macroeconomic policy in, 207 policy reform, 197 real exchange rate in, Tigers, 195, 202, 206 e-commerce, economic crises, in Indonesia, economic ideology, Sri Lanka, economic inequality, in Indonesia, 497, , 519n16 education policy, in Indonesia, electronic industry, 164, 186 environmental indicators, in Indonesia, Estrada, Joseph, 144 export-oriented policy reforms in East Asia, 193, 195 Latin America s nations, 198, 207 export processing zones (EPZs). See special economic zones (SEZs)

4 528 Index F Feasible Generalized Least Squares (FGLS), 253 Federation of Korean Trade Unions, 201 Fei-Ranis model, 467 Final Peace Agreement (1996), 144, 149 financial development, impact of remittances, , , 123 fiscal policy, 302 bond market crisis, empirical evidence, home bias in investment, investment, Japanese Net Government Debt in, long-term, Ricardian effects, 313 Sovereign Wealth Fund, fiscal surplus, 209 Food and Agriculture Organization (FAO), 504 foreign direct investment (FDI), 372 beneficial effects of, 261 in global production networks, intermediate imports and composition of, 257 outward/inward ratio, 258, 261, 263, 270n6 remittance inflows and economic growth, 112 Free Papua Movement, 151 free trade agreements (FTAs), 38, 44 Australia with United States, Japan India, 183 with Trans-Pacific Partnership, free trade zones (FTZs). See special economic zones (SEZs) FTA for the Asia-Pacific (FTAAP), 287, 288 Future We Want, The, 242 G Gaddafi, Muamar, 143 Gandhi, Rajiv, 361 Garnaut, Ross, 16 Geertz, Clifford, 458, 479n1 General Agreement on Tariffs and Trade (GATT), 280 General Equilibrium Modelling PACKage (GEMPACK) software, 42 Generalized Method of Moment (GMM) model, , Gini coefficient, 221, 222 information and communications technologies expenditure, 265 in poverty headcounts, 245 Gini index, 262 global automotive production sharing in automotive industry, 164 development of, 165 in electronics industry, 164 foreign domestic investment (FDI) in, global economic integration, issues, 1 4 global financial crisis (GFC), 297, 488 government consumption, 112, 118, 127n5 government procurement, 284 Greater Colombo Economic Commission (GCEC), 398, 403 gross domestic product (GDP) in America (2003), 132 growth rate, 36 37, 243, 250, 251, 298 in Southeast Asia, 132 Gross Provincial Product (GPP), 136 growth slowdown and middleincome trap in Asian countries, comparative advantage dynamics, Corruption Perceptions Index, export diversification, labour reallocation, 80 81

5 Index 529 Lucas growth model, openness of economy, policy framework, political framework, Solow growth model, technology catch-up, World Bank publications, growth theory, 85 H health indicators, in Indonesia, Heckscher-Ohlin theorem, 85, 423n12 Hotelling rate, 69 housing price escalations, GradShare series, 231, 232 private median, ProdRatio, 232 redistributional effects of, 223 rising property prices, theoretical framework of, Vector Error Correction Model, 232, 233 vs. income inequality, 226 hukou system, 480n9 human capital, 108, , 127n5 Hyde, John, 61 I ICT expenditure. See information and communications technologies (ICT) expenditure IMF. See International Monetary Fund (IMF) import licensing, 360, 361 Import Penetration Ratio (IPR), 372 Impossible Trinity, inclusive growth advanced economies, average gross domestic product growth rates, 243 definition of, health outcomes, 246 income distribution, poverty headcounts, 244, 245 role of trade in, income distribution, Sri Lanka, , 421 income inequality data series, dynamic ordinary least squares estimation, 233, 234 education role in, Gini coefficient, 221, 222 globalization, GradShare, 235 housing prices vs., 226 Melitz model, 224 ordinary least squares estimation, 233, 234 ProdRatio, 235 skill-biased technological change, 224 India Indonesia vs., source of remittances, 102, 104, 106 India, automotive industry in, 164 Department of Industrial Policy and Promotion in, 177 Most Favoured Nations tariff rates for, 167 multinational enterprises in. See multinational enterprises (MNEs) trade destinations of, trade flow data analysis, in transport equipment, 176 Indian manufacturing industry employment growth ( ), , 377 growth in, intermediate and capital goods in, KLEMS framework, 368, 390n15 labour productivity growth in, post-reform period in, 359, 367 real gross value added growth, total factor productivity growth ( ). See total factor productivity (TFP)

6 530 Index trade policy in, trade reforms on productivity in, , by use-based sectors. See use-based sectors wage share in, Indonesia chronic economic dropout, 485 East Asian miracle economies, 485 economic crises, economic development in, economic growth, education and health, environmental indicators, export-promotion, 197 inequality in, 497, , 519n16 infrastructure investments, international comparisons, , 518n6 labour market, Lewis model in, 459, 479 Lewis turning point, macroeconomic policy, manufacturing growth rates, 464 Papua in. See Papua, in Indonesia pemekaran, 518n11 per capita income, 489, political transformation, 486 poverty incidence, , 518n12 sectoral growth rate, subnational dynamics, trade and commercial policy, , 518n7 turning point in, 458 wage growth, Industries Assistance Commission, 60 inflation, remittances and, 112, 118 informal sector (IFS) employment, , 476 information and communications technologies (ICT) expenditure, 259, 260 affects income distribution, 264 affects poverty rate, 263, 264 Gini coefficients, 265 institutional development bureaucratic reform, 512 Corruption Eradication Commission, 513 decentralization, 514 legal system, macroeconomic policy, integral technology, 166 intellectual property rights (IPR), 282 intermediate goods, 379 Open General Licence imports of, total factor productivity (TFP) in, 371 International Monetary Fund (IMF), 100, 115 international openness complementary policy vector, 255 and employment, , 268 gender effects of, literature review, 254 and productivity, , 268 through trade and inclusivity, wages and inequality, 269 International Policy Centre for Inclusive Growth (IPC-IG), 250 International Trade Commission, 285 investment liberalization, Investor-State Dispute Settlement (ISDS) mechanism, 281, 287 IPR. See Import Penetration Ratio (IPR); intellectual property rights (IPR) Islamic banking system, 137, 158 J Jabidah Massacre, 143 Janasaviya programme, 415 Janatha Vimukthi Peramuna (JVP), 8

7 Index 531 Japan Bank of International Cooperation (JBIC), 190n9 Japanese Government Bonds (JGBs), , 323 Japanese Macroeconomic Mystery, 297 during bubble economy, chronic price deflation, corporate investment, fiscal policy. See fiscal policy monetary policy. See monetary policy policy dilemma, policy failures, 301 private investment, Jathika Hela Urumaya (JHU), 430, 451n2 Jayasundra, P.B., 423n10 Jayawardene, J.R., 398, Jongwanich, Juthathip, 17 K Kelegama, Saman, Keynesian fiscal policy, 20 KLEMS framework, 368, 390n15 Kohpaiboon, Archanun, 17 Komisi Pemberantasan Korupsi (KPK), 513 Korea comparative advantages in, corruption level in, 93 estimating parametric relationships, 85 87, 94 export diversification, growth slowdown, Krue Se Mosque incident, in Pattani province, 135 Kumaratunga, Chandrika, 404, 415 L labour and environment standards, labour market, analysis of, 462 drivers of, in Indonesia, and turning point. See turning point, in Indonesia labour productivity in agriculture, 480n22 definition, 368 growth of manufacturing sector, 370 and total factor productivity (TFP) growth, and wage growth, year-to-year growth rates ( ), 369, 370 labour reallocation, labour supply, remittances impact on, lagged adjustment processes, 41 la pesadilla neoliberal. See Latin America Latin America consumer price index in, developmental reforms in, 18 export-oriented reforms in, 198, 207 fiscal problem, 318 fiscal surplus in, 209, 211 labour market flexibility, labour market rigidities in, 201 literature, review of, 194 macroeconomic stability, neo-liberal reforms in, 193, 200 policymakers, 193, 198 politics, 193 real exchange rate in, tariff reform and trade, Lee Kuan Yew, 13, 424n26 Lewis model, 459, 479 critics and extensions to, empirical testing of, 462 Lewis turning point, Lewis, W. Arthur, 459 Lew, Jack, 286 liability accumulation, 40 Liberation Tigers of Tamil Eelam (LTTE), 398, 399, 403, 430, 451n3 Lucas growth model, 80 81

8 532 Index M Maastricht principles, 508 macroeconomic environment, 195, 198 macroeconomic policy annual inflation and exchange rate, balanced budget rule, 506 fiscal and current account balances, in institutional development, in Sri Lanka, 404 6, 421 MADB. See Myanmar Agricultural Development Bank (MADB) Malay-Muslim community, 135 Malaysia Athukorala s work on, corruption level in, 93 estimating parametric relationships, 94 gross domestic product, 133 growth slowdown, 82 middle-income trap, 89 and Thailand trade, 135 Marcos, Ferdinand, 143 marginal product of labour, 459 market-oriented reform, 195 Melitz model, 224 Memorandum of Agreement on Ancestral Domain (MOA-AD), 144 Mexico trading condition for, 29 U.S. tariff rates on imports, 28 29, 35 middle-income trap. See growth slowdown and middle-income trap Mindanao Independence Movement (MIM), 142 Mindanao, in Philippines ARMM. See Autonomous Region of Muslim Mindanao (ARMM) cause of conflicts in, 142 economic policies and performance in, 144 government approach after Marcos, investment projects in, 148 literacy and unemployment rates in, 145, 147 and Moro people, population in, 145 Ministry of Finance, Sri Lanka, modular technology, development of, 165, 189n2 monetary policy, 302 in Bank of Japan, Quantitative Easing, Moro Islamic Liberation Front (MILF), 134, 143, 144 Moro National Liberation Front (MNLF), 143, 144 Most Favoured Nations (MFN) tariff rates, 167, 169 Mudell-Flemming model, 437 multinational enterprises (MNEs), 163 Japanese, 164, , , 186 operational characteristics of, U.S. manufacturing, 164, Myanmar, developing agriculture. See agriculture development in Myanmar economic advantages, 334 economic reforms, 333, 336 gross domestic product, 333 labour-intensive manufacturing development, natural resource-based exports, special economic zones. See special economic zones (SEZs) Myanmar Agricultural Development Bank (MADB), 342 N National Labour Force Surveys (SAKERNAS), , 480n16

9 Index 533 neo-liberal nightmare, in East Asia. See East Asia new economic geography (NEG), 349 New South Wales, trade policy in, 59 nominal rate of protection (NRP), non-conforming measures (NCMs), 282 non-linear system, 52 non-nafta trade factors, contribution of, non-tariff barriers (NTBs), 202, 204 normative discount rate, North American Free Trade Agreement (NAFTA) components of, contributions of, definition of, 28 industries for, transformation elasticity, 51 USAGE model. See USAGE model U.S. tariffs and trading conditions with ROW, North American Free Trade Agreement (NAFTA), O Office of Budget Management (OBM) approach, 72 Offshore Assembly Programme (OAP), 165 Open General Licence (OGL) category, 360 open vs. closed economies, convergence in, 79 ordinary least squares (OLS) estimation, 233, 234 Organisasi Papua Merdeka (OPM), 151 Organisation for Economic Co-operation and Development (OECD), 171, 200, 248 outward-oriented policy reforms, 202, 207 P Packer, James, 442 Pangestu, Mari, 519n22 Papua, in Indonesia, , 159 economic development in, economic policies and performance in, 151 fiscal transfers to, 152 Law on Special Autonomy for, 151 literacy and unemployment rates in, 156 poverty levels in, 154 province, special autonomy for, 151 urban and rural areas, poverty in, 157 Papua People s Congress II, 151 Papua Presidium Council, 151 Pattani province Krue Se Mosque incident in, 135 and Siam Kingdoms, Perera, N.M., 6 Perpetual Inventory Method, 390n15 Philippines Indonesia vs., Mindanao in. See Mindanao, in Philippines policy dilemma, Japanese Macroeconomic Mystery, political leadership, in Sri Lanka, post-reform period India s industrialization in, 359, 376 labour market in, 367 poverty incidence, in Indonesia, , 518n12 Prais-Winsten estimator, 253 preferential trading arrangements (PTAs), 3 4 private investment, corporate savings and decline in, Productivity Commission, public sector liability, 40

10 534 Index Q Quantitative Easing (QE), R Rajapaksa, Mahinda, , 403 authoritarianism structure, China-funded projects, 435 crony capitalism, debt financing, 450 debt indicators, 433 economic and political situation by end-2014, economic development strategy, 429 economic hubs, economic reforms, 434 Impossible Trinity, institutions, International Sovereign Bonds by, 432 macroeconomic indicators, per capita income, 439 policy backtracking, rent-seeking, Sinhala-Buddhists, 430 Ramos, Fidel, 144 Ratnayake, Ravi, 19 real exchange rate (RER), 206 remittances and, 109, 113 real value added (RVA) growth, , , 389n12 Reducing Emissions from Deforestation and Degradation (REDD), 505 Regional Comprehensive Economic Partnership (RCEP), 277, 287 remittances and economic growth, in Asia and Pacific region, compensation of employees, 100, 115 data coverage and quality, 101 in developing countries, 101 FDI inflows, 112, 123 financial development, , 115, 123 GMM estimation model, , government consumption, 112, 118, 127n5 growth equation, 111, human capital, 108, , 127n5 investment vs. consumption, 108 labour supply, impact on, measurement of control variables, , migrants transfers, 100, 115 non-linear relationship, 99, 114, 120 openness, , 118 portfolio investment and bank loans, 113 positive and negative influences on, real exchange rate, 109, 113 savings and investment, 109 workers remittances, 100, 108, 115 rent-seeking hypothesis, replenishment, 361, 388n3 Research Institute of Economy, Trade and Industry (RIETI), 177 rest of the world (ROW) imports from Canada and Mexico, U.S. tariffs and trading conditions with, revealed comparative advantage (RCA), 85 87, 95n4 Ricardian effects, fiscal policy, 313 Riedel, James, 16 Russia, source of remittances, 104, 106 S Sadli s Law, 518n7 Samuelson, Paul, 58 Samurdhi programme, 415 Saudi Arabia, source of remittances, 102, 104, 106

11 Index 535 savings and investment, remittance contribution to, 109 Secular Stagnation, 304 Sirisena, Maithripala, 399, 401 skill-biased technological change (SBTC), 224 social rate of time preference, 72 Solow growth model, South Asian Free Trade Area (SAFTA), 441 Southeast Asia economic growth rate, 132 gross domestic product (GDP), 132 lagging regions in, 17 Mindanao. See Mindanao, in Philippines Papua. See Papua, in Indonesia Thailand. See Thailand, Southern border provinces of Southern Cone, rigidity index score in, 214 Sovereign Wealth Fund (SWF), special economic zones (SEZs), 259, in global economy, global experience with, literature on, Thilawa zone, Special Fund for Counterinsurgency Operations and Development, 136, 140, 142 Sri Lanka Athukorala s work on, 14 economic ideology, economic policymaking, education programme in, 6, 23n2 endowments, GDP growth rate, , global economy, experience with, 21 ideological distance between political parties, 419 income distribution, , 421 institutions role in, labour movement, macroeconomic factors, 404 6, 421 policy orientation, , 411 political leadership, poverty rate, , 421, 424n27 preservation of democracy, 419 Rajapaksa Decade. See Rajapaksa, Mahinda Stiglitz s definition of globalization, TFP growth rate, , 423n18, 424n20 Sri Lanka Freedom Party (SLFP), 395, 397, 421 state-owned enterprises (SOEs), Stolper-Samuelson theorem, 423n14 supplementary policy variables, 271n12, 271n16, 271n19 surplus labour, 459, 460 Sustainable Development Goals, 242 T Taiwan corruption level in, 93 growth slowdown, Tak Bai incident in Narathiwat province, 135 Takeover of Business Enterprises Act 1971, 423n5 tariff liberalization, 280 technology catch-up, Termination of Employment of Workers Act (1971), 423n5 Thailand automotive industry, 167 comparative advantages in, corruption level in, 93 estimating parametric relationships, 85 87, 94 export diversification, export-promotion, 197 growth slowdown, Indonesia vs.,

12 536 Index Thailand, Southern border provinces of autonomy for, conflict and violence in, 135 development progress in, 136 economic growth in, education attainment and unemployment rates in, government approaches since 2004, Krue Se Mosque incident, 135 level of poverty in, 136 Muslim population in, religion and ethnicity in, 136 Tak Bai incident in, 135 Zakat Fund Promotion Act (2006) in, 137 total factor productivity (TFP), 359 growth rate of, 371 in intermediate and capital goods, labour productivity and, , and nominal rate of protection, trade reforms on, trade and commercial policy, in Indonesia, , 518n7 trade liberalization, in Mexico, 198 trade policy in inclusive growth, issues, 19, 21 Trade Promotion Authority (TPA), 285 Transatlantic Trade and Investment Partnership (TTIP), 278 transformational leaders, 422n3 transformation elasticity, 51 transformation (transformasi) period, 150 Trans-Pacific Partnership (TPP), 19 20, 275 e-commerce, government procurement, 284 implementation, intellectual property rights, 282 investment liberalization, labour and environment standards, negotiations, services liberalization, state-owned enterprises, tariff liberalization, 280 trade agreements between countries, trade architecture, transport equipment industry, 186 BEC classification in, 173 exports of, 170 imports of, 172 Japanese MNE affiliates in, Most Favoured Nations (MFN) tariff rates in, 169 multinational enterprises to, 181 turning point, in Indonesia, 457 agriculture employment, empirical evidence for, informal sector employment, labour market change ( ), labour productivity and wage growth, Lewis model, wages in agriculture, U United National Party (UNP), , 398, 405 United Nations Human Rights Council (UNHRC), 444 United People s Freedom Alliance (UPFA), 395 United States (U.S.) Bureau of Economic Analysis (BEA), 177 exports of commodity, Free Trade Agreement with Australia, 63 multinational enterprises (MNEs), 164,

13 Index 537 source of remittances, 102, 104, 106 unit labour costs, year-to-year movements in, 370 USAGE model Computable General Equilibrium (CGE) model in, decomposition simulations, 45 46, endogenous variables, exogenous variables, historical simulation, for imports and exports, industries in, 38 use-based sectors ( ), , 382, , 389n10 V Vacant, Fallow and Virgin Lands Management Law (VFVLML), 343, 344 vector autoregression (VAR), 233 Vector Error Correction Model (VECM), 232, 233 vertical keiretsu, 166, 189n3, 189n4 Victoria, trade policy in, 59 Vietnam, economic reforms, 340 W wages differentials between construction and agriculture, growth in Indonesia, labour law and minimum, 466 share in Indian manufacturing industry, , 390n14 Wahid, Abdurrahman, 150, 151 Warr, Peter, Washington Consensus, 18, 195 Well-Being Promotion for Muslim Thai Program (WBPMTP), 137 workers remittances, 110, 115 to developing countries, positive impact on economic growth, 108 World Bank, 249 comparative study analysis, 485, 519n18 middle-income trap and comparative advantage, World Economic Forum (WEF), 255 World Trade Organization (WTO), 278, 336, 346 WTO Trade Policy Review on Sri Lanka, 440 Y Yamashita, Nobuaki, 18 Z Zakat Fund Promotion Act (2006), 137 zero interest rate policy (ZIRP), 307