Draw Policy Implications Research Articles

Cryptocurrency Management in Vietnam

Decentralized cryptocurrency has captured the attention of both individual and institutional investors. Cryptocurrency regulation in Vietnam is attracting great public attention and is a decisive factor in the development of this new financial market. The article assesses the current status of cryptocurrency mining and its use in Vietnam, thereby drawing policy implications for the management of this particular asset class in the coming period.

Socioeconomic and Spatial Impacts of High-Speed Rail on Enterprises: An Ex-Ante Case Study of Ahmedabad Station Area, India

Growth benefits of high speed rail (HSR) for enterprises are not automatic, but require a buoyant local economy and a robust strategy. Against the above background, the main objectives of ex-ante case study have been to investigate local socio-economic and spatial impacts of proposed HSR project around Ahmedabad station area on the Mumbai-Ahmedabad HSR corridor, analyze the opportunities and challenges of HSR development and draw policy implications. Qualitative research methodology has been used to elicit the perceptions and perspectives of randomly selected 43 small, medium and large enterprises. Data has been analyzed using descriptive statistics. The study reveals that HSR induced greater human interaction will activate the local economy, improve business efficiency and generate employment. Frequent travels on business trips can influence enterprises' decision to settle near HSR stations for easy access and likely to promote realty development. The proposed HSR project should be developed in synergy with the urban dynamics of cities in transition and metropolitan service cities. Poor public transport connectivity is likely to be a major challenge in improving HSR accessibility and enhancing overall impacts of HSR, which can be improved by developing an integrated urban transport system, for which cooperation of all stakeholders and coherence with firms' strategies is essential.

Institutional quality and FDI location: A threshold model

This paper aims to explain why foreign direct investment (FDI) inflows into South and Southeast Asia are increasing as alternative production bases to China, but are concentrated in a few countries with better institution quality. The literature posits that labor costs are a major determinant of FDI location decisions. A model of FDI location is explored to examine the threshold role of institutional quality in determining the relationship between labor costs and FDI location. Using data from 14 South and Southeast Asian countries during 2000–2017, evidence shows that effects of labor costs on FDI are nonlinearly decreasing because their institutional quality is improved above threshold values. A better quality of institution reduces country-related costs for FDI location and undermines the negative relationship between labor costs and FDI location. This study contributes by exploring the role of institutional thresholds in determining FDI location and draws policy implications despite labor costs increases.

Monetary Policy and Financial Sustainability in a Two-State Open Economy

Monetary policy and financial sustainability are linked. However, the role of monetary policy and its implementation have come under particular scrutiny after the 2008 Global Financial Crisis (GFC) and the 2010 European sovereign debt crisis, where one of the main challenges was financial sustainability. In this paper, we contribute to the literature by improving our understanding of the influence of monetary policy on financial sustainability for a monetary union. To that end, we develop a two-state open economy macroeconomic model, in which the two state economies have the same monetary policy but maintain their fiscal independence. Examples include two countries in the eurozone, two states in the United States, core and periphery countries, etc. The linkages between these two state economies are inter-state trade in goods and inter-state borrowing in bonds. We apply the calibrated model and conduct economic experiments under alternative monetary policy regimes. The model simulation shows that monetary policy is incorrect if inflation differentials persist in a monetary union, and that incorrect monetary policy leads to real interest rates that are too low for high inflation countries, which become indebted after excessive borrowing. This study sheds light on how monetary policy should be implemented if inflation differs in countries within a monetary union. Our findings draw policy implications for those “two-state” economies considering alternative macroeconomic policy regimes to achieve financial sustainability and regional economic integration.

Trade Openness and Economic Growth in China and India in Comparative Perspective: An Exploratory Study

China's economic success has been attributed to export-led growth, while India has used export-led growth and domestic demand-led growth simultaneously. Therefore, both economies can learn from each success in trade performance vis-a-vis economic growth. The paper intends to analyze trade openness and economic growth performance in comparative perspective of China and India and draws policy implications using data triangulation methods. The study reveals that Trade openness ratio stood at 35.4% and 31.9% respectively in China and India in 2018, which reflects narrowing down in trade-GDP ratio in two economies. China recorded simple exports-GDP ratio at 20.5% and 42.34% respectively in 2000 and 2010 compared to India's corresponding figures at 9.6% and 15.1% respectively, reflecting much more integration of China into global trade compared to India. Export-GDP ratios have steadily increased in both countries since 1991, but declined in 2008 due to effects of the global recession and stood at 18.3% and 12.5% respectively in China and India in 2018. Over the period, China has emerged as India's largest trading partner, but bilateral trade gap of India is also increasing with its overall trade gap with rest of the world, which contributes to overall trade imbalance of India and poses a policy challenge to sustain trade between two countries along with narrowing the existing bilateral trade gap, which can be addressed effectively by India's technology-intensive exports to China. Both countries are required to remove existing trade barriers and constraints to reap full trade potential focusing on customs rules and procedures, standards, certification and regulatory practices, non-tariff barriers, and rules of origin. Mutual consensus on customs valuation and guidelines to facilitate uniform documentation across ports are needed to increase China-India trade. Despite high degree of openness, both countries experienced a small deceleration in growth in recent years. Therefore, free trade and sustained reforms are the best options for China and India to return to sustainable growth rates.

A strategic response map for cascading pandemics: Lessons learned from the response to COVID-19 in the Republic of Korea

COVID 19 is a still on-going fatal risk that affects the whole world. COVID-19 pandemic has been characterized as a systemic risk. Accordingly, this paper aims to identify the features of systemic risk of COVID-19 and draw policy implications for effective response. For this, we traced the COVID-19 related risk in Korea from January 2020 to August 2021 by utilizing the official data of the Korea Disease Control and Prevention Agency. Analyzing the relationship between anticipated, emerging, amplified, and lingering risk and response measure through actual data, it was revealed that the risk flow model for cascading risk proposed by the author can be readily applied. In addition, through the analysis of actual response measures against the risks for 1 year and 8 months, the authors proposed a strategic response map against cascading pandemics. Five policy implication derived through this study can be extended for identifying strategic approach against cascading pandemics and for developing guidelines for effective preparedness, risk reduction, and resilience building.

미국 커뮤니티 개발회사(CDC)의 저렴주택 지원제도 및 사업구조 분석

Purpose: Community Development Corporations(CDC) in the United States play a key role in urban regeneration by providing housing in low-income neighborhoods. CDCs also take lead in various development projects to revitalize communities. Through analyzing the outcomes of housing programs initiated by CDCs, this study draws policy implications as to how to foster and support viable private housing providers in Korea. Method: Reviewing research studies and government reports on the operation and organizations of CDCs allow us to examine the background in the rise of CDCs and how CDCs have made progress. This study analyzes main traits of community-based housing programs and public policies to support CDC housing projects. Further, we investigate overall activities and project details of CDCs based in New York City, focusing on their financing strategies and business models. Result: This paper proposes the following to nurture low-cost housing providers from the private sector in Korea. First, since providing housing for low-income households suffer from low profit and high-risk, it is essential for the public sector to make financial support available to private housing providers. Second, the private-public partnership and systematic public support system should be firmly established to push for neighborhood-based small-scale projects. Third, for community corporations to take root, the business area should be flexible to deal with housing problems as well as various issues of low-income neighborhoods.

Conceptualising the Sustainable Energy Security Dimensions of Malaysia: A Thematic Analysis through Stakeholder Engagement to Draw Policy Implications

This study aims to provide established knowledge of the multi-dimensional concept of energy security through engaging stakeholders and experts. Energy security policy implications have been suggested in this study to address and mitigate energy security challenges. A total of seven emerging themes from semi-structured interviews have been discussed in-depth to understand the role of each theme and their interactions with energy policies. There is an urgent need to reduce dependency on fossil fuels and to look for alternative fuel options from renewable sources. At the same time, energy-efficient technology plays a significant role in improving overall efficiency and leading to reduced wastage of energy. This would, in turn, improve the availability and affordability of energy in Malaysia. Energy equity gets the most emphasis in the energy trilemma of Malaysia; however, equal importance should be attached to the nation’s energy security alongside environmental sustainability. The final decision of the trilemma balance and the energy policies that govern the energy use framework depends on the ministries and the regulatory bodies. An indicator mapping process has been recommended for these themes to quantify energy security by developing an energy security index. The thematic results discussed in this study have the potential to facilitate policymakers and energy analysts of countries with similar energy outlooks to design data-driven energy security policies.

The Choice of Urban Spaces in the COVID-19 Era

The spread of infectious diseases is a spatial process, including Coronavirus disease 2019 (COVID-19). Cluster infections of COVID-19 have arisen globally in various urban spaces, implying that tracking the spread necessitates a spatial approach to understanding the dynamics of the disease. In this study, we employ an online survey in the Seoul metropolitan area in South Korea to examine changes in the use of urban spaces and factors that affect individual’s choice in using urban spaces in the COVID-19 era. We classify various urban spaces into three activity types according to the previous studies: spaces for mandatory activities, maintenance activities, and discretionary activities. The results show that every type of urban space is visited less than before the COVID-19 outbreak. Factors involved in the use of spaces for mandatory activities include the preference for offline consumption, gender, and risk perception of COVID-19. In the case of non-mandatory activity spaces, factors that commonly influence the use of the spaces are compliance with social distancing regulations, preference for offline consumption, refraining from outdoor activities, risk perception of COVID-19, and perceived safety in the city concerning COVID-19. The present study is significant as it identified not only different factors affecting the choice of mandatory and non-mandatory activity spaces but also distinctive variables determining the choice of urban spaces for maintenance activity and discretionary activity. From the analysis, this study draws policy implications to effectively prevent and control infectious disease in the context of urban spaces.

Organising Competition for the Market

Abstract We study competition for the market in a setting where incumbents (and, to a lesser extent, neighbouring incumbents) benefit from a cost or information advantage. We first compare the outcome of staggered and synchronous tenders, before drawing the implications for market design. We find the timing of tenders interrelates with the likelihood of monopolisation. For high incumbency advantages and/or discount factors, monopolisation is expected, in which case synchronous tendering is preferable as it strengthens the pressure that entrants exercise on the monopolist. For low incumbency advantages and/or discount factors, other firms remain active, in which case staggered tendering is preferable as it maximises competitive pressure coming from the other firms. We use bus tendering in London to illustrate our insights and draw policy implications.

Oyster Shell Recycling and Marine Ecosystems: A Comparative Analysis in the Republic of Korea and Japan

Baek, E.Y., 2021. Oyster shell recycling and marine ecosystems: A comparative analysis in the Republic of Korea and Japan. In: Lee, J.L.; Suh, K.-S.; Lee, B.; Shin, S., and Lee, J. (eds.), Crisis and Integrated Management for Coastal and Marine Safety. Journal of Coastal Research, Special Issue No. 114, pp. 350–354. Coconut Creek (Florida), ISSN 0749-0208. Oyster shell management is important for a sustainable oyster industry, and if oyster shells are utilized as resources, they will also contribute significantly to the creation of added value. The Republic of Korea and Japan are top producers of oyster shells but treat them very differently as resources. First, all oyster shell management laws in Korea are controlled by the “Waste Control Act,” while in Japan, if waste is recycled into a useful resource, although it is still subject to the “Waste Control Act,” such waste can be treated differently. Second, the cost of recycling oyster shells is different in both countries. In Korea, the cost is the same nationwide, but in Japan, there is no subsidy provided to oyster farmers, and the regional processing costs are different. Finally, industrialization accounts for a majority of fertilizers/animal feed in the Republic of Korea, but oyster shells have been utilized for these in Japan. Thus, the present study aimed to draw policy implications for effective reuse of oyster shells by comparing the related laws, costs, and wasting and recycling technologies between the Republic of Korea and Japan.

“Sub-debt trap”: a real effect of an ill-design adoption of basel accord in the Bangladeshi banking industry

PurposeThe purpose of this paper is to investigate the impact of basel accord on the Bangladeshi bank performance including Islamic banks and the role of subordinated debt (sub-debt) as basel regulatory capital (BRC).Design/methodology/approachThe authors conducted the empirical investigation by adopting a quantitative approach and using the secondary data available in the annual reports of the sample banks between 2009 and 2018. This paper develops an econometric model to compare and analyze the regression result under two states of capital-to-risk adjusted assets ratio (CRAR) with sub-debt and CRAR without sub-debt. This paper analyzes the impact of sub-debt in the largest Islamic bank for the year 2007 as a case study for endorsing the findings.FindingsThis paper finds that CRAR has positive alignments with return on equity (ROE) and cash dividend when sub-debt is considered as Tier 2 capital. This paper observes that the huge bad loan write-off supports to downsize the asset size thus temporarily enhance the return on assets (ROA). In a nutshell, sub-debt gives banks an ill incentive to disburse steady cash dividends instead of injecting genuine equity capital, encouraging them to take more credit risk. In fact, more private commercial banks (PCBs) issued huge sub-debts between 2009 and 2018 under a unique arrangement, which the authors termed as the “sub-debt trap.”Research limitations/implicationsThis paper draws policy implications for the banking regulator to identify and rectify a systemic problem of the “sub-debt trap” which hinders the regulatory purpose from the implementation of basel accord II and III. A limitation of this study is the authors shed analytical light on Bangladeshi banks, i.e. it a single country analysis which may not be generalized to other developing countries except matching with a similar context.Originality/valueThe paper contributes to accumulating empirical studies on the effectiveness of basel accord implementation in developing countries. In most of the developing countries, where institutional loopholes are a major concern, the research provides evidence that how weak institutional settings are largely responsible for harvesting the potential benefit from micro-prudential regulation such as the basel accord. To shed analytical light on developing country context, the study document that sub-debt has been instrumentalized to maintain minimum capital ratio and banks managers tends more focus on improving ROE instead of ROA. The findings of the study are supportive to other developing countries where sub-debt considered as BRC and issued through private placement. To the best of the authors’ knowledge, it is the first attempt to cast doubt on the impact of sub-debt as a BRC, given the uniqueness of the Bangladeshi banking industry, on the PCBs including Islamic banks.

Modelling the Global Prevalence of COVID-19: An Econometric Approach

Nearly all economies of the world suffered from the sudden outbreak of the coronavirus pandemic emanating from Wuhan City of China to the rest of the world. A number of studies have been conducted to investigate the drivers of the spread of the viral infection. We differ from existing studies by employing a cross-sectional quantile regression approach to uncover socio-economic conditions that are instrumental in the spread of COVID-19 in Africa, Asia, America and Europe. Across the continents, we observed that life expectancy, the size of the aged population and spending on the health sector have significant impacts on the spread of COVID-19. We also noted the specific roles of out-of-pocket spending, net migration and tourism attraction for Africa, America and Europe, respectively, in driving the viral spread. We therefore draw policy implications in terms of the need for improved spending on health sector across continents and the need to intensify health checks for travelers and immigrants, and also the need to emphasize regular check-ups for all individuals across continents since current realities have shown that no age-group is spared of contracting the viral infection.

The impact of income on public health and education expenditure: Evidence from the Indian states

In this study, we examine the long‐run impact of state‐level per capita income on public education expenditure and public health expenditure in 17 major Indian states over the period 1993–2017. To test for the existence of a unit root, we have employed the Zivot–Andrews test and the Clemente–Montañes–Reyes test, which allows for an endogenous structural break in the data series. These tests indicate that all variables are nonstationary. Autoregressive distributed lag model with one structural break is applied to find the cointegration of variables and estimate the cointegrating equation. The bounds test reveals the presence of a long‐run relationship between public health expenditure and per capita income in 12 out of 17 states, between public education expenditure and per capita income in 15 out of 17 states. The result shows that per capita income affects the public health and education expenditure of states. We find elasticities of public health expenditure and public education expenditure vary across states and are small in magnitude (less than one for most of the states). Our results suggest that public health and education expenditures are necessary goods. Based on the results, we also draw policy implications from our findings.

A Longitudinal Study on the Causes of Artist Outflow and Network Characteristics in Market Revitalization Projects Connecting Culture and Art : Focusing on the Gwangju Daein ArtMarket in Korea

The Gwangju Daein Art Market, once declared as a declined market, was regarded as a success after an inflow of artists. However, the number of resident artists decreased from 100 at the end of 2015 to 39, to 9 in 2018, and to 6 in 2021. The project site showed signs of decline toward the completion of the project, leading to a Longitudinal study on the project’s sustainability. The purpose of this study is to investigate the causes of outflow of artists and the network characteristics of the remaining artists from a sustainability perspective and thereby draw policy implications. As an analysis method, in-depth interviews and surveys were conducted. After that, we checked the remaining artists in 2018 and 2021 and identified the network characteristics. Based on the interview results, the causes of outflow were classified into programmatic, physical, and other factors. The results of a comparison showed that the levels of understanding, satisfaction, and frequency of exchange decreased. The study also provides policy implications. First, a sustainable, long-term program for the artists must involve the improvement of physical space. Second, participation in the market should be encouraged by working with artists on program composition or business progress. Third, programs for supporting exchange among artists should be further strengthened.

토픽모델링 분석에 의한 글로벌 그린뉴딜 연구동향 분석

Climate change and the economic downturn caused by COVID-19 continue to affect global society. To solve this problem, the Green New Deal policy is being implemented, with similar goals in many countries, including Korea, the EU, and the United States.<BR> This study posited that the main methods and research would vary by region despite similar goals. For this study, 237 Green New Deal-related studies were collected using three academic platforms: KCI, Web of Science, and Science Direct. Netminer was used as an analytical tool to topic modeling.<BR> According to the results, Korea is conducting a lot of institutional research on government carbon strategies and economic strategies for response to the environmental crisis. In addition, the EU is conducting research related to the environment such as land management and economic evaluation. Finally, the U.S. has conducted much economic-related research in areas such as economic growth plans and infrastructure development plan. Unlike Korea and the EU, the U.S. has conducted equity-related research such as that of climate justice.<BR> This study integrates the main themes and characteristics of Green New Deal-related studies in countries. In addition, the Green New Deal policy being implemented globally was compared with major research themes to draw policy implications.

국가혁신시스템 관점에서 바라본, SDGs 달성을 위한 과학·기술·혁신 지표 개발 탐색적 연구

Sustainable Development Goals (SDGs) were adopted in 2015, by the United Nations (UN). In achieving the SDGs, science·technology·innovation (STI) has been emphasized as one of means of implementation in achieving SDGs. Hence, in order to reflect an STI perspective, the UN established the Technology Facilitation Mechanism (TFM) in September 2015. One of the main activities of the TFM is to formulate the guideline of ‘STI for SDGs Roadmaps’ and to encourage countries to create such individual national roadmaps. Along this line of work, recent discussion has centered around the development of indicators to measure activities and performance of STI for SDGs. This engendered a series of questions regarding i) what the proper STI indicators are for monitoring and evaluating the implementation of SDGs, ii) whether and what kinds of STI indicators are needed, iii) and how STI indicators are to be reflected at the global and national levels. Based on these, this paper attempts to explore whether and what kinds of STI indicators are reflected in the current indicators of the UN-SDGs and Korean SDGs (K-SDGs). For this analysis, this paper reviews the existing STI indicators in use, takes a national innovation system (NIS) perspective as a theoretical basis, and formulates four STI criteria and related specific STI indicators: i) R&D input and output, ii) STI institution/governance, iii) STI network, and iv) STI infrastructure. With four categories and their respective indicators, this paper examines how the indicators of the UN-SDGs and K-SDGs are relevant to the STI indicators and draws policy implications for each criterion. The analytical result reveals that the indicators of the UN-SDGs and K-SDGs include the STI indicators of all four criteria, though the patterns of reflection are different. This paper ends with some ideas for future policy and research approaches to the STI indicators for SDGs.

How Do Marginal and Small Farmers Perceive the Impacts of Climate Change on Livelihoods? A Case Study from Jammu Region, India

This study investigated the perceived impacts of climate change on livelihoods of marginal and small farmers in Jammu region, India. The objectives of the study have been to analyze the impacts of climate change on crop farming and livestock rearing by marginal and small farmers in study area, to understand socio-economic implications of climate change impact on livelihoods, and to draw policy implications for ameliorating the livelihoods of marginal and small farmers in changed climatic conditions. The study is confined to irrigated and non-irrigated areas in Jammu and Rajouri districts of Jammu region. The study is based on primary data collected from household survey using pre-tested structured questionnaires. A total of 600 farm households were selected using the multistage sampling technique. The study findings revealed that while climate change was negatively affecting livelihoods of marginal and small farmers in both irrigated and non-irrigated agriculture through reduced crop and animal yields, crop damages, crop and animal diseases, weed infestations and pest/insect attacks on crops, the adverse impacts were experienced by comparatively more marginal and small farmers in non-irrigated agriculture. The study further noted finer variations in socio-economic impacts from households to households which can be attributed to their involvement in diverse livelihood strategies providing them with increased income security. For enhancing their resilience to climate change, the governments should-create more research capacity to enhance development and timely supply of hybrid seeds and varieties at subsidized rates; strengthen agriculture extension services to give them knowledge, information and technical support; improve animal health service delivery system with improved knowledge and technique to prevent and timely treatment of climate change-induced disease outbreaks among animals; introduce small irrigation schemes like drip irrigation and sprinkle irrigation schemes in non-irrigated areas and promote rainwater harvesting technique for irrigation in dry periods.

The Effects of Business Model on Bank’s Stability

The literature shows little evidence of the effects of business models upon the volatility of banks in developing and fast-growing economies. Hence, this study examines the effects of business model choice on the stability of banks in ASEAN countries. Using GMM and other robust econometric methods on the sample of 99 joint stock commercial banks, we find significant and negative impacts of a diversification model in which banks shift toward non-interest and fees-based activities. We also find that the impacts are different between two groups of countries. For Vietnam, Indonesia and the Philippines, the diversification entails negative impacts on stability while demonstrating positive impacts for Thailand and Malaysia. Based on these findings, we draw policy implications for more sustainable development in the ASEAN banking business.

Blockchain Solutions for International Logistics Networks along the New Silk Road between Europe and Asia

The primary research that underpins this paper seeks to explore the applications of blockchain technology on a specific international corridor and to draw policy implications for decision makers. To analyze the bottlenecks of operating on the New Silk Road and to identify opportunities for applying the blockchain technology on this corridor, a survey was conducted among main train operators and experts working on this route. These responses provide insight into the issues related to the adoption of blockchain technology from front-line actors. The top three challenges are lack of capacities, congestion at transshipment terminals, and slow border crossing. Through the application of blockchain technology, the operators are presented with opportunities for improved accuracy in the processing of data and information, higher reliability of information flows through failure-free transfer of information, and improved traceability of supply chains through irrevocable input of status information. Currently, 50% of the respondents have started to implement blockchain applications or have an actual interest to apply blockchain solutions. For a wider implementation of blockchain solutions, business models need to be developed allowing private and permissioned access that is accepted and open for parties involved. Policy makers should facilitate these digital innovations through flexible and harmonized legal regulations on an international level.