Economics Working Papers

The ADB Economics Working Paper Series is a forum for stimulating discussion and eliciting feedback on ongoing and recently completed research and policy studies undertaken by the Asian Development Bank (ADB) staff, consultants, or resource persons. The series deals with key economic and development problems, particularly those facing the Asia and Pacific region; as well as conceptual, analytical, or methodological issues relating to project/program economic analysis, and statistical data and measurement. The series aims to enhance the knowledge on Asia's development and policy challenges; strengthen analytical rigor and quality of ADB's country partnership strategies, and its subregional and country operations; and improve the quality and availability of statistical data and development indicators for monitoring development effectiveness.

  • 01 Jan 2012 | Publication

    Lessons from the 1997 and the 2008 Crises in the Republic of Korea

    The economy of the Republic of Korea was hit harder than anticipated by the global financial crisis. In the first phase, large capital outflows led to a severe liquidity strain in the foreign exchange market resulting in a rapid depreciation of the exchange rate. Then, in the second phase, the contraction of global demand led to a collapse of exports and a sharp decline in economic activity, raising concerns about a full-fledged financial crisis in the country.
  • 01 Dec 2011 | Publication

    Subnational Purchasing Power Parities toward Integration of International Comparison Program and Consumer Price Index: The Case of the Philippines

    This paper analyzes the plausibility of integrating the International Comparison Program with the consumer price index (CPI) by computing subnational purchasing power parities using regional prices and expenditure weights from the CPI for the Philippines. The study shows that prices collected for the CPI could be used to provide reliable estimates of price levels across regions, and that regional price movements are highly correlated. The substitution effect of using year 2000 expenditure weight, however, has not been explored in this study.
  • 01 Dec 2011 | Publication

    Ownership Structure and Export Performance: Firm-Level Evidence from the Republic of Korea

    This paper empirically examines the relationship between the ownership structure of firms and their export performance. To do so, they use firm-level data from the Republic of Korea, a classical example of successful export-oriented industrialization. Their empirical results indicate that Korean firms with more concentrated ownership are more likely to be exporters and export more.
  • 01 Dec 2011 | Publication

    Demographic Dividends for India: Evidence and Implications Based on National Transfer Accounts

    There is a lack of verifiable evidence on the period and magnitude of the demographic dividends in India, a gap policy makers must address when setting priorities for human resource and capital investment to harvest the economic benefits of the demographic transition currently under way. This study attempts to fill this gap by quantifying the demographic dividends using National Transfer Accounts framework and by indicating their implications for equity.
  • 01 Dec 2011 | Publication

    Institutional Model of Decentralization in Action

    Applying the Institutional Model of Decentralization, Iwan J. Azis argues that the presumption that local democracy will impose accountability pressure on elected officials does not always hold. Even in a democratic system like in Indonesia, decentralization policy is welfare-enhancing only for the developed regions, not for all, exacerbating interregional welfare disparity. This "captured democracy" is largely due to the presence of "negative local capture".
  • 01 Dec 2011 | Publication

    Infrastructure's Role in Sustaining Asia's Growth

    This paper provides a comprehensive overview of the issues, policies, and political economy of infrastructure investment, and a review of empirical literature of the relationship between growth and infrastructure. Empirical estimations using the growth accounting framework for a panel of 123 economies confirm that while infrastructure contributes to growth, the extent of the contribution generally varies according to the level of income of countries.
  • 01 Nov 2011 | Publication

    Demographic Change, Intergenerational Transfers, and the Challenges for Social Protection Systems in the People's Republic of China

    There is a growing awareness of the social strains accompanying economic growth in the People's Republic of China, such as the lagging development of the social protection system as the population ages. Using estimates from the National Transfer Accounts database, Qiulin Chen, Karen Eggleston, and Ling Li describe changes in life cycle public transfers; interhousehold transfers; and intrahousehold transfers for education, health care, and other support; and discuss the main challenges that demographic change poses for the People's Republic of China's pension and health care systems.
  • 01 Nov 2011 | Publication

    Competition, Labor Intensity, and Specialization: Structural Changes in Postcrisis Asia

    Yothin Jinjarak and Kanda Naknoi find that the exporting pattern in Asia and the degree of competitiveness of Asian economies substantially changed in the decade after the Asian crisis. These structural changes were not caused by labor intensity and wage inflation. However, due to data limitations, the authors cannot conclude whether these structural changes come from changes in the cost of capital or changes in total factor productivity.
  • 01 Nov 2011 | Publication

    Asian Financial System: Development and Challenges

    A well-functioning financial system has an important role to play in promoting economic growth and reducing poverty. Cyn-Young Park explores the key development agenda of Asian financial systems that aims to promote economic growth and development through well-functioning financial markets and, in the process, bolster inclusive growth to support social stability and equity in the region.
  • 11 Oct 2011 | Publication

    Between-Country Disparities in MDGs: The Asia and Pacific Region

    This paper represents an early attempt to study cross-country disparities in 25 Millennium Development Goals (MDGs), with a special emphasis on health-related MDGs.