Recent research

Publication type: Working paper

Title: Global production networks and the evolution of industrial capabilities: Does production sharing warp the Product Space?

Author(s): Russell Thomson,Prema-chandra Athukorala

Excerpt:

Do production capabilities of countries evolve from existing capabilities or emerge de novo? The Product Space approach developed by Hidalgo, Klinger, Barabási & Hausmann (2007) postulates that a country’s existing industrial structure largely determines its opportunities for industrial upgrading. However, this is difficult to reconcile with the export dynamism of many developing countries such as Thailand, Malaysia, Costa Rica and Vietnam that transformed from primary commodity dependence to exporters of dynamic manufactured products.

Date of publication: 2019

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Publication type: Working paper

Title: Domestic value added, exports and employment: An input-output analysis of Indonesian manufacturing

Author(s): Prema-chandra Athukorala ,Arianto A. Patunru

Excerpt:

The paper is motivated by the current emphasis on the share of domestic value added in exports (SVEX) as a policy criterion for export development strategy in developing countries. Our hypothesis is that, the policy emphasis on SVAD, which harks back to the import substitution era, is not consistent with the objectives of achieving economic growth with employment generation in this era of economic globalisation.

Date of publication: 2019

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Publication type: Working paper

Title: Does export performance improve firm performance? Evidence from Indonesia

Author(s): Deasy Pane ,Arianto A. Patunru

Excerpt:

‘Learning-by-exporting’ hypothesis suggests that once a firm enters a foreign market, its productivity will increase thanks to the exposure to new knowledge and experience abroad. We test this hypothesis using Indonesia’s firm level data from 2000 to 2012. The methodology involves scrutinizing the learning process of exporters by incorporating ‘export age’ – the number of years engaged in exporting activities – as an explanatory variable in the model. We find that exporter’s total factor productivity increases with export age, but not linearly.

Date of publication: 2019

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Publication type: Working paper

Title: Assimilation of rural-urban migrants under a less restrictive internal migration policy: Evidence from Indonesia

Author(s): Rus’an Nasrudin,Budy P. Resosudarmo

Excerpt:

This paper provides new evidence on how a relatively open internal migration policy can influence migrant assimilation outcomes. We revisit the findings of previous studies on international labour migration in developing countries by investigating the economic consequences of moving people from rural areas to four Indonesian cities in which international migration is relatively free. The empirical investigation uses cross-sectional and individual-level panel data techniques.

Date of publication: 2019

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Publication type: Policy

Title: Trusted, ethical, fast-moving and effective future police

Author(s): Young, R,Meli, O.

Excerpt:

Key points:

  • The ongoing developments in digital technologies and the fourth industrial revolution are opening up huge business opportunities - both legal and criminal.
  • The attributes that give start-ups advantages over traditional businesses - agility, shrinking costs of entry, digital access to global markets and ability to scale rapidly - apply more to business models of criminal syndicates than law enforcement.

Date of publication: 2019

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Publication type: Working paper

Title: Measuring trade in value added: How valid is the proportionality assumption?

Author(s): Arianto A. Patunru,Prema-chandra Athukorala

Excerpt:

The validity of the ‘proportionality assumption’ made in estimating value added in exports using aggregate input-output tables is tested using separately compiled domestic- and imported-input matrices for Indonesia, Thailand, Malaysia, Taiwan, and Australia. The results show that the use of the proportionality assumption results in overestimation of value-added exports, and that the magnitude of the bias becomes amplified when the export composition of a country shifts from primary products to manufactured goods through integration into global production networks.

Date of publication: 2019

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Publication type: Working paper

Title: Does international reserve accumulation crowd out domestic private investment?

Author(s): Wishnu Mahraddika

Excerpt:

Foreign exchange reserve accumulation is one of the preferred strategies to protect against susceptibility to financial crises. At the same time, maintaining a healthy international reserve position has the potential to promote domestic investment by reducing the cost of foreign borrowing through improving international creditworthiness. However, contractionary monetary policy in the form of sterilization operations implemented as part of reserve accumulation strategy could crowd out financing for domestic investment.

Date of publication: 2019

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Publication type: Working paper

Title: The impact of blackouts on the performance of micro and small enterprises: Evidence from Indonesia

Author(s): Anna T. Falentina,Budy P. Resosudarmo

Excerpt:

Reliability of electricity supply is one of pressing challenges to many micro and small enterprises (MSEs) in developing countries. MSEs play a pivotal role in employment generation in these countries, but productivity of MSEs is relatively low. Little is known about how blackouts affect performance of MSEs. This paper is the first study to estimate the impact of power blackouts on productivity of manufacturing MSEs and to discuss the role of the government in addressing problem.

Date of publication: 2019

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