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Economic Dimensions of Covid-19 in Indonesia
Beginning in December 2019, the coronavirus swept quickly through all regions of the world. COVID 19 has wreaked social, political and economic havoc everywhere and has shown few signs of entirely abating. The recent development and approval of new vaccines against the virus, however, now provides some hope that we may be coming to the beginning of the end of the pandemic. This volume collects papers from a conference titled Economic Dimensions of COVID 19 in Indonesia: Responding to the Crisis, organised by the Australian National University’s Indonesia Project and held online 7–10 September 2020. Collectively, the chapters in this volume focus for the most part on the economic elements of COVID 19 in Indonesia. The volume considers both macro- and micro-economic effects across a variety of dimensions, and short- and long-term impacts as well. It constitutes the first comprehensive analysis of Indonesia’s initial response to the crisis from an economic perspective.
AUSTRALIA-INDONESIA CONNECTION
ln early 2020, Australia and Indonesia entered an historic high point in their bilateral relationship. The President of Indonesia, Joko Widodo, visited Canberra where he addressed the Joint Houses of Parliament, and meetings were held to put the final touches on the Indonesia-Australia Comprehensive Partnership Agreement (IA CEPA). Since then, tested by the COVID-1 9 pandemic crisis, the strength and depth of the Australia-Indonesia relationship—between governments, also business and community organisations and individuals—has come more clearly into focus. The people-to-people connectivity that has driven the Australia-Indonesia relationship is being re-imagined in creative, digital ways...
World Trade Evolution
The book provides theoretical and empirical evidence on how world trade evolves, how trade affects resource allocation, how trade competition affects productivity, how China shock affects world trade and how trade affects large and small countries. It is a useful reference which focuses on new approaches to international trade by looking into country-specific as well as firm-product level-specific cases.
World Development Report 2020
Global value chains (GVCs) powered the surge of international trade after 1990 and now account for almost half of all trade. This shift enabled an unprecedented economic convergence: poor countries grew rapidly and began to catch up with richer countries. Since the 2008 global financial crisis, however, the growth of trade has been sluggish and the expansion of GVCs has stalled. Meanwhile, serious threats have emerged to the model of trade-led growth. New technologies could draw production closer to the consumer and reduce the demand for labor. And trade conflicts among large countries could lead to a retrenchment or a segmentation of GVCs. World Development Report 2020: Trading for Development in the Age of Global Value Chains examines whether there is still a path to development through GVCs and trade. It concludes that technological change is, at this stage, more a boon than a curse. GVCs can continue to boost growth, create better jobs, and reduce poverty provided that developing countries implement deeper reforms to promote GVC participation; industrial countries pursue open, predictable policies; and all countries revive multilateral cooperation.
The Return of Bipolarity in World Politics
Since the collapse of the Soviet Union, the international system has been unipolar, centered on the United States. But the rise of China foreshadows a change in the distribution of power. Øystein Tunsjø shows that the international system is moving toward a U.S.-China standoff, bringing us back to bipolarity—a system in which no third power can challenge the top two. The Return of Bipolarity in World Politics surveys the new era of superpowers to argue that the combined effects of the narrowing power gap between China and the United States and the widening power gap between China and any third-ranking power portend a new bipolar system that will differ in crucial ways from that of the la...
Southeast Asian Affairs 2020
Southeast Asian Affairs, first published in 1974, continues today to be required reading for not only scholars but the general public interested in in-depth analysis of critical cultural, economic and political issues in Southeast Asia. In this annual review of the region, renowned academics provide comprehensive and stimulating commentary.
Mitigating Climate Change: Growth-Friendly Policies to Achieve Net Zero Emissions by 2050
Background paper prepared for the October 2020 IMF World Economic Outlook. This paper provides a detailed presentation of the simulation results from the October 2020 IMF World Economic Outlook chapter 3 and an additional scenario with carbon pricing only for comparison with the comprehensive policy package where green investments were also included. This paper has greatly benefitted from continuous discussions with Oya Celasun and Benjamin Carton on the design of simulations; contributions from Philip Barrett for part of the simulations; and research support from Jaden Kim. We also received helpful comments from other IMF staff. All remaining errors are ours. McKibbin and Liu acknowledge financial support from the Australian Research Council Centre of Excellence in Population Ageing Research (CE170100005).
The Dutch Disease in Australia
'Dutch Disease' refers to the adverse effects through real exchange rate appreciation that the mining boom can have on various export- and import-competing industries. The distinction is made between the booming sector (mining), the lagging sector (exports not part of the booming sector and import-competing goods and services) and the non-tradeable sector. What should the government do to reduce this Dutch 'disease'? The principal options are: do nothing, piecemeal protectionism, moderate exchange rate effects by running a fiscal surplus, combined with lowering the interest rate, and possibly establishing a sovereign wealth fund. The costs of the latter measures may be considerable.
At A Cost: The Real Effects of Thin Capitalization Rules
Thin capitalization rules (TCRs) aim to mitigate profit shifting by multinational corporations (MNCs) but, by raising the cost of capital for affected affiliates, can also negatively affect real investment. Exploiting unique panel data on multinational companies in 34 countries during 2006-2014, we estimate that the size of this adverse investment effect can be large, and dependent on the statutory corporate tax rate and the tightness of the safe-haven ratio. Negative investment effects are more pronounced for highly-levered firms for which TCRs are more likely to be binding.
What Determines Learning Among Kinh and Ethnic Minority Students in Vietnam? An Analysis of the Round 2 Young Lives Data
An analysis of the Young Lives data collected in 2006, involving a younger cohort (aged 5) and an older cohort (aged 12), yields three important findings regarding the Kinh - ethnic minority gaps in mathematics and reading skills in Vietnam. First, large disparities exist even before children start primary school. Second, language may play an important role: Vietnamese-speaking ethnic minority children scored much higher than their non-Vietnamese-speaking counterparts, even though tests could be taken in any language the child chooses. Third, Blinder-Oaxaca decompositions indicate that higher parental education among Kinh children explains about one third of the gap for both cohorts. For the older cohort, Kinh households' higher income explains 0.2-0.3 standard deviations (SDs) of the gap (1.3-1.5 SDs). More time in school, less time spent working, and better nutritional status each explain about 0.1 SDs of the mathematics score gap; Kinh children's more years of schooling explains about 0.3 SDs of the Peabody Picture Vocabulary Test score gap.
