SOUTHEAST ASIAN JOURNAL OF ECONOMICS

The Impact of Bank Development on Indonesian Districts’ Economic Growth and Poverty Alleviation

2023-08-16T14:23:26+07:00

This study investigates the conventional and Indonesian Islamic banks’intermediary role in enhancing economic growth and reducing poverty in 33 Indonesian districts during 2012–2020. Data panels were examined by fixed-effect analysis and cross-sectional effect. This study found that, compared to Islamic bank offices, the number of conventional bank offices has a greater effect on Indonesian GDP, while Islamic banks have an essential role in reducing poverty. Conventional bank financing positively affects economic growth and poverty alleviation. Islamic bank deposits have a strong correlation to Indonesian districts’ economic growth and poverty. Meanwhile, conventional bank deposits have a greater effect on reducing poverty than GDP. Therefore, conventional and Islamic banks have a crucial role in enhancing economic growth and solving income inequality in the domestic context. This study contributes to economic literature with a practical and local government decision-making process through developing and testing a model of economic growth and poverty determinants and offers new insights into the determinants of bank principles in a financial system.

From Troughs to Peaks: Uncovering the Effects of Shocks on Stock Market Conditions

2023-05-17T14:39:08+07:00

I classify stock market conditions into normal, bull, and bear markets and examine the impacts of various shocks on stock market conditions over the period from 2005 to 2020 on the Stock Exchange of Thailand. Inflation shocks cause bear market episodes, while shocks to dividend growth and real stock market returns drive the stock market into bull phases. Investors can benefit from adjusting their investment strategies based on current stock market conditions.In addition, inflation shocks are significant for capital market stability, especially during the Global Financial Crisis. Effectively implementing policies to control expected inflation is a promising approach to promoting capital market stability during financial crises.

Economic Impacts of Climate Change in Thailand: Theory and Evidence

2023-10-29T18:21:26+07:00

Climate change, characterized by not only rising average temperatures but also intensifying extreme weather events such as floods and droughts, poses substantial risks to the production of goods and services. This study investigates the implications of these extreme weather conditions on Thailand’s macroeconomy, utilizing the Standardized Precipitation-Evapotranspiration Index (SPEI) to measure drought conditions. Through the analysis of both the Dynamic Stochastic General Equilibrium (DSGE) and Structural Vector Autoregression (SVAR) models, extreme weather conditions have a significant negative impact on short-run macroeconomic performance, causing disruptions in production and domestic demand while simultaneously driving up agricultural prices. Notably, the counterfactual analyses reveal that policy measures designed to adapt to climate change and enhance labor mobility across sectors markedly alleviate the detrimental economic consequences of climatic extremes.Consequently, this underscores the pivotal role of adaptive climate and labor migration policies in mitigating the adverse impacts of climate change on Thailand’s macroeconomy.

The Technical Efficiency Change of Cooperative Stores in Thailand

2023-10-23T18:05:10+07:00

This study aims to verify factors determining the level of technical inefficiency of cooperative stores in Thailand from 2017–2021. The balanced panel data of 86 cooperative stores and the stochastic frontier analysis approach were employed to serve the objective. The results indicated the existence of inefficiency among cooperative stores in Thailand. By applying the Translog production function, the estimated technical efficiency scores for most decision-making units had an upward trend during 2017–2018 but slightly decreased during 2018–2020, i.e., the beginning of the COVID-19 pandemic, and finally began to rise again from 2021 after most people had been vaccinated and COVID-19 became endemic. Finally, the significant negative relationships between technical inefficiency and debt-to-equity ratio, reserves, and the location dummy variable suggest that to improve efficiency, cooperative stores should efficiently utilize their debts, maintain the appropriate number of reserves, and exercise the appropriate marketing strategies.

Bubbles in a world asset: the case of Cryptocurrency

2023-10-23T20:49:09+07:00

This paper explores the rational bubbles in cryptocurrency, an international asset with fixed supply and negligible transaction cost, using a simple macroeconomic model. We show that cryptocurrency exhibits oscillatory and volatile dynamics under certain conditions. We also analyze the welfare and spillover effects of cryptocurrency for different parameter values. Cryptocurrencies may increase welfare for agents in economies with certain parameters, such as those with low relative risk aversion or high output elasticity of capital. Cryptocurrency can easily transfer shocks from one country to another through pricing channels or through propagated risk perception. Our paper contributes to the scarce literature on cryptocurrency in macroeconomic contexts.

The Impact of Corporate Social Responsibility,Moral Emotions, and Customers’ Altruism on Brand Advocacy Behaviors: Evidence from Vietnam

2023-10-23T14:16:43+07:00

Corporate Social Responsibility has emerged as one of the most important practices driving corporate success, owing to its impact on customers’ moral emotions, which subsequently affects customers’ behavior, such as brand advocacy. From the Vietnamese dairy industry context, this study investigates the role of moral emotions, such as admiration, gratitude, elevation, and trust, in the relationship between CSR and consumers’ brand advocacy. The study also analyzes altruism’s moderating effect on the link between CSR and moral emotions. To achieve these two objectives, the study surveyed 298 respondents and employed structural equation modeling for analysis. The findings demonstrate the positive influences of CSR on moral emotions, which in turn positively affect brand advocacy. Additionally, the study demonstrates the mediating effects of admiration, gratitude, and elevation on the relationship between CSR and brand advocacy behaviors, as well as the altruism’s positive moderating effect on the relationship between CSR and elevation. Finally,various implications have been presented based on the study’s results.