Issue Information
Asian Economic Journal, Volume 37, Issue 2, Page 147-147, June 2023.
Category Archives: Asian Economic Journal
Issue Information
Asian Economic Journal, Volume 37, Issue 2, Page 261-263, June 2023.
Effect of grandchildren on the happiness of grandparents: Does the grandparent’s child’s gender matter?
Abstract
Using a representative sample from Japan and a difference-in-differences strategy, we investigate whether the effect of having grandchildren on the happiness of grandparents varies with the gender of their (own) single child. In line with our expectations, we find that maternal grandmothers have more to lose or less to gain from having grandchildren than paternal grandmothers. In contrast, grandfathers’ changes in happiness do not depend on their own child's gender. This result is explained by the fact that grandmothers are more likely to be involved in childrearing when their daughter has a child.
How do changes in household economic conditions affect cognitive function?
Abstract
This study examines the effects of changes in household economic conditions on cognitive function using individual panel data from the National Survey of the Japanese Elderly. This study captures the objective and subjective economic conditions and examines which aspects of economic conditions affect cognitive function. The results demonstrate that deterioration in economic conditions damages cognitive function. In particular, objective economic conditions measured by income affect the cognitive function of Japanese men. This study also assesses possible pathways through which economic conditions affect cognitive function.
Does global value chain participation improve firm productivity? A study of selected ASEAN developing countries
Abstract
This paper examines the impact of local firms’ participation in global value chains (GVCs) on productivity by considering three different patterns of GVC participation. We conducted a DID-PSM estimation involving three countries, Indonesia, the Philippines, and Vietnam, and 17 manufacturing sectors in 2009 and 2015 in a panel framework. We found an endogenous relationship between firm productivity and GVC participation: firms that enter GVCs have high productivity before participating in the GVCs (selection effect), and only Indonesian firms that entered GVCs had high productivity growth after joining GVCs (learning effect). These two effects were only found for firms that both import intermediate goods and export output and not for firms that only either import or export. We also found that indirect exporting does not improve a local firm's productivity. Several recommendations are made to help firms and governments facilitate the participation of firms in GVCs.
Real exchange rate misalignment and business cycle fluctuations in the Asia‐Pacific
Abstract
Real exchange rate (RER) misalignment, which is the deviation between the actual real exchange rate from its equilibrium, occurs frequently among developing countries. Studies have shown that RER misalignment may have negative economic implications, such as a decline in economic growth, exports, and export diversification and an increased risk of currency crises and political instability. Using quarterly data for 22 sample countries from 1990 to 2018, this paper investigates the impact of RER misalignment on business cycles in the Asia-Pacific by employing a panel vector autoregression involving consumer price index (CPI) inflation, output gap, short-term interest rates, and RER misalignment. We find that RER overvaluation may reduce CPI inflation and short-term interest rates. We also find that the Asia-Pacific region is highly heterogeneous in that the output gaps of some countries, particularly from the Southeast Asian region, are more susceptible to RER misalignment shocks.
Birth order and intergenerational income mobility in Japan: Is the first‐born child different?
Abstract
This study examines how birth order affects intergenerational income mobility (IGM) in Japan, focusing on the difference in IGM between firstborn and later-born children. The elasticities of sons’ income with respect to fathers’ income are separately estimated for sons who are firstborn and sons who are later born by family size using a two-sample, two-stage least squares approach. For sons born in 1926–1981, this study finds that in families with four or more children, intergenerational income elasticity (IGE) for firstborn sons is substantially and significantly higher than that for later-born sons. However, no significant birth order effects are found in households with two or three children.