List of Subjects
SW001 Agribusiness
SW002 Association of Southeast Asian Nations (ASEAN)
SW003 Blue economy
SW004 Business enterprise laws and legislation
SW005 Business taxation
SW006 Crisis management
SW007 Digital Economy
SW008 Economic zoning
SW009 Economics
SW010 Electronic commerce
SW011 Energy sector
SW012 Entrepreneurship
SW013 Finance sector
SW014 Fiscal policy
SW015 Food security
SW016 Foreign exchange rates
SW000 Garments industry
SW017 Handicrafts
SW018 Healthcare sector
SW019 Industrial development projects
SW020 Information and communication technology (ICT)
SW021 Innovative entrepreneurship
SW022 Imports and exports
SW023 Investment, Foreign
SW024 Livelihood programs
SW025 Manufacturing industry
SW026 Mentoring in business
SW027 Natural resources
SW028 Partnership
SW029 Residential real estate sector
SW030 Service sector
SW031 Tourism
SW032 Trade
SW033 Trade finance
SW034 Training programs
SW035 Transport sector
SW036 Women-owned business enterprises
SW037 Wood-products industry
—-
SW001 AGRIBUSINESS
Scope Note: It refers to the business sector encompassing farming and farming-related commercial activities. It involves all the steps required to send an agricultural good to market, namely production, processing, and distribution. Source
Internet Sites
Accelerating Gender Equality in the Agribusiness Sector
This tip sheet is designed to help private sector companies operating in the agribusiness sector to accelerate gender equality.
In Asia and the Pacific, women play important roles along agriculture value chains as producers, suppliers, providers of complementary services, workers distributors, and consumers. To advance gender equality in the agribusiness sector, the tip sheet identifies 5 key entry points: (i) increasing women’s access to inputs and financing; (ii) increasing women’s access to knowledge, networks, and technical assistance; (iii) expanding the role women play in the supply chain; (iv) increasing gender equality in governance, leadership and the workforce; and (v) enhancing gender equality in the workplace.
Asian Development Outlook (ADO) 2021 Update: Transforming Agriculture in Asia
This report forecasts growth in developing Asia of 7.1% in 2021 and 5.4% in 2022 in an uneven recovery caused by divergent growth paths. Its theme chapter explores sustainable agriculture.
Developing Agriculture and Tourism for Inclusive Growth in the Lao People’s Democratic Republic
The Lao People’s Democratic Republic has seen remarkable economic growth over the last three decades, with per capita income quadrupling between 1989 and 2019. However, widening inequality has accompanied this growth as the economy generated limited job opportunities beyond agriculture. In the aftermath of the coronavirus disease (COVID-19) pandemic, this report emphasizes the need to develop synergies between agriculture and tourism. It recommends investing in infrastructure, human capital, and digital connectivity, among other development areas in the country’s agriculture and tourism sectors.
Domestic Benchmarking of the Philippine Livestock, Dairy, and Poultry Industries
Production of livestock, poultry, and dairy are private sector-led industries contributing a third of the agricultural sector’s output, despite relative neglect in terms of government support. The dual outbreak of African Swine Fever in 2019 and COVID19 pandemic in 2020 has renewed government attention to these industries, with benchmarking of domestic performance against those of global players being seen as key for designing immediate and long-term interventions. Production volume and value, inventory, and consumption of swine and poultry decreased in 2019. Dairy maintained its increasing production, but locally-consumed milk is almost entirely imported. The bulk of local production in these industries is largely sourced from backyard operations, despite the cost advantage of commercial-size operations owing to economies of scale. Recovery from the pandemic is an opportunity to transform the industries by a process of consolidation under farmer organizations. These organizations shall serve as the main conduit for capacity augmentation, technology transfer, and delivery of regulatory and other services. This set-up promotes resilience to shocks, competitiveness against foreign-produced meat and milk, and strengthening of local institutions, while sustaining the role of the private sector in the long-term development of the industries.
Improving Agricultural Value Chains in Uttar Pradesh
This technical study reviews agricultural value chains in Uttar Pradesh, India to improve the value chains of the selected five focus crops: potato, mango, guava, mustard, and gram.
The study identifies areas of investment in agricultural value chain development for the focus crops, private sector engagement, and recommendations for institutional development and infrastructure enhancement. The recommendations are offered as a contribution to the vision of the Government of Uttar Pradesh to ensure food and nutritional security and improve the quality of village life through inclusive and sustainable growth.
Impact Evaluation of Support to Collective Action for Agricultural Value Chain Development in Nepal
Matching grant programs administered to agricultural groups and cooperatives have emerged as a means of helping smallholder farmers to commercialize in Nepal. These programs help farmers to access information on new technologies, overcome barriers to productive investment, and connect with output markets, although the combinations of support received by individual households vary. This study disentangles the causal effects of different elements of support through an inverse probability weighted two-way fixed effects analysis of data from a panel of 2,268 households, of which 47% belong to 246 farmer groups in three provinces. It finds that group membership without receiving support has important effects on commercialization and income, as does receiving any support. The forms of support with largest effects on production, income, and/or human capital include production training, marketing support, and a combination including both training and assets. In contrast, only modest or even negative effects are detected from provision of either inputs or credit in isolation.
This study utilizes primary data from the Department of Agrarian Reform’s Baseline Survey on Project Convergence on Value Chain Enhancement for Rural Growth and Empowerment (ConVERGE) to analyze Agrarian Reform Beneficiary Organization (ARBO) member households, particularly those engaged in farm production. The results show that (1) borrowing ARBO agricultural households are better off than the nonborrowing ones in terms of housing characteristics and agricultural performance; (2) farmer associations and cooperatives are among the top sources of agricultural credit in the countryside aside from microfinance institutions; (3) and Certificate of Land Ownership Award (CLOA)-holding ARBO agricultural households have higher borrowing incidence than the average ARBO agricultural households. Strengthening credit retailers’ leadership and management capacity through training is needed to improve their lending performance further and widen their countryside reach.
Sustainable Value Chain Financing for Smallholder Agricultural Production in the Philippines
In recent years, the government has intensified its lending programs to help the country’s agricultural sector, particularly smallholders, in accessing retail lending. However, the lack of markets and low prices have had significant implications on the repayment capacity and credit rating of small farmers and fisherfolk in the Philippines. Indeed, lending programs are unlikely to become successful if financing and production are not viewed in the bigger context of value chain financing. This paper looks into the current financing ecosystem of farmers and fisherfolk and provides recommendations on how the existing value chain financing can be made more inclusive and sustainable.
Towards Competitive Livestock, Poultry, and Dairy Industries: Consolidated Benchmarking Study
This benchmarking study is undertaken to compare domestic performance of LPD industries in the Philippines, with other large LPD producers and consumers in Asia, namely China, Thailand, and Vietnam, supplemented with figures from major global players. In the case of swine, in the Philippines, unit cost of production of commercial farms is lower than in backyard farms owing to economies of scale. Cost per unit in commercial farms in the Philippines is among the highest of the countries studied, mostly due to higher cost of feed and grower stock. As with swine, economies of scale allow commercial broilers to reduce cost per kg of broiler. Cost per unit for commercial scale broiler farms is among the lowest in Philippines compared with China, Thailand, and Vietnam. High tariffs on corn imports is driving up the cost of livestock and poultry feed. Finally, Dairy cattle and buffalo milk at semi-commercial scale can be profitable, though the business case for backyard dairy needs to be strengthened. The Philippines has implemented a set of regulatory and support policies for the LPD industries, covering regulations, support programs, trade policies, Policy recommendations of the study are as follows: 1) Undertake a comprehensive review of trade policies affecting the value chain towards greater competitiveness of the LPD industries; 2) Earmark the collections from tariffs on pork and chicken imports to fund regulatory services and production support; 3) Invest in research and data collection as inputs to policy and program development; 4) improved delivery of technical assistance, regulatory services, and production support. 5) Reset the oversight system over the LPD industries in terms of regulatory compliance, zoning, imposition of grades and standards, food safety and animal welfare; 6) Focus on upgrading technology and business practices for backyard operators using a collaborative approach to extension. 7) Strengthen FOs to encompass most or all backyard operators to facilitate delivery of government assistance, technical and regulatory services, and realize gains from economies of scale and scope.
SW002 ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN)
Scope Note: It is a regional organization of 10 Southeast Asian and Pacific Rim countries whose governments collaborate to promote socio-cultural, economic, and political advancement in the region. Source
Internet Sites
How Does the Philippines Fare in Meeting the ASEAN Economic Community Vision 2025?
To develop a cohesive, economically integrated, socially responsible, people-oriented, people-centered, and rules-based region, the Association of Southeast Asian Nations (ASEAN) Community was established in November 2015. It is composed of three pillars: the ASEAN Economic Community (AEC), the ASEAN Socio-Cultural Community, and the ASEAN Political-Security Community. Each pillar corresponds to a blueprint and is a part of the general master plan ASEAN Community Vision 2025 with the theme ”ASEAN 2025: Forging Ahead Together”. This study focuses on the AEC Blueprint 2025 and its characteristics and elements. More than five years since its establishment, there is a need to assess the performance of the Philippines in the AEC key result areas. By comparing the baseline with the most recent data, this study found that the Philippines is in the middle of the pack (ranking from 4th to 6th) among ASEAN countries. In terms of AEC vision and goals, the country’s performance suggests that it is generally on track and progressing in the right direction.
SW003 Blue economy
Scope Note: It refers to the “sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of ocean ecosystem” (World Bank). Source
Internet Sites
This joint report highlights opportunities to mobilize investments for a sustainable blue economy in Asia and the Pacific, focusing on small and medium-sized enterprises. It analyzes financing gaps, shares tools and resources to support new financial connections between international capital and local actors, and makes recommendations for scaling up blue economy finance.
The global startup ecosystem report : blue economy edition.
This report looks at the current state of startup activity and related investment in the Blue Economy, and the rankings are a reflection of which global ecosystems are currently driving innovation through startups and related activities. It aims to provide information for founders, investors, and policymakers interested in understanding the current landscape, and is intended to encourage further Blue Economy activity within the startup world, with an overall goal of both mitigating climate change and improving lives around the world.
SW004 BUSINESS ENTERPRISE LAWS AND LEGISLATION
Scope Note: It refers to the body of rules governing the dealings between persons in commercial matters, whether by convention, agreement, or national or international legislation. These rules cover activities associated with the production, sale, or distribution of products and services. Source
Internet Sites
As the Philippines continues to integrate into the global and regional economy, opportunities for growth and development are opened up for small and medium enterprises. However, structural, institutional, legal, and regulatory constraints prevent Philippine SMEs from fully taking advantage of these opportunities, upgrading, and engaging in higher-value activities. The paper draws attention to gaps in SME characterization that constrains more targeted strategies for growth, coordination problems among implementing institutions, a lack of strategy for SME internationalization, legal and regulatory incoherence, and challenges to SMEs in upgrading and engaging in higher-value activities. These gaps should be addressed in a coherent and targeted manner, from determining a general policy direction to institutional implementation and legal and regulatory adjustments that effectively address the identified constraints.
The study evaluates the existing laws and regulations relevant to the workings of MSMEs. The analysis focuses on the intent/content of national laws and local ordinances that affect MSMEs’ different areas of activity. Such laws and ordinances include the department orders and memorandum circulars of departments, agencies, or branches of the national government (e.g., Department of Trade and Industry, the BangkoSentral ng Pilipinas, the Bureau of Internal Revenue) tasked with their implementation. Given the existing plethora of laws and policies, some judgment had to be made concerning the choice of laws and policies to be considered. Then effects of these laws and regulations on MSMEs are discussed through focused group discussions (FGDs) involving several micro, small and medium enterprise owners undertaken in two cities in the Visayas. Through such ‘voices from the ground,’ we can present severaldoable – in the short, medium, and long term – that policymakers can subsequently consider in the formulation of policy towards MSMEs.
SW005 BUSINESS TAXATION
Scope Note: It refers to the taxes that businesses must pay as a normal part of business operations. Source
Internet Sites
A Comparative Analysis of Tax Administration in Asia and the Pacific: Sixth Edition
Better tax systems enable recovery from the impact of COVID-19, and progress towards Sustainable Development Goals. Analyzing the tax systems of 40 economies in Asia and the Pacific, this report explores ways to improve their efficiency.
A Comprehensive Assessment of Tax Capacity in Southeast Asia
This publication identifies technical, policy, and administrative tax capacity issues faced by 10 countries in Southeast Asia and explores measures to strengthen domestic resource mobilization (DRM). Prior to the coronavirus disease (COVID-19) pandemic, developing countries in Southeast Asia were not achieving a tax yield of 15% of gross domestic product—the level considered to be the minimum for sustainable development. This publication looks into potential policy and administrative measures that can strengthen DRM and foster international tax cooperation as the region reels from the impacts of the pandemic.
This governance brief shows how revenue bodies in the Asia and Pacific region should adopt a risk-based approach that harnesses data science and behavioral insights to increase payment compliance and manage revenue collection.
SW006 CRISIS MANAGEMENT
Scope Note: It pertains to the planning, implementation and monitoring of strategies that are put in place to help an organization deal with a significant negative event. Source
Internet Sites
This volume examines the experiences of Asia’s micro, small, and medium-sized enterprises (MSMEs) during the first year of the pandemic and discusses post-pandemic policy actions for MSME development. The study draws on the findings of MSME surveys carried out during 2020 and 2021 in Indonesia, the Lao People’s Democratic Republic, the Philippines, and Thailand. It offers insights on approaches that could best support a pandemic exit strategy and policies that could help revitalize the MSME sector during recovery in a way that creates more resilient economies.
This brief explains the critical role small firms play in Southeast Asia’s economy and, focusing on four countries, looks at what measures are needed to help them recover from the COVID-19 pandemic.
This report provides the latest evidence on the scale and impacts of disaster displacement in Asia and the Pacific and outlines durable solutions for prevention, response, and recovery.
Globally, Asia and the Pacific is the region most affected by disaster displacement. Each year, the lives of millions of people are disrupted by disasters and the scale of displacement is increasing. This report—jointly produced by ADB and the Internal Displacement Monitoring Center—aims to inform policy measures and practical actions to prevent, reduce, and better manage displacement risks. Among the solutions identified are opportunities to bolster community resilience and the explicit inclusion of displacement in urban planning, risk governance, and social protection.
Disaster-Resilient Infrastructure: Unlocking Opportunities for Asia and the Pacific
This publication explores practical ways of providing disaster-resilient infrastructure along with significant co-benefits across Asia and the Pacific. Risks posed by natural hazards are expected to intensify as economies grow, urbanize, and grapple with climate change. Roads, bridges, power networks, and other infrastructure assets are central to people’s daily lives and economic opportunity: how such assets are planned, operated, and financed will shape resilience in the region. This publication takes a holistic view of practices that affect infrastructure resilience, including risk assessment, investment appraisal, and operation and maintenance across the life cycle of an infrastructure asset. It considers overarching approaches to achieving system-wide resilience and financing and governance objectives.
The coronavirus disease (COVID-19) pandemic has highlighted the importance of MSMEs in providing essential goods and services. In India, MSMEs have faced more difficulties since the pandemic hit. This brief provides insights on supporting pandemic recovery through seven pillars identified by The Reserve Bank of India Expert Committee on MSMEs: (i) integrated cluster infrastructure development; (ii) access to finance; (iii) skills training; (iv) product diversification; (v) marketing and branding; (vi) access to technology and digital tools; and (vii) institutional and regulatory support.
This publication highlights successful approaches and lessons learned in the early COVID-19 pandemic response in Asia and the Pacific. Case studies from the Republic of Korea, Thailand, and Viet Nam showcase good practices and lessons learned in emergency and crisis planning, management, and coordination along with whole-of-government and whole-of-society approaches to the pandemic response.
SW007 DIGITAL ECONOMY
Scope Note: It refers to a broad range of economic activities that use digitized information and knowledge as critical factors of production. The Internet, cloud computing, big data, fintech, and other new digital technologies collect, store, analyze, and share information digitally and transform social interactions. The digitization of the economy creates benefits and efficiencies as digital technologies drive innovation and fuel job opportunities and economic growth. The digital economy also permeates all aspects of society, influencing how people interact and broad sociological changes. Source
Internet Site
Amid the growing interest in digitalizing socio-economic activities, there is a lack of consensus on an established framework to estimate the digital economy. This report proposes a definition of the core digital economy and an input-output analytical framework to measure it. Applying this framework to selected economies and years, the digital economy and digitally dependent industries contribute significantly to gross domestic product. It examines critical digital economy phenomena and trends about sectoral links, temporal price changes, jobs, global value chains, the COVID-19 pandemic, and Industry 4.0.
SW008 ECONOMIC ZONING
Scope Note: It refers to a land-use planning design or control where specific types of businesses or private sector investment are encouraged within designated boundaries. Source
Internet Site
This publication explains why Indonesia, Malaysia, and Thailand need to ramp up cooperation to boost their special economic zones (SEZ) and spur sustainable growth. Mapping out and assessing the economic performance of SEZs across the subregion, the publication highlights the threats they face from digital technologies, rising competition for foreign investment and international trade standoffs. Against the backdrop of COVID-19, it details a range of practical steps designed to increase trade, create jobs, and build economic resilience across the three countries.
SW009 ECONOMICS
Scope Note: It is concerned with the production, distribution, and consumption of goods and services. It studies how individuals, businesses, governments, and nations choose to allocate resources. It focuses on the actions of human beings, based on assumptions that humans act with rational behavior, seeking the most optimal level of benefit or utility. Source
Internet Sites
Asia Small and Medium-Sized Enterprise Monitor 2021: Volume I–Country and Regional Reviews
This first volume reviews micro, small, and medium-sized enterprises (MSMEs) at the country and regional levels. It covers Bangladesh, India, Nepal, Pakistan, and Sri Lanka, and examines MSME development, access to finance, and policies and regulations. It notes that revitalizing MSMEs by channeling more growth capital to them will be key to a resilient economic recovery from the pandemic. It highlights opportunities in formalizing MSMEs and connecting them to international markets, expanding digital skills, fostering technology-based start-ups, and supporting youth and women entrepreneurs.
Asian Development Outlook (ADO) 2022 Update: Entrepreneurship in the Digital Age
In this report, ADB has lowered its forecasts for economic growth in developing Asia and the Pacific to 4.3% in 2022 and 4.9% in 2023, amid mounting challenges. Its theme chapter looks at how digital entrepreneurship spurs growth and innovation.
The region’s economy is expected to grow 4.3% this year, compared with ADB’s projection in April of a 5.2% expansion, while the growth forecast for next year is lowered to 4.9% from 5.3%. The downward revisions have been driven by increased monetary tightening by central banks, fallout from the protracted Russian invasion of Ukraine, and recurrent COVID-19 lockdowns in the People’s Republic of China. Inflation in developing Asia this year is likely to reach 4.5%, up from ADB’s earlier projection of 3.7%. The forecast for 2023 is 4.0%, up from 3.1%. While inflation in the region remains lower than elsewhere, supply disruptions continue to push up food and fuel prices.
The report’s theme chapter looks at the role of entrepreneurship in achieving inclusive growth, and how governments in the region can create a more enabling environment for digital entrepreneurs.
Asian Development Outlook (ADO) 2021 Supplement: Recovery Continues
This publication provides ADB’s latest assessment of developing Asia’s economic growth prospects. The bank revised its economic growth outlook for 2021 down slightly to 7.0% and 5.3% in 2022, after renewed outbreaks of COVID-19 led to slower growth in the third quarter.
This report reviews the impact of trade facilitation initiatives in Asia and the Pacific since the beginning of the COVID-19 pandemic and discusses how to increase supply chain resilience. It addressed the pandemic’s impact on the supply chains of critical goods such as vaccines, personal protective equipment, and food. It also provided policy suggestions for enhancing supply chain resilience and trade facilitation.
Asia Small and Medium-Sized Enterprise Monitor 2021: Volume I–Country and Regional Reviews
This first volume reviews micro, small, and medium-sized enterprises (MSMEs) at the country and regional levels in South Asia. It covers Bangladesh, India, Nepal, Pakistan, and Sri Lanka, and examines MSME development, access to finance, and policies and regulations.
Credit Chain and Sectoral Comovement: A Multi-Region Investigation
This paper empirically examines how sectoral comovements are correlated with trade credit usage in a multi-region setting. Extending the models in Shea (2002) and Raddatz (2010), we develop a framework that captures the impact of trade credit usage on comovement between sectors within an economy and across economies separately. Using the Multi-Regional Input-Output Table designed by the Asian Development Bank, we assemble a dataset of 14 manufacturing industries for 53 economies. We provide empirical evidence that trade credit linkage is an influential channel for domestic and cross-border shocks to propagate and create a more profound impact on industries around the globe. We find that the impact of domestic credit chains on sectoral comovement is twice as strong as that of the international ones. We further examine the time trend of this relationship and find that, from 2000 to 2018, the positive relationship between the intensity of trade credit usage and sectoral correlation decreases. We posit that this could be due to more diversified global trade pattern changes during these two decades.
Economic Corridor Development in Pakistan: Concept, Framework, and Case Studies
This study examines the potential of economic corridor development to support Pakistan’s sustainable growth. It describes the country’s effort to enhance domestic and international connectivity and includes some international good practices for economic corridor development in other countries. It concludes that political commitment at the highest government levels and coordination among diverse government agencies are essential to developing economic corridors.
Economic Implications of the Regional Comprehensive Economic Partnership for Asia and the Pacific
The Regional Comprehensive Economic Partnership (RCEP) presents the solid potential formolding regional trade and investment patterns well into the future and influencing the direction of global economic cooperation at a challenging time. This paper evaluates the RCEP and estimates its potential effects on income, trade, economic structure, factor returns, and employment using a computable general equilibrium model. The results suggest that the RCEP agreement could generate global income gains almost twice as significant as those of the Comprehensive and Progressive Agreement on Trans-Pacific Partnership (CPTPP). RCEP’s effects on the region’s trade will also significantly deepen regional production networks and raise productivity. Exports and imports of nondurable and durable manufactures will experience the most growth at the sectoral level. The CPTPP and RCEP will significantly strengthen the region’s manufacturing supply chains, increasing wages and employment.
Economic Recovery from COVID-19: Experience from the People’s Republic of China
This policy brief summarizes the measures and policies that contributed to the PRC’s V-shaped economic recovery, which can serve as valuable information for countries fighting the economic shock from the pandemic. The brief also analyzes the fast economic recovery challenges and provides policy recommendations to address them.
Energy prices and firms’ economic performance in emerging countries
The relationship between energy price dynamics and competitiveness is crucial in the transition to environmental and economic sustainability. On the one hand, rising energy prices may induce process innovations and increase markups, thereby intensifying competitiveness. On the other hand, higher prices are expected to reduce competitiveness, because firms bear short-run costs that can partially be transferred to consumers. Emerging economies, where sectors and firms are less mature and more vulnerable to external shocks, require special attention in light of global development challenges. This paper evaluates the direct and indirect impact of energy prices on firms’ economic performance for 11 developing countries over the period 2002–2013. The empirical analysis reveals that higher energy prices generally do not harm economic performance and may actually reinforce it in some cases. The scope and direction of this effect, however, depends on the firm’s energy intensity.
Global Value Chain Development Report 2021: Beyond Production
Global value chains (GVCs) are the cross-border networks that bring a product or service from conception to market. This report, co-published by ADB, the Research Institute for Global Value Chains at the University of International Business and Economics, the World Trade Organization, the Institute of Developing Economies – Japan External Trade Organization, and the China Development Research Foundation, explores the transformation of GVCs as they expand beyond manufacturing to services and intangible assets. It highlights opportunities for services-led development and discusses policy considerations.
The inclusive and sustainable competitive industrial performance index (ISCIP)
The targets of the Sustainable Development Goals (SDGs) induce countries to adopt appropriate diagnostics and monitoring and evaluation tools to design strategic policies for development. SDG-9 “Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation” calls on developing countries to boost industrialization by increasing their competitiveness. The Competitiveness Industrial Performance Index (CIP) is a flagship index designed by the United Nations Industrial Development Organization (UNIDO) to measure the performance of countries’ industrial competitiveness. The challenge to achieve the SDG objectives, including the social and environmental targets, stimulates countries to develop new diagnostics and monitoring tools to assess their performance in different dimensions of sustainability. The Inclusive and Sustainable Competitive Industrial Performance Index (ISCIP) is the first attempt to expand the CIP index approach by including industrial competitiveness, social and environmental indicators. Our results indicate that compared to the traditional CIP index, countries’ ISCIP rankings change, but high-income countries tend to remain at the top of the list. Using different methods of aggregation, the results are surprisingly consistent.
International Business Cycle Synchronization: A Synthetic Assessment
This paper presents findings from a study that synthetically assessed the three major transmission channels of international business cycles: trade, foreign direct investment (FDI), and portfolio flows between economies with multiple fixed effects.
Results showed that real and financial integration generates heterogeneous impacts on business cycle comovement. Trade integration and greenfield FDI lead business cycle comovements, likely due to deepening intra-industry trade and dense global value chains. Higher debt market integration is associated with more synchronized business cycle comovement, while equity integration leads to business cycle divergence.
Measuring Localization in the Age of Economic Globalization
This paper explores the clustering of economic activities in domestic sectors amid an interconnected global economy. It presents agglomeration indexes that can be used to help policy makers plan which sectors to prioritize. The agglomeration indexes together aim to show how domestic sectors contribute to the global economy. The indexes measure the scale of value-added sourced from and/or absorbed into domestic economy sectors and the concentration of value added in the domestic market. They are extended to account for the distribution of activities within domestic sectors.
SW010 ELECTRONIC COMMERCE
Scope Note: It refers to a business model that allows firms and individuals to buy and sell things over the Internet. It operates in all four major market segments: business to business, business to consumer, consumer to consumer, consumer to business. Source
Internet Sites
Costs and Benefits of New Disciplines on Electronic Commerce
In January 2020, the Philippines joined the WTO Joint Statement Initiative on E-commerce which seeks to develop a multilateral agreement on trade-related aspects of e-commerce. This paper explores the costs and benefits of possible trade disciplines, particularly the moratorium on customs duties on electronic transmissions. Based on estimates of digitizable products, the foregone revenue of a moratorium represents about 0.10 percent and 0.65 percent of national government revenues using the average MFN rate and the bound tariff rate, respectively. Estimates based on broader definitions of electronic transmission range from 0.59 to 1.38 percent and from 3.68 to 8.59 percent of national government revenues using the average MFN rate and bound rate, respectively. However, practical difficulties and policy constraints could limit the actual intake from tariffs. In addition, various barriers to cross-border data flows could also adversely affect data-intensive industries and the economy more broadly. Thus, the country should support trade rules that facilitate cross-border data flows. At the same time, the government must invest in the digital infrastructure necessary for an efficient and effective tax system fit for the digital economy.
E-Commerce in CAREC Countries: Laws and Policies
Digital trade promotion has been a long-standing priority for CAREC member counties as part of their integration into global value chains and economic diversification. The study makes a case for modernization and harmonization of legislation of CAREC countries leveraging on international instruments and best practices for electronic commerce transactions. Adequate legislation to protect consumers’ privacy and combat cybercrime is also crucial. Finally, institutions must be built with trust within and among countries and through regional cooperation. This study examines the legal environment on electronic transactions and opportunities and challenges in developing electronic commerce among members of the Central Asia Regional Economic Cooperation (CAREC) Program.
This study assessed the Philippines’ readiness for regional digital trade integration with the Asia-Pacific by using the Regional Digital Trade Integration Index (RDTII) framework to provide an analytical overview of the Philippines’ digital trade policy and regulatory environment. Using the RDTII framework, the Philippines reported an overall RDTII score of 0.342 in 2020, which rates the country as having a slightly restrictive digital trade environment. In the same year, the Philippines performed best in three pillars, particularly: pillar 1 (tariffs and trade defense measures); pillar 6 (cross-border data policies); and pillar 8 (intermediary liability and content access). These three posts scored less than 0.200, thus, indicating a non-restrictive policy and regulatory environment. In contrast, the Philippines performed worst in three pillars, namely: pillar 2 (public procurement), pillar 3 (foreign direct investment), and pillar 5 (telecommunications infrastructure and competition). These three pillars reported a score of above 0.610, so these pillars were characterized by having an intensely restrictive policy and regulatory environment.
Meanwhile, the Philippines was found to be slightly restrictive in intellectual property rights (pillar 4), domestic policies on the use of data (pillar 7), quantitative trade restrictions (pillar 9), standards (pillar 10), and online sales and transactions (pillar 11), which all received a score ranging from 0.210-0.400. This study finds that the Philippines generally has an open policy environment for digital trade, which suggests that it is ready for digital trade integration with the region. However, the proper implementation of some of these policies has not been fully achieved, and this could be a significant obstacle or challenge to regional integration.
The paper examines changes in the retail sector in the U.S. over the period 1999 to 2017, during which new technologies and forms of competition have been associated with what has been dubbed a “retail apocalypse” in the trade press and beyond. Consistent with this notion of “retail apocalypse,” the researchers begin by confirming a sizable decline in the number of establishments in the retail sector defined per the currently used NAICS classification scheme. They further document a substantial increase in e-commerce sales from non-store retailers and find suggestive evidence that sectors experiencing greater penetration of e-commerce exhibited a more significant relative decline in sales, number of physical stores, employment, and total payroll.
SW011 ENERGY SECTOR
Scope Note: It refers to a category of stocks that relate to producing or supplying energy. The sector or industry includes companies involved in exploring and developing oil or gas reserves, oil and gas drilling, and refining. The energy industry also includes integrated power utility companies such as renewable energy and coal. Source
Internet Site
Innovation and Entrepreneurship in the Energy Sector
Innovation in the energy sector often proceeds slowly, and entrepreneurial startup firms have historically played a minor role. The authors argue that this may be changing. Energy markets are going through a period of profound structural change. The rise of hydrofracturing lowered fossil fuel prices so much that natural gas is now the primary fuel for electricity generation in the U.S. Renewable energy technologies have also experienced high cost and performance improvements. However, integrating intermittent resources creates additional grid management challenges requiring more innovation, which must be achieved quickly if climate policy goals are met. The researchers document the evolving roles of innovation and entrepreneurship in the energy sector. First, they provide an overview of the energy industry, noting that many new energy technologies are smaller, more modular, and increasingly rely on innovation in other high-tech sectors where innovation typically moves more rapidly. They then conduct two descriptive data analyses, documenting a sharp decline in clean energies patenting and startup activity from about 2010. Finally, the researchers discuss potential explanations and provide some evidence that innovation in existing technologies may simply have been successful. In contrast, continued innovation may be needed in enabling technologies that are more likely to depend on innovation in other sectors. They conclude that the increased complementarily of energy and high-tech innovations allows for faster-paced energy innovation moving forward. However, understanding the impact of venture capital funding on such progress requires more rigorous evaluation.
SW012 ENTREPRENEURSHIP
Scope Note: It refers to the process of discovering new ways of combining resources. When the market value generated by this new combination of resources is greater than the market value these resources can generate elsewhere individually or in some other combination, the entrepreneur makes a profit. Source
Internet Sites
Asian Development Outlook (ADO) 2022 Update: Entrepreneurship in the Digital Age
In this report, ADB has lowered its forecasts for economic growth in developing Asia and the Pacific to 4.3% in 2022 and 4.9% in 2023, amid mounting challenges. Its theme chapter looks at how digital entrepreneurship spurs growth and innovation.
This article focuses on the concept of entrepreneurship from its nascent beginnings to the present day. First, it reviews the various definitions applied to entrepreneurship, concluding with a fundamental definition of the term. Next, it considers entrepreneurial traits associated with successful entrepreneurship, highlighting a real-life entrepreneur as a prime example. Finally, it explores entrepreneurship in its global context, examining the findings of a worldwide survey that focused on entrepreneurship traits, motivations, demographics, and types of ventures undertaken.
Entrepreneurship and Economic Growth: A Cross-Sectional Analysis Perspective
This paper presents empirical evidence that different types of entrepreneurship have varied effects across economies based on a cross-sectional analysis of the relationship between entrepreneurship and economic growth.
Innovation and Entrepreneurship
The text applies critical theories and research on innovation and entrepreneurship and then reviews and synthesizes those theories and research to use them in a much broader and contemporary context, including the corporate and public services, emerging technologies and economies, and sustainability and development and creating and capturing value from innovation and entrepreneurship. In this third edition, the authors adopt an explicit process model to help organize the material with clear links between innovation and entrepreneurship. In addition, this text has been designed to be fully integrated with the Innovation Portal at www.innovation-portal.info, which contains an extensive collection of additional resources for both lecturers and students, including teaching resources, case studies, media clips, innovation tools, seminar and assessment activities, and test questions.
Reexamine SHS Programs Employment and Entrepreneurial Objectives
This issue centers on government initiatives on developing human capital to foster inclusive economic growth. The banner article talks about the challenges confronting senior high school (SHS) graduates in the labor market. It also discusses how to improve the SHS program to help students transition from school to employment better. Another article discusses the factors affecting Filipino students’ test scores, given the country’s dismal performance in reading, mathematics, and science in international assessments. Finally, this issue also features an article about the technical-vocational education and training programs’ responsiveness to industry and trainee needs and the results of the evaluations done by PIDS researchers on the PantawidPamilyang Pilipino Program, the Performance-Based Bonus scheme, and the Department of Health’s Human Resources for Health Deployment Program.
SW013 FINANCE SECTOR
Scope Note: It refers to a section of the economy of firms and institutions that provide financial services to commercial and retail customers. This sector comprises various industries, including banks, investment companies, insurance companies, and real estate firms. Source
Internet Sites
This volume focuses on the digitalization of microfinance in Bangladesh to help make finance more affordable for small businesses, and finds it to be a promising avenue for further exploration. Micro, small, and medium-sized businesses provide much of the income in rural Bangladesh, but their growth is constrained by limited access to affordable finance. This volume reports on a 2021 baseline study carried out in Bangladesh to pilot a randomized controlled trial to determine whether a digitalized group-based credit scheme could be introduced at an affordable price. The findings provide justification for further study on the digitalization of microfinance.
Asia’s Progress Toward Greater Sustainable Finance Market Efficiency and Integrity
This report summarizes insights on transparency and integrity in sustainable finance markets shared at a series of webinars hosted by the Asian Development Bank and State Street Global Advisors.
The Bankable SOE: Commercial Financing for State-Owned Enterprises
ADB is committed to SOE reform that supports access to commercial finance in its developing member countries, as also emphasized in Strategy 2030. With the rise of commercial finance for SOEs, this publication details the steps to enhance the bankability of SOEs. It also explains how the risks of such borrowing, including defaults and moral hazards created by implicit guarantees, can be managed.
This publication explores the use of regulatory technology (regtech) in finance. It discusses how to design an optimal architecture, alongside policy considerations for an integrated regtech and supervisory technology ecosystem.
It highlights the interaction of industry use of technology in compliance and risk management; regulator and supervisor use of technology for supervision, monitoring, and enforcement; and use of technology to embed regulatory requirements and systems into financial infrastructure. The publication introduces key policy frameworks that enable ecosystem relationships at national, regional, and international levels, and showcases vital agile data management and standardization frameworks.
It notes that well-designed and implemented CBDCs could help expand financial inclusion and reduce the high cost of remittances. The authors recommend that Pacific island countries lay the groundwork for CBDCs by building specific knowledge and expertise within central banks.
This policy brief considers whether central bank digital currencies (CBDCs) can promote the accessibility of financial services in Pacific island countries and the design choices involved in their development.
Cloud-Based Core Banking in the Philippines: A Rural Bank Pilot Project
In the Philippines, Cantilan Bank was the first to be regulated by the BangkoSentral ng Pilipinas (BSP) for entirely relying on cloud-based software as a service (SaaS) system for core banking. This breakthrough resulted from the pilot project on cloud-based core banking technology by ADB and Cantilan Bank, with support from the country’s central bank. The pilot’s success in 2019 kicked off the transition of other financial institutions in the country. As of mid-2021, over 40 banks in the Philippines have received approval from the BSP to switch to cloud-based core banking to gain operational improvements and expand their client base.
Financial Inclusion for Micro, Small, and Medium Enterprises in Kazakhstan
This report looks at financial inclusion in Kazakhstan and considers how microfinance organizations could boost lending to its fast-growing micro, small, and medium enterprises (MSMEs). It analyzes the myriad hurdles that prevent many small enterprises from securing traditional bank loans and recommends ways business-focused lenders can help bridge the financing gap. Recommendations include expanding Kazakhstan’s microfinance market and ensuring non-traditional lenders become more tech-savvy to help MSMEs access sufficient credit, create jobs, and drive economic growth.
Financing Small and Medium-Sized Enterprises in Asia and the Pacific: Credit Guarantee Schemes
This publication examines small and medium-sized enterprises’ access to finance and the impact of credit guarantee schemes. It provides insights on the legal and regulatory setup of such schemes, corporate governance, services offered, risk management, and monitoring.
Financing Sustainable and Resilient Food Systems in Asia and the Pacific
This publication explores how innovative financing and transformative knowledge solutions can help build sustainable and resilient food systems in Asia and the Pacific. It explains how financing gaps can be plugged in and emphasizes the need to integrate the sustainable management of natural resources, nutritional considerations, and the economic dimensions of food supply chains.
The global startup ecosystem report: fintech edition startup
For the purposes of this report, Fintech describes a business that aims at developing a scalable financial services business by making use of software and modern technology. Fintech companies use the internet, Blockchain, and algorithms to offer or facilitate financial services traditionally offered by banks. These services include loans, payments, investments, and wealth management. Fintech also includes software that automates financial processes or addresses financial firms’ core business needs. Please see the methodology page for more information on the criteria used throughout the research and reporting within this report.
This paper analyzes the effect of financial uncertainty on corporate investment using panel data on firms in the Republic of Korea and suggests policy responses. It finds that financial uncertainty has a significant negative effect on corporate investment and the effects are mixed across firms of different sizes. Small firms and large firms are more exposed to the negative uncertainty effects than medium-sized firms. Financial constraints and investment irreversibility amplify the negative effects of uncertainty. Small and medium-sized firms are more financially constrained and large firms’ investments are more irreversible in nature. The authors suggest that policies target the development of capital markets and bond markets for small and medium-sized firms and focus on competitiveness, not protection.
This report lays out key governance challenges in the management of fiscal risks and contingent liabilities in Asia and the Pacific from public investments in public–private partnerships and state-owned enterprises.
This brief explores the wider adoption of financial technology (fintech) to narrow the trade finance gap for micro, small, and medium-sized enterprises in member countries of the Central Asia Regional Cooperation (CAREC).
Financial sector development in many CAREC countries remains constrained, which impedes overall financial inclusion and adequate trade finance among micro, small, and medium-sized enterprises. The brief emphasizes the need for policy actions on fintech adoption that are grounded on efficient financial structures, effective regulatory frameworks, and digitalization capabilities to advance inclusive trade and finance.
Nonperforming Loans in Asia and Europe—Causes, Impacts, and Resolution Strategies
This book traces trends in nonperforming loans (NPLs) during and after financial crises in Asia and Europe. It examines the impact of high NPLs, compares the effectiveness of resolution strategies, and explores policy considerations.
The volume highlights the need for decisive and comprehensive policy action to help manage NPLs swiftly. It explores the legal and economic conditions conducive to NPL resolution, the role of asset management companies, the potential of technological solutions, and the importance of regional financial cooperation. It provides insights to help policymakers chart a course through the financial and economic fallout of the coronavirus disease (COVID-19) pandemic to recovery and sustained financial stability in Asia, Europe, and beyond. The publication is a collaborative project of the Asian Development Bank and the European Central Bank.
This brief draws on experiences from the Republic of Korea and the United States to provide insights on how public lending schemes can support small and medium-sized enterprises (SMEs) in developing countries in Asia and the Pacific.
Due to perceived high risks and low liquidity, many SMEs in Asia and the Pacific find it challenging to access loans. Public lending schemes have proven successful in improving access to credit for SMEs in the Republic of Korea and the United States. In Asia and the Pacific, governments in developing countries should look to establish specialized banks and government-supported organizations to set up public lending schemes for SMEs.
Reimagining Viet Nam’s Microfinance Sector: Recommendations for Institutional and Legal Reforms
It has been 16 years since the Government of Viet Nam issued Decree 28/2005/ND–CP1 on the organization and operations of microfinance institutions in Viet Nam that established the legal foundation for the microfinance sector in the country, and almost 10 years since the government promulgated Decision 2195/QD–TTg 2 on Approving the Proposal of Designing and Development of Microfinance System in Viet Nam up to 2020 that set the sector’s development strategy. Despite this support, Viet Nam’s microfinance sector continues to underperform its peers in Asia and elsewhere. Most microfinance service providers3 (MSPs) are growing slowly, if at all.
This paper traces the causes of this underperformance to two factors. The first is limited access to funds, and the second is a general lack of a commercial mindset among MSPs. The sector lacks access to funds for a number of reasons. For example, MSPs lack sufficient collateral to qualify for a loan from Vietnamese banks. In addition, regulations effectively limit microfinance projects and programs from borrowing in foreign currency4 and the amount of deposits they can mobilize.5
However, this paper’s key finding is that limited access to funds is the consequence of a more fundamental challenge, which is the lack of a commercial mindset among MSPs. This problem is the result of policy choices. It is not merely an issue of regulatory gaps or underdeveloped market infrastructure. Existing laws and regulations conceptualize microfinance as a social activity delivered by a non-government organization (NGOs). NGOs were the main providers of microfinance around the world in the 1990s, and Viet Nam’s microfinance sector began the same way. However, while the global industry shifted to a more commercial model that is both more able to access wholesale loans to fuel growth and more capable of managing that growth, Vietnamese MSPs remain rooted in their early history. Current regulations prevent Vietnamese MSPs from making the transition to a more commercial model.
In other words, the sector’s lack of funds for on-lending is more a symptom than a cause of underperformance. Funders require professional management, growth potential, and transparency, all of which are insufficient in Viet Nam’s microfinance sector. Even if more wholesale funds had been available since Decision 2195 was issued, growth may not have been much faster because the sector as it is currently constituted is not capable of strong growth.
A Study of Non-banking Financial Companies in India
In late 2018, the default by a significant nonbanking financial company (NBFC) in India led to a credit crunch in the Indian economy. The crisis raises questions about the business model of NBFCs in India and the role they play alongside banks in the economy. This paper analyzes the evolution of the NBFC sector in India over time and its importance in extending credit. It discusses the factors that may have contributed to the 2018 crisis. The paper attempts to understand the advantages and disadvantages of the business model of NBFCs and the drivers of their rapid rise and subsequent challenges. The paper also briefly discusses the potential impact of the coronavirus pandemic on the NBFC sector. Drawing on lessons from the past, NBFCs need to be strengthened to play an essential role in India’s financial landscape.
This publication analyzes interest in green bonds in the Association of Southeast Asian Nations region to help guide development of sustainable bond markets.
2021 Trade Finance Gaps, Growth, and Jobs Survey
This brief aims to enhance our understanding of the size of the trade finance shortfall and the related pandemic impact. Now on its seventh cycle, the survey continues to find significant market gaps for trade finance that impede the full potential of trade to deliver growth, jobs, and poverty reduction. Against the backdrop of the COVID-19 pandemic, the survey discusses the following: a) trade finance market gaps in 2020; b) impact of the pandemic on the supply and demand in trade finance markets; c) prospects of post-COVID-19 recovery and significant barriers to the path to recovery; d) access to SME trade financing and support measures for SMEs during the pandemic; e) use, role, and potential of fintech and digital solutions, and obstacles to their growth; and f) policy implications including the role of digitalization in trade and trade finance and international cooperation in promoting trade finance.
Unlocking Islamic Climate Finance
This report analyzes how Islamic finance can be scaled up to help build urgently-needed climate-resilient infrastructure in Asia and the Pacific and ensure its post-COVID-19 recovery is green, sustainable, and inclusive.
SW014 FISCAL POLICY
Scope Note: It refers to government spending and taxation to influence the economy. When the government decides on the goods and services it purchases, the transfer payments it distributes, or the taxes it collects, it engages in fiscal policy. Source
Internet Sites
Emerging Tax Issues in the Digital Economy
The issues and challenges in taxation in the digital economy stem from the complex and multifaceted nature of the digital economy. Reaching a shared understanding and measurement of the size and impact of the digital economy is critical in devising a tax regime for the digital economy. In APEC Secretariat (2019), the Philippines identified the significant barriers and challenges (i.e., scoping and measurement of the digital economy, the regulatory and legal framework, i.e., sandboxes, and digital infrastructure gap) to implementing structural reforms relating to the digital economy. It also identified significant policy gaps in the regulatory and legal framework, competition policy, internet infrastructure improvements, and consumer education on the digital economy. The opportunities and challenges that the digital economy brings are significant for developing countries, including the Philippines. Thus, it is deemed critical for the Philippine government to eliminate the barriers and challenges and address the identified policy gaps to reap the digital economy’s benefits fully. The need for developing strategies for the digital economy cannot be overemphasized. This paper argues that development strategies should first develop domestic digital capacities.
Fintech Policy Tool Kit for Regulators and Policy Makers in Asia and the Pacific
This tool kit provides insights on how new fintech solutions can support more inclusive growth in Asia and the Pacific and help economies recover from the COVID-19 pandemic. It suggests how an enabling policy and regulatory environment can be provided to promote fintech innovation, while ensuring consumer protection and supporting inclusive economic development.
Modernizing Local Government Taxation in Indonesia
This report presents the challenges and achievements of the Tax Revenue Administration Modernization and Policy Improvement in Local Governments (TRAMPIL) project in Indonesia to help subnational governments boost local-source tax revenues. TRAMPIL, supported by the Asian Development Bank, offers policy recommendations in the context of Indonesia’s economic and legal parameters on regional autonomy. The provincial, city, and regency governments in the country typically rely on the central government for financial support. A shift toward the collection of their own tax revenues would strengthen local governments’ autonomy and encourage accountability to their communities.
Taxation and Social Protection
This brief explores some of the key attributes of tax systems in Asia and the Pacific and how innovative reforms can help taxation contribute to improved social protection and reduced inequality. The brief discusses how an array of tax reforms over time, both in policy and administration, could allow more progressive structures and improved revenue performance. It notes that tax structures could be improved through broader tax bases, especially better inclusion of capital and self-employment income in personal income taxes, allowing more progressive personal income taxation. It also discusses stronger corporate taxation, increased use of property and wealth taxes, and better-designed value-added tax and excises.
This brief argues for taxation of robots that applies the principles of efficiency, equity, stabilization of international capital markets, and administrative feasibility. The brief proposes taxation of robots based on income and consumption, as well as on their characteristics of capital or labor. Such taxation could help meet the cost of supporting workers replaced by robots and could enhance the equity of the overall tax structure. The brief notes that increased use of robots could lead to a shrinking of traditional payroll and income tax bases, and discusses the advantages and disadvantages of taxing robots. It also explores possible tax instruments and relevant developments in Asia and beyond.
SW015 FOOD SECURITY
Scope Note: It refers to a situation that exists when all people, at all times, have physical, social and economic access to sufficient, safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life. Source
Internet Site
Food is a fundamental biological need. Everyone must consume a certain amount of food everyday to maintain physical well-being and daily functioning. The state is therefore mandated to ensure adequate supply of food for its people to promote public welfare, social and political stability, and to sustain economic growth. This EID discusses the various interventions the government may take to safeguard food security in the country.
SW016 FOREIGN EXCHANGE RATES
Scope Note: It refers to the price of the domestic currency stated in terms of another currency. In other words, a foreign exchange rate compares one currency with another to show their relative values. Since standardized currencies around the world float in value with demand, supply, and consumer confidence, their values change relative to each over time. Source
Internet Sites
Real Exchange Rate Misalignment and Business Cycle Fluctuations in Asia and the Pacific
This paper investigates the impact of real exchange rate (RER) misalignment on business cycles among 22 economies in Asia and the Pacific from 1990 to 2018. The study uses a panel vector autoregression involving consumer price index (CPI) inflation, output gap, short-term interest rate, and RER misalignment. It finds that RER overvaluation may lead to a reduction in CPI inflation and short-term interest rate. It also illustrates Asia and the Pacific’s diversity as evidenced by the output gaps of some economies, particularly in Southeast Asia, which are shown to be more susceptible to RER misalignment shocks.
SW017 HANDICRAFTS
Scope Note: These are usually taken into character in terms of jewelry, textiles, and artisan goods in which its raw materials are locally sourced. The types of local hand woven handicrafts include handwoven textiles, potteries, weaved baskets artisan goods. Source
Internet Site
SW018 HEALTHCARE SECTOR
Scope Note: It consists of businesses that provide medical services, manufacture medical equipment or drugs, offer medical insurance, or otherwise facilitate the provision of healthcare to patients. Source
Internet Sites
The book takes stock of wellness in the region, including the growing wellness economy. It discusses policies for promoting wellness among all Asians in four cross-cutting areas: creating a healthy built environment, supporting physical activity, encouraging healthy diets, and enhancing wellness in the workplace.
SW019 INDUSTRIAL DEVELOPMENT PROJECTS
Scope Note: It refers to the building and growing of industries within an economy by using new technologies that make jobs easier, faster, and better and lead to an increase in a business’ output and profits. Source
Internet Site
With electricity demand rising annually in Thailand, the Thai government is committed to a more sustainable energy future, with renewables making up a more significant share of the energy mix. Small-scale biomass gasification plants – which generate electricity from agricultural and wood processing waste – can increase energy autonomy in rural communities and the country while reducing carbon emissions. With funding from the Global Environment Facility (GEF) and cooperation with local project partners, the United Nations Industrial Development Organization (UNIDO) implemented a project to promote this technology and build capacity for sustainable, community-driven renewable energy management in rural areas Thailand. The outcomes of the project included: 1) Biomass gasification heat and power generation training programs for Thai developers; 2) Construction and commissioning of two 125 kW demonstration biomass gasification plants with research partners in rural Thailand; 3) Establishment of information and learning center at Chiang Mai University Science and Technology Research Institute for training, knowledge gathering and sharing and exhibition purposes; and 4) Two publications based on the experience and expertise gained during the project: a ‘Guidebook for Developers’ and ‘Policy Lessons’ for the community- based small-scale biomass power plants in Thailand.
SW020 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT)
Scope Note: This refers to all-digital technology that assists individuals, businesses, and organizations use information. It covers all electronic products that deal with information in a digital form. ICT is generally concerned with digital data storage, retrieval, and transmission. Source
Internet Sites
Assessing Policy Impacts in Digital Services Trade: Implications for the Philippines
Rapid digitalization has become an integral feature of the global economy in recent years, as markets became more connected and new modes of production and trade emerged. Having a relatively open digital environment, the Philippines is poised for digital trade integration with its Asia-Pacific neighbors. However, various measures must be taken for the country to be fully prepared for regional integration. Some of these are considered low-hanging fruits and can be quickly adopted by the government. This paper examined these low-hanging fruits, in terms of their effects on digital services trade. It conducted a two-stage regression of the gravity model of trade, using data from various sources. This allowed for the estimation of country-specific characteristics in the presence of three-way fixed effects. Results show that the low-hanging fruits generate heterogenous effects on digital services trade. Ratifying the revised WTO Agreement on Government Procurement (GPA) is positively associated with digital services trade, despite an earlier version having negative effects. Data retention requirements and online piracy have both positive and negative effects, while the effects of local loop unbundling were inconclusive. Overall, data retention was more facilitative while online piracy had greater adverse effects on digital services trade. These findings suggest the importance of acceding to the GPA, as well as revising the conditions of data retention requirements, strengthening copyright enforcement, and providing additional channels for promotion of legal content.
Azerbaijan’s Ecosystem for Technology Startups—Baku, Ganja, and Shamakhi
This report assesses the current ecosystem for tech-based startups in Azerbaijan, specifically in Baku, Ganja, and Shamakhi. It examines the extent to which the ecosystem fosters startups and identifies opportunities for strengthening this support.
Cambodia’s Ecosystems for Technology Startups
This report assesses the current ecosystem for tech-based startups in Cambodia, focusing on agriculture, education, health, and climate change. It discusses the challenges facing tech startups and provides recommendations to overcome them.
City-Level Tech Startup Ecosystems and Talent Development in Indonesia
This brief explains how cities across Indonesia can develop enabling ecosystems that foster technology startups and include tailored incubator and accelerator programs, access to mentors, and the development of tech and entrepreneurial talent.
Using a sample of more than 12,000 firms in 32 countries, this paper empirically examines the impact of digital technology on the resilience of enterprises during the coronavirus disease (COVID-19) pandemic.
After controlling for firm characteristics, macroeconomic conditions, and pandemic prevalence, the paper finds that digital technology had a significant and positive effect on firm performance during the pandemic. The evidence suggests that key channels of resilience are electronic commerce and remote work.
Digitalizing Trade in Asia Digitizing Trade in Asia: Needs Legislative Reform
This report identified country-level legislative gaps that inhibit the digitalization of trade in three economic country groupings in Asia: the Association of Southeast Asian Nations (ASEAN), the Central Asia Regional Economic Nations (CAREC) Program, and the South Asia Subregional Economic Cooperation (SASEC) Program. It provides a snapshot of developments and opportunities for legal reform to enable the digitalization of transferable records.
Digitization and its Consequences for Creative-Industry Product and Labor Markets
Digitization has transformed many creative industries by reducing the costs of creating new products and bringing them to market. This chapter asks two related questions. First, how significant are the welfare benefits of new digitization-enabled new products? Traditionally, the benefits of digitization have been evaluated through a “long tail” lens, in which digitization’s benefit is infinite shelf space so that consumers have access to all existing products. Aguiar and Waldfogel (2018) provide a different characterization focusing on the effect of newly created products. Because product success is unpredictable, an increase in the number of new products can bring forth a mix of products, including valuable products which otherwise would not have come to market. This research adapts this approach to measure the welfare benefits of the new digitization-enabled products in movies, books, and television. Available data on movies, television, and books confirm earlier findings for music that the random long tail is enormous compared with the conventional long tail. Related, the welfare benefit of new creative products is substantial. The research also examines the labor-market consequences of digitization for creators. Available evidence on innovative labor markets confirms increased activity in product market creation data. And while total earnings of creative workers are rising, average revenues per worker are falling, primarily at the low end of the earnings distribution.
Driving Inclusive Digitalization in Trade and Trade Finance
This brief analyzes how digitalization can help overcome trade and trade finance challenges, assesses the factors holding it back, and shows how it can promote inclusive and sustainable growth in the Asia and Pacific region.
Singapore’s Ecosystem for Technology Startups and Lessons for Its Neighbors
This report examines Singapore’s vibrant technology-based startup ecosystem and identifies key lessons that can inform the efforts of Indonesia, Malaysia, and Thailand to nurture and develop their tech startups.
Thailand’s Evolving Ecosystem Support for Technology Startups
This report assesses the current ecosystem for tech-based startups in Thailand, focusing on climate change, education, agriculture, and health. It discusses the challenges facing tech startups and provides recommendations to overcome them.
Technology-based startup enterprises are an increasingly important part of the business landscape in Asia and the Pacific. By applying innovative technologies to create new products and services, they can make a significant contribution to economic development while generating social and environmental benefits. However, to survive and then thrive, tech startups require an enabling ecosystem that includes supportive government policy, access to capital, skilled personnel, quality digital infrastructure and other elements. It is the fourth country report in the series “Ecosystems for Technology Startups in Asia and the Pacific.”
One essential precondition for developing countries to engage in the Fourth Industrial Revolution (4IR) is to accelerate the creation and accumulation of firm-level technological capabilities necessary for digital transformation. This study conceptualizes the firm-level technological capabilities against the new realities of the 4IR. Building on a systematic review of 4IR literature, we firstly define 4IR firm-level technological capabilities. Secondly, based on an analysis of secondary data collected from the systematic literature review, we present an updated framework of firm-level technological capabilities that accounts for the advanced digitalization requirements of the 4IR. The framework consists of a refined set of human and organizational activities, skills, experiences, knowledge, and resources required by firms for the uptake of increasingly complex 4IR technologies and processes along their digital transformation journey. These are classified in the framework within four levels of increasingly complex technological capabilities and across six clusters of technological and organizational functions. The framework represents an initial basis for examining the micro-level capabilities required by firms to launch, endorse and realize the 4IR. This has implications for academic, policy, and management practices.
This paper examines how digital platforms work and reviews their impacts across different sectors. We look at the experience of the Philippines and other countries, focusing on e-commerce and ride-hailing/delivery service platforms. Government-initiated platforms and applications in agriculture were also discussed.
The literature review highlights the various positive and negative effects of digital platforms in achieving inclusive and sustainable economic development. The emergence of different digital media and the technologies that drive them will continue to shape our economy and society in ways that we cannot yet fully anticipate. How well we manage the risks and exploit the opportunities will largely depend on finding the appropriate role of the government in the platform economy and the quality of regulatory governance.
Viet Nam’s Ecosystem for Technology Startups
This report examines Viet Nam’s tech-based startups in two sectors: agriculture and health. It assesses the challenges for creating a more enabling ecosystem to scale up startups in these sectors and makes recommendations to overcome them.
SW021 INNOVATIVE ENTREPRENEURSHIP
Scope Note: It refers the practice of establishing creating new business ideas intending to generate profit, assist their community and accomplish company goals. Innovative entrepreneurs develop business models to identify to meet the needs of an organization and improve their competitiveness in the market. Source
Internet Site
Impact of Government Incentive on MSME Innovation
MSMEs find it challenging to undertake innovation activities given their limited resources and capabilities. Studies on innovation in MSMEs have identified internal and external factors that affect innovation capabilities and activities: government support. Incentives such as tax deductions/credits, grants, subsidies, and other similar instruments have been used by governments to promote innovation, especially in MSMEs. Using the 2015 Survey of Innovation Activities of Establishments, this paper profiles innovation activities and characteristics of surveyed MSMEs in the Philippines. It attempts to estimate the impact of government incentives on their innovation behavior and outcomes. Findings indicate that more MSMEs undertake knowledge management, organizational, and marketing innovation than product or process innovation. In addition, receipt of government financial support for innovation activities positively impacted organizational and marketing innovation.
SW022 IMPORTS AND EXPORTS
Scope Note: Exporting is the sale of products and services in foreign countries that are sourced or made in the home country. Importing is the flipside of exporting. Importing refers to buying goods and services from foreign sources and bringing them back into the home country. Importing is also known as global sourcing. Source
Internet Sites
A Case for Value-Added Exports in the Estimation of Export Diversification in Asia and the Pacific
This paper introduces a new indicator of export diversification in Asia and the Pacific based on value added in sectors that contribute to exports. As economies integrate into global and regional value chains, these fragmented production structures may not be adequately reflected in diversification measurements. While an assessment of export diversification using gross exports provides insight into the direct exports of a trading economy, it does not tell the full story. Using both gross exports and value-added exports can better inform policy decisions and enable exporting economies to carve their niche in increasingly digitally enabled value chains.
Highlights of the Philippine Export and Import Statistics February 2021 (Preliminary)
This article elaborates the export and import trade statistics compiled by the Philippine Statistics Authority (PSA) from export and import documents submitted to the Bureau of Customs (BOC) by exporters and importers or their authorized representatives as required by law.
Free trade agreements (FTAs) and regional trade agreements have proliferated in recent decades as countries perceived them to reduce trade barriers effectively, thus helping nations expand market access, protect local markets, and enhance efficiency and productivity of domestic industries. Such preferential trade agreements, however, can have both advantages and disadvantages. The Japan- Philippines Economic Partnership Agreement (JPEPA), the first bilateral FTA that the Philippines entered into, aims to facilitate and promote the free transborder flow of goods, services, capital, and people between the two countries. Whether the JPEPA has delivered its intended benefits for both countries and what determines its success are two focal national interests. Evaluating such an agreement can be done through detailed examinations of the countries’ economic conditions before and after implementation. It requires a comparison group whose outcomes are analyzed in contrast with a reference group of factors. This paper explores synthetic control methods to understand the effects of JPEPA on Philippine exports without being hampered by the limitations in its existing approaches. The results reveal that the Philippines benefited from the JPEPA as determined by the actual exports and the counterfactual exports. The country’s exports to Japan grew by about 26 percent after signing the agreement. However, investigating the effects of JPEPA at the sectoral level yields varying results.
Potential Exports and Nontariff Barriers to Trade: Bhutan National Study
This publication explores how Bhutan could boost its exports by addressing non-tariff barriers to trade. It focuses on sanitary and phytosanitary measures and technical barriers to trade and on export products that have the potential to increase their market share in Bangladesh, India, Maldives, Nepal, and Sri Lanka. It considers options including legal reforms, the upgrade of quality standards and laboratory equipment, and institution building of accrediting bodies and conformity assessment bodies. Practical recommendations suggest ways forward for both the public and private sectors.
Survival Analysis of Export Relationships of Philippine MSMEs
This study examines the survivability of Philippine micro, small, and medium enterprises (MSMEs) exports to select countries within the frameworks of the Asia-Pacific Economic Cooperation Boracay Action Agenda to Globalize MSMEs and the Association of Southeast Asian Nations Strategic Action Plan for SME (small and medium enterprises) Development. The analysis is based on the model of Besedeš and Prusa (2006a; 2006b; 2011). Using the Kaplan Meier estimator model in the exports of MSMEs and the total trade data, this study documents Philippine exported goods’ survival rate and duration. It shows that most export relationships of the Philippines are brief, contrary to conventional trade theories, which suggest that most of the country’s trade relationships are long-lived. This paper concludes that MSMEs, on average, account for a more significant number of the Philippines’ export relations than large establishments.
SW023 INVESTMENT, FOREIGN
Scope Note: It involves capital flows from one country to another, granting the foreign investors extensive ownership stakes in domestic companies and assets. Source
Internet Sites
The Effect of COVID-19 on Foreign Direct Investment
This study examines how COVID-19 has impacted foreign direct investment (FDI) using data from 173 home to 192 host countries from the first quarter of 2019 to the second quarter of 2021. The authors find heterogeneous effects of COVID-19 on FDI by sector and entry mode. The severity of COVID-19 in host countries negatively affected both greenfield FDI and cross-border mergers and acquisitions in the manufacturing sector. But the situation of home countries did not seem to matter. Greenfield FDI in the service sector was affected by the situation in both host and home countries.
SW024 Livelihood programs
Scope Note: It refers to programs that seek to improve the state of life of the low-income sector by giving jobs and business chances, health care access, and other forms of assistance. These programs aim to enhance community capacity to address the issues of poverty. It may be in the form of making laws and plans or giving skills training to help the people become more productive members of society. Other program leaders may also partner with both local and private sectors to reach more audience and gather sponsors. Source
Internet Site
Evaluation of the Sustainable Livelihood Program’s Seed Capital Fund for Microenterprise Development
This study uses a matching design to evaluate the impacts of microenterprise assistance provided by the Department of Social Welfare and Development’s Sustainable Livelihood Program to beneficiaries of the Pantawid Pamilyang Pilipino Program, the Philippine government’s conditional cash transfer program. The evaluation focuses on the Seed Capital Fund, a grant worth up to PHP 10,000 per household that can be used as startup or additional capital for a microenterprise run individually or in a group. Most of the program beneficiaries are women. The study finds that treatment is associated with higher supply of labor hours among household heads’ spouses. However, the intervention has no statistically significant effects on household income, expenditure, savings, or capital expenditure. Qualitative findings on business project implementation point to serious issues which support the null estimates. These include a substantial business closure rate, lack of participation among group members in business operation, lack of earning opportunities for group members, management issues, and low profitability. Moreover, the program’s benefit-cost ratio is estimated to be substantially less than unity. Governments running similar livelihood programs should weigh whether the modest welfare gains they generate justify the high cost of running them.
SW025 MANUFACTURING INDUSTRY
Scope Note: It refers to a branch of manufacture and trade based on the fabrication, processing, or preparation of raw materials and commodities products. This includes all foods, chemicals, textiles, machines, and equipment. In addition, this consists of all refined metals and minerals derived from extracted ores. This includes all lumber, wood, and pulp products. Source
Internet Sites
Analyzing the Sources of Misallocation in Indian Manufacturing: A Gross-Output Approach
It is well established that misallocation of factor resources lowers productivity. In this paper, I use data from formal and informal firms to study distortions in input and output markets as sources of misallocation in the Indian manufacturing sector. My work extends the seminal work of Hsieh and Klenow (2009). I consider output, capital, raw material, energy, and service sector distortions in a monopolistically competitive framework to measure the aggregate dispersion in total factor revenue productivity (TFPR). I also decompose the variance in TFPR and show that raw material and output distortions play a significant role in defining aggregate misallocation.
The “Weighty” Manufacturing Sector: Transforming Raw Materials into Physical Goods
The manufacturing sector encompasses a diverse set of industries involved in transforming raw materials into physical goods. Over the last two decades, the U.S. manufacturing value added (MVA) has slightly grown. However, the U.S. percentage of global MVA has declined due to China’s exponential rise. Likewise, in contrast to net employment in the U.S. economy, which has increased, net employment in manufacturing (while growing slightly since 2010) is significantly lower than in the 1980s. As a whole, the manufacturing sector involves higher value-added per capita employed, a more significant proportion of the labor force with education at the high school level or below while having on average higher wages for that labor force, higher industry spending on R&D, and fewer private equity/venture capital deals financing new ventures than non-manufacturing industries such as services (including software). The U.S.’ relatively high R&D spending on manufacturing (66% of industrial R&D) and comparatively low manufacturing value added (14%) is partly due to the globalization of manufacturing facilities in the last decade. The above said, drawing implications from sector-wide trends can be misleading because of the variation in these indicators across sub-sectors. At the five-digit NAICS code level, the top sources of employment are animal processing, aerospace products, and printing (on various materials including textile, metal, plastics). Theprincipal sources of revenue are petroleum refineries and automotive, and the top source of R&D spending is pharmaceuticals. Considering the sector’s diversity will be critical to understanding productivity and labor outcome effects and appropriate policy responses if any.
SW026 MENTORING IN BUSINESS
Scope Note: It refers to a relationship between an experienced business person (the mentor) and a business owner or employee (the mentee). It can be used at all stages in the business life cycle and offers benefits to both mentors and mentees. Source
Internet Site
Incubating Indonesia’s Young Entrepreneurs: Recommendations for Improving Development Programs
This publication draws lessons and good practices from entrepreneurship development models and incubation centers designed for the youth in Indonesia. Several ministries in Indonesia are providing entrepreneurship training to the youth in a move to harness the demographic bonus amid persistently high unemployment rates among young people. Incubation centers in the country’s three public higher education institutions and an entrepreneurship training model facilitated by a Swiss–Indonesian start-up accelerator program are explored in this publication. Recommendations focus on strengthening similar programs in other universities, such as management and resources, financial sustainability, mentorship and training, business services and facilities, graduation and post-incubation, and documentation and evaluation.
SW027 NATURAL RESOURCES
Scope Note: It refers to natural assets (raw materials) occurring in nature that can be used for economic production or consumption. Source
Internet Site
Financing the Ocean Back to Health in Southeast Asia: Approaches for Mainstreaming Blue Finance
It provides an overview of the “blue economy”” and emphasizes its significance for protecting the biodiversity of natural resources in Southeast Asia. The “blue economy” is defined as the sustainable use of ocean and coastal resources to drive economic growth and improve livelihoods, while protecting and nurturing marine ecosystems. The publication looks how multilateral and bilateral funding sources, a market-based approach, incentives, and regulations can contribute to achieving a blue economy. It also discusses how these elements need to be aligned within a cohesive development framework.
SW028 PARTNERSHIP
Scope Note: It refers to a formal arrangement by two or more parties to manage and operate a business and share its profits. Source
Internet Site
Value for Money in Public–Private Partnerships: An Infrastructure Governance Approach
This publication explains how countries can establish strong public–private partnerships (PPP) to help bridge deep funding gaps and build the climate-resilient infrastructure they need. It notes that the pandemic and government worries over value for money have combined with business’ concerns over investment risk to dampen regional PPP deals. The publication sets out a governance approach to promoting value for money to help strengthen public sector capacity to prepare and implement PPP infrastructure investments. An effective infrastructure governance approach to value for money will ensure performance over the asset life cycle and maximize the quality and amount of infrastructure for a given level of spending.
SW029 RESIDENTIAL REAL ESTATE SECTOR
Scope Note: It focuses on buying and selling properties used as homes or non-professional purposes. The residential real estate sector comprises single-family homes, apartments, condominiums, and planned unit developments. Source
Internet Site
Innovation and Entrepreneurship in Housing
The paper discusses innovation and entrepreneurship in residential real estate and construction (housing). Based on R&D spending and patent statistics, housing is not a very innovative sector. But in the last two decades, there has been a significant increase in the amount of investment going to real estate technology companies. It discusses the companies and technologies which have drawn the most attention from investors and then reviews the literature on two major innovation trends in housing: the growth of the Internet as a tool for housing search and the development of home-sharing platforms which allow homeowners to use their homes as short-term rentals. These innovations have likely increased the efficiency of housing markets, leading to higher quality matches between buyers and sellers and more efficient utilization of space. However, the effects are hard to measure due to separating quality changes from price changes.
Compared to residential real estate, there appears to have been less recent innovation in residential construction. Moreover, in many areas, residential construction is artificially constrained by local land-use policies, and estimates from the literature suggest that relaxing these constraints could increase economic growth significantly. Finally, it discusses anti-competitive practices in real estate, which may hinder entrepreneurship and the adoption of innovations, and how innovation and entrepreneurship in other sectors may affect the housing market.
SW030 SERVICE SECTOR
Scope Note: It refers to a sector that produces intangible goods, services instead of goods. It comprises various service industries, including warehousing and transportation services; information services; securities and other investment services; professional services; waste management; health care and social assistance; and arts, entertainment, and recreation. Countries with economies centered around the service sector are considered more advanced than industrial or agricultural economies. Source
Internet Sites
Regional Analysis of the Philippine Services Sector
The services sector comprises a diverse range of services, including retail and business services, education, and health, among others. Some services are used as inputs in production, while others directly impact human capital development.
In the Philippines, the services sector accounts for 60 percent of gross domestic product and almost 57 percent of employment. Across regions and subsectors, however, the contribution of services varies. Using a simple shift-share technique, this study examines the patterns at the regional and subsector level. It decomposes the changes into three factors: national share (growth effect), industry mix (sectoral effect), and regional shift (competitive effect).
Focusing on changes in employment, the shift-share decomposition reveals that the economy’s overall growth from 2012 to 2018 had a positive impact in all sectors and regions. However, some industries showed negative sectoral effects: accommodation and food service activities; arts, entertainment, recreation, and education. Industry-specific factors in education services were vital that the economy’s dynamism failed to offset the industry mix effect. It was the only sector that registered lower total employment during the period. Regarding the regional shift effects, 109 out of the total 204 regional service industries (53%) displayed locational disadvantages.
Shift-share is a purely descriptive tool, and further analysis must be done to explain the factors that influence sectoral changes and a region’s economic potential and constraints. As services are critical for production, human capital development, and, more broadly, in the enhancement of the quality of life, understanding the drivers or inhibitors of services growth and addressing the locational weaknesses in the relevant service industries will help promote growth in the region and a more balanced economic development for the country.
The Servicification of the U.S. Economy: The Role of Startups versus Incumbent Firms
The U.S. economy has exhibited a significant shift from manufacturing towards services over the last few decades. This transition has been particularly prominent in an essential subcategory of services industries that drives innovation and employs many high-wage workers: Supply Chain Traded Services (Delgado and Mills, 2020). These industries provide specialized service inputs to organizations and are characterized by high upstreams, which allow innovations to cascade down to other buyer industries. Delgado, Kim, and Mills explore the role of startups versus incumbent firms in driving the transition from manufacturing to Supply Chain Traded Services between 1998 and 2015. Using the Longitudinal Business Database of the U.S. Census Bureau, the researchers find that startups experienced a significant decline in Supply Chain Traded Services, both in terms of entry of new firms and growth of young firms. Instead, job growth in this sector has been led by established firms: the transformation of incumbent manufacturing firms towards services (e.g., Intel) and the growth of incumbent Supply Chain Traded Service firms (e.g., Microsoft). To complement their empirical findings, Delgado, Kim, and Mills discuss potential barriers for entrepreneurial firms and illustrate the servicification efforts of several established firms. Finally, they conclude by offering broad policy implications.
SW031 TOURISM
Scope Note: It refers to a social, cultural, and economic phenomenon that entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes. These people are called visitors (tourists or excursionists; residents or non-residents). Tourism has to do with their activities, which imply tourism expenditure (United Nations World Tourism Organization, 2008). Source
Internet Sites
Big Data for Better Tourism Policy, Management, and Sustainable Recovery from COVID-19
The report, co-published with the World Tourism Organization, examines trends, challenges and opportunities in the use of big data in tourism. It highlights the need for investment in big data systems, partnerships with private and public sector big data providers, the adoption of proven measurement systems for sustainable tourism, and regional policy cooperation. Case studies from Asia and the Pacific illustrate ways of tapping big data in tourism development.
COVID-19 and the Future of Tourism in Asia and the Pacific
This report explores how different tourism market segments in Asia and the Pacific may have been impacted by the COVID-19 pandemic, and what this means for policy makers seeking to move tourism onto a more sustainable development pathway.
Can Vaccination Help Restart Tourism?
Tourism has been one of the sectors hardest hit by the coronavirus disease (COVID-19) pandemic. Vaccine roll-outs will be time-consuming, but this brief suggests actions that could be taken now to make vaccination more effective in reviving travel and tourism. In addition to vaccine passes, harmonized quarantine protocols and cross-border contact tracing could help make travel safer and more predictable for vaccinated and unvaccinated people.
This brief outlines policy recommendations for safely reopening travel and tourism in Asia and the Pacific while prioritizing response, recovery, and resiliency during phases of the coronavirus disease (COVID-19) pandemic.
Sustainable Tourism After COVID-19: Insights and Recommendations for Asia and the Pacific
The report highlights six pathways for promoting systemic change in the sector: a value-driven approach, decarbonization, tourism-led regeneration, improved governance, and sustainable finance. It provides concrete recommendations on how policymakers and industry stakeholders can leverage tourism to foster sustainable development and a green recovery in Asia and the Pacific.
SW032 TRADE
Scope Note: It refers to a basic economic concept involving the buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods or services between parties. Source
Internet Sites
This report explores how aid for trade can be enhanced to support Asia and the Pacific’s recovery from the pandemic and progress toward sustainable development. It suggests a way forward for aid for trade to be modernized so it reflects new economic and trade realities.
This report shows how smart trade and investment policies, and regulatory cooperation in the Asia and Pacific region can help economies tackle climate change, recover from the pandemic, and support resilient and sustainable development.
Asian Economic Integration Report 2022: Advancing Digital Services Trade in Asia and the Pacific
This report explores how Asia and the Pacific can capitalize on growing opportunities in digital services through human capital development, enhanced digital connectivity, regulatory reforms and institution building, and international cooperation. It gives an overview of changes in trade and global value chains, cross-border investment, financial integration, and the movement of people since the pandemic began. It highlights deepened trade integration in the region.
This working paper outlines specific development needs for six major participating government agencies on trade facilitation in India, including a comprehensive single-window trade facilitation system. Trade facilitation is a critical building block of developing globally integrated value chains. In India, current trade facilitation systems, including risk assessment criteria, require improvements involving regulatory mandates for food and drugs, animal and plant quarantine, wildlife protection, and textile products. The paper provides a model for developing a comprehensive risk management system that covers various risk factors in trade facilitation.
Gravity-Based Tools for Assessing the Impact of Tariff Changes
This paper introduces two empirical tools to quantify the impact of tariff changes on trade and welfare, applying these to tariff changes affecting Armenia. The tools draw on the structural gravity model. The first tool estimates the impact on bilateral trade for 5,020 products in a partial equilibrium framework. The second quantifies the general equilibrium impact on bilateral aggregate trade, allowing estimates of trade reallocation and welfare changes. The paper uses these to estimate the impact for Armenia of tariff changes including (i) alignment with the external tariff of the Eurasian Economic Union, (ii) free trade agreements between the Eurasian Economic Union and other economies—Iran and the People’s Republic of China, and (iii) loss of beneficiary status for the European Union’s Generalised Scheme of Preferences.
Impact of High Trade Costs and Uncertain Time to Trade on Exports from Five Central Asian Countries
This paper analyzes how trade costs affect exports from five Central Asian countries. It highlights how improving logistics and procedures and boosting digitalization can streamline regional trade.
To promote smoother flows of goods across borders while reducing trade costs, this report explores an integrated approach to facilitating trade and transport across Asia and the Pacific, for better engagement in value chains.
Opportunities for the Philippines under RCEP: Trade in Services
The Regional Comprehensive Economic Partnership (RCEP) is a forward-looking trade agreement between member economies of the Association of Southeast Asian Nations (ASEAN) and its free trade agreement (FTA) partners (AFPs) namely Australia, China, Japan, Korea, and New Zealand (i.e., non-ASEAN signatory economies). It presents an opportunity for participating economies to consolidate rules given overlapping sets of FTAs. Because of stalemates that developed between economies in World Trade Organization negotiations, more regional trading agreements (RTAs) have emerged. As RTAs define trade rules and commitments for all its signatories that are geared towards encouraging free movement of goods and services among member economies, it can deepen economic linkages. The RCEP is an alternative avenue for trade liberalization at the regional level, and a challenger to the Trans-Pacific Partnership in terms of coverage and degree of liberalization. Through RCEP, new opportunities for trade and investment may be harnessed. As a result, the enhanced partnership can contribute to human resource and infrastructure development—which are key to the economic growth and development of the Philippines. Hence, we investigate how the RCEP can deepen the contributions of trade in services in the Philippine economy through the commitments made and limitations imposed. We reviewed and assessed the specific commitments of AFPs joining the RCEP in terms of trade in services, particularly on market access and national treatment. We compared these commitments, evaluated their relevance to the needs of the Philippines, and determined the benefits that the Philippines can reap from RCEP. Our analysis suggests that the RCEP is a marginal regional trading arrangement that should be viewed as a compilation of previous regional trading agreements for key economies in the Asia-Pacific region. Because of the additional commitments made by the signatory economies, specific opportunities in trade in services may be valuable for the Philippines. However, there are challenges in the form of market access and national treatment limitations, which the Philippines must view as an opportunity to enhance its domestic productivity.
Pakistan’s Economy and Trade in the Age of Global Value Chains
This publication examines the economy and trade of Pakistan in the context of global value chains (GVCs), or cross-border production networks. The report combines innovative analytical tools with the latest available data to explore Pakistan’s involvement in GVCs. It produces indicators on factors including Pakistan’s rate of GVC participation, its patterns of specialization, and the price competitiveness of its exports. It is a joint publication with the Islamic Development Bank Institute.
This report presents the findings of the second Provincial Facilitation for Investment and Trade (ProFIT) survey in the Lao People’s Democratic Republic. The ProFIT index aims to measure how well provinces support private sector development, notably through economic governance measures that are under their mandate. The report shares analysis in six key areas: (i) ease of starting a business, (ii) transparency and access to information, (iii) regulatory burden, (iv) informal charges, (v) consistency in policy implementation, and (vi) business friendliness of the provincial administration. It notes improvements in the business environment across all provinces because of progress made in registration requirements.
Trade Effects of Transportation Infrastructure among CAREC Countries
This paper analyzes the trade effects of road and rail infrastructure reforms in 11 member countries of the Central Asia Regional Economic Cooperation (CAREC) program.
It explains how bottlenecks and border delays hinder regional trade and shows how improving transportation frees up commerce and makes CAREC countries more competitive. The paper highlights how reforms impact on time-sensitive inputs and bilateral trade as well as how they cut transportation times between key cities, along with the countries most likely to benefit from it.
Trade Facilitation, Infrastructure, and International Trade in Central Asian Countries
This working paper analyzes the impact of infrastructure and trade facilitation on imports and exports in five Central Asian countries and outlines how improving hard and soft infrastructure would help boost regional trade and integration.
Unlocking the Potential of Digital Services Trade in Asia and the Pacific
This book explains how rapid digitalization during COVID-19 has accelerated the growth of digital services trade in Asia and the Pacific, and provides analysis on the opportunities, challenges, and associated risks.
The publication reviews the experience of five transition economies from the Caucasus and Central Asia that acceded to the World Trade Organization (WTO) and their post accession trade policy performance.
SW033 TRADE FINANCE
Scope Note: It refers to the financial instruments and products that are used by companies to facilitate international trade and commerce. Source
Internet Sites
Drawing on a decade of surveys, this report discusses trade finance trends and identifies how access to trade finance can become more inclusive, including through digitalization.
A persistently large trade finance gap is an ongoing global challenge, particularly for small and medium-sized enterprises, which continue to face significant barriers to access financing. Since 2012, ADB has conducted a Trade Finance Gaps, Growth, and Jobs Survey. Reflecting on the survey results, the report provides insights on trade finance trends, analysis, and lessons and identifies what needs to happen to ensure access to trade finance is more inclusive. The report discusses the rapid digitalization in trade and trade finance markets and advocates for increased international cooperation to enable the full benefits of digitization to be realized.
SW034 TRAINING PROGRAMS
Scope Note: These include Programs organized in a professional environment during or at the end of the educational process. Source
Internet Sites
Profile of Training and Skilling Programs in the Philippines
This study is undertaken as part of the Youthworks PH initiative by the Philippine Business for Education. It aims to address five research questions, namely: (a) what are the existing training programs for the priority sectors of YouthWorks PH (construction, manufacturing, and tourism); (b) how responsive are the current training programs to the needs of industries; (c) is there industry demand for new National Certificates (N.C.s) in specific sectors, and for what level and occupation; (d) how did the Covid-19 pandemic change the landscape of training programs in the country; and (e) what the emerging industry sectors brought about by the Covid-19 pandemic is. We use secondary data and interviews with relevant stakeholders, particularly with training providers in YouthWorks PH priority sectors. TVET providers are overwhelmingly private, but public providers account for a larger share of graduates. Most TVET graduates are products of either community-based or institution-based TVET programs. TVET programs and graduates are concentrated in a few occupational sectors, the dominant sector being Tourism (Hotel and Restaurant). Likewise, demand for assessment leading to a National Certificate is focused on relatively few qualifications. The government offers several scholarships promoting TVET access. The issues on the responsiveness of current programs, according to the respondents, revolves around: (a) the lack of demand, particularly for construction; (b) weaknesses in the design of financing programs; (c) perception about the quality of training schools, trainers and assessors; and (d) training content. Industry respondents noted demand for skills standardization in prefabricated construction, supervisory-level construction jobs, and nursing assistance. Restrictions due to Covid-19 resulted in the suspension or scaling down of training programs. Some providers have provided online modules, but students’ lack of access to appropriate digital devices or the Internethinders remote learning. Covid-19 caused the emergence of online food selling and made digital skills valuable. The study recommends pursuing an information campaign to promote construction jobs; reviewing and rationalizing TVET financing programs; reviewing the TVET content; tapping industry practitioners as trainers and assessors; investing in flexible learning modalities; and promoting regular dialogue between the government, employers, and TVET providers.
Who Are the Youth NEET in the Philippines Today?
Being not in employment, education, or training (NEET) can undermine young people’s future employment and earnings prospects, leading to lasting economic disadvantage. Being NEET can also have adverse social consequences, such as depression, weaker social engagement, and possibly deviant behavior. These outcomes come at a high cost to the economy and society. This study aims to address four research questions: (1) what are the dropout points of learners across the education continuum; (2) how are NEET computed and monitored across government agencies; (3) how many NEET are potential TVET learners; (4) what barriers do NEET face in pursuing further training. The study used a range of research strategies, such as document review, primary and secondary data analysis, and in-depth interviews with national government offices with programs for youth. The study finds that NEET is still an emerging concept in the Philippines. However, given many youth NEET in the Philippines, and the social and economic implications, more attention needs to be directed toward youth NEET and the issues this cohort faces. First, there is a need to adopt a standard definition of NEET and promote the concept as an essential cohort that needs attention from government and non-government programs. Second, there should be more comprehensive coverage of technical and vocational education and training (TVET) in official statistics to better understand the demand for TVET. Resolving issues in the definition of training participation in official statistics would provide a more comprehensive picture of TVET participation and lead to a more accurate measurement of NEET in the country. Third, more in-depth studies should be conducted to identify other essential determinants of being NEET. This will help find effective levers of drawing out the NEET into either learning a trade and/or being productively employed. Fourth, given the high proportion of inactivity among female youth observed, further inquiry into the reasons behind this is recommended. Fifth, the study estimated that only one in four NEETs would demand TVET training. Given this low potential take-up rate, there is scope for promoting TVET among the NEET. Lastly, government and other key stakeholders should address the barriers and challenges of those desiring and who are currently in TVET training. This includes addressing participants’ financial constraints through re-examining existing allowance benefits, the conduct of better information dissemination on training opportunities, provision of labor market information and employment facilitation, and consideration of solutions to connectivity and digital device issues experienced by trainees.
SW035 TRANSPORT SECTOR
Scope Note: It refers to industries involved in transporting goods and passengers throughout the world. This sector is structurally complex and vitally important to economies locally, nationally, and globally. Source
Internet Sites
Accessibility Analysis of the South Commuter Railway Project of the Philippines
A quantitative analysis estimates that residents of cities and municipalities with an SCR station will reach an average of 300,000 extra jobs within a 1-hour commute—an increase of 15.3% in the south and 8.5% in Metro Manila. This could lead to better labor market matching, higher income for workers, and more job opportunities for low-income households. In addition, the study contributes to efforts to quantify the more comprehensive economic benefits of infrastructure projects, exceptionally efficient urban transport systems. This brief outlines findings on how the 54.6 km South Commuter Railway (SCR) to be built between Metro Manila and Laguna province in the Philippines is expected to improve access to jobs.
Clean Energy Technology in the Philippines: Case of the Electric Vehicle Industry
Electric Vehicles (E.V.s) have gained attention globally as countries pursue the use of alternative technologies that reduce harmful emissions, climate-related effects, and reliance on the use of fossil fuels. In the Philippines, policies and programs supporting the E.V. industry have been implemented while pending legislation awaits enactment. In an attempt to contribute insights to the policy discussion on E.V.s, the study examines the E.V. industry in the Philippines, current regulations, and challenges the industry faces. The study finds strengths and opportunities in the E.V. industry, including positive industry outlook and prospects for manufacturing in the supply chain. It also identifies weaknesses and threats related to technology utilization and competition. Finally, the study also presents recommendations to take advantage of the industry’s potentials.
This paper shows how satellite images can help overcome challenges in obtaining timely and spatially disaggregated data for impact evaluation, using the case of the city of Cebu in the Philippines. Satellite image-derived vehicle counts were used to measure local economic activity following the opening of the new terminal at the Mactan-Cebu International Airport in the Philippines. Results reveal that the terminal’s opening has had positive impacts on Cebu’s local economy. A comparison of the vehicle count measure with luminosity-derived metrics suggests that the former is better at capturing seasonal and spatial variations in treatment effects, especially for beach tourism activities in Cebu.
Philippines: Transport Sector Assessment, Strategy, and Road Map
This assessment, strategy, and road map (ASR) documents the current assessment by the Asian Development Bank (ADB) of the transport sector in the Philippines in relation to the government’s strategic plans to strengthen policies, institutions, and investments in the sector. The ASR highlights sector performance, priority development constraints, government plans, and strategy, past ADB support and experience, other development partners’ support, and ADB’s strategy for support. The ASR is linked to and informs ADB’s country partnership strategy for the Philippines. Both the ASR and the country partnership strategy for the Philippines target the period through 2016.
Reforming Port Processes in India for Logistics Efficiency
Jawaharlal Nehru and Vishakhapatnam ports are two major export-import gateways in India. The study’s findings presented in this brief were the basis for identifying strategic reform and potential solutions to improve port systems in the country. The brief also recommends that the government conduct a self-audit and improvement toolkit to streamline port processes and establish reliable digital systems that reduce logistics costs yet make operations more efficient.
In India, different agencies conduct inspections on road freight in transit, which can cause unscheduled stoppages that result in delays and add to operational costs. Compliance and enforcement architecture reform involving road freight transport consists of applying data-based and integrated digital tools that can enable inspection facilities and units to immediately identify potential noncompliance and minimize multiple physical inspections that the current enforcement model entails.
This paper discusses an alternative technology-based reform model for enforcement agencies with regulatory mandates on on-road movement and conveyance of cargo in India to help improve the efficiency of domestic trade facilitation.
What’s Driving Entrepreneurship and Innovation in the Transportation Sector?
The paper draws from prior literature and a range of statistics to describe economic, entrepreneurial, and innovative activities in the transportation sector. Analysis of recent trends suggests that warehousing is playing an increasingly important role. The researchers argue for more research on the part of warehousing in particular. They also review several new technologies, including autonomous vehicles, drones, and robots, that are starting to affect transportation and warehousing.
SW036 WOMEN-OWNED BUSINESS ENTERPRISES
Scope Note: It refers to setting up a business or businesses by women entrepreneurs, taking on financial risks in the hope of profit. Source
Internet Sites
COVID-19 MSMEs Policy Responses in the Philippines: How Goes the Gendered Quest?
Drawing on the experiences of entrepreneurs during the onset of the COVID-19 pandemic, we explore the gendered impacts of policy responses designed primarily to provide relief and support for business continuity while the economy was on hold. The paper examines the themes of their lived experiences and how policy responses catered to their immediate needs as entrepreneurs and assess how and whether its impacts are gendered while considering the process of policy design, implementation, and monitoring during an emergency. As needs at the onset of the pandemic were universal and under pressure to deliver relief efforts in an emergency, policies did not explicitly bear a gender lens from design to implementation. The effects of the pandemic on businesses were not gendered, although the lived experiences of women entrepreneurs reveal areas where more gendered support is needed. The paper also explores the lack of consensus among players in the entrepreneurial ecosystem on how women’s entrepreneurship is defined and investigates how this affects the monitoring and evaluation of policy responses for micro, small, and medium-sized enterprises. The paper also looks into tech startups and provides recommendations moving forward.
This ex-ante study analyzes the impacts of e-commerce adoption on the performance of women-led micro, small, and medium enterprises (MSMEs) in Metro Manila, their awareness and perceptions of government efforts towards internationalization, and their readiness to engage in cross-border e-commerce through the Regional Comprehensive Partnership Agreement (RCEP). Findings validate the observation that the COVID-19 pandemic has accelerated e-commerce adoption and this has substantially enhanced the performance of women-led MSMEs in terms of sales growth, customer base, customer satisfaction, and process enhancement. The data further highlight that there is a low level of awareness on both existing government programs for women-led MSMEs, and on RCEP and its chapters on e-commerce and MSMEs. However, certain provisions within the chapters appeal to women-led MSMEs, such as “information on trade and investment-related laws and regulations for export-oriented MSMEs” and “acceptance of electronic transaction documents in online cross-border transactions”. Women-led MSMEs in Metro Manila demonstrate a strong interest to engage in cross-border trade under RCEP if implemented in 2022. This study also further reveals that a high propensity for cross-border e-commerce—fostered by an enabling policy environment that supports their e-commerce adoption and growth—will potentially heighten the participation in regional trade and the global value chain.
Empowering women-led MSMEs to engage in cross-border e-commerce trade through RCEP
This Policy Note presents a gendered perspective on the impact of e-commerce adoption on the performance of women-led MSMEs (WoMSMEs) in Metro Manila and their propensity to engage in cross-border e-commerce trade once RCEP is in effect. The findings are based on a pilot survey conducted from September 28 to October 12, 2021, involving 486 Metro Manila-based WoMSMEs engaged in e-commerce (Bacasmas et al. 2022).
Financial Access of Women-Owned Small and Medium-Sized Enterprises in Viet Nam
This working paper identifies challenges in access to finance for women-owned small and medium-sized enterprises (SMEs) in Viet Nam and recommends ways to improve it.
Financial Instruments to Strengthen Women’s Economic Resilience to Climate Change and Disaster Risks
This publication explores good practices in the use of financial instruments to enhance women’s economic resilience to disasters caused by natural hazard events and extreme weather conditions.
Gender inequalities and limited access to resources constrain women’s ability to withstand and recover from financial shocks and economic distress arising from disasters. The publication provides recommendations for policy makers and regulators, development partners, and financial service providers on facilitating the development, design, and promotion of financial products and services to address this issue. It emphasizes the importance of financial inclusion and identifies distribution channels to ensure that low-income women have access to these financial products and services.
Gender and industrialization: developments and trends in the context of developing countries
Abstract. This paper reviews the literature on the relationship between gender (in)equality and industrialization in the context of developing countries. It documents past developments, accounting for pre-industrial preconditions that might explain current differences in gender roles across societies. Moreover, it discusses the main drivers of the relationship between gender equality, economic development, and structural change with a focus on the mechanisms driving this complex relationship. It provides novel empirical evidence of recent developments and the current state of gender equality in different spheres in developing countries at different stages of structural change. The study also identifies emerging trends, for instance, related to more recent technological advancements in Industry 4.0 and premature deindustrialization and discusses their possible impacts on gender equality in developing countries. The ultimate aim of the paper is to identify knowledge gaps and formulate relevant research questions that need to be addressed to design constructive policies aimed at promoting gender equality in developing countries.
Gender perspectives in e-livelihood and e-entrepreneurship
Digital platforms provide a supplementary income source, thus improving economic participation and empowerment, especially of women and homemakers. This Policy Note presents a gendered perspective on how online platforms can enhance livelihood and entrepreneurship opportunities for both women and men. Based on data from the 2019 National Information Communications Technology Household Survey, women are more likely than men to engage in online work because it offers flexibility to do other non-market work. Online platforms provide livelihood opportunities, especially for women who cannot participate in the economy. Apart from gender issues and other socio-economic challenges, lack of education limits a person’s ability to use online platforms for various welfare-enhancing activities. Most online sellers are college graduates and are proficient in using computers.
Meanwhile, those not using online platforms cited lack of knowledge and access to the Internet and equipment as reasons for not engaging in online selling. Thus, the authors recommend reskilling the workforce and enhancing the population’s digital skills. They also urge the government to leverage digital platforms to promote social welfare, including access to social protection programs and livelihood opportunities. Lastly, the authors noted that improving the Philippine digital infrastructure is vital for more significant ICT engagements among Filipinos.
Men- and Women-owned/led MSMEs and the COVID-19 Policy Responses
Using a gender lens, this paper takes stock of economic relief measures that aim to foster the resilience of micro, small, and medium enterprises (MSMEs) to COVID-19. It does so by analyzing results from an online survey of MSMEs and coming up with a definition of womenowned/led MSMEs (WMSMEs). The paper notes that a larger percentage of WMSMEs 1) find the lack of working capital, disruptions in the production/supply chain/business networks, the decline in domestic demand, and lack of finances for digitization to be major obstacles; 2) find the lack of collateral/guarantee, high interest rates, and high repayment risks due to market uncertainties to be key challenges in accessing finance; 3) find the increasing cost of inputs, changing business strategies to offer alternative products and services, and reduced opportunities to meet new clients to be key general challenges; 4) have applied and received government support for training on digitization and online selling; programs related to business advisory, business/product development, marketing, financial literacy training, and mentoring/coaching programs; support to adopt digital technologies; and market access programs; and 5) find the support for digitization and the technical assistance to be substantially useful. The paper also notes that both WMSMEs and men-led MSMEs (MMSMEs) 1) find the lack of digital skills, difficulties in tax payments, and less productive employees to be major obstacles; 2) have indicated their lack of awareness of most government programs, including programs on subsidized wage and loans, postponement of payments to debtors, and the shared service facilities; 3) consider tax exemption, the review of government regulation, tax incentives, skills upgrade, and payment deferrals critical for support during the crisis; 4) agree that integrating gender components into the existing government programs is important although both do not agree on policies that target firms based on the gender of the owner/leader of the business; and 5) engaged in online selling and implemented digitization strategies including bills management through banking apps, joining of online communities to reach new clients, and participation in government-sponsored digitization training. Despite the lack of representativeness of the survey sample, some general directions towards improving the resilience of enterprises can be offered, including the 1) strengthening of the adoption of digitization solutions through training/mentoring programs on financial and digital literacies, business networking, and product development in the digital age; 2) popularizing alternative financing models such as peer-to-peer lending and crowdfunding, and those offered by APEC partner countries; 3) preparing enterprises for future disruptions through innovations related to production planning and supply chain management; 4) empowering associations and business communities (including international women associations that work with local MSMEs); 5) effective communication of government programs through different channels; and 6) coming up with an official definition of WMSMEs to facilitate the interoperability of databases related to MSMEs and thus, the integration of gender in all aspects of policy responses.
This report, the first of its kind, provides a comparative picture of the experiences and perceptions of the business community in the Lao People’s Democratic Republic (PDR) in complying with government regulations by gender. It presents the findings of the second Provincial Facilitation for Investment and Trade (ProFIT) survey in the Lao PDR that shed light on women’s participation in economic activities and the constraints that women entrepreneurs face in doing business. It notes that women entrepreneurs reported that their business registration takes longer and costs more. The report urges the government to train staff to overcome hidden gender biases and make it easier for women to create and run businesses.
SW037 WOOD-PRODUCTS INDUSTRY
Scope Note: It refers to the branch of the wood industry that carries out the mechanical and chemical-mechanical treatment and processing of timber and that utilizes various woods for its raw materials. The industry produces sawn wood, sleepers, plywood, wood panels, and beams. Source
Internet Sites
Reviving the Wood Processing Industry of the Philippines
Wood processing is an important downstream activity of the forestry sector. It adds economic value to log, diversifies its product, and increases the incomes and employment of involved communities. However, the practice of wood processing has declined in the Philippines. This policy note identifies major issues in the wood processing value chain and provides policy recommendations and actions to address them. One of its key findings is that the implementation of Executive Order (EO) 23 not only affected the supply of wood products to the wood processing industry but also increased unemployment in the rural areas. The order also encourages the practice of illegal logging. The study recommends the review of EO 23 to make it more equitable to stakeholders. It also encourages the government and the private sector to consider expanding the coverage of the manufacturing road maps to include other wood processing industries that have strong potential.
Value Chain Analysis of the Wood Processing Industry in the Philippines
Wood processing is an important downstream activity of the forestry sector of the Philippines because it adds economic value to log, diversifies the products that can be produced from it, and increases the incomes and employment of involved communities. Despite its many economic contributions, however, the wood processing industry has been on the decline for many years now. This study analyzed the wood processing industry concentrating on its value chain, the major issues and problems it is facing, and the recommend actions to address the problems and issues. Among others, the study found that the wood processing industry is constrained by various technical, financial, economic, marketing, environmental, institutional, and research- related problems and issues. To address these individually, specific recommendations were put forward. In terms of research, in particular, the study suggested the gathering of more detailed and complete data and information on the wood processing sector by relevant government agencies and the conduct on relevant studies not just the whole processing sector but also on specific wood processing activities.