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This article distinguishes between use and nonuse values in their impact on two behavioral intentions to a rural cultural festival. Results from the case study showed that in the willingness to recommend the festival and intention to revisit by repeat tourists, both use and nonuse values were influential but first timers' intention to revisit was mainly affected by use values. In addition, there was support for the recency–frequency–monetary value paradigm and the distance decay theory with some evidence of a nonlinear relationship between distance and behavioral intention. The life cycle theory and length of festival stay on the other hand saw mixed effects on the two types of behavioral intention. Overall, a two-pronged marketing strategy based on the importance of use and nonuse values to attract first timers and repeat tourists could be considered for a cultural festival.

This research note sheds light on the regional dimension underlying peer-to-peer accommodation (P2PA) in urban and rural areas. Using a survey on Australian residents’ use of P2PA, empirical result...

Using a computable general equilibrium framework, this paper uses Sri Lanka and Bangladesh as case studies in examining the associated macroeconomic and sectoral impacts under two different climate change scenarios. Our results indicate that a nation’s welfare deteriorates due to technical efficiency losses from climate change. Neither unilateral nor regional trade liberalization as a mitigating option improves welfare in these countries. For Sri Lanka, global full trade liberalization of all commodities is the optimum policy with some welfare gains. For Bangladesh on the other hand, regional partial agricultural trade liberalization is the optimum option with the least welfare deterioration. These results show that under climate change, countries within South Asia should respond differently to climate-induced crop productivity changes and no one optimum policy fits all.

This article examines the impact of Indonesia���s electricity reform and meeting its 2030 carbon emissions and 2050 renewable energy targets on the country���s economic growth, carbon emissions and poverty and income distribution. Simulation results from a dynamic computable general equilibrium model show that energy reform and carbon tax in Indonesia have a regressive impact while the gasoline tax has a progressive impact. Of the two demand side policies, gasoline tax was found to be more harmful than the carbon tax, resulting in GDP loss, declining investment, higher energy prices, and rising urban and rural poverty. A hybrid policy comprising a renewable energy mix target (supply side policy) and a carbon tax (demand side policy) is a viable option for minimising GDP loss, income disparity and carbon emissions. However, the transition towards renewable energy use is fraught with challenges for Indonesia.

This article considers a temporal dimension and extends the theoretical framework beyond the leisure constraints theory to incorporate passive use and direct use values for the first time, to examine nonattendees' intention to attend a rural festival. It was found that passive use values affect only the decision to attend but direct use values influence that decision to take place sooner rather than later. Results also support the family life cycle stage theory for a potential first visit but not the decision to visit soon while the reverse was found for the distance decay theory. Overall, the impact of the various dimensions of the barriers within the leisure constraints theory, the perceived beliefs, and visit motivations differed among would-be visitors and those intending to visit sooner rather than later. Thus, a dual marketing strategy aimed generally at the former, and specifically at the latter, would be effective in attracting new visitors to rural festivals.

This paper uses a segmented analysis based on age, gender, repeat and first time peer-to-peer accommodation users to examine their motives and concerns influencing their satisfaction. This ...

Background Different types of chronic condition comorbidities can have dissimilar effects on the improvements or deterioration of mental health in older adults. This study aims to examine the impacts of different types of chronic conditions on inter-temporal trends of depressive symptoms. Methods Data on 11,457 adults from age 45 in the China Health and Retirement Longitudinal Study (CHARLS) 2011–2015 were used to estimate the prevalence of comorbidities. We used latent class analysis to identify patterns of how depressive symptoms changed over time, then estimated the odds ratios of worsening or improved levels of depression by types of chronic conditions. Results Prevalence of depression differed by types of chronic condition comorbidities. Dyslipidemia, asthma, liver disease, kidney disease, stomach or other digestive disease, and arthritis or rheumatism were significant risk factors for worsening of depressive symptoms over time among people with low levels of depressive symptoms at baseline. Among people with higher levels of depression at baseline, arthritis, stroke, digestive, and memory-related diseases were risk factors for not improving. Limitations Findings are unlikely to be generalizable to subpopulations with severe levels of physical or mental disabilities as they are unlikely to be captured in the surveys. Conclusions Given these specific physical health conditions’ effects on mental health, clinicians can consider patients’ mental health in their repertoire with regards to particular diseases.

Many resource-rich developing countries are often faced with the challenge of generating sufficient employment for poverty alleviation due to factors such as the capital-intensive nature of resource extraction, the lack of (or weak) linkages between the resource sector and the wider economy, and potential Dutch disease effects. Using Papua New Guinea as a case study, this paper uses a dynamic computable general equilibrium model to analyse some options for a resource-dependent developing country to boost growth in the agricultural and manufacturing sectors. Four policy experiments were conducted to examine the impacts of increased primary factor productivity growth in the agricultural and manufacturing industries; increased investment in agriculture; increased investment in agriculture in conjunction with improved infrastructure; and improved value adding and productivity in agro-processing. Our results indicate that investing in agriculture and manufacturing without addressing supply side constraints such as poor road infrastructure would fail to maximise the desired impacts. We also show that by shifting the emphasis from production of primary commodities for export to value adding or secondary production activities, resource-dependent developing countries could enhance growth and employment.

This article explores possible factors that influence the willingness of volunteers to reattend as paying visitors. Using the 2016 Arctic Winter Games in Greenland as a case study, it was found that 47% of the volunteers were willing to reattend as paying visitors; some self-related benefits and broad social benefits influenced that decision. For instance, the strong sense that the event has educational value and showcased the arctic region for tourism were important considerations for volunteers becoming paying guests. Although age nor gender of the volunteers was a factor, those who were better educated and had greater satisfaction from volunteering were likely to pay to attend. These findings highlight the need for a theoretical framework to further examine these issues. Future research using a mixed-methods approach can also help to understand more holistically what volunteers value and how their experience shapes the need for different experiences.

Using the energy-environmental version of the Global Trade Analysis Project, this study compares the effects of three carbon emissions mitigation strategies – a carbon tax, a fuel tax and an emissions trading scheme (ETS) to combat the intended emissions target for Indonesia, a large emitting developing country. Although the fuel tax was found to raise economic growth by 0.29% in 2030, the carbon tax and ETS which reduce economic growth by about 0.11% have less adverse effects on inflation, welfare loss, wage decline, and employment loss. Unlike the fuel tax, the carbon tax and ETS are also likely to promote substitution towards renewable energy given the massive increase in the price of coal of over 100% due to the carbon tax and ETS. To meet Indonesia's emissions target, a carbon tax of US$36/ton of CO2 is needed. The carbon tax which is simpler and more swiftly implementable is the more practical choice compared to the ETS in the short to medium term for developing countries with political economy constraints in their energy and transportation sectors.

This study focuses on soil erosion and incorporates this in a stochastic production framework using Fijian ginger farmers as a case study. Empirical estimates using cross sectional data showed that these farmers on average were producing at 61% of the maximum potential output. They faced a 17% loss of output due to low soil erosion and about 27% output loss if soil erosion was moderate to high. In addition, profit, land ownership, ethnicity of farmer, and education affected technical efficiency while distance from an agricultural station, slope of land, and hot water treatment were insignificant in their effect on efficiency.

This aticle is the first application of the contingency behavior model to understand the behavior of grey nomads to changes in the availability of accommodation facilities when visiting regional Queensland of Australia. Using a pilot survey of 90 respondents, it was found that grey nomad future visit trip would be adversely affected by a decrease in accommodation facilities and an increase in travel costs. However, for an increase in accommodation facilities, repeat visitation takes place but with a smaller impact (than the decrease) and, interestingly, travel costs become insignificant. In addition, income levels proxied by education, and social events are significant determinants of future visits. These findings provide important policy considerations for effective management and understanding of the self-drive silver market for tourism.

This paper uses a dynamic computable general equilibrium model to compare the macroeconomic and sectoral impacts of three environmental policies in Australia - an emissions trading scheme (ETS), an ETS combined with technological innovation in the renewable energy sector and a fuel tax as an alternative to the ETS. Overall, the impacts of the ETS were not significantly adverse. Although the fuel tax had similar impacts to the ETS on key macro-variables such as real GDP, employment, household consumption, exports and imports, it was however not effective compared to the latter in reducing emissions. Neither policy led to inflation growth of more than 0.8% for any coal mining and non-mining Australian state. At the sectoral level, the GDP growth of energy-intensive industries such as coal, iron ore, steel and coal-powered electricity generators is adversely affected while electricity generators who use gas and renewable energy sources and the forestry sector gain. It was also found that a 10% technological change in the renewable energy sector over a decade did not significantly improve the outcome when coupled with the ETS. Thus the Australian government's industry assistance to invest in low pollution technologies needs to be more aggressive to meet current and future international emission abatement targets.

This article examines the issue of trade reforms confronting many African Caribbean and Pacific countries such as Fiji, which are set to lose their European Union sugar price subsidy at the end of 2007. It was found that attempts to offset the adverse impacts of the subsidy removal by targeting to improve the performance of any particular sector are counterproductive. Although the optimal policy for Fiji is a broad-based diversification of exports, it is further argued that small developing economies need to address supply-side constraints so that structural reforms can effectively sustain the economy's competitiveness in an increasingly globalised world economy.

The objective of this paper is to use a set of varied scenarios related to the Economic Partnership Agreement (EPA) and the loss of European Union (EU) sugar preferences (in the form of partial and full price liberalization) in combination with the recently committed EU development aid to examine the impact on Fiji using a dynamic computable general equilibrium model. It is shown that without aid, the loss of sugar preferences has devastating impact on real output, exports, rural employment, and other macroeconomic indicators. Without aid, the EPA scenarios, on the other hand, lead to some growth in real output but depress rural employment and non-sugar agricultural exports. Although improvements are observed across the scenarios with aid, it is argued that aid would be more effective if it directly addresses the supply-side constraints in Fiji instead of focusing on the sugar sector.

The ‘perspiration versus inspiration’ debate is revisited by studying the Malaysian manufacturing sector. Estimating a stochastic production frontier model using a new panel data set of Malaysia's 26 three-digit manufacturing industries from 1970 to 2002, the study confirms previous findings that inspiration in the form of total factor productivity growth is lacking while perspiration in the form of factor accumulation is driving manufacturing output. But more importantly, the causal links between perspiration and inspiration, and how it is related to total factor productivity growth, technical efficiency and technological progress are discussed. This provides the basis to evaluate current policies and suggest how they can be made effective in sustaining growth in the Malaysian manufacturing sector.

This paper examines the causal links between productivity growth and two price series given by domestic inflation and the price of mineral products in Australia's mining sector for the period 1968/1969 to 1997/1998. The study also uses a stochastic translog cost frontier to generate improved estimates of total factor productivity (TFP) growth. The results indicate negative unidirectional causality running from both price series to mining productivity growth. Regression analysis further shows that domestic inflation has a small but adverse effect on mining productivity growth, thus providing some empirical support for Australia's 'inflation first' monetary policy, at least with respect to the mining sector. Inflation in mineral price, on the other hand, has a greater negative effect on mining productivity growth via mineral export growth.

The Indian agricultural sector has been undergoing economic reforms since the early 1990s in the move to liberalize the economy to benefit from globalization. This paper traces this process, analyses its effects on agricultural productivity and growth and discusses the problems and prospects for globalization to draw policy implications for the future of Indian agriculture.

To date, the concept, measurement and interpretation of total factor productivity (TFP) growth remains highly discussed but poorly understood. This paper attempts to provide a review of these issues. First, the definition of TFP growth and the related concepts of embodied and disembodied technical change are discussed. Second, a brief overview and critique of TFP growth measuring techniques is provided. Third, the debate surrounding the accounting identity underlying the estimation of a production function for TFP growth is highlighted. Fourth, the usefulness of TFP growth is evaluated (and maintained) in the light of the criticisms hurled at this measure. Finally, some direction for future work on TFP growth is suggested.

This paper examines the sources of output growth and total factor productivity (TFP) growth of four selected South Korean manufacturing industries from 1980 to 1994. Unlike previous studies, this study is enriched by the use of firm level data within each industry and the application of the random coefficient frontier model. Empirical results show that output growth in the manufacturing industries is increasingly productivity-driven. But the varying sources of TFP growth (i.e. technical progress and gains in technical efficiency) within the industries present an urgent need to reexamine the effect of government policies and other factors to formulate specific policies for sustainable TFP growth.

This article examines the productivity performance of Australia's manufacturing sector by decomposing its output growth into input growth, technological progress and gains in technical efficiency. This three-way decomposition is done with an improved version of the stochastic frontier model using eight, two-digit industry level data from 1968/9 to 1994/5. Empirical evidence shows that input growth fueled output growth from 1968/9 to 1973/4, but since then, total factor productivity (TFP) growth has been the main contributor of output growth. While the trend of TFP growth was found to be promising for most industries with positive and increasing technological progress, the negative gains from technical efficiency over time is however cause for concern.

Although there has been a revival of interest in the trade-growth nexus, the impact of trade liberalization on productivity gains remains empirical, given the ambiguity in the literature on this issue. This paper examines the case for Australia using annual data of eight two-digit manufacturing industries from 1968–69 to 1994–95. Unlike earlier studies, total factor productivity growth is first decomposed into technological progress and gains in technical efficiency, and the effect of trade liberalization is then investigated separately on TFP growth, as well as on each of the components of TFP growth. The empirical finding that trade liberalization has a positive and significant effect on technological progress, but no significant effect on gains in technical efficiency, adds yet another dimension to the evaluation of trade liberalization policies.

Although an East Asian miracle, Singapore has been singled out for experiencing insignificant total factor productivity (TFP) growth, thereby reflecting limited potential for long‐term growth. Examines the validity of this statement for the services sector, which is an important engine of growth for Singapore. This is done using panel data with a stochastic frontier model, which, unlike the conventional growth accounting model used by previous studies, not only decomposes output growth into input growth and TFP growth but further decomposes TFP growth into technological progress and changes in technical efficiency. In addition, the stochastic frontier model incorporates the more realistic non‐neutral shifting production frontier, as opposed to the commonly assumed Hicks‐neutral production technology underlying a production function.

This paper seeks to explain the productivity growth performance of Malaysia's manufacturing sector using a panel data of 28 industries from 1981–1996. Here, the data envelopment analysis technique is used to calculate and decompose the Malmquist index of total factor productivity (TFP) growth into technical change, change in technical efficiency and change in scale efficiency. This allows the identification of the sources of productivity growth which is crucial for policy formulation. It was found that the annual TFP growth of the Malaysian manufacturing sector was low at 0.8% and this was driven by small gains in both technical change and technical efficiency, with industries operating close to optimum scale.

This paper sheds some light on the relevance of the assimilation view for South Korea, whereby successful mastering of foreign technology in its adoption and use would lead to firms producing at their full potential output. This is investigated by studying the technical efficiency performance of firms in four manufacturing industries using firm-level data from 1980-94 and applying the random coefficient frontier model. Empirical results show that the assimilation view holds true in the heavy industries but not in the light industries. Although the rate of technical efficiency varied within the two industries, the variation was statistically significant only for firms in the heavy industries since the late 1980s.

Given the importance of the manufacturing sector in the second-tier newly industrializing economy of Malaysia, this paper uses the stochastic frontier approach to assess the growth potential of this sector. This is performed by first estimating the production function by using panel data comprising 28 manufacturing industries over the period of 1981–1996. Unlike previous studies that used the growth accounting approach, here output growth is not just decomposed into input growth and total factor productivity growth but total factor productivity growth is further decomposed into technological progress and technical efficiency, thereby providing more direction for policy making.

This study attempts to understand the technical efficiency performance (i.e. how well resources and given technology are being used) in 28 manufacturing industries in Singapore from 1975-1994, using an improved version of the stochastic frontier model. In addition, an analytical model is used to investigate the causes of technical inefficiency in these industries to help policy formulation. The efficiency performance of foreign and local-dominated industries is also closely examined.

This study undertakes an empirical investigation of the macroeconomic and sectoral impacts of two forms of regional trade agreements vis-a-vis global trade liberalisation on a small island country, using Fiji as a case study. In order to capture the feedback effects of such a complex set of policies, we employ a dynamic computable general equilibrium model of the Fijian economy to investigate (i) the impact of the Pacific Island Countries Trade Agreement (PICTA), (ii) the impact of PICTA, the Pacific Agreement for Closer Economic Relations (PACER), and the Economic Partnership Agreements (EPAs), (iii) the impact of full tariff liberalisation (i.e. tariff removal only), and (iv) the impact of full trade liberalisation, with removal of both tariff and non-tariff barriers. While PICTA consistently provides the least benefits across a range of macroeconomic indicators including real output, welfare, trade volumes and employment, full trade liberalisation involving the removal of tariff and non-tariff barriers provides the greatest benefits compared to the other scenarios in terms of real output. However, the latter scenario is outperformed by PICTA, PACER, the EPAs and full tariff liberalisation in terms of welfare effects, trade volumes and employment. The policy implications hold important lessons for developing countries considering trade liberalisation.

As services are an important engine of growth for Singapore, this paper attempts to empirically investigate the sources of output growth in this sector to shed light on the debate sparked off by Krugman (1994) on the miraculous or mythical growth of Singapore and the other newly industralizing Southeast Asian economies. This is done by using the stochastic production frontier model with panel data. Unlike existing studies which used the conventional growth accounting approach to decompose output growth into just input growth and total factor productivity (TFP) growth, this approach further decomposes TFP growth into technological progress and changes in technical efficiency.

The Future of Foreign Investment in Southeast Asia. Edited by Nick J. Freeman and Frank L. Bartels. London and New York: Routledge Curzon, 2004. Pp. 288. Ever since Singapore took the bold step towards attracting foreign direct investment (FDI) in the 1970s, and grew to be a success, the other Southeast Asian economies did not wait too long to follow suit albeit at a slower pace, and today, there is such stiff competition among the economies to woo FDI for sustained economic growth. Thus, for Southeast Asia, FDI has become somewhat a necessity, and this underscores the importance of the contribution of this book. In addition, much has changed in the circumstances surrounding FDI - the type of economies courting FDI, differences in the kind of FDI sought, the reasons and policies in place for attracting FDI, the nature of parent companies, the effects on and from FDI due to the increasingly globalized environment in the face of liberalization,... The list is endless, and thus the book is a timely welcome to take stock of what has happened and to discuss the future direction of the all-important FDI for this region. While it is a tough task to present the various facets of the dynamism around FDI in the region in a single volume, the editors of the book have done a good job in the selection of topics which are wide ranging and provide much scope for discussion. Incidentally, I would like to suggest that after the introductory chapter, readers move on to the last chapter by Hal Hill as it is a good review and a critique (to some extent) of the chapters presented in this book. I am not sure whether this made my task of reviewing the book an easy or difficult one. Nevertheless, in retrospect, it is highly recommended that more of the edited volumes take on this integrated approach in order to give the ideas in the book a good bind. It is thus quite appropriate that I start with the last chapter. Let me first say that I agree with Hill's remark that the seriousness of the decline in FDI due to the 1997/98 Asian financial crisis is unduly magnified by some of the other contributors. The discussion and supporting evidence provided by Hill in making this point is convincing. There seems to be a preoccupation with the gloom brought about by the crisis, and perhaps this might have been the case at the time of writing. I also disagree with the notion that policy-makers in Southeast Asia are slow to recognize and react to the sorts of changes in global business and FDI activity. While there may be some isolated support for this, one can also ask if being cautious and ensuring that one is ready before reacting impulsively qualifies for such criticism. Economies within the region operate quite differently and institutions in place dictate the pace of reaction to FDI activity and policies governing FDI. In addition, there is a subtle contradiction in two related views of Hill's. One advocates that Singapore be emulated by the other Southeast Asian economies and another strongly advises that economies move away from the second-best approach of proving incentives to adopt the first-best approach of addressing the source of unattractive features of the host economic environment. When Singapore first started courting FDI, the so-called second-best approach was an important feature and, in essence, was the optimal strategy at that time. Today, a mixed rather than the first-best approach defined by Hill would be best - that is, a combination of both approaches. In times of stiff competition to attract FDI, economies have little choice but to provide incentives in addition to improving the economic and business environment of their economy, or they stand to lose more than they gain in terms of luring FDI. …

This paper examines the two sources of total factor productivity growth (TFP), namely technological progress (TP) and technical efficiency (TE) in the Malaysian manufacturing sector. This sector’s TFP growth was found to be below 1.5 per cent over 1970–2002, and while TE was negative, TP although positive was decreasing over time. Factor accumulation resulted in some TP but this was at the expense of TE. Other factors such as foreign direct investment and market power influenced TP and TE in opposing directions, highlighting the need to consider the impact of various policies on the trade-offs and dynamics underlying TP and TE for optimal TFP growth. Thus, policy coordination is crucial for sustainable growth but at the same time leapfrogging into advanced sectors without sufficient learning-by-doing need to be avoided.