Applied Economics Journal https://so01.tci-thaijo.org/index.php/AEJ <p>Applied Economics Journal (ISSN: 2586-9124) is a double blind peer-reviewed journal devoted to the applications of economic theories, concepts and methodologies to analyze well-defined research issues. It encourages empirical analysis, simulation, prediction and forecasting research. While it is aimed at academics and policy makers interested in the Thai and Asian economies, the journal also considers articles that deal with global issues. The primary criteria for selecting papers are originality, quality, and contribution to the field. The categories of articles include commentary, review articles, research articles and book reviews. &nbsp;AEJ is indexed in the Thai-Journal Citation Index Centre (TCI), IDEAS/RePEc, CAB Abstracts, Google Scholar, ASEAN Citation Index (ACI) and Emerging Sources Citation Index (ESCI). Two issues are published a year, in June and December. All articles are open access. No submission fee and page charge.</p> en-US <p style="text-align: justify;">Submission of a manuscript to Applied Economics Journal will be taken to imply that the author(s) guarantee that the paper is an original work, has not been published, and is not being considered for publication elsewhere either in printed or electronic form. The author(s) have obtained permission from the copyright holder to reproduce in the article material not owned by them, that author(s) have acknowledged the source, and that this article contains no violation of any existing copyright or other third party right or any material of an obscene, indecent, libelous or otherwise unlawful nature and that the article does not infringe the rights of others. The author(s) will indemnify and keep indemnified the editors and Applied Economics Journal, Center for Applied Economics Research (CAER), Faculty of Economics, Kasetsart University against all claims and expenses. The author(s) agree that the publisher may arrange for the article to be published and sold or distributed on its own, or with other related materials, and could reproduce and/or distribute in printed, electronic or any other medium whether now known or hereafter devised, in all languages, and to authorize third parties to do the same.</p> aej.journal@gmail.com (Waleerat Suphannachart) waleerat.sup@gmail.com (Waleerat Suphannachart) Fri, 08 May 2020 13:05:25 +0700 OJS 3.1.2.4 http://blogs.law.harvard.edu/tech/rss 60 Editorial Introduction https://so01.tci-thaijo.org/index.php/AEJ/article/view/240959 <p>On behalf of the new editorial team, I am pleased to present Vol. 27 No. 1 of the <em>Applied Economics Journal</em> (AEJ). This issue consists of six research papers and a book review covering economic issues in relation to agricultural cooperatives, monetary union, business cycle fluctuation, determinants of economic development, banking-growth nexus, behavioral bias, and trade and industrial policies. All of them provide empirical evidence and implications that are relevant to academic research and policymakers in both Southeast Asia and other developing countries.</p> <p>&nbsp;</p> Waleerat Suphannachart Copyright (c) 2020 Applied Economics Journal https://creativecommons.org/licenses/by-nc-nd/4.0 https://so01.tci-thaijo.org/index.php/AEJ/article/view/240959 Thu, 09 Apr 2020 16:38:23 +0700 Contents https://so01.tci-thaijo.org/index.php/AEJ/article/view/240961 Waleerat Suphannachart Copyright (c) 2020 Applied Economics Journal https://creativecommons.org/licenses/by-nc-nd/4.0 https://so01.tci-thaijo.org/index.php/AEJ/article/view/240961 Thu, 09 Apr 2020 16:48:26 +0700 A Multinomial Logit Model Analysis of Farmers’ Participation in Agricultural Cooperatives: Evidence from Vietnam https://so01.tci-thaijo.org/index.php/AEJ/article/view/223987 <p>This study aims to test the determinants of farmers' participating behavior in agricultural cooperatives. A model of multinomial logistic regression is employed using survey data of 640 farmers in the Mekong Delta of Vietnam. The estimation results reveal that farmers are more likely to participate in agricultural cooperatives when they possess more favorable resources, including their level of higher education, farmland size, access to credit, social capital, access to extension, and market constraints. Farmers also regard cooperatives as institutions that can help them reduce production and marketing risks and ultimately enhance their chance of expanding their business operations.</p> Luu Tien Dung Copyright (c) 2020 Applied Economics Journal https://creativecommons.org/licenses/by-nc-nd/4.0 https://so01.tci-thaijo.org/index.php/AEJ/article/view/223987 Thu, 09 Apr 2020 16:03:35 +0700 Economic Feasibility of Malaysia and Singapore-Brunei Monetary Reunion: A Scrutiny during Major Financial Crises https://so01.tci-thaijo.org/index.php/AEJ/article/view/222909 <p>This paper attempts to assess the feasibility of Malaysia to rejoin the monetary union with Singapore and Brunei which it left in 1973. The study scrutinizes particularly the period of two impactful financial crises in the last decades, namely the Asian Financial Crisis in 1997 and the US subprime-caused Global Financial Crisis in 2007-2009. Assessment is made in terms of the real convergence criteria suggested by optimum currency areas (OCA) theory and the nominal convergence criteria specified by the Maastricht Treaty. In light of the endogeneity view of convergence criteria, the relevant features of Malaysia are evaluated against those of Singapore and Brunei to infer the degree of preparedness of Malaysia to access the prevailing Singapore-Brunei monetary union. Results suggest that Malaysia could be as good a candidate as Brunei as a monetary union member with Singapore.</p> Chee-Heong Quah, Yew-Joe Ho Copyright (c) 2020 Applied Economics Journal https://creativecommons.org/licenses/by-nc-nd/4.0 https://so01.tci-thaijo.org/index.php/AEJ/article/view/222909 Thu, 09 Apr 2020 16:04:11 +0700 Business Cycles in Some Selected Oil Producing Countries: Iran versus Three OECD Members https://so01.tci-thaijo.org/index.php/AEJ/article/view/218586 <p>This paper analyses the fluctuations of the business cycle in selected oil-producing countries of the Organization for Economic Co-operation and Development (OECD) and Iran during the period 1970:Q1–2015:Q4. We start by using a two-stage Hodrick–Prescott filtering process to extract a cyclical component of GDP, then the modified BBQ algorithm is used to identify the chronologies and some measures of business cycle characteristics, and finally the main features of business cycle fluctuations (persistence, volatility, asymmetry, and synchronization) are estimated. The results indicate the difference in the characteristics of business cycle fluctuations in countries with different levels of economic development. Both amplitude and severity of Iran as a developing country were high, and average duration of contraction was longer than expansion. As a result, asymmetries in both steepness and deepness are observed in Iran. Meanwhile, output persistence and volatility in Iran were above and below that of three OECD members’ average, respectively. The last part is based on the three indices for evaluating synchronization. Other findings reveal a high degree of synchronization between countries except Iran.</p> Abouzar Taheri, Shahriyar Nessabian, Reza Moghaddasi, Farzin Arbabi, Marjan Damankeshideh Copyright (c) 2020 Applied Economics Journal https://creativecommons.org/licenses/by-nc-nd/4.0 https://so01.tci-thaijo.org/index.php/AEJ/article/view/218586 Thu, 09 Apr 2020 16:04:48 +0700 Alternative Variables for Geography and Institutional Structure: European Colonies and an Evaluation of sub-Saharan African Countries https://so01.tci-thaijo.org/index.php/AEJ/article/view/227001 <p>To explain the main reasons for the differences in economic development among countries, in the main model of this study, we use the malaria index as an instrumental variable to describe the sub-Saharan African countries. In addition, we use the indigenous population density in 1500 and the settler mortality rate as substitutes for each other in different model identifications to demonstrate the settlement conditions in the former European colonial countries, and we use the identity of colonizers to explain today's institutional performance. According to the main model, where we use the two-stage least squares method, the geography of sub-Saharan Africa and institutional structure determine the differences in economic development significantly. In both cases, the coefficients of these variables remain statistically significant, despite minor changes. In addition, estimates of coefficients are the most unbiased estimators among studies using a similar sample. The results of the main model also remained unchanged despite the alternative measures of institutional structure and geography.</p> Salih Barisik, Kubilay Ergen Copyright (c) 2020 Applied Economics Journal https://creativecommons.org/licenses/by-nc-nd/4.0 https://so01.tci-thaijo.org/index.php/AEJ/article/view/227001 Thu, 09 Apr 2020 00:00:00 +0700 Causal and Dynamic Link Between the Banking Sector and Economic Growth in Pakistan https://so01.tci-thaijo.org/index.php/AEJ/article/view/241582 <p>This study is aimed at estimating the causal and dynamic relationship between the banking industry and economic growth of Pakistan. A panel data set of 24 banks was used for the period 2006–2016. Panel unit root, Panel cointegration, and Panel VECM tests were applied to analyze the data. The results reveal that lending capability, bank investments, and innovation have positive and statistically significant impacts on economic growth in short-run as well as in long-run dynamics. The presence of a long-run relationship indicates workable and bilateral policy measures in the banking industry, and short-run dynamics approach consistency in the recurring policies of banks. The results of the study are consistent with economic development theory, which indicates the vital role of the financial sector in the development of emerging economies. The empirical findings suggest that state authorities and banking regulation authorities should remain vigilant at this crucial point in time because excessive banking development in terms of expansion, liberalization, and products may lead to an increase in non-performing loans and a reduction in investment activities, which can slow the process of growth. Evidently, the results suggest that regulatory authorities should focus less on enhancing the size of the banking sector and more on improving capacity building of its functionalities as intermediaries for the achievement of sustainable economic growth.</p> Muhammad Yasir Saeed, Muhammad Ramzan, Kashif Hamid Copyright (c) 2020 Applied Economics Journal https://creativecommons.org/licenses/by-nc-nd/4.0 https://so01.tci-thaijo.org/index.php/AEJ/article/view/241582 Tue, 05 May 2020 21:20:16 +0700 Behavioral Bias in Choosing Between Post-Paid and Pre-Paid Mobile Internet Plans in Thailand https://so01.tci-thaijo.org/index.php/AEJ/article/view/227466 <p>A mobile Internet users’ survey for Over-the-Top (OTT) service in Thailand shows that most users choose a post-paid plan compared to a pre-paid plan, which contrasts with total mobile user preferences in the industry. The average revenue per user for post-paid users is also higher than for pre-paid users, but this is consistent with the industry overall. This information may reveal behavioral bias among Thai mobile Internet users. This research was undertaken to study the behavioral bias in choosing mobile Internet plans. The survey was conducted by Office of the National Broadcasting and Telecommunications Commission (NBTC) in 17 provinces, covering all regions in Thailand. Logit regression analysis shows that users have increased probability of choosing a post-paid plan. User behavior reveals a bias toward post-paid plans, which offer a flat rate. Two policy implications from this study are that inexpensive flat-rate plans can be used to promote growth in mobile Internet service, and that support for new entrants can be offered by providing plans that rely on user behavior.</p> Thunwar Phansatarn Copyright (c) 2020 Applied Economics Journal https://creativecommons.org/licenses/by-nc-nd/4.0 https://so01.tci-thaijo.org/index.php/AEJ/article/view/227466 Tue, 05 May 2020 00:00:00 +0700 The Indonesian Economy: Trade and Industrial Policies https://so01.tci-thaijo.org/index.php/AEJ/article/view/240956 <p>There are only few internationally published books with the topic of Indonesian trade and industrial policies. Written by prominent scholars and professionals, this book contributes to the literature on such topic. Critical problems pertaining to trade and industry and the related policies are discussed thoroughly, supported by comprehensive data and proper analyses.</p> Hermanto Siregar Copyright (c) 2020 Applied Economics Journal https://creativecommons.org/licenses/by-nc-nd/4.0 https://so01.tci-thaijo.org/index.php/AEJ/article/view/240956 Thu, 09 Apr 2020 00:00:00 +0700