Routledge Handbook of Southeast Asian Economics ed. by Ian Coxhead (review)

This weighty tome of nineteen chapters fills a long-standing gap in the literature — that of a comprehensive single-volume work on Southeast Asia’s economies. Departing from the standard one country per chapter format, this book is comprised of thematic chapters, which enables in-depth analyses of specific issues, as well as a discussion of country-level developments and regional trends.

The first section consists of four chapters. In the first chapter, Coxhead sets out the rationale of the book, discusses the treatment of the region in the literature and identifies the volume’s central themes. The following three chapters provide an overview of Southeast Asia’s economic history. Williamson provides a fascinating long-run analysis of the region’s trade patterns from 1500 to 1940, arguing that, contrary to prevailing opinion, much of Southeast Asia’s trade performance was due to growing incomes and trade policy — rather than falling transport costs. Booth looks at developments from 1870 to 1970, spanning the height of colonial presence in the region as well as its denouement and the associated processes of state formation and transitions to independence. The last chapter by Phung, Coxhead, and Lian looks at Southeast Asia’s sources of growth since 1970, arguing that one underlying reason for its atypical high rates of growth is its proximity, and sensitivity, to Northeast Asian economic booms.

The second section looks at food, agriculture, and natural resources. The chapter by Timmer analyses agricultural development in the region and its success at ensuring food security for its population through — not just technological advances — but also political consensus and a relatively inclusive growth model. He subsequently looks at future challenges regarding food security in the region, such as those pertaining to food price volatility, increasing competition for rice exports, and climate change. Shively and Smith look at the region’s continuing balancing act between resource extraction on one hand and environmental conservation on the other. While policy frameworks have evolved, the continuing importance of natural resource-based activities as well as increasing economic opportunity mean that consistent pressure will be exerted on the environment in the region.

The third section is devoted to trade, investment, and industrialization. Athukorala and Kohpaiboon look at the participation of Southeast Asian countries in global production networks, the subsequent incorporation of China into these arrangements, and what they both mean for the structural transformation of economies in the region. In his chapter, Sjoholm analyses foreign direct investment in the region, namely its stock and distribution across countries, before examining its determinants, such as investment policy, political stability, and geographic location. In the third chapter, Wignaraja analyses the frequency and impact of regional trade agreements, specifically the ASEAN and ASEAN+1 free trade agreements, from an enterprise perspective.

The fourth section focusses on population, labour, and human capital issues. Jones looks at the demographic evolution of the region, including population growth and density across and within countries, as well as urbanization, mortality, and fertility rates. Horioka and Terada-Hagiwara explore the determinants and long-term projections of saving rates in the region, namely its propensity to save excessively and under-invest. They establish significant variation in savings rates across countries in Asia, and explore the impact of factors such as age structure of the population, income levels, and level of financial sector development. Phan and Coxhead look at education and human capital in Southeast Asia. Going beyond an analysis of educational “quantity”, they analyse issues such as the quality of and access to education, before looking at structural shifts in the global economy and what they mean for different countries based on their human capital. Sugiyarto looks at internal and international migration, linking up issues pertaining to urbanization, rural development, environmental management, population aging, and migration regimes.

The fifth section expounds on poverty and political economy. In his chapter, Warr examines the drivers of poverty reduction in the region. In so doing, he argues that rising per capita incomes and the sectoral composition of the economy...