Sectoral Growth Linkages and the Role of Infrastructure Development: Revisiting the sources of nonfarm development in the rural Philippines
AbstractThis paper analyzes the sources of rural non-farm sector growth in the Philippines, which has become the main driver of rural poverty reduction. We find that agricultural growth has significantly positive effects on service sector growth (with elasticity of about 0.20) but little effects on manufacturing growth, suggesting that rural labor force is sufficiently mobile or capital is relatively immobile across provinces. We also identify different roles played by national road networks, on the one hand, and local roads, on the other. We find that local road facilitates rural service sector development while national road facilitates agricultural growth.
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Bibliographic InfoPaper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 126456.
Date of creation: 28 Jun 2012
Date of revision:
sectoral linkages; nonfarm growth; agricultural development; road infrastructure; Philippines; Community/Rural/Urban Development; International Development;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2012-07-23 (Agricultural Economics)
- NEP-ALL-2012-07-23 (All new papers)
- NEP-SEA-2012-07-23 (South East Asia)
- NEP-TRE-2012-07-23 (Transport Economics)
- NEP-URE-2012-07-23 (Urban & Real Estate Economics)
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