Exploring the Philippine Economic Landscape and Structural Change Using the Input-Output Framework
AbstractThis paper explores the degree of structural change of the Philippine economy using the input-output framework. It examines how linkages among economic sectors evolved over 1979–2000, and identifies which economic sectors exhibited the highest intersectoral linkages. We find that manufacturing is consistently the key sector in the Philippine economy. Specifically, resource-intensive and scale-intensive manufacturing industries exhibit the highest linkages. We also find a growing impact on the economy of private services and transportation, communication, and storage sectors, probably due to the globalization of these activities. Overall, however, the services sector exhibits lower intersectoral linkages than the manufacturing sector. We conclude that the Philippines cannot afford to leapfrog the industrialization stage and largely depend on a service-oriented economy when the potential for growth still lies primarily in manufacturing.
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Bibliographic InfoPaper provided by Levy Economics Institute, The in its series Economics Working Paper Archive with number wp_631.
Date of creation: Nov 2010
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Web page: http://www.levyinstitute.org
Input-Output Analysis; Linkage Index; Multiplier Product Matrix; Structural Change;
Find related papers by JEL classification:
- D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-11-13 (All new papers)
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