Scenarios and Options for Productivity Growth in Philippine Agriculture: An Application of the Agricultural Multimarket Model for Policy Evaluation (AMPLE)
AbstractSustaining and accelerating agricultural growth remains a development imperative in view of persistent rural poverty and emerging threats to food security. While growth can be achieved by expansion of agricultural area and input intensification, growth through improvement in productivity is a promising option. However, productivity growth appears to be a relatively low priority for policy. Rather, the agricultural strategy is oriented toward domestic protection to achieve self-sufficiency and to support production by generous subsidies. In contrast, an alternative strategy may be one that is competition-oriented and productivity-based, i.e., one that favors integration with the international economy through trade, as well as making domestic investments targeted at productivity growth. Scenarios for Philippine agriculture under these policy options are evaluated using a new supply and demand model (Agricultural Multimarket Model for Policy Evaluation or AMPLE). Model simulations suggest that: rapid productivity growth, even when combined with trade liberalization, is generally favorable for farmers and consumers based on improved outlook on production, exports, and food consumption. In contrast, trade liberalization alone has a contractionary effect on agriculture; and production support is a costly instrument for promoting agricultural growth. The model experiments suggest that a back-to-basics strategy for agriculture, incorporating various productivity-based instruments such as investments in R&D, extension, rural infrastructure, protection of the resource base of agriculture, and even human capital formation and institutional reforms, are key to long-term agricultural growth.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Philippine Institute for Development Studies in its series Discussion Papers with number DP 2010-05.
Date of creation: 2010
Date of revision:
Philippines; agriculture; productivity growth; scenario analysis; supply and demand; technological change;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2010-05-22 (Agricultural Economics)
- NEP-ALL-2010-05-22 (All new papers)
- NEP-CMP-2010-05-22 (Computational Economics)
- NEP-SEA-2010-05-22 (South East Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cororaton, Caesar B. & Caparas, Maria Teresa, 1999. "Total Factor Productivity: Estimates for Philippine Economy," Discussion Papers, Philippine Institute for Development Studies DP 1999-06, Philippine Institute for Development Studies.
- Butzer, Rita & Larson, Donald F. & Mundlak, Yair, 2002. "Determinants Of Agricultural Growth In Thailand, Indonesia And The Philippines," Discussion Papers, Hebrew University of Jerusalem, Department of Agricultural Economics and Management 14979, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
- repec:phd:pjdevt:jpd_1986_vol._xiii_nos._1&2-b is not listed on IDEAS
- Lau, Lawrence J. & Yotopoulos, Pan A., 1989. "The meta-production function approach to technological change in world agriculture," Journal of Development Economics, Elsevier, Elsevier, vol. 31(2), pages 241-269, October.
- Teruel, Romeo G. & Kuroda, Yoshimi, 2005. "Public infrastructure and productivity growth in Philippine agriculture, 1974-2000," Journal of Asian Economics, Elsevier, Elsevier, vol. 16(3), pages 555-576, June.
- David, Cristina C. & Balisacan, Arsenio M., 1995. "Philippine Rice Supply Demand: Prospects and Policy Implications," Discussion Papers, Philippine Institute for Development Studies DP 1995-28, Philippine Institute for Development Studies.
- Danilo C. ISRAEL & Roehlano M. BRIONES, 2013.
"Impacts of Natural Disasters on Agriculture, Food Security, and Natural Resources and Environment in the Philippines,"
Working Papers, Economic Research Institute for ASEAN and East Asia (ERIA)
DP-2013-15, Economic Research Institute for ASEAN and East Asia (ERIA).
- Israel, Danilo C. & Briones, Roehlano M., 2012. "Impacts of Natural Disasters on Agriculture, Food Security, and Natural Resources and Environment in the Philippines," Discussion Papers, Philippine Institute for Development Studies DP 2012-36, Philippine Institute for Development Studies.
- Briones, Roehlano M., 2013. "Market Structure and Distribution of Benefits from Agricultural Exports: the Case of the Philippine Mango Industry," Discussion Papers, Philippine Institute for Development Studies DP 2013-16, Philippine Institute for Development Studies.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Aniceto Orbeta).
If references are entirely missing, you can add them using this form.