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Determinants Of Sectoral Composition In A Small Open Economy: Theoretical And Quantitative Investigations Of The Philippines

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  • Kazuhiro YUKI

Abstract

The Philippine economy since the 1980s has undergone shifts of production, employment, and consumption in the direction of the greater share of nontradable sectors, despite relatively stagnant economic growth. This paper examines sources of the sectoral shifts theoretically and quantitatively based on a dynamic model of a small open economy. The theoretical analysis identifies possible factors affecting the evolution of the sectoral composition: changes in sectoral total factor productivity (TFP), the tariff rate, and the terms of trade. Then, the relative importance of these factors is examined quantitatively by conducting simulations of the model calibrated to the Philippine economy.

Suggested Citation

  • Kazuhiro YUKI, 2007. "Determinants Of Sectoral Composition In A Small Open Economy: Theoretical And Quantitative Investigations Of The Philippines," The Developing Economies, Institute of Developing Economies, vol. 45(4), pages 391-436, December.
    • Handle: RePEc:bla:deveco:v:45:y:2007:i:4:p:391-436
    DOI: 10.1111/j.1746-1049.2007.00047.x
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    References listed on IDEAS

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    Cited by:

    1. World Bank, 2008. "Local Gains from Global Opportunities : Improving Central America's Investment Climate," World Bank Publications - Reports 7959, The World Bank Group.
    2. Gould, David & Loening, Josef L., 2008. "Central America's Macroeconomic Environment and the Role of the Investment Climate under Free Trade," MPRA Paper 25896, University Library of Munich, Germany.

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