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Farm Mechanization in a Semiclosed Input-Output Model: The Philippines

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  • Chowdhury S. Ahammed
  • Robert W. Herdt

Abstract

Employment and income distribution consequences of farm mechanization are estimated using a semiclosed input-output model incorporating factor intensity, consumption, and import substitution effects. Rice production and agricultural machinery vectors from the national input-output table are disaggregated into technology specific subsectors; consumption is disaggregated into five household classes differing in consumption, savings, and imports. Simulations of a one percent change in consumer spending for rice met from one subsector compared to another indicate that indirect effects partially offset employment reduction from machinery and reinforce the employment increase from irrigation intensification. Furthermore, irrigation is found to offset the inequitable effects of mechanization.

Suggested Citation

  • Chowdhury S. Ahammed & Robert W. Herdt, 1983. "Farm Mechanization in a Semiclosed Input-Output Model: The Philippines," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(3), pages 516-525.
    • Handle: RePEc:oup:ajagec:v:65:y:1983:i:3:p:516-525.
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    Cited by:

    1. Ugur, Mehmet & Mitra, Arup, 2017. "Technology Adoption and Employment in Less Developed Countries: A Mixed-Method Systematic Review," World Development, Elsevier, vol. 96(C), pages 1-18.
    2. Ugur, Mehmet & Mitra, Arup, 2014. "Effects of innovation on employment in low-income countries: A mixed-method systematic review," MPRA Paper 58214, University Library of Munich, Germany, revised 27 Aug 2014.

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