IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/139510.html

The role of power prices in structural transformation: evidence from the Philippines

Author

Listed:
  • Ravago, Majah-Leah
  • Brucal, Arlan
  • Roumasset, James
  • Punongbayan, Jan Carlo

Abstract

The Philippines provides a leading example of Rodrik’s rule that developing countries experience deindustrialization at lower levels of per-capita income than did developed countries. Previous studies point to the role of protectionist policies, financial crises, and exchange rate overvaluation as explanations for the shrinking share of industry sector. We complement this literature by examining the role of power prices in industry share across countries and across regions of the Philippines. We find that higher power prices tend to augment the Rodrik rule, causing industry share to turn downward at a lower GDP per capita, a lower industry share, and to decline more steeply than otherwise. In a two-country comparison, we find a tendency for power intensive manufacturing subsectors to expand more rapidly in Indonesia while the composition in the Philippines changes towards less power-intensive and more labor intensive subsectors. The results suggest that that structural transformation is not independent of power prices, particularly in the Philippines.

Suggested Citation

  • Ravago, Majah-Leah & Brucal, Arlan & Roumasset, James & Punongbayan, Jan Carlo, 2018. "The role of power prices in structural transformation: evidence from the Philippines," LSE Research Online Documents on Economics 139510, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:139510
    as

    Download full text from publisher

    File URL: https://researchonline.lse.ac.uk/id/eprint/139510/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ehl:lserod:139510. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.