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Productivity Growth in the Philippines After the Industrial Reforms

Author

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  • Austria, Myrna S.

Abstract

Past studies have shown that Philippine productivity growth has been low compared to other ASEAN members. This is specifically attributed to the inward-looking industrial policies pursued by the government. The country has embarked on major trade reforms since 1980s through its commitment to WTO, AFTA and APEC and in the 1990’s through the foreign direct investment (FDI) liberalization. How these affect the country’s long-term growth depends on whether the trade reform translates into improvements in productivity. This paper examines the country’s productivity performance and analyzes whether or not trade and investment policies have had a significant impact on productivity growth. This also tries to explain changes in total factor productivity (TFP) growth by conducting a regression on TFP against trade and policy indicators.

Suggested Citation

  • Austria, Myrna S., 1998. "Productivity Growth in the Philippines After the Industrial Reforms," Discussion Papers DP 1998-26, Philippine Institute for Development Studies.
  • Handle: RePEc:phd:dpaper:dp_1998-26
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    References listed on IDEAS

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    1. Kim Jong-Il & Lau Lawrence J., 1994. "The Sources of Economic Growth of the East Asian Newly Industrialized Countries," Journal of the Japanese and International Economies, Elsevier, vol. 8(3), pages 235-271, September.
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    3. Hendry, David F, 1986. "Econometric Modelling with Cointegrated Variables: An Overview," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(3), pages 201-212, August.
    4. Levine, Ross & Renelt, David, 1992. "A Sensitivity Analysis of Cross-Country Growth Regressions," American Economic Review, American Economic Association, vol. 82(4), pages 942-963, September.
    5. Feder, Gershon, 1983. "On exports and economic growth," Journal of Development Economics, Elsevier, vol. 12(1-2), pages 59-73.
    6. Heller, Peter S. & Porter, Richard C., 1978. "Exports and growth : An empirical re-investigation," Journal of Development Economics, Elsevier, vol. 5(2), pages 191-193, June.
    7. Alwyn Young, 1992. "A Tale of Two Cities: Factor Accumulation and Technical Change in Hong Kong and Singapore," NBER Chapters,in: NBER Macroeconomics Annual 1992, Volume 7, pages 13-64 National Bureau of Economic Research, Inc.
    8. Tybout, James R, 1992. "Linking Trade and Productivity: New Research Directions," World Bank Economic Review, World Bank Group, vol. 6(2), pages 189-211, May.
    9. Kormendi, Roger C. & Meguire, Philip G., 1985. "Macroeconomic determinants of growth: Cross-country evidence," Journal of Monetary Economics, Elsevier, vol. 16(2), pages 141-163, September.
    10. Okuda, Satoru, 1994. "Taiwan's trade and FDI policies and their effect on productivity growth," The Developing Economies, Institute of Developing Economies, Japan External Trade Organization(JETRO), vol. 32(4), pages 423-443, December.
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    Citations

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    Cited by:

    1. Michael R. Cabalfin & Josef T. Yap, 2008. "Sustainable Development Framework for Local Governance," Governance Working Papers 22619, East Asian Bureau of Economic Research.
    2. Cororaton, Caesar B., 2002. "Research and Development and Technology in the Philippines," Discussion Papers DP 2002-23, Philippine Institute for Development Studies.
    3. World Bank, 2000. "Philippines - Growth with Equity : The Remaining Agenda - A World Bank Social and Structural Review," World Bank Other Operational Studies 15142, The World Bank.
    4. Austria, Myrna S., 2000. "Philippine Productivity Performance in the 1990s: An Assessment," Discussion Papers DP 2000-28, Philippine Institute for Development Studies.
    5. Cororaton, Caesar B., 2002. "Total Factor Productivity in the Philippines," Discussion Papers DP 2002-01, Philippine Institute for Development Studies.
    6. Patalinghug, Epictetus, 2000. "A Review of the Components of the Medium-Term National Action Agenda for Productivity: An Integrative Report," Discussion Papers DP 2000-25, Philippine Institute for Development Studies.
    7. Cororaton, Caesar B., 2003. "Technological Innovations in Japan and S&T Experiences in the Philippines: Drawing Policy Lessons for the Philippines," Research Paper Series RPS 2002-04, Philippine Institute for Development Studies.

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