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Scenarios and Options for Productivity Growth in Philippine Agriculture: An Application of the Agricultural Multimarket Model for Policy Evaluation (AMPLE)

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  • Briones, Roehlano M.

Abstract

Sustaining 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.

Suggested Citation

  • Briones, Roehlano M., 2010. "Scenarios and Options for Productivity Growth in Philippine Agriculture: An Application of the Agricultural Multimarket Model for Policy Evaluation (AMPLE)," Discussion Papers DP 2010-05, Philippine Institute for Development Studies.
  • Handle: RePEc:phd:dpaper:dp_2010-05
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    References listed on IDEAS

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    1. Teruel, Romeo G. & Kuroda, Yoshimi, 2005. "Public infrastructure and productivity growth in Philippine agriculture, 1974-2000," Journal of Asian Economics, Elsevier, vol. 16(3), pages 555-576, June.
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    3. Cororaton, Caesar B. & Caparas, Maria Teresa, 1999. "Total Factor Productivity: Estimates for Philippine Economy," Discussion Papers DP 1999-06, Philippine Institute for Development Studies.
    4. Evenson, Robert E. & Sardido, M.L., 1986. "Regional Total Factor Productivity Change in Philippine Agriculture," Philippine Journal of Development JPD 1986 Vol. XIII Nos. 1, Philippine Institute for Development Studies.
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    6. Balisacan, Arsenio M., 1993. "Agricultural Growth and Rural Performance: A Philippine Perspective," Philippine Journal of Development JPD 1993 Vol. XX No. 2-e, Philippine Institute for Development Studies.
    7. David, Cristina C. & Balisacan, Arsenio M., 1995. "Philippine Rice Supply and Demand: Prospects and Policy Implications," Philippine Journal of Development JPD 1995 Vol. XXII No. 2-, Philippine Institute for Development Studies.
    8. David, Cristina C. & Balisacan, Arsenio M., 1995. "Philippine Rice Supply Demand: Prospects and Policy Implications," Discussion Papers DP 1995-28, Philippine Institute for Development Studies.
    9. Lau, Lawrence J. & Yotopoulos, Pan A., 1989. "The meta-production function approach to technological change in world agriculture," Journal of Development Economics, Elsevier, vol. 31(2), pages 241-269, October.
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    Cited by:

    1. Briones, Roehlano M., 2016. "Embedding the AMPLE in a CGE Model to Analyze Intersectoral and Economy-Wide Policy Issues," Discussion Papers DP 2016-38, Philippine Institute for Development Studies.
    2. 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 DP 2012-36, Philippine Institute for Development Studies.
    3. Briones, Roehlano M., 2013. "Market Structure and Distribution of Benefits from Agricultural Exports: the Case of the Philippine Mango Industry," Discussion Papers DP 2013-16, Philippine Institute for Development Studies.

    More about this item

    Keywords

    Philippines; agriculture; productivity growth; scenario analysis; supply and demand; technological change;

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