IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/1883.html
   My bibliography  Save this paper

Intersectoral resource allocation and its impact on economic development in the Philippines

Author

Listed:
  • Fumihide Takeuchi
  • Takehiko Hagino

Abstract

For sustained growth, a developing economy must provide productive employment opportunities in nonagricultural sectors. As the economy grows, employment shifts from the agricultural sector to industrial and service sectors. The move away from agriculture happens because of the decline in the income elasticity of food as incomes rise, the discovery of substitutes for agricultural products, and rapid technological changes in agriculture in response to shortages of land. The economic policies developing economies pursue are typically designed to accelerate this structural transformation by favoring the industrial sector. In the Philippines, however, the outcome of these policies was unique. Measures designed to discourage agriculture, rather than encourage the industrial sector, caused both the industrial sector and the agricultural sector to deteriorate. The authors criticize financial conglomerates for creating highly oligopolistic market structures that were responsible for the inefficient use of resources and unbalanced income distribution. Many of the conglomerates (dubbed"landed capitalists") channeled massive state resources into such traditional economic activities as sugar and coconut farming, limiting the country's industrial diversification.

Suggested Citation

  • Fumihide Takeuchi & Takehiko Hagino, 1998. "Intersectoral resource allocation and its impact on economic development in the Philippines," Policy Research Working Paper Series 1883, The World Bank.
    • Handle: RePEc:wbk:wbrwps:1883
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/1998/02/01/000009265_3980429111111/Rendered/PDF/multi0page.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David, Cristina C., 1983. "Economic Policies and Philippine Agriculture," Working Papers WP 1983-02, Philippine Institute for Development Studies.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Benjamin N. Dennis & Talan B. Işcan, 2007. "Agricultural Distortions, Structural Change, and Economics Growth: A Cross-Country Analysis," Working Papers daleconwp2007-03, Dalhousie University, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Soriano, Ma. Cecilia G., 1990. "Classifying the Economy into Traded or Nontraded Sectors," Philippine Journal of Development JPD 1990 Vol. XVII No. 2-, Philippine Institute for Development Studies.
    2. David, Cristina C. & Intal, Ponciano & Balisacan, Arsenio M., 2007. "Distortions to Agricultural Incentives in the Philippines," Agricultural Distortions Working Paper Series 48477, World Bank.
    3. Nuqui, Wilfredo G. & Bernal, Norma B. & Quimbo, Victoria V. & Tayzon, Florence M., 1987. "The Philippines: External Shocks, Adjustment Policies and Impact on Selected Development Concerns, 1973-1985," Philippine Journal of Development JPD 1987 Vol. XIV No. 1-h, Philippine Institute for Development Studies.
    4. Pray, Carl E., 1986. "Agricultural Research and Technology Transfer by the Private Sector in the Philippines," Reports 7524, University of Minnesota, Economic Development Center.
    5. Roumasset, James, 1992. "INVESTING in Agriculturally-Led Growth: The Philippine Case," MPRA Paper 14847, University Library of Munich, Germany.
    6. Balisacan, Arsenio M., 1991. "Linkages, Poverty and Income Distribution," Working Papers WP 1991-15, Philippine Institute for Development Studies.
    7. Alburo, Florian & Shepherd, Geoffrey, 1986. "Trade Liberalization and Experience in the Philippines, 1960-1984," Working Papers WP 1986-01, Philippine Institute for Development Studies.

    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:wbk:wbrwps:1883. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.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.