IDEAS home Printed from https://ideas.repec.org/p/ags/iaae12/126456.html
   My bibliography  Save this paper

Sectoral Growth Linkages and the Role of Infrastructure Development: Revisiting the sources of nonfarm development in the rural Philippines

Author

Listed:
  • Fuwa, Nobuhiko
  • Balisacan, Arsenio M.
  • Mapa, Dennis
  • Abad Santos, Carlos
  • Piza, Sharon Faye

Abstract

This paper analyzes the sources of rural non-farm sector growth in the Philippines, which has become the main driver of rural poverty reduction. We find that agricultural growth has significantly positive effects on service sector growth (with elasticity of about 0.20) but little effects on manufacturing growth, suggesting that rural labor force is sufficiently mobile or capital is relatively immobile across provinces. We also identify different roles played by national road networks, on the one hand, and local roads, on the other. We find that local road facilitates rural service sector development while national road facilitates agricultural growth.

Suggested Citation

  • Fuwa, Nobuhiko & Balisacan, Arsenio M. & Mapa, Dennis & Abad Santos, Carlos & Piza, Sharon Faye, 2012. "Sectoral Growth Linkages and the Role of Infrastructure Development: Revisiting the sources of nonfarm development in the rural Philippines," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126456, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae12:126456
    DOI: 10.22004/ag.econ.126456
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/126456/files/RuralNonFarm_Infrastructure.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.126456?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Yujiro Hayami & Masao Kikuchi, 2000. "A Rice Village Saga," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59918-5, March.
    2. Peter Timmer & Selvin Akkus, 2008. "The Structural Transformation as a Pathway out of Poverty: Analytics, Empirics and Politics," Working Papers 150, Center for Global Development.
    3. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    4. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    5. Deichmann, Uwe & Shilpi, Forhad & Vakis, Renos, 2008. "Spatial specialization and farm-nonfarm linkages," Policy Research Working Paper Series 4611, The World Bank.
    6. Eswaran, Mukesh & Kotwal, Ashok, 1993. "A theory of real wage growth in LDCs," Journal of Development Economics, Elsevier, vol. 42(2), pages 243-269, December.
    7. Nobuhiko Fuwa, 2007. "Pathways out of rural poverty: a case study in socio-economic mobility in the rural Philippines," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 31(1), pages 123-144, January.
    8. Foster, Andrew D. & Rosenzweig, Mark R., 2008. "Economic Development and the Decline of Agricultural Employment," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 47, pages 3051-3083, Elsevier.
    Full references (including those not matched with items on IDEAS)

    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. Nobuhiko Fuwa & Arsenio M. Balisacan & Fabrizio Bresciani, 2015. "In Search of a Strategy for Making Growth More Pro-Poor in the Philippines," Asian Economic Papers, MIT Press, vol. 14(1), pages 202-226, Winter/Sp.
    2. Vítor Castro & Rodrigo Martins, 2018. "The Electoral Dynamics of Human Development," Journal of Development Studies, Taylor & Francis Journals, vol. 54(1), pages 191-211, January.
    3. World Bank, 2009. "Land Reform, Rural Development, and Poverty in the Philippines : Revisiting the Agenda," World Bank Publications - Reports 18545, The World Bank Group.
    4. Daniel Ştefan Armeanu & Georgeta Vintilă & Ştefan Cristian Gherghina, 2017. "Empirical Study towards the Drivers of Sustainable Economic Growth in EU-28 Countries," Sustainability, MDPI, vol. 10(1), pages 1-22, December.
    5. Diana Alhajjeah & Mustafa Besim, 2024. "Firms’ Capital Structure during Crises: Evidence from the United Kingdom," Sustainability, MDPI, vol. 16(13), pages 1-25, June.
    6. Youngho Kang & Byung-Yeon Kim, 2018. "Immigration and economic growth: do origin and destination matter?," Applied Economics, Taylor & Francis Journals, vol. 50(46), pages 4968-4984, October.
    7. Cho, Seo-young & Vadlamannati, Krishna Chaitanya, 2010. "Compliance for big brothers: An empirical analysis on the impact of the anti-trafficking protocol," University of Göttingen Working Papers in Economics 118, University of Goettingen, Department of Economics.
    8. Cabral, Joilson de Assis & Freitas Cabral, Maria Viviana de & Pereira Júnior, Amaro Olímpio, 2020. "Elasticity estimation and forecasting: An analysis of residential electricity demand in Brazil," Utilities Policy, Elsevier, vol. 66(C).
    9. Hong Liu & Phil Molyneux & John O. S. Wilson, 2013. "Competition And Stability In European Banking: A Regional Analysis," Manchester School, University of Manchester, vol. 81(2), pages 176-201, March.
    10. Azmat Gani & Nisar Ahmad, 2020. "Has Economic Growth of China and India Impacted African Economic Prosperity?," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 48(3), pages 375-385, September.
    11. Vieira, Flávio & MacDonald, Ronald & Damasceno, Aderbal, 2012. "The role of institutions in cross-section income and panel data growth models: A deeper investigation on the weakness and proliferation of instruments," Journal of Comparative Economics, Elsevier, vol. 40(1), pages 127-140.
    12. Amin, S. & Murshed, S.M., 2022. "Diversity matters in the world of finance: does ethnic and religious diversity hinder financial development in developing countries," ISS Working Papers - General Series 692, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    13. Eleonora Bartoloni, 2013. "Capital structure and innovation: causality and determinants," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 40(1), pages 111-151, February.
    14. Hakkala, Katariina & Heyman, Fredrik & Sjöholm, Fredrik, 2007. "Cross-Border Acquisitions, Multinationals and Wage Elasticities," Working Paper Series 709, Research Institute of Industrial Economics.
    15. Nadir Altinok & Claude Diebolt, 2024. "Cliometrics of learning-adjusted years of schooling: evidence from a new dataset," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 18(3), pages 691-764, September.
    16. Tuba DERYA-BASKAN & Eda BALIKÇIOĞLU, 2018. "Firma Bileşenlerinin Halka Açık Perakende Firmalarında Kurumlar Vergisine Etkisi," Sosyoekonomi Journal, Sosyoekonomi Society, issue 26(37).
    17. Yue Teng & Dic Lo, 2019. "Determinants of Developing Countries' Export Upgrading: The Role of China and Productive Investment," Working Papers 227, Department of Economics, SOAS University of London, UK.
    18. Kitazawa, Yoshitsugu, 2001. "Exponential regression of dynamic panel data models," Economics Letters, Elsevier, vol. 73(1), pages 7-13, October.
    19. Rostand Arland Yebetchou Tchounkeu & Raffaella Santolini & Giulio Palomba & Elvina Merkaj, 2024. "Healthcare Efficiency And Elderly Mortality In Italy," Working Papers 485, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    20. Grzybowski, Lukasz, 2005. "Essays on Economics of Network Industries: Mobile Telephony," Munich Dissertations in Economics 5561, University of Munich, Department of Economics.

    More about this item

    Keywords

    Community/Rural/Urban Development; International Development;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ags:iaae12:126456. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.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.