Template-Type: ReDIF-Paper 1.0 Author-Name: Benjamin E. Diokno Author-Name-First: Benjamin Author-Name-Last: Diokno Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Notes on the Bases for Government Intervention through Public Enterprises Abstract: This paper argues that the rationale for public enterprises flows from the general discussion on the justification for state intervention. Within a welfare theoretic framework, it argues that the wide range of stated motives for using the public enterprise form can in most cases be attributed to some violations of efficiency conditions. It has been shown that in the Philippines a great majority of a state firms can be justified on such grounds. Still, numerous firms were established on the basis of some noneconomic grounds. The use of the latter set of justifications resulted in government intervention even in areas where competitive market works, thereby unjustifiably enlarging the scope of public sector activity. Creation-Date: 1986-01 Publication-Status: Published as UPSE Discussion Paper No. DP 1986-01, January 1986 Number: 198601 Handle: RePEc:phs:dpaper:198601 Template-Type: ReDIF-Paper 1.0 Author-Name: Casimiro V. Miranda, Jr. Author-Name-First: Casimiro Author-Name-Last: Miranda, Jr. Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: A Method for Determining the Location a Public Enterprises Abstract: As a tool for feasibility studies in the choice of location problem for public enterprises, a simple method for determining the location of these enterprises is developed using indicators of centrality levels of places together with an area delineation scheme. Creation-Date: 1986-02 Publication-Status: Published as UPSE Discussion Paper No. 1986-02, February 1986 Number: 198602 Handle: RePEc:phs:dpaper:198602 Template-Type: ReDIF-Paper 1.0 Author-Name: Susan S. Navarro Author-Name-First: Susan Author-Name-Last: Navarro Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Dynamic Effects of Exchange Rate Changes in the Philippines in 1970-1980 Abstract: In this paper, the dynamic effects of exchange rate changes in the Philippines in 1970-1980 are examined and compared with those found by Bautista for 1956-1968, using his supply oriented macroanalytic model. The effectiveness of devaluation as a policy instrument for increasing employment, output and investment was found to have decreased in the 1970s. While having the advantages of having a weaker inflationary pressure, a devaluation therein was found to have introduced a second trade-off, namely lay offs. A comparison of the effects of a single devaluation in 1970 and those of the series of devaluation in 1970-1980 showed the beneficial effects of the latter over the former on employment, output, investment, exports and imports and its negative effects on the real wage rate. Creation-Date: 1986-03 Publication-Status: Published as UPSE Discussion Paper No. 1986-03, March 1986 Number: 198603 Handle: RePEc:phs:dpaper:198603 Template-Type: ReDIF-Paper 1.0 Author-Name: Jose Encarnacion, Jr. Author-Name-First: Jose Author-Name-Last: Encarnacion, Jr. Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Consumer Choice of Qualities Abstract: This paper proposes a treatment of quality variations based on a lexicographic preferences assumption. The main result is that the average quality of goods consumed is higher at higher incomes which, though commonly observed, is not explained by standard theory. Creation-Date: 1986-04 Publication-Status: Published as UPSE Discussion Paper No. 1986-04, April 1986 Number: 198604 Handle: RePEc:phs:dpaper:198604 Template-Type: ReDIF-Paper 1.0 Author-Name: Benjamin E. Diokno Author-Name-First: Benjamin Author-Name-Last: Diokno Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Revenue Mobilization and Responsiveness of Philippine Income Taxes: Implications for Fiscal Policy Abstract: One basic hypothesis in development finance is that the share of direct taxes, which includes taxes on personal and corporate incomes, increases as development proceeds. During the period 1961-1973, the share of income taxes to total taxes in the Philippines has grown in accordance with this basic hypothesis. A dramatic downturn, however, occurred in the late 1970s. One of the objectives of this study is to examine this phenomenon. The other specific objectives of the paper are: (a) to evaluate the resource mobilization potential of the corporate and personal income taxes, and (b) to measure and analyze the responsiveness of the individual and corporate income taxes to changes the incomes. On the basis of the results of our study, the following conclusions and implications for policy appear warranted. First, the observed decline in fiscal importance to both personal and corporate taxes relative to total revenues suggests that the tax structure that has emerged in recent years has been relatively more regressive. Regrettably, the potential for tapping both personal and corporate income taxes to increase revenue yield and improve the progressively of the tax structure is quite limited for a number of reasons: (a) tax avoidance and evasion of individual taxpayers appears to be on the rise; (b) the personal income tax base has severely narrowed in recent years; and (c) there appears to be a shift of capital from the formal, corporate sector to the informal, unincorporated sector, a phenomenon fully predicted by conventional general equilibrium theory of corporate tax incidence. To increase the revenue yield of personal income taxes, policymakers should look into three areas: higher tax consciousness, improved tax administration, and broader tax base. Second, both the personal and corporate income taxes have turned revenue inelastic over the years, but for different reasons: the former, for the decrease in its rate elasticity; the latter, for the fall in its base elasticity. Third, government policy may have to share the blame for the erosion of the corporate tax base. While the corporate dual tax rate system has been maintained since 1959, several tax measures were enacted which effectively reduced the tax rates of certain types of corporations. In addition, the corporate tax base may have been substantially eroded as a result of numerous investment incentives measures during the period under review. Creation-Date: 1986-04 Publication-Status: Published as UPSE Discussion Paper No. 1986-05, April 1986 Number: 198605 Handle: RePEc:phs:dpaper:198605 Template-Type: ReDIF-Paper 1.0 Author-Name: Titus Nguiagain Author-Name-First: Titus Author-Name-Last: Nguiagain Title: Trends and Patterns of Internal Migration in the Philippines : 1970 - 1980 Abstract: With respect to the growing awareness that migration affects national development, there is a need to keep researchers, planners and policy makers informed of current trends on internal migration. Only updated studies could provide valuable insights on demographic movements, and be helpful in framing policies to alter or regulate the population redistribution. The purpose of this paper is precisely is to determine the nature of more recent geographic patterns of internal migration in the Philippines, as documented by migration data from the two latest censuses (1975 and 1980), with emphasis on regional migration streams (volume and direction). The present study is a methodological extension of previous research, since migration data here are adjusted for information on "Not Stated". Its purpose is to update, verify or correct findings rather than repeat the earlier studies. In the census tabulation, the term "Not Stated" was used to designate persons 5 years old and over who have not reported their province of residence at the time of previous censuses. The number of this class of enumerated persons was quite high. Therefore, absence of adjustment "Not Reported" constitutes a serious drawback to analysis and could lead to a truncated view of migration trends and patterns. The analysis below seeks to provide facts rather than explanations as to why these facts exist. This limitation is due to our exclusive utilization of demographic data, whereas a full understanding of migration motivation needs the consideration of social and economic data. This research work has seven major findings. Two of these results are related to the intercensal migration status of the population, four are connected with the volume and direction of migration streams, while the last finding concerns the sex selectivity of migration. Creation-Date: 1986-05 Publication-Status: Published as UPSE Discussion Paper No. 1986-06, May 1986 Number: 198606 Handle: RePEc:phs:dpaper:198606 Template-Type: ReDIF-Paper 1.0 Author-Name: Ramon L. Clarete Author-Name-First: Ramon Author-Name-Last: Clarete Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: James A. Roumasset Author-Name-First: James Author-Name-Last: Roumasset Title: Modelling Agricultural Development Policy: A General Equilibruim Approach Abstract: A computable general equilibrium model is designed evaluating the economic impacts of agricultural policies such as price floors in food production, price ceilings in food consumption and in the use of agricultural inputs, and irrigation investments. Trade, sales tax, and external debt are also featured to assess their interactions with agricultural policies in fostering agricultural development. Creation-Date: 1986-06 Publication-Status: Published as UPSE Discussion Paper No. 1986-07, June 1986 Number: 198607 Handle: RePEc:phs:dpaper:198607 Template-Type: ReDIF-Paper 1.0 Author-Name: Harry T. Oshima Author-Name-First: Harry Author-Name-Last: Oshima Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Human Resources in Macro-Comparative Productivity Trends in Asia Abstract: Human resources have recently come to occupy the focal point in economic development in the work of international organizations. The paper divides resources into material (including technology) and human resources and asserts that past theories of economic growth paid title attention to human resources because technology was not as varied and complex as today. But with the electric/gas and electronic revolutions completely replacing the simple technologies of the first industrial revolution of steam-powered technologies, the number and complexity of mechanized and other technologies have multiplied so many times that the human resources required to operate, repair, maintain, reproduce, adapt and development then have made institutions and human resources operating through institutions the crucial factor in the growth of the modern economy. This is illustrated by the rapid growth of Japan and the NICs, all of whom started the post-war decade with minimal amounts of natural and other material resources. (Capital with the embodied technology was destroyed in Japan, Taiwan and South Korea by the U.S. bombardment during the last war). But the development of manpower before World War II in Japan, Taiwan and South Korea through homes, schooling, and experience in modern agriculture and industry and in Hong Kong and Singapore in the highly developed service industries, and in the postwar decades was so much greater than in other countries where the colonial regimes were concerned mainly with plantation agriculture. The paper points out that the schooling is only one resource of human resource development and the importance of the home, working place, mass media and community organizations as sources of human resources must be taken into account, with their integration and coordination in planning for the development of human resources. Creation-Date: 1986-07 Publication-Status: Published as UPSE Discussion Paper No. 1986-08, July 1986 Number: 198608 Handle: RePEc:phs:dpaper:198608 Template-Type: ReDIF-Paper 1.0 Author-Name: Cayetano W. Paderanga, Jr. Author-Name-First: Cayetano Author-Name-Last: Paderanga, Jr. Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Robert E. Evenson Author-Name-First: Robert Author-Name-Last: Evenson Title: Rural Labour Markets, Transaction Cost and Fertility Abstract: The implications of differences in transaction cost environments on the fertility and nutrition decisions of rural households are analyzed. Losses from shirking and the supervision cost incurred create a wedge between the marginal revenue product of hired labour and the offered wage and the difficulty of monitoring and enforcing labour contracts leads to a premium on family labour. Differences in enforcement difficulty is related to the transaction cost in varying environments. Thus, differences in transaction cost environments should have different effects on fertility and labour supply. Using data from Laguna province in the Philippines, the study finds some support for the hypothesis that transaction cost has a strong influence on labour supply and fertility. Creation-Date: 1986-08 Publication-Status: Published as UPSE Discussion Paper No. 1986-09, August 1986 Number: 198609 Handle: RePEc:phs:dpaper:198609 Template-Type: ReDIF-Paper 1.0 Author-Name: Cayetano W. Paderanga, Jr. Author-Name-First: Cayetano Author-Name-Last: Paderanga, Jr. Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Ian Wooton Author-Name-First: Ian Author-Name-Last: Wooton Title: Short-Term Infant Industry Protection Abstract: A two-good model of small open economy, in which production of one good is characterized by an extra-firms, intra-industry externality, is constructed. In contrast to previous studies of infant-industry protection, the planning horizon is considered to be finite. The conditions under which protection is justified are determined and the factors that influence the time path of the optimal subsidy are shown to be the length of the planning horizon, the scale of the externality, and the rate of time discounting applied. Creation-Date: 1986-08 Publication-Status: Published as UPSE Discussion Paper No. 1986-10, August 1986 Number: 198610 Handle: RePEc:phs:dpaper:198610 Template-Type: ReDIF-Paper 1.0 Author-Name: Florian A. Alburo Author-Name-First: Florian Author-Name-Last: Alburo Title: Import Liberalization Revisited Abstract: The paper examines what happened when quantitative restrictions were removed in 1962 and the system of protection was replaced only with a tariff system in operation until about 1966 or 1967. The paper shows that the concerns that are directly and immediately influenced by import liberalization were hardly adversely affected by the 1962 decontrol program. Trade improved, shown by a healthy trade balance and a positive current account balance of magnitudes that are historical records; an improvement in foreign exchange reserves availability without using the stabilization funds provided by stand-by arrangements; consumer goods imports did not go haywire at all contrary to doom pronouncements; and smuggling did not show significant increments that can be considered alarming relative to past trends. Some implications are drawn with respect to the lack of accompanying policies which could have resulted in a real structural change and transformation of trade and industry. Creation-Date: 1986-09 Publication-Status: Published as UPSE Discussion Paper No. 1986-11, September 1986 Number: 198611 Handle: RePEc:phs:dpaper:198611 Template-Type: ReDIF-Paper 1.0 Author-Name: Harry T. Oshima Author-Name-First: Harry Author-Name-Last: Oshima Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Food and Agriculture in Asia Towards the Year 2000 Abstract: On the basis of available food supply levels of Japan and the Asian NICs in the early 1980s, it is assumed that 2,600 calories represent available food levels needed for all Asian countries under full employment conditions. This levels is substantially higher than estimates of Asian and WHO nutritionists (about 2,200). Their estimates are based on existing levels of unemployment and underemployment in South and Southeast Asian countries. The 2,600 calorie levels of available food supply corresponds to 2,300 to 2,400 of actual food intake levels, taking into account spoilage, wasters, and losses from meal preparations. The food situations are most serious for South Asian countries, even though some of the countries (like India) are reported to be reaching self-sufficiency in rice. But this is achieved at low levels of per capita income and calorie intake of 1,800/1,900 with deficiencies in proteins, and other nutrients. In Southeast Asian and the insufficiencies and inadequacies in food intake are in the low income families of peasants and laborers. For both regions, rice yield can be gradually improved greater use of modern inputs, and it is in the non-rice food products (vegetables, fruits and animal products) that deficiencies are great. But eventually most of the rice needs can be met with rising yields during the rainy seasons of the monsoons through the use of modern inputs. Therefore, the need is for expanding production toward non-rice, diversified crops and animal products during the dry season. Diversification of agriculture will lead to fuller utilization of rural manpower in monsoon agriculture; work will be available not only for the second and third crops, but also in the processing and marketing of the diversified crops (not to mention rural public works, noted above). This will enable rural families to raise their annual incomes and purchasing power for industrial products and services, thereby generating urban jobs, and reducing income inequalities. Japan, Taiwan and South Korea which succeeded in diversifying their agriculture in the past, should now stop protecting their agriculture and move toward reducing farm production. Their purchase of food from the other Asian countries will facilitate the shift to diversification in the other countries through export earnings, for mechanizing farming, processing and public works. And as farm productivity rises, labor can be released to the other sectors, while improved nutrition will lower mortality with favorable impact on fertility and population growth. Creation-Date: 1986-10 Publication-Status: Published as UPSE Discussion Paper No. 1986-12, October 1986 Number: 198612 Handle: RePEc:phs:dpaper:198612 Template-Type: ReDIF-Paper 1.0 Author-Name: Cayetano W. Paderanga, Jr. Author-Name-First: Cayetano Author-Name-Last: Paderanga, Jr. Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: A Review of Land Settlement in the Philippines, 1900-1975 Abstract: The history of land settlement programs in the Philippines from 1900 to 1975 is reviewed from secondary sources, including three case studies. A few similarities are noticed among all of the resettlement movements: (a) a small number of families that are directly resettled by government programs and (b) the large proportion of spontaneous migrants that are attracted by the government stimulus. One conclusion is that while land settlement increased total production of the country as a whole, it had unintended side effects such as increased cultural conflicts. Neither land settlement can be expected to permanently solve agrarian problems although the presence of frontier land can temporarily delay acute conditions. Creation-Date: 1986-11 Publication-Status: Published as UPSE Discussion Paper No. 1986-13, November 1986 Number: 198613 Handle: RePEc:phs:dpaper:198613 Template-Type: ReDIF-Paper 1.0 Author-Name: Harry T. Oshima Author-Name-First: Harry Author-Name-Last: Oshima Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Similarities Underlying East Asia's High Growth and Contrasts with Other Regions Abstract: This paper continues on with the theme of my previous papers emphasizing the importance of human resource development in East Asia's postwar growth. It is argued that the NICs were better prepared to start rapid growth early in the postwar era because of prewar experience. Japan, in order to increase rice yields in the colonies so that the surplus could be imported for Japan's industrialization and militarization, had to modernize agriculture in Taiwan and Korea with better rice seeds, fertilizer, irrigation, extension, roads, and so on. To wage war in China, Japan established modern industries in Korea to produce for its army fighting in China. And in the 1930s with the beginning of invasion of China, Japan's economy began to experience labor shortages, and various labor-intensive industries were transferred to Taiwan. Since for modern agriculture and industry, an educated labor force was necessary, primary schools were extensively established. In the city-states, to develop Hong Kong and Singapore as efficient centers for entrepot trading and finance, the British had to develop modern physical and institutional infrastructure including education as the modern service industries needed educated labor force even more than agriculture and industry. In contrast, Western colonial powers were interested in plantations and not in rice production and did very little to improve peasant production. In exchange for plantation products, the West sold manufactured goods to the colonies, and there was no need to industrialize the colonies. The greater experience with modern agriculture enabled Japanese, Taiwanese, and South Korean peasants to take full advantage of land to improve agricultural production in the 1950s. And when there was the unprecedented expansion in demand for manufactured goods in the West during the 1960s, East Asian manufacturers able to produce to sell to the West. Creation-Date: 1986-12 Publication-Status: Published as UPSE Discussion Paper No. 1986-14, December 1986 Number: 198614 Handle: RePEc:phs:dpaper:198614