Template-Type: ReDIF-Paper 1.0 Author-Name: Joseph J. Capuno Author-Name-First: Joseph Author-Name-Last: Capuno Author-Email: jjcapuno@gmail.com Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Spatial development and the law of one price : Evidence of convergence of land values Abstract: Many developing countries exhibit imbalanced spatial development, but corrective policies are hampered by lack of adequate sub-regional development data. Building on the insights of the factor price equalization theorem and by applying measures of spatial autocorrelation on land values, patterns of local development and linkages in the Philippines are traced. Evidence of convergence in provincial and urban land values is found in 1986-2000, although the clustering is more local than global. Thus, greater infrastructure investments and use of land values by local governments as policy guides should be made to facilitate in-country trade and migration, and to disperse growth. Length: 27 pages Creation-Date: 2010-01 Publication-Status: Published as UPSE Discussion Paper No. 2010-01, January 2010 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/7/7 File-Format: Application/pdf Number: 201001 Classification-JEL: O18, R12, R14 Keywords: Spatial development, land values, convergence, Philippines Handle: RePEc:phs:dpaper:201001 Template-Type: ReDIF-Paper 1.0 Author-Name: Emmanuel S. de Dios Author-Name-First: Emmanuel Author-Name-Last: de Dios Author-Email: esdedios@gmail.com Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Grace T. Ong Author-Name-First: Grace Author-Name-Last: Ong Title: Gatekeeper Versus Auctioneer : A Non-Tatonnement Result Abstract: A non-tatonnement process is described using the simplest demand-and-supply model, involving the following : uniformly distributed agents; random matching of buyers and sellers; and a universal permission to engage in mutually acceptable trade at non-equilibrium prices. A sufficient condition is then stated where expected welfare gains are paradoxically greater when the number of market agents is restricted, compared to when all traders are allowed to participate. Length: 9 pages Creation-Date: 2010-03 Publication-Status: Published as UPSE Discussion Paper No. 2010-02, March 2010 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/viewFile/6/6 File-Format: Application/pdf Number: 201002 Handle: RePEc:phs:dpaper:201002 Template-Type: ReDIF-Paper 1.0 Author-Name: Renato E. Reside, Jr. Author-Name-First: Renato Author-Name-Last: Reside Author-Email: renato_reside@hotmail.com Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Amado M. Mendoza, Jr. Author-Name-First: Amado Author-Name-Last: Mendoza, Jr. Title: Determinants of Outcomes of Public-Private Partnerships (PPP) in Infrastructure in Asia Abstract: This study analyzes cross-country data extracted from a large global database to identify the major risks affecting Asian PPP into six major factors : (1) macroeconomic environment; openness of economy; (2) incentive issues during planning, design and contracting phases; (3) political risk; (4) fiscal capacity of government; (5) firm-embodied traits : level of technical efficiency and capacity of proponents in construction and operations; and (6) other reasons-- regulation, credit risk of buyers of output, etc. Policy recommendations are made. Length: 50 pages Creation-Date: 2010-03 Publication-Status: Published as UPSE Discussion Paper No. 2010-03, March 2010 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/viewFile/5/5 File-Format: Application/pdf Number: 201003 Handle: RePEc:phs:dpaper:201003 Template-Type: ReDIF-Paper 1.0 Author-Name: Geoffrey Ducanes Author-Name-First: Geoffrey Author-Name-Last: Ducanes Author-Email: Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: The Case of the Missing Remittances in the FIES : Could it be causing us to mismeasure welfare changes? Abstract: This paper highlights the increasing underreporting of remittances by the FIES compared to BSP and World Bank figures, advances possible reasons why such underreporting is occurring, and examines its implications for welfare measurement in the country at points in time and across time. Using simulation exercises, the paper finds that indeed the "missing remittances" in the FIES could be causing the mismeasurement of poverty and inequality since 1997, possibly clouding the direction of welfare change. Length: 26 pages Creation-Date: 2010-03 Publication-Status: Published as UPSE Discussion Paper No. 2010-04, March 2010 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/viewFile/4/4 File-Format: Application/pdf Number: 201004 Handle: RePEc:phs:dpaper:201004 Template-Type: ReDIF-Paper 1.0 Author-Name: Gerardo P. Sicat Author-Name-First: Gerardo Author-Name-Last: Sicat Author-Email: gsicat@skybroadband.com.ph Title: Firm Characteristics as Determinants of Views on the Minimum Wage Policy Abstract: In this study, the opinions of operating enterprises regarding the minimum wage policy are studied with the use of ordered logit regression model. The study uses survey data that asked a series of questions dealing with labor market policies in the Philippines. The aim of this regression model is to estimate the probability that the respondent would choose one of the following ordered levels of answers to the question involving their opinion of the country's process of setting the minimum wage level : very poor, poor, fair, good, and excellent. The results of the regressions show that categorical groupings of the respondent firms determine the direction in which respondent firms choose their judgment of the labor policy issue. In particular, the nature of ownership, market orientation of the firm, age of the enterprise, employment size, among others, and even the specific position of the official of the company assigned to answer the survey play important influences on the formation of the firm's opinion on the policy. Such findings are likely to be important in framing reform issues on labor policies. Length: 32 pages Creation-Date: 2010-04 Publication-Status: Published as UPSE Discussion Paper No. 2010-05, April 2010 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/viewFile/3/3 File-Format: Application/pdf Number: 201005 Handle: RePEc:phs:dpaper:201005 Template-Type: ReDIF-Paper 1.0 Author-Name: Rana Hasan Author-Name-First: Rana Author-Name-Last: Hasan Author-Email: rhasan@adb.org Author-Workplace-Name: Asian Development Bank Author-Name: Karl Robert L. Jandoc Author-Name-First: Karl Robert Author-Name-Last: Jandoc Author-Email: kjandoc.consultant@adb.org Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Trade Liberalization and Wage Inequality in the Philippines Abstract: We examine the role of trade liberalization in accounting for increasing wage inequality in the Philippines from 1994 to 2000--a period over which trade protection declined and inequality increased dramatically. Using the approach of Ferreira, Leite, and Wai-Poi (2007), we find that trade-induced effects on industry wage premia and industry-specific skill premia account for an economically insignificant increase in wage inequality. A more substantial role for trade liberalization comes through trade-induced employment reallocation effects whereby reductions in protection appear to have led to a shift of employment to more protected sectors, especially services where wage inequality tended to be high to begin with. Nevertheless, the key drivers of wage inequality appear to be changes in economy-wide returns to education and changes in industry membership over and above those accounted for by our estimates of trade-induced employment reallocation effects. In order for trade liberalization to account for a relatively large portion of the increases in wage inequality, it would have to be a major determinant of the changes in economy-wide returns to education. Length: 41 pages Creation-Date: 2010-05 Publication-Status: Published as UPSE Discussion Paper No. 2010-06, May 2010 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/viewFile/2/2 File-Format: Application/pdf Number: 201006 Handle: RePEc:phs:dpaper:201006 Template-Type: ReDIF-Paper 1.0 Author-Name: Gerardo P. Sicat Author-Name-First: Gerardo Author-Name-Last: Sicat Author-Email: gsicat@skybroadband.com.ph Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Spotlighting on High Economic Growth, Employment of the Poor, and Poverty Reduction: A Three-Pronged Strategy Abstract: The strong popular mandate of the new president brings high hopes for bold economic reforms. A three-pronged strategy to deal with the Philippine under-performance in economic growth, generate more employment especially among the poor and to reduce poverty is suggested. The strategy consists of : (1) raising the volume of targeted subsidies to assist very poor families; (2) amending the restrictive economic provisions from the constitution so that they are moved to the body of the country's ordinary laws; and (3) establishing special labor employment zones as industrial estates in low income sub-regions where the enterprise locators can hire labor at market-determined rates. The three-pronged strategy is linked tightly. The government must commit to make a substantial increase of funding of (1), as soon as it has established, but not before, that reforms (2) and (3) will have been achieved. Only a president with a strong mandate and who enjoys great popularity can push through the political storm that reforms (2) and (3) are likely to invite. The constitutional amendment will transform the psychology of the economic reform processes within the country. It will remove the jurisdiction of the courts on economic policy legislation and on business issues on grounds of constitutionality. For another, it will focus the democratic process to the passage of the proper legislation suited to the country's needs in relation to foreign investment. The two reforms will stimulate the entry of foreign direct investments, facilitate interest again of highly labor using industries that have left the country for foreign locations to come back, enable domestic firms to adjust their labor costs more effectively, and stimulate the employment of the large numbers of unemployed and underemployed into organized and modern sectors of the economy. They will raise the country's growth rate closer to those of high growth East Asian economies and contribute to the eradication of high unemployment in the economy while reducing poverty. Length: 39 pages Creation-Date: 2010-07 Publication-Status: Published as UPSE Discussion Paper No. 2010-07, July 2010 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/viewFile/1/1 File-Format: Application/pdf Number: 201007 Handle: RePEc:phs:dpaper:201007 Template-Type: ReDIF-Paper 1.0 Author-Name: Arsenio M. Balisacan Author-Name-First: Arsenio Author-Name-Last: Balisacan Author-Email: ambalisacan@gmail.com Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Sharon Piza Author-Name-First: Sharon Author-Name-Last: Piza Author-Workplace-Name: Asia Pacific Policy Center Author-Name: Dennis Mapa Author-Name-First: Dennis Author-Name-Last: Mapa Author-Workplace-Name: University of the Philippines School of Statistics Author-Name: Carlos Abad Santos Author-Name-First: Carlos Author-Name-Last: Abad Santos Author-Workplace-Name: Asia Pacific Policy Center Author-Name: Donna Odra Author-Name-First: Donna Author-Name-Last: Odra Author-Workplace-Name: Asia Pacific Policy Center Title: The Philippine Economy and Poverty During the Global Economic Crisis Abstract: Anecdotal evidence permeates accounts on the impact of the global economic crisis (GEC) on Philippine poverty. This study systematically assesses the evidence and recent data. It adopts a somewhat eclectic approach, applying regression and decomposition techniques to trace the GEC impact on GDP and its major components, constructing panel data from nationally representative household surveys to trace the changes in household welfare during the crisis, and combining national income accounts and household survey data to simulate the differential effects of the crisis across population groups and social divides. Empirical findings suggest that although the Philippine economy did not slide to recession during the GEC, the impact of the crisis on the economy and poverty across population groups was nonetheless severe -- and may linger for many years to come. Length: 9 pages Creation-Date: 2010-08 Publication-Status: Published as UPSE Discussion Paper No. 2010-08, August 2010 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/viewFile/55/46 File-Format: Application/pdf Number: 201008 Handle: RePEc:phs:dpaper:201008 Template-Type: ReDIF-Paper 1.0 Author-Name: Arsenio M. Balisacan Author-Name-First: Arsenio Author-Name-Last: Balisacan Author-Email: ambalisacan@gmail.com Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: MDG 1 in the Philippines: Setting the Scores Right and Achieving the Targets Abstract: The official poverty data fall short of properly informing public policy and governance concerning the progress, or lack of it, in achieving the country’s commitment of halving, between 1990 and 2015, the incidence of poverty and hunger. Imposing consistency in poverty estimation shows that the poverty trend is actually even more alarming than what the official data depict. "Business as usual" keeps the country from achieving the MDG 1 targets. Meeting the huge policy challenge of poverty reduction requires nothing less than rapid but sustained and inclusive growth. Length: 16 pages Creation-Date: 2010-10 Publication-Status: Published as UPSE Discussion Paper No. 2010-09, October 2010 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/665/128 File-Format: Application/pdf Number: 201009 Handle: RePEc:phs:dpaper:201009 Template-Type: ReDIF-Paper 1.0 Author-Name: Joseph J. Capuno Author-Name-First: Joseph Author-Name-Last: Capuno Author-Email: jjcapuno@gmail.com Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Leadership and Innovation under Decentralization : A Case Study of Selected Local Governments in the Philippines Abstract: This study investigates the importance of leadership as a driver of local government innovations. Based on a survey of 209 innovations introduced in selected 48 local governments in the Philippines during the period June 2004-June 2008, the observable qualities and possible incentives of incumbent mayors are linked empirically with their reported number of innovations. The Poisson regression results show that the statistically relevant incumbent's characteristics are age, educational attainment, and experience in the public sector, re-election status and terms in office, controlling for other factors. Also, the fiscal capacity of the local government and the poverty status of the local population are found statistically significant. However, all these factors vary in relative importance across types of innovations. Several policy inputs are suggested to hone the leadership qualities of incumbent mayors for greater adoption of innovations. Length: 35 pages Creation-Date: 2010-11 Publication-Status: Published as UPSE Discussion Paper No. 2010-10, November 2010 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/666/129 File-Format: Application/pdf Number: 201010 Keywords: Spatial development, land values, convergence, Philippines Handle: RePEc:phs:dpaper:201010 Template-Type: ReDIF-Paper 1.0 Author-Name: Joseph J. Capuno Author-Name-First: Joseph Author-Name-Last: Capuno Author-Email: jjcapuno@gmail.com Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Aleli D. Kraft Author-Name-First: Aleli Author-Name-Last: Kraft Author-Email: adpkraft@econ.upd.edu.ph Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Household choices, circumstances and equity of access to basic health and education services in the Philippines Abstract: In developing countries like the Philippines, a major policy concern is the inequity in access to health and education services. In this paper, we investigate the effects of factors over which households have control ("choices") or none ("circumstances") on their access to basic services. Our logit regression analyses of two nationwide household surveys reveal that household income and composition, mother's age and education status, and the child's age and gender are critical. The circumstance factors -- Philhealth coverage and some area-level characteristics of health and education services -- also matter in improving overall access, but not necessarily its equity. Length: 55 pages Creation-Date: 2010-11 Publication-Status: Published as UPSE Discussion Paper No. 2010-11, November 2010 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/667/130 File-Format: Application/pdf Number: 201011 Classification-JEL: I18, I28, I38 Keywords: Households, equity, health, education, Philippines Handle: RePEc:phs:dpaper:201011 Template-Type: ReDIF-Paper 1.0 Author-Name: Raul V. Fabella Author-Name-First: Raul Author-Name-Last: Fabella Author-Email: rvfabella@up.edu.ph Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: A Multi-Level Choice Theory Abstract: The Great Recession has called into question many tenets of Neo-classical Microeconomics. Neo-classical theory allows each agent only one fixed type, homo economicus, while not denying other possible types as in adverse selection.We propose that economic agents not only choose their market basket but also their types. Agents are members of groups and each group has social norms to which the agent more or less conforms. His/her market behavior trades off private well being which responds to prices but also social well being which responds to norms. We show how deviation from norms are determined. We also discuss other anomalies in the light of this model. Length: 26 pages Creation-Date: 2010-12 Publication-Status: Published as UPSE Discussion Paper No. 2010-12, December 2010 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/viewFile/668/131 File-Format: Application/pdf Number: 201012 Handle: RePEc:phs:dpaper:201012 Template-Type: ReDIF-Paper 1.0 Author-Name: Ernesto M. Pernia Author-Name-First: Ernesto Author-Name-Last: Pernia Author-Email: ernesto.pernia@up.edu.ph Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Population, Poverty, Politics and the Reproductive Health Bill Abstract: Following an earlier paper titled Population and Poverty: The Real Score (UPSE Discussion Paper 0415, December 2004), the present paper was first issued in August 2008 as a contribution to the public debate on the population issue that never seemed to die in this country. The debate heated up about that time in reaction to a revival of moves to push for legislation on reproductive health and family planning (RH/FP). Those attempts at legislation, however, failed in the 13th Congress, and again in the 14th Congress. Since late last year, the debate has been heating up further on the heels of President Noy Aquino’s pronouncements seeming to favor RH/FP, though he prefers the nomenclature "responsible parenthood". With some updating of the data, this paper remains as relevant as ever to the ongoing public debate. It is being re-issued as a Discussion Paper for wider circulation. Length: 9 pages Creation-Date: 2011-02 Publication-Status: Published as UPSE Discussion Paper No. 2011-01, February 2011 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/viewFile/670/132 File-Format: Application/pdf Number: 201101 Keywords: population, poverty, reproductive health, Philippines Handle: RePEc:phs:dpaper:201101 Template-Type: ReDIF-Paper 1.0 Author-Name: Gwendolyn R. Tecson Author-Name-First: Gwendolyn Author-Name-Last: Tecson Author-Email: grtecson@yahoo.com Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Trends in Grades, UP School of Economics Abstract: Grades are used to evaluate students as well as to compare their scholastic achievements. They are used by graduate schools as well as business firms to discriminate between students. But when grades are inflated, they cease to be an objective measure. We therefore wish to examine the trend in grades in the UP School of Economics. In particular, we would like to find out if the explosion in Latin honors (cum laudes and magna cum laudes) in recent years is due to the Revitalized General Education Program (RGEP). Through regression analysis, we found that GWA is determined by the RGEP (as well as the EWA). Except for a few subjects, there is no grade inflation in RGEP courses. Length: 21 pages Creation-Date: 2011-04 Publication-Status: Published as UPSE Discussion Paper No. 2011-02, April 2011 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/viewFile/669/135 File-Format: Application/pdf Number: 201102 Handle: RePEc:phs:dpaper:201102 Template-Type: ReDIF-Paper 1.0 Author-Name: Desiree A. Desierto Author-Name-First: Desiree Author-Name-Last: Desierto Author-Email: dadesierto@econ.upd.edu.ph Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: John V.C. Nye Author-Name-First: John Author-Name-Last: Nye Author-Workplace-Name: Economics Department, George Mason University Author-Name: Jema M. Pamintuan Author-Name-First: Jema Author-Name-Last: Pamintuan Author-Workplace-Name: Ateneo de Manila University, School of Humanities Title: The Demand for Unfair Gambles : Why Illegal Lotteries Persist Abstract: We show how cheating in illegal gambling can be sustained in equilibrium, even when gamblers are aware of it. Not only is cheating profit-maximizing for operators, but it can also be utility-maximizing if it provides gamblers the opportunity to engage in other related activities that generate non-monetary rewards, such as practicing superstitions. This, in turn, suggests why legalizing gambling might not fully capture the gains from the illegal market-operators and gamblers both prefer cheating, but this would be harder to hide in a legalized environment. We illustrate the model, generate results, and verify them empirically, using the example of jueteng, an illegal numbers game in the Philippines. Length: 31 pages Creation-Date: 2011-05 Publication-Status: Published as UPSE Discussion Paper No. 2011-03, May 2011 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/671/136 File-Format: Application/pdf Number: 201103 Handle: RePEc:phs:dpaper:201103 Template-Type: ReDIF-Paper 1.0 Author-Name: Toby C. Monsod Author-Name-First: Toby Author-Name-Last: Monsod Author-Email: tobymonsod2002@yahoo.com Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Is Government Really Solving the Housing Problem? Abstract: Informal housing arrangements, substandard structures, congestion, and land use conflicts characterize the urban housing problem in the Philippines. The record suggests that the response of the State, especially its reliance on below-market priced mortgage loans, has aggravated rather than helped solve the situation. If the housing problem is to be solved, government needs to rethink its role in housing finance, delink housing social assistance from finance markets, and turn its attention to fundamental supply side and urban governance issues. Length: 19 pages Creation-Date: 2011-07 Publication-Status: Published as UPSE Discussion Paper No. 2011-04, July 2011 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/672/137 File-Format: Application/pdf Number: 201104 Handle: RePEc:phs:dpaper:201104 Template-Type: ReDIF-Paper 1.0 Author-Name: Niceto S. Poblador Author-Name-First: Niceto Author-Name-Last: Poblador Author-Workplace-Name: University of the Philippines Mindanao Author-Email: nspoblador@yahoo.com Title: The Strategy Dilemma : Why Big Business Moves Seldom Pan Out as Planned Abstract: This article looks at the complex dynamics that underlie organizational change and attempts to explain why, under present uncertain environmental conditions, it is not possible to determine in advance the results of strategic moves made by business and other types of organizations. It explores the practical applications of systems simulation and experimental methods to the management of change in today’s highly interconnected and knowledge-driven world. Length: 17 pages Creation-Date: 2011-08 Publication-Status: Published as UPSE Discussion Paper No. 2011-05, August 2011 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/673/138 File-Format: Application/pdf Number: 201105 Handle: RePEc:phs:dpaper:201105 Template-Type: ReDIF-Paper 1.0 Author-Name: Michael Ralph M. Abrigo Author-Name-First: Michael Ralph Author-Name-Last: Abrigo Author-Email: mmabrigo@gmail.com Author-Workplace-Name: Philippine Institute for Development Studies Author-Name: Desiree A. Desierto Author-Name-First: Desiree Author-Name-Last: Desierto Author-Email: dadesierto@econ.upd.edu.ph Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Contagious Migration : Evidence from the Philippines Abstract: Outward migration data from the Philippines exhibit spatial clustering. This is likely due to information spillover effects--fellow migrants share information with other neighboring migrants, thereby lowering the costs of migration. To verify this, we use spatial econometrics to define a geography-­based network of migrants and estimate its effect on the growth in the number of succeeding migrants. We find that current and past migration from one municipality induces contemporaneous and future migration in neighboring municipalities, even while controlling for demographic, economic and institutional factors that may be common across municipalities. Length: 18 pages Creation-Date: 2011-09 Publication-Status: Published as UPSE Discussion Paper No. 2011-06, September 2011 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/viewFile/674/139 File-Format: Application/pdf Number: 201106 Classification-JEL: C21, D85, F22 Keywords: Migration, Network effects, spatial econometrics Handle: RePEc:phs:dpaper:201106 Template-Type: ReDIF-Paper 1.0 Author-Name: Emmanuel S. de Dios Author-Name-First: Emmanuel Author-Name-Last: de Dios Author-Email: ededios@gmail.com Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Geoffrey M. Ducanes Author-Name-First: Geoffrey Author-Name-Last: Ducanes Author-Email: jducanes@yahoo.com Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Investment, institutions, and governance in Asia Abstract: We investigate the extent to which the investment slowdown in many Asian countries since the Asian Financial Crisis is attributable to changes in governance institutions. In the process we test the more general hypothesis that different aspects of governance will become relevant constraints to investment and growth at differing levels of countries' development. This hypothesis is validated and explains a standing paradox that finds certain governance aspects--notably voice and accountability and control of corruption--do not apparently figure as explanations in the average growth record. We show that in fact they do, though only at certain levels of development. Length: 22 pages Creation-Date: 2011-09 Publication-Status: Published as UPSE Discussion Paper No. 2011-07, September 2011 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/675/140 File-Format: Application/pdf Number: 201107 Handle: RePEc:phs:dpaper:201107 Template-Type: ReDIF-Paper 1.0 Author-Name: Desiree A. Desierto Author-Name-First: Desiree Author-Name-Last: Desierto Author-Email: dadesierto@econ.upd.edu.ph Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Geoffrey M. Ducanes Author-Name-First: Geoffrey Author-Name-Last: Ducanes Author-Email: jducanes@yahoo.com Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Stimulating Investment and Growth in the Philippines : the Need for First-Order Market Reforms Abstract: We show that the most important barriers to investment and growth in the Philippines are structural and institutional problems that are characteristic of limited access societies, which can be more effectively and efficiently overcome by prioritizing 'first-order' market reforms that increase competition and openness, rather than by government regulations that enforce against the distortions. Length: 26 pages Creation-Date: 2011-10 Publication-Status: Published as UPSE Discussion Paper No. 2011-08, October 2011 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/676/141 File-Format: Application/pdf Number: 201108 Handle: RePEc:phs:dpaper:201108 Template-Type: ReDIF-Paper 1.0 Author-Name: Gerardo P. Sicat Author-Name-First: Gerardo Author-Name-Last: Sicat Author-Email: gsicat@skybroadband.com.ph Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: CESAR VIRATA at Finance : Tax Collector and Reformer, 1970 to 1986 Abstract: Cesar Virata’s tenure as secretary/minister of Finance is the longest held by any head of department in Philippine history. This study reviews his contributions to the evolution and reform of the Philippine tax system which were significant, sustained and consistent. His contributions helped to bring the internal and customs revenues of the country toward their present state. Length: 42 pages Creation-Date: 2011-10 Publication-Status: Published as UPSE Discussion Paper No. 2011-09, October 2011 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/677/142 File-Format: Application/pdf Number: 201109 Handle: RePEc:phs:dpaper:201109 Template-Type: ReDIF-Paper 1.0 Author-Name: Nobuhiko Fuwa Author-Name-First: Nobuhiko Author-Name-Last: Fuwa Author-Workplace-Name: Waseda University Author-Name: Arsenio M. Balisacan Author-Name-First: Arsenio Author-Name-Last: Balisacan Author-Email: ambalisacan@gmail.com Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Fabrizio Bresciani Author-Name-First: Fabrizio Author-Name-Last: Bresciani Author-Workplace-Name: World Bank Title: In Search of a Strategy for Making Growth More Pro-Poor in the Philippines Abstract: The main driver of poverty reduction has shifted from agricultural to non-agricultural income growth in rural Philippines in the past two decades. Agricultural growth is still relatively more important (vis-a-vis non-agricultural growth), however, in reducing rural poverty in relatively more isolated provinces. Our results suggest that agricultural investments should focus on areas with underdeveloped infrastructure but with comparative advantage in agriculture. At the same time, non-agricultural income growth can be made more pro-poor by investing in mobility infrastructure and health, facilitating international labor migration, and lowering income inequality. Length: 48 pages Creation-Date: 2011-11 Publication-Status: Published as UPSE Discussion Paper No. 2011-10, November 2011 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/678/143 File-Format: Application/pdf Number: 201110 Classification-JEL: I32, O15, O40 Keywords: poverty, growth and inequality, pro-poor growth, role of agriculture, the Philippines, Asia Handle: RePEc:phs:dpaper:201110 Template-Type: ReDIF-Paper 1.0 Author-Name: Gerardo P. Sicat Author-Name-First: Gerardo Author-Name-Last: Sicat Author-Email: gsicat@broadband.com.ph Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: The Economic Legacy of Marcos Abstract: Ferdinand E. Marcos was the Philippine president from 1966 to 1986, a period exceeding twenty years. After serving as a two-term president of the Philippines from 1966-1972, he declared martial law under the constitution to assume dictatorial powers to tame the political chaos that was then engulfing the nation. In 1981, he ended the martial law period. The political framework that he adopted was patterned after the 1973 Constitution with amendments introduced and accepted by popular referendum concerning an elected parliament. He was driven from power in 1986. This paper reviews the economic and social contributions that his years in office brought to the country. During his period of rule, there were major reforms in government organization, in the provision of public infrastructure, and in social and economic development. In making the final accounting for Marcos, the paper concludes that the balance sheet is very positive. Many of the problems that continue to hound the nation today are the result of decisions taken during the transition from Marcos by the successor government. These mistakes are discussed. This paper contributes to the proper assessment of the country's long term economic and social problems. Naturally, the judgment of history will be made through the future assessments of social historians, economists, and other social scientists. This paper represents one such analysis. Length: 51 pages Creation-Date: 2011-11 Publication-Status: Published as UPSE Discussion Paper No. 2011-11, November 2011 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/679/144 File-Format: Application/pdf Number: 201111 Keywords: Philippine economic history, economic development, Ferdinand Marcos, political economy, economic policy Handle: RePEc:phs:dpaper:201111 Template-Type: ReDIF-Paper 1.0 Author-Name: Edita E. Tan Author-Name-First: Edita Author-Name-Last: Tan Author-Email: edita.tan@up.edu.ph Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Kristine S. Canales Author-Name-First: Kristine Author-Name-Last: Canales Author-Email: kscanales@gmail.com Author-Workplace-Name: PCED-Institute to Study Inequality, Poverty, and Social Protection (ISIP) Author-Name: Kevin G. Cruz Author-Name-First: Kevin Author-Name-Last: Cruz Author-Workplace-Name: PCED-Institute to Study Inequality, Poverty, and Social Protection (ISIP) Author-Name: Jan Carlo B. Punongbayan Author-Name-First: Jan Carlo Author-Name-Last: Punongbayan Title: Why are Boys Falling Behind Girls in Schooling? Abstract: The paper tries to explain why women in the Philippines, as yet a low middle income country, obtain higher levels of education than boys. Four empirically based reasons are posited – the substantial expansion of the education system, the growth of job opportunities, the culture that encourages girls to develop better study habits and the high returns to their education. Empirical evidence is provided to support these contentions especially on the returns to women’s schooling. The study concentrates in estimating by various methods returns to schooling using individual observations from the labor force survey. The more conventional OLS regressions are first applied to allow comparison with many studies and the semi-parametric estimates. But the semi-parametric additive method had to be used in order to check for specification robustness of the model due to the observed violation of the OLS assumption of normal distribution of error terms. The quantile regression was also applied to reflect the income distribution implications of the returns pattern. An additional insight into the returns estimation is given by the inclusion of the effect of being married and marrying well, i.e., whether the spouses are equally or upward matched in education, or not. We find that returns to education are higher the higher the level of education is and that returns to women's education are higher than returns to men’s education. Moreover, being married and married well increase earnings. Additionally, there is a fairly high good matching between education classes, i.e., there is substantial intermarriage among college graduates and other college educated and among lower educated individuals. This implies poor social mobility considering that access to education especially at the higher levels is very much constrained by family resources. Intermarriage between college graduates preserves their high social position since access to education is restricted by income. The paper concludes with a list of social issues that emerge from the findings. Length: 41 pages Creation-Date: 2011-11 Publication-Status: Published as UPSE Discussion Paper No. 2011-12, November 2011 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/680/145 File-Format: Application/pdf Number: 201112 Handle: RePEc:phs:dpaper:201112 Template-Type: ReDIF-Paper 1.0 Author-Name: Katsumi Nozawa Author-Name-First: Katsumi Author-Name-Last: Nozawa Author-Email: nozawakahome@ab.auone-net.jp Title: Oil Palm Production and Cooperatives in the Philippines Abstract: The promotion of oil palm production as an agribusiness development policy is a major issue in response to the increasing demand of palm oil in the Philippines. This paper focused on oil palm production cooperatives composed of agrarian reform beneficiaries (ARBs) as members who were granted the Certificate of Land Ownership Award (CLOA). The paper scrutinized the difference of farm incomes with the land titles between the Individual CLOA and the Collective CLOA under the Agribusiness Venture Arrangement (AVA) mode through the field survey of the cooperatives in the provinces in Mindanao. In conclusion, the proposal was made with the emphasis on the necessity to provide production technology and management skill to the cooperatives and its ARBs members with the special emphasis given to those granted the Collective CLOA through the various kinds of agricultural assistance. Length: 41 pages Creation-Date: 2011-12 Publication-Status: Published as UPSE Discussion Paper No. 2011-13, December 2011 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/681/147 File-Format: Application/pdf Number: 201113 Handle: RePEc:phs:dpaper:201113 Template-Type: ReDIF-Paper 1.0 Author-Name: Arsenio M. Balisacan Author-Name-First: Arsenio Author-Name-Last: Balisacan Author-Email: ambalisacan@gmail.com Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: What Has Really Happened to Poverty in the Philippines? New Measures, Evidence, and Policy Implications Abstract: That poverty is a multidimensional phenomenon is no longer debatable. What remains a contentious issue is whether the various dimensions of individual deprivation should be aggregated--and how these are to be aggregated--into a summary measure of poverty.This study employs the Alkire-Foster aggregation methodology, which preserves the "dashboard" of dimensions of poverty, to systematically assess the magnitude, intensity, and sources of multidimensional poverty over the past two decades and across subpopulation groups in the Philippines. It finds that what is generally known about the country’s performance in poverty reduction in recent years, as seen in income measures of poverty, is quite different from what the lens of multidimensional poverty measures reveal. While income-based poverty remained largely unaffected by economic growth during the past decade, multidimensional poverty did actually decline. This finding is robust to sources of nationally-representative household survey data and to assumptions about the poverty cutoff. From a policy perspective,this result reinforces the view that nothing less than economic growth, even in the short term, is required to reduce poverty (broadly interpreted to include individual deprivations beyond income). Moreover, the diversity of both deprivation intensity and magnitude of poverty across geographic areas and sectors of the Philippine society is enormous, suggesting that, beyond growth, much needs to be done to make development more inclusive. Length: 63 pages Creation-Date: 2011-12 Publication-Status: Published as UPSE Discussion Paper No. 2011-14, December 2011 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/682/148 File-Format: Application/pdf Number: 201114 Handle: RePEc:phs:dpaper:201114 Template-Type: ReDIF-Paper 1.0 Author-Name: Aleli Kraft Author-Name-First: Aleli Author-Name-Last: Kraft Author-Email: adpkraft@econ.upd.edu.ph Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Paul Mariano Author-Name-First: Paul Author-Name-Last: Mariano Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Samuel Kault Author-Name-First: Samuel Author-Name-Last: Kault Author-Workplace-Name: School of Population Health, The University of Queensland Author-Name: Eliana Jimenez-Soto Author-Name-First: Eliana Author-Name-Last: Jimenez-Soto Author-Workplace-Name: School of Population Health, The University of Queensland Author-Name: Kim-Huong Nguyen Author-Name-First: Kim-Huong Author-Name-Last: Nguyen Author-Workplace-Name: School of Population Health, The University of Queensland Title: Philippines Equity Report : Investment Case for Financing Equitable Progress towards MDGs 4 and 5 in the Asia-Pacific Region Abstract: This report presents a comprehensive analysis of inequities in child mortality and intervention coverage in the Philippines. A lack of maternal, newborn and child health (MNCH) equity analysis in recent years has led to a substantive gap in the literature. Responding to this, we use the best available country data and the most advanced methods to investigate the levels and distribution of, and the trends in, both MNCH mortality and intervention coverage. The findings shed light on inequities between rural and urban populations, and between different ethnic groups, development regions and wealth quintiles. Analyses of mortality over time allow the backtrack of mortality progress, enabling the evaluation of past policies' influences on reducing health inequity and of the appropriateness of current and potential future policy. Hence, this Equity Report aims to constitute a milestone for MNCH equity analyses in the Philippines... Length: 81 pages Creation-Date: 2011-12 Publication-Status: Published as UPSE Discussion Paper No. 2011-15, December 2011 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/683/149 Number: 201115 Handle: RePEc:phs:dpaper:201115