Template-Type: ReDIF-Article 1.0 Author-Name: Harry T. Oshima Author-Workplace-Name: University of the Philippine School of Economics Author-Name: Elizabeth de Borja Author-Workplace-Name: University of the Philippine School of Economics Author-Name: Wilhelmina Paz Author-Workplace-Name: University of the Philippine School of Economics Title: Rising National Income Per Worker and Falling Real Wages in the Philippines in the 1970s Abstract: One of the unsettled issues in Philippine economic development is the decline in real wages per worker while GNP/national income per Worker was rising, This divergence in the Philippines is unusual in the postwar experience of Asia as in both Taiwan and South Korea, growth was accompanied by rising real wages in agriculture and industry, even when there was considerable unemployment. The paper is divided into two sections. In the first part, the statistics of national product and real wages are discussed. In the second part, three hypotheses are examined. The first deals with the labor supply side, the second with labor demand and the last is about prices and money supply aspects. High underemployment rates in the ’70s coupled with the rapid growth of the labor force due to relatively high population growth rates and increasing labor force participation rates especially of women may have exerted a downward pressure on real wages. This was aggravated by the slow growth of productivity per worker in the agricultural sector. On the other hand, the urban-industrial sector did not perform as expected and failed in terms of employment generation to some extent due to government policies which were largely distortionary, Although some degree of growth was achieved, it was not as impressive compared to that of other Asian countries and was attained at the expense of labor. Journal: Philippine Review of Economics Pages: 151-190 Volume: 23 Issue: 3&4 Year: 1986 Month: September & December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/download/314/374 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:23:y:1986:i:3&4:p:151-190 Template-Type: ReDIF-Article 1.0 Author-Name: Gwendolyn R. Tecson Author-Workplace-Name: University of the Philippines Title: Nontraditional Markets for Philippine Exports Abstract: The study analyzes the pattern of diversification of Philippine export flows over the last two decades as a clue to the problem of export expansion. Coefficients of concentration show a marked diversification in both geographic and commodity structures of Philippine export trade. In particular there is found a ‘healthy’ shift away from traditional markets and towards non-traditional ones, including those of developing countries. Moreover, the commodity structure of the country’s manufactured exports is seen to follow the general pattern of labor-intensity suggested by factor proportions theory, a pattern that is found to be reinforced over time. The findings are then interpreted in terms of their implications on policymaking for export expansion, particularly of Philippine manufactured products. Journal: Philippine Review of Economics Pages: 191-242 Volume: 13 Issue: 3&4 Year: 1986 Month: September & December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/download/315/379 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:13:y:1986:i:3&4:p:191-242 Template-Type: ReDIF-Article 1.0 Author-Name: Joseph Lim Author-Workplace-Name: University of the Philippines, School of Economics Author-Name: Carlos Bautista Author-Workplace-Name: University of the Philippines School of Economics Title: The Impact of Income Redistribution on the Composition of Output Demand Abstract: This study employed the 1979 Input-Output Table, the 1975 Family Income and Expenditures Survey, and the National Income Accounts of 1979 to study the effect of income redistribution on the composition of output demand. It was hoped that a significant amount of redistribution from the rich to the poor could make the whole economy less import-dependent and more labor-intensive. The results, however, did not come up to expectations. The positive effects on exports, labor-intensiveness and balance of trade were rniniscule, if any. To explain the study’s results the authors have put forward the following reasons, namely: 1) the static nature of the input-output framework that precludes dynamic and structural changes on backward and forward linkages in the economy; 2) the offsetting effects of a rise in the demand for industrial import-dependent goods as low income groups rise up in stature; and 3) the assumption that investment demands are not affected by income redistribution and changes in output demand. Journal: Philippine Review of Economics Pages: 243-273 Volume: 23 Issue: 3&4 Year: 1986 Month: September & December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/download/316/378 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:23:y:1986:i:3&4:p:243-273 Template-Type: ReDIF-Article 1.0 Author-Name: Florian Alburo Author-Workplace-Name: National Economic Development Authority and University of the Philippines Author-Name: Dante Canlas Author-Workplace-Name: University of the Philippines Title: Balance of Payments, Output and the IMF Abstract: The paper presents a historical sketch of the various arrangements between the Philippine government and the IMF. It then tries to quantify the output effects of the IMF’s financial programming techniques using a Lucas-Barro type output equation. The model’s estimate of the decline in output for 1984 and 1985 arising from unanticipated money alone is 7 per cent. The actual decline was 9 per cent. Journal: Philippine Review of Economics Pages: 275-292 Volume: 23 Issue: 3&4 Year: 1986 Month: September & December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/download/317/375 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:23:y:1986:i:3&4:p:275-292 Template-Type: ReDIF-Article 1.0 Author-Name: Panfila Ching Author-Workplace-Name: UP School of Economics Title: Public Provision and Demand for Health Services: A Case Study of Bicol Abstract: This study describes the distribution of health subsidies across income groups and the use of health facilities. The first part derives empirical results using a proposed methodology based on the Meerman procedure. The second employs various estimation procedures and provides econometric analyses of the factors behind the use of public facilities. The data set is culled from the 1978 Bicol Multipurpose Survey. The two parts of this study are seen to be actually related. The first part investigates how the utilization of facilities is distributed across income groups; the rationale for this view is that the distribution of bene?ts from health facilities is ultimately determined by the distribution of utilization or frequency of visits to the facilities. What determines this frequency is the concern of the second part. From the first part, one learns that income is not a barrier to access to public health care. Public facilities, in general, did not discriminate against the poor. The second part shows that costs -- whether money or time — did not deter the use of health facilities. Families are found to be responsive to the relative money prices of facilities. While most of the facilities are complements, some are clearly substitutes, e.g., the hilot and puericulture center. Health planners would thus have to continue figuring out how public facilities can establish themselves effectively in a competitive environment. Journal: Philippine Review of Economics Pages: 293-322 Volume: 23 Issue: 3&4 Year: 1986 Month: September & December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/download/318/377 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:23:y:1986:i:3&4:p:293-322 Template-Type: ReDIF-Article 1.0 Author-Name: Benjamin E. Diokno Author-Workplace-Name: University of the Philippines and Office of the Budget and Management 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 1961-1 973, 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 in 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 of 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 progressivity 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; (In) 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 l959, 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. Journal: Philippine Review of Economics Pages: 323-339 Volume: 23 Issue: 3&4 Year: 1986 Month: September & December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/download/319/376 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:23:y:1986:i:3&4:p:323-339