Template-Type: ReDIF-Article 1.0 Author-Name: Maria Socorro Gochoco-Bautista Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Savings, Investment and Capital Mobility Abstract: This study exploits the relationship between savings and investment implied by a country's intertemporal budget constraint to measure the degree of capital mobility. In particular, if savings and investment are cointegrated, there is an error correction model which describes the shortrun dynamic behavior of savings and investment. If the degree of capital mobility is greater, we would expect the dynamic responses of savings and investment to shocks to be larger. Using annual data for the Philippines from 1946-1994, the study's findings are largely consistent with the hypothesis that capital mobility increased in the post-Bretton Woods period. The only finding that is not supportive of this is that which shows the contribution of US shocks to the variance of the forecast errors of Philippine saving and investment declining in the post-Bretton Woods period. Journal: Philippine Review of Economics Pages: 1-17 Volume: 32 Issue: 1 Year: 1995 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/114/478 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:32:y:1995:i:1:p:1-17 Template-Type: ReDIF-Article 1.0 Author-Name: Bernadette E. Phelan Author-Workplace-Name: Keio University, Tokyo, Japan Title: Japanese ODA and Private Sector Development in the Philippines and Thailand: A Comparative Analysis Abstract: After a long spell of support for the Keynesian approach of demand management by the public sector, official development assistance (ODA) has recently been used to promote greater participation in development through increased access of long-term funds by the private sector on projects highly supportive of building up local initiative. In this paper, the experiences of Thailand and the Philippines in the use of Japanese ODA are reviewed. In particular, the implementation of the two-step loan program (or formally called Financial Intermediary Loan Program) of the Overseas Economic Cooperation Fund (OECF) of Japan in the two countries is compared. The two-step loan program is intended to funnel long-term credits to small entrepreneurs, such as small- and medium-scale export-oriented businesses, including small farmers and agricultural cooperatives. The primary purpose of this study is to present the role of ODA in the development of the private sector and hence, partially explain the distinct difference in the two countries' economic performance. The paper also uses unpublished official data which were obtained from the interviews conducted. Journal: Philippine Review of Economics Pages: 18-49 Volume: 32 Issue: 1 Year: 1995 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/116/481 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:32:y:1995:i:1:p:18-49 Template-Type: ReDIF-Article 1.0 Author-Name: Niceto S. Poblador Author-Workplace-Name: Professor of Management, University of the Philippines Mindanao Title: The Theory of Discretionary Behavior: Implication for Business and Educational Administration Abstract: Drawing on insights from organizational economics, this paper attempts to explain certain bureaucratic phenomena that have long been outside the purview of economics. It shows that "rational" behavior on the part of the various groups in economic organizations such as business firms and educational institutions preclude the attainment of the traditional goal of profit maximization. The inescapable conclusion is that the analysis of organizational behavior and, indeed, the very notion of optimality of the firm, requires more complex objective functions than what we have long been accustomed to. Journal: Philippine Review of Economics Pages: 50-64 Volume: 32 Issue: 1 Year: 1995 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/117/479 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:32:y:1995:i:1:p:50-64 Template-Type: ReDIF-Article 1.0 Author-Name: Raul V. Fabella Author-Workplace-Name: Professor of Economics, School of Economics, University of the Philippines Diliman Title: Risk Sharing and Layoff Risk in Profit Sharing Abstract: We show that if the employer is risk averse, however slightly, there is always a profit sharing contract that will Pareto-dominate the spot wage contract in the sense of pure risk sharing. The smaller is the employer risk aversion, the narrower is the room for profit sharing. The higher the workers value employment stability (less layoff risk), the more Pareto attractive is profit sharing regardless of employer risk aversion. Journal: Philippine Review of Economics Pages: 65-78 Volume: 32 Issue: 1 Year: 1995 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/118/477 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:32:y:1995:i:1:p:65-78 Template-Type: ReDIF-Article 1.0 Author-Name: Eduardo T. Gonzales Author-Workplace-Name: Fellow, Development Academy of the Philippines Title: Do Income Differentials Influence the Flow of Migrant Workers from the Philippines? Abstract: The emigration of Filipino workers is explained with an "international" variant of Harris-Todaro migration mode for developing countries. It is hypothesized that the decision to emigrate is the function of the expected income differential between the origin and destination countries, net of moving costs (intermediation expense, transportation costs). Using a log-linear emigration function and employing data from the 1988 Philippine national demographic survey, regression results suggest that the higher the income differential (and the lower the moving costs), the higher the tendency to emigrate. In order to stem the flow of Filipino technical and professional workers and avoid critical shortages in the supply of skills and services, an appropriate policy choice is to provide subsidy-financed incentives that would require "keying" wages to concrete performance standards at the firm level, That should spur a "newly-industrializing" type of growth—which is the key to minimizing serious imbalances in economic opportunities between the Philippines and other countries. Journal: Philippine Review of Economics Pages: 79-97 Volume: 32 Issue: 1 Year: 1995 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/119/480 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:32:y:1995:i:1:p:79-97 Template-Type: ReDIF-Article 1.0 Author-Name: Michael M. Alba Author-Workplace-Name: Assistant Professor of Economics, School of Economics, University of the Philippines Diliman, and Project Research Associate, DAP-LAKASS Program Assessment, respectively Author-Name: Anne Rose D. Cabuang Author-Workplace-Name: Assistant Professor of Economics, School of Economics, University of the Philippines Diliman, and Project Research Associate, DAP-LAKASS Program Assessment, respectively Title: Who Recieves Which Types of LAKASS Interventions in Abra? Abstract: Using data on 162 household beneficiaries of the Lalakas ang Katawang Sapat sa Sustansiya (LAKASS) program in Abra, we estimate an ordered probit model to explore the associations between the type of interventions received by these households and their socioeconomic and demographic characteristics. Our results show that the degree of LAKASS interventions received may be systematically identified by the ages of the wife and the undernourished child, the occupation of the husband, and the income class of the household. Moreover, analysis of the marginal effects of these variables suggests that poorer families as well as those with younger children and mothers, all of whom are likely to need more assistance, did tend to receive more from the LAKASS program. Journal: Philippine Review of Economics Pages: 98-114 Volume: 32 Issue: 1 Year: 1995 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/120/482 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:32:y:1995:i:1:p:98-114