Template-Type: ReDIF-Article 1.0 Author-Name: Jonna P. Estudillo Author-Email: jonna@grips.ac.jp Author-Workplace-Name: National Graduate Institute for Policy Studies, Minato-ku, Tokyo, Japan Author-Name: Yasuyuki Sawada Author-Workplace-Name: National Graduate Institute for Policy Studies, Minato-ku, Tokyo, Japan Author-Name: Keijiro Otsuka Author-Workplace-Name: National Graduate Institute for Policy Studies, Minato-ku, Tokyo, Japan Title: The determinants of schooling investments of rural Filipino households, 1985-2002 Abstract: This paper aims to investigate the demand-side factors affecting the schooling progression of Filipino children of school age, using household panel data collected over a span of 17 years. The following patterns emerge: (1) daughters complete more years of schooling than sons; (2) parental pro-daughter preferences become stronger when the children reach tertiary school age; (3) household permanent income significantly and positively affects schooling progression and its effect is far greater than that of transitory income; and (4) the effect of transitory income does not appear to be statistically significant. Our results are consistent with the theoretical implications of the educational investments of credit-constrained households. Classification-JEL: D13, O15 Keywords: gender, household income, child schooling Journal: Philippine Review of Economics Pages: 1-29 Volume: 41 Issue: 1 Year: 2004 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/164/590 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:41:y:2004:i:1:p:1-29 Template-Type: ReDIF-Article 1.0 Author-Name: Felipe M. Medalla Author-Email: felipe.medalla@up.edu.ph Author-Workplace-Name: University of the Philippines School of Economics Title: The economic impact of the demographic crisis : its implications on public policy Abstract: The Philippines is “over-populated” not in relation to its natural carrying capacity but in relation to the performance of its economy and government. Clearly, it would be better to improve the performance of the government and the economy than to just get government involved in fertility choices of households. However, given the history of the performance of both government and the economy, population policy can clearly help improve the nation’s welfare. Government must provide public goods and services, but its capability to deliver them is affected by population growth. Moreover, the impact of high fertility on government may be even more serious than suggested by the average level of total fertility rate since children’s education is closely correlated with their parents’ education, and poorer and less educated parents tend to have more children. Government’s ability to meet the needs of the population will clearly be improved if fertility can be brought down. Fertility can be reduced significantly without resorting to coercive policies. Poor and less educated parents have higher fertility than average, but their desired fertility is much lower than their actual fertility. Population policy can go a long way simply by helping people attain their desired family sizes. Classification-JEL: J13, J18 Keywords: demography, fertility, population policy Journal: Philippine Review of Economics Pages: 31-43 Volume: 41 Issue: 1 Year: 2004 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/165/587 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:41:y:2004:i:1:p:31-43 Template-Type: ReDIF-Article 1.0 Author-Name: Yu Hsing Author-Email: yhsing@selu.edu Author-Workplace-Name: College of Business and Technology, Southeastern Louisiana University, Hammond, Louisiana, USA Title: Monetary, fiscal and exchange rate policies and Philippine output : an application of IS-MP-AS model Abstract: The Philippine labor market is highly regulated and labor market policies tend to conform to standards of highly developed markets. The policies adopted by the government are geared more toward protecting the employed rather than promoting the overall employment of the labor force. These policies caused the country to veer off the path of labor intensive development in industrial enterprises and strengthened a powerful labor bureaucracy in the government. Side effects of the regulations and the culture surrounding the disposition of labor management issues encouraged rent-seeking and other motivational distortions in the behavior of labor when employed. The welfare policies as developed have contributed to the distortion in labor skill formation and the tendency to provide an increase of emoluments without any link to productivity growth. The balance between welfare and employment creation needs to be continually brought to the forefront. In undertaking reforms, productivity change needs to be placed in the center stage of reforms. Finally, the labor sector would find it in its interest to deal positively with the challenges of globalization. This means recognizing that labor market policies need to adjust to global competition. Furthermore, this emphasizes the need to accept that economic liberalization requires encouraging the growth of investments from all sources—including foreign direct investments. Such a route will create jobs and improve welfare for the working man. Classification-JEL: J38, J40 Keywords: monetary policy, government deficits and debt, currency depreciation, stock prices Journal: Philippine Review of Economics Pages: 45-55 Volume: 41 Issue: 1 Year: 2004 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/166/585 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:41:y:2004:i:1:p:45-55 Template-Type: ReDIF-Article 1.0 Author-Name: Hway-Boon Ong Author-Workplace-Name: Faculty of Management, Multimedia University, Selangor, West Malaysia Author-Name: Chin-Hong Puah Author-Workplace-Name: Faculty of Economics and Business, University of Malaysia Sarawak, East Malaysia Author-Name: Muzafar Shah Habibullah Author-Workplace-Name: Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia, Selangor, West Malaysia Title: Business cycles in the US and five ASEAN countries : are they related? Abstract: Given the inter-country linkages arising from technological advances in communication and transportation, this paper examines the interdependent relationships between the output of the world’s largest economy, the US, and those of five other ASEAN countries, namely, Indonesia, Malaysia, Philippines, Singapore and Thailand. Based on results of the augmented VAR of the Granger non-causality test, the paper finds a weak interdependence between the US and the five ASEAN countries, but a strong interdependence among the ASEAN countries. The empirical findings also revealed bidirectional causality among ASEAN countries especially Malaysia and Singapore. As such, every ASEAN country has to consider the economic developments and policies of other ASEAN countries as their decisions could affect one another. Classification-JEL: E32, O57 Keywords: Granger non-causality, augmented-VAR, MWald test, business cycles Journal: Philippine Review of Economics Pages: 57-66 Volume: 41 Issue: 1 Year: 2004 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/167/586 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:41:y:2004:i:1:p:57-66 Template-Type: ReDIF-Article 1.0 Author-Name: Mohammad Afzal Author-Workplace-Name: Department of Economics, Gomal University, D.I. Khan, Pakistan Title: Estimating saving and investment functions in Pakistan Abstract: This paper estimates simultaneously the saving and investment functions for Pakistan for the period 1960-2003. Compared with other Asian countries, Pakistan has not experienced adequate growth in national savings. Growth of real GDP, real per capita income, foreign capital inflow and investment are found to be the major determinants of savings. The findings support the “displacement hypothesis”. On the other hand, macroeconomic stability, inflation, availability of domestic credit, exchange rate, and foreign and national saving have been found to be the most crucial factors influencing the investment environment. Macroeconomic stability and the pursuit of sound macroeconomic policies can augment both saving and investment. Classification-JEL: E21, E22, O11 Keywords: saving, investment, macroeconomic policy Journal: Philippine Review of Economics Pages: 67-78 Volume: 41 Issue: 1 Year: 2004 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/168/588 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:41:y:2004:i:1:p:67-78 Template-Type: ReDIF-Article 1.0 Author-Name: A.F.M. Kamrul Hassan Author-Email: afmkamrulru@yahoo.com Author-Workplace-Name: Department of Finance and Banking, University of Rajshahi, Bangladesh Title: The impact of fiscal and monetary policies on nominal income in Bangladesh Abstract: The impact of the growth of fiscal and monetary policy variables on nominal GDP growth is examined. Two measures on the fiscal policy side, government expenditure and total tax revenue, and on the monetary policy side, monetary aggregate measures M1 and M2, are selected as explanatory variables. Growth rate of M1 is found to have a statistically significant impact on nominal GDP growth. On the fiscal policy side, the growth rate of the tax revenue is found to have some lagged effect on nominal income. Government expenditure and M2 growth do not have any statistically significant impact on nominal GDP growth. With respect to the cumulative effect, M1 is found to be a statistically significant variable affecting nominal GDP growth. Co-integration analysis shows that there is a long-run equilibrium relationship between M1 and nominal GDP growth. The findings of the study support the monetarists’ claim that growth in money supply has a statistically significant impact on nominal income growth. Classification-JEL: E52, E62 Keywords: fiscal policy, monetary policy, cointegration analysis Journal: Philippine Review of Economics Pages: 79-90 Volume: 41 Issue: 1 Year: 2004 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/169/591 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:41:y:2004:i:1:p:79-90