Template-Type: ReDIF-Article 1.0 Author-Name: Lorna E. Amrinto Author-Workplace-Name: Economics Department, University of San Carlos Author-Name: Hector O. Zapata Author-Workplace-Name: Louisiana State University, USA Title: A semiparametric assessment of export-led growth in the Philippines Abstract: The export-led growth (ELG) hypothesis for the Philippines is examined by adopting a semiparametric approach under two levels of temporal aggregation. To assess the impact of model specification on the ELG hypothesis, parametric and semiparametric error-correction models (ECMs) are estimated using Philippine annual and quarterly data on gross domestic product (GDP), exports, exchange rates, and gross fixed-capital formation, focusing on the role of exchange rates. The causal relationship between exports and economic growth is examined using the Granger-causality procedure. It can be concluded that for the Philippines, the ELG hypothesis is (a) sensitive to model specification and (b) affected by different levels of temporal aggregation and by the inclusion or exclusion of exchange rates. The general results on bidirectional causality between exports and economic growth suggest that the Philippines could enjoy economic prosperity by strengthening its trade and investment policy and gearing it toward opening up the economy. Classification-JEL: B41, C12, C13, C14, C32, F43 Keywords: export-led growth, semiparametric error-correction model, Granger causality Journal: Philippine Review of Economics Pages: 1-22 Volume: 43 Issue: 2 Year: 2006 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/246/606 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:43:y:2006:i:2:p:1-22 Template-Type: ReDIF-Article 1.0 Author-Name: John Michael Ian S. Salas Author-Workplace-Name: University of the Philippines School of Economics Title: The BSP’s monetary policy reaction function from 1992 to 2003 Abstract: This paper attempts to empirically determine the Philippine central bank’s recent monetary policy stance before and after it adopted the inflation-targeting framework, as revealed by its interest-rate setting behavior. Employing Clarida, Galí, and Gertler’s [1998, 2000] forward-looking model, it finds that the Bangko Sentral ng Pilipinas (BSP) has indeed been stabilizing inflation by and large through its key policy rate, although it appears to be accommodative with respect to the output gap. In addition, currency stability and expansionary money supply (M1) growth are other concerns of the BSP, although significantly so only in earlier periods. Classification-JEL: E52, E58 Keywords: inflation targeting, Taylor rule, monetary policy reaction function, stabilization, interest-rate setting Journal: Philippine Review of Economics Pages: 23-48 Volume: 43 Issue: 2 Year: 2006 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/247/609 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:43:y:2006:i:2:p:23-48 Template-Type: ReDIF-Article 1.0 Author-Name: Assad L. Abdullah Baunto Author-Workplace-Name: Peace and Economic Development in Mindanao Consulting, Inc. Title: Stereotypic wage and accentuation effect Abstract: The paper extends the work of Akerlof and Kranton [2004] on social identity and economics of organization to an adverse selection framework. The inclusion of social identity in the principal’s problem alters the contracts offered to the agents. A pooling contract is a Pareto optimal contract when the agent attaches greater weight on conformity to ideal behavior prescribed by group membership. Precisely how this pooling contract is characterized depends on the ideal behavior of the agent. This result is generalized when social interaction and social influence among members of different groups are allowed. Using the concept of accentuation effect in social psychology, the model provides theoretical justifications for the existence of a representative (or stereotypic) wage for a given social category. Classification-JEL: J41, Z13 Keywords: stereotypic wage, accentuation effect, adverse selection Journal: Philippine Review of Economics Pages: 49-74 Volume: 43 Issue: 2 Year: 2006 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/248/610 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:43:y:2006:i:2:p:49-74 Template-Type: ReDIF-Article 1.0 Author-Name: Lorelei Crisologo Mendoza Author-Workplace-Name: Department of Economics and Political Science, College of Social Sciences, University of the Philippines Baguio Author-Name: Lodewijk Berlage Author-Workplace-Name: Faculty of Economics and Applied Economics, Catholic University of Leuven, Belgium Title: Bargaining in rural households : a study of decisions on labor market participation in the Cordillera Abstract: In this paper we derive testable implications of a unitary farm household model and a non-unitary, i.e., bargaining, model. In the unitary household model the impact of spouse-specific resources and nonlabor income on household decisions should not be different from the model where the resources and nonlabor income are common to the household. In a bargaining model we expect to find impact of spouse-specific resources and nonlabor income. Our empirical tests are based on a small survey of households in the Cordillera region of Northern Luzon (Philippines). In this region each spouse retains specific rights on her or his inherited land, although within marriage this land is treated as part of the household farm. Inherited land is a truly exogenous variable, which we use as the indicator of bargaining power. We perform probit regressions in which the spouses’ inherited land is a determinant of the probability that a husband or wife participates in the labor market. The statistical results provide some evidence of impact of spouse-specific resources on labor market participation decisions, and thus cast doubt on the unitary farm household model. They are compatible with the bargaining model of household behavior. Classification-JEL: Q12, J22, D13 Keywords: inherited land, farm household, intrahousehold labor allocation Journal: Philippine Review of Economics Pages: 75-99 Volume: 43 Issue: 2 Year: 2006 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/249/611 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:43:y:2006:i:2:p:75-99 Template-Type: ReDIF-Article 1.0 Author-Name: Helen Cabalu Author-Workplace-Name: John Curtin Institute of Public Policy, Curtin University, Perth, Western Australia Author-Name: Peter Kenyon Author-Workplace-Name: Curtin University, Perth, Western Australia Author-Name: Paul Koshy Author-Workplace-Name: John Curtin Institute of Public Policy, Curtin University, Perth, Western Australia Author-Name: Nick Wills-Johnson Author-Workplace-Name: Planning and Transport Research Center, Curtin University, Perth, Western Australia Title: Governance structures for competition policy : a case study of the Philippines Abstract: Competition policy has become one of the key elements of national economic policy in many countries around the world. This is due to the important role that competition plays in ensuring that markets efficiently produce goods and services that best meet evolving consumer demands. This paper explores the rationale for a comprehensive competition policy and sets out the principles of governance and a suggested governance structure that would deliver an effective competition policy in the Philippines. It also explores the difficulties in implementing competition policy in a developing country where public policy governance structures are not well resourced. Classification-JEL: H11, D02, O12, O53 Keywords: competition policy (Philippines), institutional design, political economy, impediments to competition policy Journal: Philippine Review of Economics Pages: 101-114 Volume: 43 Issue: 2 Year: 2006 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/250/607 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:43:y:2006:i:2:p:101-114 Template-Type: ReDIF-Article 1.0 Author-Name: Karl Kendrick T. Chua Author-Workplace-Name: World Bank Title: Legislating regulation for the Philippine HMO industry Abstract: This paper examines the process of legislating regulation for the Philippine health maintenance organization (HMO) industry. It particularly looks at how interest groups compete with each other and attempt to influence legislation of the regulation law. We find that a substantial number of government agencies and private organizations, principally the Association of Health Maintenance Organizations of the Philippines Inc. (AHMOPI), lobbied for or influenced legislation. The result of lobbying, “The HMO Act of 2003”, appears to be a compromise settlement among the interest groups, with the association taking the biggest slice of the pie. Classification-JEL: I18, L51 Keywords: regulation, HMO, capture Journal: Philippine Review of Economics Pages: 115-126 Volume: 43 Issue: 2 Year: 2006 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/251/608 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:43:y:2006:i:2:p:115-126