Template-Type: ReDIF-Article 1.0 Author-Name: Ma. Rowena M. Cham Author-Email: Author-Workplace-Name: Asian Development Bank Author-Name: Dante B. Canlas Author-Email: Author-Workplace-Name: University of the Philippines School of Economics Title: Notes on Philippine economic growth and its sources Abstract: The review uses insights from the Solow growth model and endogenous growth theory to interpret Philippine economic growth since the 1950s. For five decades after World War II, total factor productivity growth (TFP) was low, thereby accounting for the country’s uneven growth performance. In the first decade of the 21st century, TFP growth gained strength, a finding that suggests the need to further investigate the factors behind the increase. Classification-JEL: O47 Keywords: growth accounting, total factor productivity Journal: Philippine Review of Economics Pages: 1-14 Volume: 45 Issue: 1 Year: 2008 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/209/658 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:45:y:2008:i:1:p:1-14 Template-Type: ReDIF-Article 1.0 Author-Name: Ponciano S. Intal, Jr. Author-Email: Author-Workplace-Name: De La Salle University and De La Salle University-Angelo King Institute Author-Name: Ponciano S. Intal, Jr. Author-Email: Author-Workplace-Name: De La Salle University and De La Salle University-Angelo King Institute Author-Name: Ponciano S. Intal, Jr. Author-Email: Author-Workplace-Name: De La Salle University and De La Salle University-Angelo King Institute Title: Sustaining the Philippine manufacturing sector Abstract: The Philippine manufacturing sector is an anomaly in East Asia’s economic development experience in that it fails to provide the dynamic growth push the successful East Asian economies experienced. After undergoing a wrenching adjustment in the 1990s and early 2000s, the sector is likely to experience robust growth from impulses from other sectors of the economy and as its industrial restructuring process deepens and widens to industries and niches in which the country has comparative advantage. In the process, the sector contributes to broad-based growth in the country, the first ever in its post-World War II economic history. In this scenario, the country’s manufacturing sector will be essaying a model of manufacturing sector–overall economy interaction different from the historical experience of most East Asian economies. This scenario would demand improvement in the country’s investment climate, requiring not only economic and institutional reforms but also political reforms. Classification-JEL: E62, H83, J24, L60 Keywords: manufacturing, labor productivity, economic development Journal: Philippine Review of Economics Pages: 15-48 Volume: 45 Issue: 1 Year: 2008 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/210/663 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:45:y:2008:i:1:p:15-48 Template-Type: ReDIF-Article 1.0 Author-Name: Cyrus Paolo M. Buenafe Author-Email: Author-Workplace-Name: Hewlett-Packard Company Title: Determining the best evolution path for export industries using product spaces Abstract: A deterministic method was developed in finding the best evolution path through which a country’s particular export industry will evolve into another export industry. The problem was framed as a shortest-path problem particularly known in graph theory literature. A concept on a typical probability graph was defined and a shortest-path algorithm was formulated for this purpose. The data used by Hidalgo et al. [2007] were used and reconstructed using the probability graph concept to derive the maximum joint probability path of export industry evolution given an originating export industry and a target export industry. Classification-JEL: A12, C63, O21 Keywords: product space, graph theory, shortest path, industry evolution Journal: Philippine Review of Economics Pages: 49-56 Volume: 45 Issue: 1 Year: 2008 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/211/660 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:45:y:2008:i:1:p:49-56 Template-Type: ReDIF-Article 1.0 Author-Name: Arturo C. Boquiren Author-Email: Author-Workplace-Name: College of Social Science, University of the Philippines-Baguio Title: Validating policy prescription from benefit-cost assessments of mining through comparative analysis and test of hypotheses Abstract: The paper proposes that benefit-cost analyses of mining be validated by comparative analyses and tests of hypotheses. Mining and nonmining communities can be compared to assess the contribution of mining to development. Further, tests of hypotheses can be used to determine whether mining communities are significantly different from nonmining communities in terms of poverty rates, health indicators, education, and other social indicators. Applying the said techniques in Benguet, Northern Philippines, the author found that mining communities, despite several years of mining operations, are not significantly different from nonmining communities. Data also suggest that in communities where corporate mining operates as in Benguet, poverty incidence is higher—not lower. This implies that we need to review the Philippine government’s policy of promoting mining as an engine of economic growth. The paper proposes that we explore economic strategies that enhance environmental protection at the same time. Classification-JEL: O47 Keywords: mining, benefit-cost analysis, comparative analysis, test of hypothesis Journal: Philippine Review of Economics Pages: 57-68 Volume: 45 Issue: 1 Year: 2008 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/212/661 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:45:y:2008:i:1:p:57-68 Template-Type: ReDIF-Article 1.0 Author-Name: Hyun H. Son Author-Email: preauthor@econ.upd.edu.ph Author-Workplace-Name: Asian Development Bank Title: The role of labor market in explaining growth and inequality in income : the Philippines’ case Abstract: This paper analyses the relationship between growth and inequality of household income in the Philippines, focusing on the role played by the labor market. It proposes a decomposition methodology that explores linkages between growth in income and labor market performances in terms of labor force participation, employment, work hours, and productivity. This paper introduces a methodology that shows a direct linkage between growth and inequality in income, and labor market characteristics. The paper provides empirical analysis using both the Family Income and Expenditure Survey (FIES) and the Labor Force Survey (LFS), covering the period 1997-2003. Classification-JEL: D3, D6, J2, J3, J7 Keywords: inequality, labor income, productivity, education, migration Journal: Philippine Review of Economics Pages: 69-92 Volume: 45 Issue: 1 Year: 2008 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/213/662 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:45:y:2008:i:1:p:69-92 Template-Type: ReDIF-Article 1.0 Author-Name: Amelia L. Bello Author-Workplace-Name: Department of Economics, College of Economics and Management (CEM), University of the Philippines Los Baños Author-Name: Roger M. Valientes Author-Workplace-Name: Department of Economics, College of Economics and Management (CEM), University of the Philippines Los Baños Title: Grade inflation : fact or myth? Abstract: Real grade inflation is the upward shift in grades without a similar rise in achievement (Kohn [2002]; Rosovsky and Hartley [2002]). It implies a decline in standards and obscures the role of grades as a signal of academic ability. Guskey [2003] believes that resolving the debate on grade inflation depends on clarifying the purpose/meaning of grades. Grades may be used either to discriminate among students or to reflect the degree to which students have learned. The research attempts to validate the presence of grade inflation in courses offered by the Department of Economics, University of the Philippines Los Baños. Using grades from 1986 to 2005, an upward trend is seen in 10 out of 18 courses. However, the source of this uptrend could not be exactly pinpointed. Further studies relating admission requirements, curricular changes, teaching evaluation/faculty complement, and mechanics of grading to the actual grades must be conducted. Classification-JEL: A10, A22 Keywords: grade inflation, grade standards Journal: Philippine Review of Economics Pages: 93-108 Volume: 45 Issue: 1 Year: 2008 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/214/664 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:45:y:2008:i:1:p:93-108 Template-Type: ReDIF-Article 1.0 Author-Name: Ronaldo D. Ico Author-Workplace-Name: University of the Philippines School of Economics Title: Catastrophic health care, poverty, and impoverishment in the Philippines Abstract: The paper attempts to describe catastrophic health spending and its impact on poverty in the Philippine setting. It focuses on the role of out-of-pocket payments for health care as a springboard for measuring the magnitude and analysing the extent of damage of catastrophic health expenditures. It also explores the scope and trends of health spending in terms of different socioeconomic indicators. More important, it delves into trends over time and among different income groups. It also employs several quantifiable measures and tools in determining the extent and intensity of “catastrophic” incidence to determine its effects on poverty. Lastly it looks into the state of impoverishment after incurring these payments. The results indicate that, in general, households that belong to higher income groups are more vulnerable to catastrophic health spending, while households from lower-income groups are more prone to impoverishment. Classification-JEL: I1, I3 Keywords: catastrophic health payments, health care, poverty, impoverishment Journal: Philippine Review of Economics Pages: 109-126 Volume: 45 Issue: 1 Year: 2008 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/215/665 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:45:y:2008:i:1:p:109-126 Template-Type: ReDIF-Article 1.0 Author-Name: Elizabeth S. Tan Author-Workplace-Name: Ateneo de Manila University Title: Regionalism in East Asia: the ASEAN +1 initiatives Abstract: Free trade agreements (FTAs) have been proliferating in Asia since the late '90s and show no sign of abating. The ASEAN +3 model should ideally serve as the starting point because of existing linkages in the real and monetary sectors. Nevertheless, what have emerged are six ASEAN +1 initiatives. Each of these initiatives covers similar areas of liberalization but progresses at different paces. The +6 countries have independently concluded FTAs with Singapore, which have built on their WTO commitments and moved on to difficult areas of liberalization. From 2004 onward, the +6 countries have started concluding bilateral FTA with each other and with the United States and the European Union. Classification-JEL: F15 Keywords: regionalism, FTAs, East Asia Journal: Philippine Review of Economics Pages: 127-138 Volume: 45 Issue: 1 Year: 2008 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/876/648 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:45:y:2008:i:1:p:127-138