Template-Type: ReDIF-Article 1.0 Author-Name: Dani Rodrik Author-Workplace-Name: Harvard University Title: What next after hyper-globalization and export-oriented industrialization? Abstract: This paper delves into the evolving landscape of the global economy and its implications for countries like the Philippines. It explores the emerging paradigms that are reshaping economic policies worldwide. Traditionally, economic policies were anchored domestically in exportoriented industrialization models for rapid economic growth. However, the efficacy of this model is waning in the face of technological advancements and changing global dynamics. The hyper-globalization era, marked by financial integration and expanding free trade agreements, prioritized global competition over national interests. But geopolitical tensions, particularly between the US and China, are disrupting the notion of deep economic integration that was once deemed normal. Amidst these shifts, the paper envisions three potential scenarios: a 1930s-style collapse of the world economy (bad), increased weaponization of interdependence and rising geopolitical conflicts (ugly), and a better balance between domestic political autonomy and global integration, fostering a conducive environment for reconstructing national social contracts (good). The paper proposes a shift towards a different economic model focusing on the creation of “good jobs”, characterized by productivity levels that enable the creation of a middle class. These are expected to predominantly emanate from the services sector, particularly non-tradable services. This paper offers some insights for policymakers and stakeholders navigating through these transformative times. As the world economy undergoes profound changes, embracing new approaches and an experimental mindset become imperative for charting a sustainable path forward. Classification-JEL: F6, F15, O14, O25 Keywords: economic integration, hyper-globalization, good jobs, industrial policy Journal: Philippine Review of Economics Pages: 1-7 Volume: 61 Issue: 1 Year: 2024 Month: June File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/1047/972 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:61:y:2024:i:1:p:1-7 Template-Type: ReDIF-Article 1.0 Author-Name: Rafaelita Aldaba Author-Workplace-Name: Department of Trade and Industry Title: Philippine industrial policy journey: transforming the economy in the new digital age Abstract: This paper examines the Philippines’ evolving industrial policy in light of the accelerated digital transformation catalyzed by the COVID-19 pandemic. The pandemic laid bare vulnerabilities in supply and value chains, prompting a shift towards adopting Fourth Industrial Revolution or Industry 4.0 technologies. As the country prepares for the new digital age, implementing a new strategy is imperative to build a more competitive economy. The new science, technology, and innovation (STI)-driven industrial policy leverages Industry 4.0 to support digital transformation and enhance resilience, agility, and productivity. This necessitates integrating the country’s production systems across manufacturing, agriculture, and services. The new industrial strategy focuses not only on advancing manufacturing but also on its convergence with services and agriculture, embracing “mindfacturing”—a pathway that integrates intellectual work, creativity, and innovation into modern manufacturing. To achieve this, it is crucial to accumulate investments and STI capabilities while transforming industries to increase the share of STI-driven sectors in GDP. Aligning the Strategic Investment Priority Plan of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act with STI-driven initiatives is essential for driving industrialization and economic recovery. Sustaining the momentum of digital transformation efforts requires a more permanent budget allocation. Additionally, implementing the Philippine Industry Skills Framework is necessary to equip the workforce with futureready skills. Nationwide establishment of Regional Inclusive Innovation Centers (RIICs) is also recommended to foster collaboration among stakeholders in innovation and entrepreneurship ecosystems. These centers will address societal issues and industry challenges through market-oriented research, facilitating the translation and commercialization of innovations into products and services. Classification-JEL: L5, O2, O14 Keywords: industrial policy, digital age, Philippine industry Journal: Philippine Review of Economics Pages: 8-43 Volume: 61 Issue: 1 Year: 2024 Month: June File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/1048/973 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:61:y:2024:i:1:p:8-43 Template-Type: ReDIF-Article 1.0 Author-Name: Eloisa T. Glindro Author-Workplace-Name: Bangko Sentral ng Pilipinas Author-Name: Rodalee E. Ofiaza Author-Workplace-Name: Bangko Sentral ng Pilipinas Author-Name: Ma. Klarizza Q. Jose Author-Workplace-Name: Bangko Sentral ng Pilipinas Title: Nexus between payments digitalization and cash usage in the Philippines Abstract: Innovative contactless payment technologies are transforming retail payments, suggesting a gradual decline in cash use, particularly in advanced economies with an early start on digitalization. In the Philippines, preliminary analysis indicates some substitution from cash to digital payments, albeit not on a large scale yet. While the remarkable inroads in retail payments digitalization and demographics are expected to bring about a behavioral shift in cash usage, the pace and extent of substitution are contingent on policy reforms aimed at widening access to affordable digital payment services, secure digital infrastructure, and privacy protection, among others. More granular data would help inform strategies for equitable and safe payment choices, enabling consumers to securely access and freely choose from diverse and affordable payment options that suit their needs. Thus, it is vital for cash and digital payment infrastructures to adapt and uphold consumer payment choice. Classification-JEL: C20, E42, E58, O33 Keywords: central banking, payments digitalization, cash demand, ordinary least squares Journal: Philippine Review of Economics Pages: 44-70 Volume: 61 Issue: 1 Year: 2024 Month: June File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/1049/974 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:61:y:2024:i:1:p:44-70 Template-Type: ReDIF-Article 1.0 Author-Name: Ma. Christina Epetia Author-Workplace-Name: Independent researcher Title: Claudia Goldin and the economics of women and work Abstract: Claudia Goldin won the 2023 Nobel Memorial Prize in Economic Sciences “for having advanced our understanding of women’s labor market outcomes.” Wielding her expertise in economic history and labor economics, she produced the first comprehensive account of the evolution of women’s labor supply and earnings in a span of 200 years. While recognizing the role of discrimination, Goldin is known for exploring alternative drivers of the gender gap by using the lens of education, fertility, parenthood, social norms, institutional change, and women’s aspirations and identity. Her body of work was key for the study of women’s labor market outcomes—a subject that had been largely overlooked—to enter mainstream economics. This paper highlights Goldin’s major contributions to economics as a field and influence on policy research. Classification-JEL: J16, N3 Keywords: Nobel Prize, gender gap, labor supply, earnings Journal: Philippine Review of Economics Pages: 71-86 Volume: 61 Issue: 1 Year: 2024 Month: June File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/1050/975 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:61:y:2024:i:1:p:71-86 Template-Type: ReDIF-Article 1.0 Author-Name: Jude Esguerra Author-Workplace-Name: Independent researcher Title: Book Review of Agricultural development in Asia and Africa: essays in honor of Keijiro Otsuka Abstract: This compendium, spanning 27 chapters, traverses the diverse landscapes of Asia and Africa and journeys back to the inception of the Green Revolution in the 1960s. It delves into comparative research across specific contexts and forwards some of the most insightful and less obvious knowledge produced in development economics. The editors and authors, all of whom have collaborated with Keijiro Otsuka, have collectively authored over four hundred papers. Professor Otsuka’s collaborative research approach stands as a testament to his leadership and has enabled contributions to a broad spectrum of knowledge areas—not only concerning the Green Revolution and agriculture, but also state capacities, entrepreneurship, small- and medium-scale industries, and foreign investments. Classification-JEL: Keywords: book review, otsuka Journal: Philippine Review of Economics Pages: 87-93 Volume: 61 Issue: 1 Year: 2024 Month: June File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/1051/976 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:61:y:2024:i:1:p:87-93