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Effects of Increasing Agricultural Productivity in a Multisectoral Model for the Philippines

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  • Romeo M. Bautista

Abstract

This paper investigates empirically the economy‐wide effects of agricultural productivity increases in the Philippines, reporting the results of a quantitative analysis based on a general equilibrium framework. A multisectoral, price endogenous model of the Philippine economy is employed, emphasizing not only agriculture but also other production sectors with which it closely interacts, as well as the distinction between rural and urban households in their income generation and consumption patterns. Among other findings, the differential effects on the real income of rural households vis‐a‐vis urban households arising from increased productivity in the various components of the agricultural production sector are striking. The resulting improvements in the trade balance and national income, among other macroeconomic variables, are also relatively significant. Moreover, there are significant differences in the economy‐wide effects among the four sectors of food and agriculture distinguished in the study. Particularly interesting is the highly favorable impact of rising productivity in the food processing sector on agricultural crop production and rural income, a linkage effect that has not received much attention in the development literature.

Suggested Citation

  • Romeo M. Bautista, 1986. "Effects of Increasing Agricultural Productivity in a Multisectoral Model for the Philippines," Agricultural Economics, International Association of Agricultural Economists, vol. 1(1), pages 67-85, December.
  • Handle: RePEc:bla:agecon:v:1:y:1986:i:1:p:67-85
    DOI: 10.1111/j.1574-0862.1986.tb00006.x
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    Cited by:

    1. Coxhead, Ian A. & Warr, Peter G., 1991. "Poverty and Welfare Effects of Technical Change: A General Equilibrium Analysis for Philippine Agriculture," 1991 Conference (35th), February 11-14, 1991, Armidale, Australia 145558, Australian Agricultural and Resource Economics Society.
    2. Paul Terhemba Iorember & Gylych Jelilov, 2018. "Computable General Equilibrium Analysis of Increase in Government Agricultural Expenditure on Household Welfare in Nigeria," African Development Review, African Development Bank, vol. 30(4), pages 362-371, December.
    3. Manuel Montes, 2018. "Six development paths in Southeast Asia: Three plus three," WIDER Working Paper Series 94, World Institute for Development Economic Research (UNU-WIDER).
    4. Manuel F. Montes, 2018. "Six development paths in Southeast Asia: Three plus three," WIDER Working Paper Series wp-2018-94, World Institute for Development Economic Research (UNU-WIDER).
    5. Centeno, Maria Luz N., 2000. "Deforestation In The Philippines: A Cge Modelling Approach," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123619, Australian Agricultural and Resource Economics Society.
    6. Gunawardena, Aruni, 2012. "Effects of Increasing Agricultural Productivity: A Computable General Equilibrium Analysis for Sri Lanka," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124313, Australian Agricultural and Resource Economics Society.

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