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Exploring the Philippine Economic Landscape and Structural Change Using the Input-Output Framework

Author

Listed:
  • Nedelyn Magtibay-Ramos
  • Gemma Estrada
  • Jesus Felipe

Abstract

This paper explores the degree of structural change of the Philippine economy using the input-output framework. It examines how linkages among economic sectors evolved over 1979–2000, and identifies which economic sectors exhibited the highest intersectoral linkages. We find that manufacturing is consistently the key sector in the Philippine economy. Specifically, resource-intensive and scale-intensive manufacturing industries exhibit the highest linkages. We also find a growing impact on the economy of private services and transportation, communication, and storage sectors, probably due to the globalization of these activities. Overall, however, the services sector exhibits lower intersectoral linkages than the manufacturing sector. We conclude that the Philippines cannot afford to leapfrog the industrialization stage and largely depend on a service-oriented economy when the potential for growth still lies primarily in manufacturing.

Suggested Citation

  • Nedelyn Magtibay-Ramos & Gemma Estrada & Jesus Felipe, 2010. "Exploring the Philippine Economic Landscape and Structural Change Using the Input-Output Framework," Economics Working Paper Archive wp_631, Levy Economics Institute.
    • Handle: RePEc:lev:wrkpap:wp_631
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    References listed on IDEAS

    as
    1. Jesus Felipe & Gemma Estrada, 2008. "Benchmarking developing Asia's manufacturing sector," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 7(2), pages 97-119, October.
    2. Tan, Rosalina P., 2004. "Prospects and Problems of Expanding Trade with Japan: A Survey of Philippine Exporters," Discussion Papers DP 2004-10, Philippine Institute for Development Studies.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Daryn Joy Go & Michael Angelo Promentilla & Kathleen Aviso & Krista Danielle Yu, 2019. "The Evolution of the Key Sectors in the Philippine Economy Using an AHP-Based Sector Prioritization Index," Economies, MDPI, vol. 7(3), pages 1-20, August.
    2. Richard Grabowski, 2015. "Economic strategy and agricultural productivity," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 17(2), pages 167-183, October.

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    More about this item

    Keywords

    Input-Output Analysis; Linkage Index; Multiplier Product Matrix; Structural Change;
    All these keywords.

    JEL classification:

    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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