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Risk Management and Coping Strategies: Climate Change and Agriculture in the Philippines

Author

Listed:
  • Majah-Leah V. Ravago

    (School of Economics, University of the Philippines Diliman)

  • James Roumasset

    (University of Hawaii)

  • Karl Jandoc

    (University of Hawaii)

Abstract

This paper attempts to explore the use of an OECD Multi-Dimensional Country Review (MDCR) framework in understanding the long-term development history of the Philippines. The MDCR recognizes the multiplicity of development objectives countries usually pursue and therefore the associated multiplicity of challenges and opportunities. Following a conventional dichotomy of explaining the country’s development dynamics into economic and non-economic factors, the paper reviews the historical economic record and examines more recent non-economic hypotheses. While the latter is mostly political explanations it tries to link them to economic outcomes yet it is weak in tracing the mechanisms of the linkage despite using more rigorous methodologies. The paper then proceeds with hypothesizing that the long-term (political) behavior of breaking the country into finer geographical (and political) entities has been inimical to its sustainable long-term (economic) growth. The splitting of provinces, creation of new ones, of legislating more congressional districts, and further break-up of even the lowest government levels clearly fragment markets, raise real financial and transactions costs, bloat government budgets and the bureaucracy, and add burden to the private sector environment. Partial evidence is explored showing this behavior along the country’s long-term development history and some policy directions are suggested.

Suggested Citation

  • Majah-Leah V. Ravago & James Roumasset & Karl Jandoc, 2015. "Risk Management and Coping Strategies: Climate Change and Agriculture in the Philippines," UP School of Economics Discussion Papers 201515, University of the Philippines School of Economics.
  • Handle: RePEc:phs:dpaper:201515
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    File URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/1485
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    References listed on IDEAS

    as
    1. Eduardo Cavallo & Sebastian Galiani & Ilan Noy & Juan Pantano, 2013. "Catastrophic Natural Disasters and Economic Growth," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1549-1561, December.
    2. Chetty, Raj & Looney, Adam, 2006. "Consumption smoothing and the welfare consequences of social insurance in developing economies," Journal of Public Economics, Elsevier, vol. 90(12), pages 2351-2356, December.
    3. Eduardo Cavallo & Sebastian Galiani & Ilan Noy & Juan Pantano, 2013. "Catastrophic Natural Disasters and Economic Growth," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1549-1561, December.
    4. Wright, Brian D., 2014. "Multiple Peril Crop Insurance," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 29(3), pages 1-5, September.
    5. Esther Duflo & Michael Kremer & Jonathan Robinson, 2008. "How High Are Rates of Return to Fertilizer? Evidence from Field Experiments in Kenya," American Economic Review, American Economic Association, vol. 98(2), pages 482-488, May.
    6. Balisacan, Arsenio & Chakravorty, Ujjayant & Ravago, Majah-Leah (ed.), 2014. "Sustainable Economic Development," Elsevier Monographs, Elsevier, edition 1, number 9780128003473.
    7. Mark Skidmore & Hideki Toya, 2002. "Do Natural Disasters Promote Long-Run Growth?," Economic Inquiry, Western Economic Association International, vol. 40(4), pages 664-687, October.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Rajeev, Meenakshi & Nagendran, Pranav, 2023. "Protecting land and livelihood under climate risks: What hinders crop insurance adoption?," Land Use Policy, Elsevier, vol. 131(C).
    2. Roumasset, James & Ravago, Majah-Leah & Jandoc, Karl & Arellano, Clarissa, 2016. "Environmental Resources, Shocks, and National Well-Being," MPRA Paper 87715, University Library of Munich, Germany.

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    More about this item

    Keywords

    Farm-household risk management; natural disaster; shock; coping;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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