Browsing by Author "Palis, Tamara Jean C."

Now showing 1 - 1 of 1
  • ItemRestricted
    An empirical analysis of government provision of private goods versus public goods in the Philippine agriculture sector
    (2015-01) Palis, Tamara Jean C.; Monsod, Toby Melissa C.
    Despite its importance in the economy, the agriculture sector and its stakeholders are beset with problems pertaining to slow growth and persistent poverty. This situation is said to be reflective, in large part, of the strategies and interventions of the government related to its pursuit of rice self-sufficiency, which has entailed an allocation of public resources for agriculture to the provision of goods and services that are mostly private in nature. This study analyzes the effect of increasing the share of private goods versus public goods in the government's agriculture budget on the incomes of agriculture-dependent households and provides evidence supporting that view. Utilizing data from the Family Income and Expenditure Survey (PIES), Labor Force Survey (LFS), National Income Accounts (NIA), and government budget documents, the study reveals that, on average, increasing the share of resources to the provision of private goods and services in the agriculture sector budget has a negative effect on the per capita income of agriculture households. However, it also finds that the type of irrigation support that government provides matters for the impact of the private-public goods mix in the overall agriculture budget. In particular, government support for irrigation with pure public good rather than private good attributes allows for complementation, such that increasing the share of private goods in the government agriculture budget can lead to an increase in per capita incomes of agriculture-dependent households. The findings of the study support the need for policy shifts with regards the composition of government support to the agriculture sector, and, more fundamentally, its objectives. Instead of aiming for increasing rice production and attaining rice self-sufficiency, the government should focus on increasing farm incomes and attaining cost-efficient food security. This is consistent with the pursuit of a robust, sustainable and resilient agriculture sector and, ultimately, sustainable development and inclusive growth in the overall.