An inter-industry study of primary product exports of the Philippines
Date
1982-04
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Abstract
This paper is a study of the effects on economic activity of an increase in demand for primary product exports of the Philippines. It aims to evaluate the backward linkage-output and employment effects derived from exporting products in the un- processed or partly processed state compared with the alternative products in which exports are processed or in manufactured form.
Direct and indirect backward linkage-output and employment effects arising from given changes in demand for said exports are estimated and analyzed through input-output analysis.
Estimation and analysis of results show that for backward linkage-output effects greater benefits would be derived if export expansion strategies will be directed to manufacture of food, beverages, and tobacco, manufacture of non-metallic mineral products, forestry and logging, and metallic mining. Thus, it is suggested that these industries be the focus of export promotion policies that aim to increase output not only in the export industries concerned but also in the other producing sectors.
In the case of employment effects, results show that labor-intensive industries, e.g. agricultural crops production, production of livestock, poultry and other animals, fishery, manufacture of wood and wood products, including furnitures and fixtures, manufacture of non-metallic mineral products, n.e.s., and manufacture of fabricated metal products, machinery and equipment, have relatively larger employment effects than their corresponding less labor-intensive sectors. Consequently, fiscal policies biased towards industries with large employment effects should concentrate on the above-mentioned labor-intensive industries.