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

Levy Economics Institute Working Paper No. 631

39 Pages Posted: 6 Nov 2010

See all articles by Nedelyn Magtibay-Ramos

Nedelyn Magtibay-Ramos

Asian Development Bank

Gemma Bolotaulo Estrada

Asian Development Bank - Economic Research

Jesus Felipe

Asian Development Bank

Date Written: November 4, 2010

Abstract

This paper explores the degree of structural change of the Philippine economy using the inputoutput 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.

Keywords: Input-Output Analysis, Linkage Index, Multiplier Product Matrix, Structural Change

JEL Classification: D57, L60, O11

Suggested Citation

Magtibay-Ramos, Nedelyn and Estrada, Gemma Bolotaulo and Felipe, Jesus, Exploring the Philippine Economic Landscape and Structural Change Using the Input-Output Framework (November 4, 2010). Levy Economics Institute Working Paper No. 631, Available at SSRN: https://ssrn.com/abstract=1702950 or http://dx.doi.org/10.2139/ssrn.1702950

Nedelyn Magtibay-Ramos (Contact Author)

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Gemma Bolotaulo Estrada

Asian Development Bank - Economic Research ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Jesus Felipe

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

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