Philippine Standard time

Avoiding Anomalies of GDP in Constant Prices by Conversion to Chained Prices: Accentuating Shifts in Philippine Economic Transformation

DP 2008-24
2008

Changing the base year (1985) of Philippine GDP in constant prices could change the growth rate and the shares of components even when there is no change in the volume of production, implying that the changes in growth rate and shares are anomalous (i.e., no real basis). This possibility weakens GDP in constant prices as basis for valuing our economy’s production and analyzing its growth performance. This paper demonstrates that conversion to chained prices avoids the above anomalies and also shows smaller and shrinking agriculture and industry sectors and enlarging services sector that is now over 50 percent of the Philippine economy than are shown by valuation in constant 1985 prices. In both contributions to level and growth of GDP, chained prices accentuate more than constant 1985 prices the declining importance of agriculture and industry and the rising importance of services in Philippine economic transformation.

Citations

This publication has been cited time(s).

  1. Dumagan, Jesus C, 2011 "Implementing weights for additivity of chained volume measures in the national accounts" , Philippine Institute for Development Studies

  2. Dumagan, Jesus C., 2010 "Computing additive chained volume measures of GDP subaggregates" , East Asian Bureau of Economic Research

  3. Dumagan, Jesus C., 2010 "Computing additive chained volume measures of GDP subaggregates" , Philippine Institute for Development Studies

  4. Dumagan, Jesus C., 2008 "Implementing us GDP in chained prices for cross-country GDP growth and sectoral comparisons : Application to selected ASEAN countries" , East Asian Bureau of Economic Research

  5. Dumagan, Jesus C., 2009 "Comparing GDP in constant and in chained prices : Some new results" , East Asian Bureau of Economic Research

  6. Dumagan, Jesus C., 2009 "Comparing GDP in constant and in chained prices: Some new results" , Philippine Institute for Development Studies

  7. Dumagan, Jesus C., 2009 "Comparing GDP in constant and in chained prices : Some new results" , East Asian Bureau of Economic Research

  8. Dumagan, Jesus C., 2011 "Implementing weights for additivity of chained volume measures in the national accounts" , Philippine Institute for Development Studies

  9. Yap, Josef T. and Michael R. Cabalfin, 2008 "Sustainable development framework for local governance" , Philippine Institute for Development Studies

  10. Cabalfin, Michael R. and Josef T. Yap, 2008 "Sustainable development framework for local governance" , East Asian Bureau of Economic Research

  11. Cabalfin, Michael R. and Josef T. Yap, 2008 "Sustainable development framework for local governance" , East Asian Bureau of Economic Research

  12. Dumagan, Jesus C, 2008 "Implementing US GDP in Chained Prices for Cross-country GDP Growth and Sectoral Comparisons: Application to Selected ASEAN Countries" , Philippine Institute for Development Studies

Contributor
Philippine Institute for Development Studies
Authors
Dumagan, Jesus C.
Keywords
real GDP; constant prices; chained prices; Fisher index
Cite
Downloads

1,100

Since
Jul 10, 2013

More Publications from Philippine Institute for Development Studies
Research and Development and Technology in the Philippines
2003
57,809 DOWNLOADS
Senior High School and the Labor Market: Perspectives of Grade 12 Students and Human Resource Officers
2018
28,698 DOWNLOADS
Sustainable Tourism: Challenges for the Philippines
2005
24,328 DOWNLOADS
Special Issues in Agriculture
2004
23,397 DOWNLOADS
Globalization, Governance, and the Philippine State
2011
23,023 DOWNLOADS
View More Publications