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Towards Greater Efficiency: Estimating the Philippines’ Total Factor Productivity Growth and its Determinants


This article presents an estimate of TFP growth from 1989 to 2023 covering the pandemic period and a model on the determinants of TFP growth over the short run and long run using an error correction model. Expansion in domestic economic output, partly offset by worsening terms of trade, contributed to the increase in TFP growth in 2022 to 2023, albeit still below pre-pandemic trends. Moving forwards, acceleration in human capital development, particularly education , healthcare, and social work activities, could help improve overall productivity as well as enhance the country’s productive capacity, bringing the economy to a higher economic growth path.


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