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The paper presents estimates of total factor productivity (TFP) from 1967 to 2000. It was observed that while TFP growth was mostly negative in the last thirty-five years, its contribution to economic growth improved consistently from – 1.76 percentage points in the middle of 1980s to +0.41 in 1998-2000. This is the period when major economic policy reforms were pursued vigorously. In spite of the increasing share of skilled labor to the total, its contribution to TFP growth is observed to have declined through time. This may imply deterioration in the quality of education necessary for productivity improvement. This may also imply the negative effects of brain drain as a result of massive Filipinos working abroad. Efficiency improvements seem to have been gained from the movement of labor out of agriculture. Sound macroeconomic fundamentals, and opening up to foreign trade and investment are two critical factors affecting TFP growth. Spill over effects are observed to be far significant from the growth in industry than in agriculture and service sectors.

Citations

This publication has been cited time(s).

World Bank, 2005 "Philippines: From short-term growth to sustained development" , The World Bank Group
Lamberte, Mario B., 2002 "Central banking in the Philippines: Then, now and the future" , Philippine Institute for Development Studies
Ganev, Kaloyan, 2005 "Measuring total factor productivity: growth accounting for Bulgaria" , University Library of Munich, Germany
Todorov. Ivan, 2016 "Supply-side factors of economic growth in Bulgaria" , University of National and World Economy, Sofia, Bulgaria
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Boroviæ, Zoran. Mladen Rebiæ, and Dalibor Tomas, 2020 "Total factor productivity drivers in the selected EU countries: Cointegration approach" , University of Rijeka, Faculty of Economics and Business

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Philippine Institute for Development Studies

Authors

Cororaton, Caesar B.

Keywords

total factor productivity

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Jul 07, 2013

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Total Factor Productivity in the Philippines

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