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PIDS Book 2021-01
Revitalizing Philippine Irrigation: A Systems and Governance Assessment for the 21st Century
DP 2020-59
Giving Cash to the Poor: A Study of Pantawid Pamilya Cash Grants Generosity, Frequency, and Modality
DP 2020-58
Exploring the Feasibility of Content Analysis in Understanding International Cooperation in APEC
DP 2020-57
Correlates of Test Performance of 15-year-old Students in the Philippines: Evidence from PISA
Revitalizing Philippine Irrigation: A Systems and Governance Assessment for the 21st Century
DP 2020-59
Giving Cash to the Poor: A Study of Pantawid Pamilya Cash Grants Generosity, Frequency, and Modality
DP 2020-58
Exploring the Feasibility of Content Analysis in Understanding International Cooperation in APEC
DP 2020-57
Correlates of Test Performance of 15-year-old Students in the Philippines: Evidence from PISA
GDP in constant prices of ASEAN countries suffers from substitution bias by ignoring relative price changes and makes GDP growth and shares dependent on the base year. These analytical deficiencies led the US since the mid-1990s to convert GDP from constant to chained prices. Thus, cross-country comparisons in constant prices are analytically shaky even with the same base year. Therefore, this paper implements US GDP in chained prices in Indonesia, Malaysia, Philippines, and Thailand to alleviate substitution bias and prevent baseyear dependence of GDP growth and shares for valid cross-country comparisons. Converting UN GDP data from constant 1990 prices to chained prices affected Malaysia and the Philippines more than Indonesia and Thailand. Shares of GDP level during 2002-06 show Malaysia’s industry sector expanded (43.6 to 47.6 percent) while its service sector shrunk (49.1 to 43.7 percent). In the Philippines, the agriculture sector shrunk (19.2 to 14.7 percent) while the service sector expanded (48.6 to 53.6 percent). Shares of GDP growth during 2002-06 show the industry sector drove Thailand’s GDP growth, contributing around 54 percent, while the service sector drove GDP growth in Indonesia, Malaysia, and in the Philippines, contributing around 49, 49, and 60 percent, respectively, before and after conversion.
Philippine Institute for Development Studies | |
Authors | Keywords |
Dumagan, Jesus C.; | real GDP; constant prices; chained prices; Fisher index; |
Download PDF | Number of Downloads |
Published in 2008 and available in the PIDS Library or can be downloaded as full text | Downloaded 5,899 times since November 25, 2011 |