Comparative and Competitive Advantage of Philippine Rice Production: 1966-1990
Rice self-sufficiency is a dominant policy objective. However, analysis indicates that government policies are not neutral. Thus, it hampers the realization of the potential comparative advantage of the Philippines in rice production. Results suggest that removal of price distortions that create biases against rice production makes possible the attainment of rice self-sufficiency.
Changing comparative advantage in Philippine rice production
This paper examines Philippine comparative advantage in rice production and whether government policies encourage the rice sector to exploit its advantage. Rice production has grown at 6.0 percent annually in 1970s. This growth has been due to yield increases from newer modern varieties and more fertilizer and to increases in irrigated area. Government policies have contributed to growth principally through irrigation investments. Although the Philippines have a comparative advantage in rice production, exports were unprofitable for the government-marketing agency in 1977 to 1979. Government control of exports puts a barrier between world and domestic markets so that world quality premiums are not reflected in domestic prices. The domestic milling industry therefore has no incentive to become competitive in higher quality international markets. Inelastic demand for low-quality Philippine rice on world markets then limits profitable exports. If private traders were allowed to export, they should be able to respond to world market incentives to produce and export good quality rice at a profit.
Foreign Borrowing as Dutch Disease: A Quantitative Analysis for the Philippines
This Paper investigates the economy-wide effects of increased foreign borrowing in the empirical context of the Philippines, using a multi-sectoral, general equilibrium model. The focus of the analysis is on the comparative static repercussions of the domestic spending of externally borrowed funds and on the resource allocation effects of the appreciation of the Philippine peso induced by the expanded supply of foreign exchange. The results of model simulation indicate, among other findings, a relatively small impact on national income, with rural income increasing by much less than urban income. [430]