Development Research News
Economic Issue of the Day
Philippine Journal of Development
Research Paper Series
How to order publications
|DP 2012-11||Philippine Productivity Dynamics in the Last Five Decades and Determinants of Total Factor Productivity|
|Llanto, Gilberto M.|
Various studies showed that total factor productivity (TFP) has not been a source of growth in the Philippines. It seems that factor accumulation, which is not a sustainable source of growth, has underpinned Philippine economic growth. Studies have also shown that the sustained growth of developed countries has ridden on the back of technological advances rather than on increasing use of factor inputs. Total factor productivity improvement is the only route to sustain economic growth in the long run. After a brief review of economic growth and productivity dynamics of the Philippine economy in the past fifty years, the paper provides an estimation of the determinants of total factor productivity and labor productivity. In the light of the empirical findings reported in this paper, some policy levers present themselves as critical in improving productivity growth in the economy. Investments in education, more government expenditure for improving human capital, greater openness of the economy, and macroeconomic stability are indispensable.
|keywords:||total factor productivity,economic growth,Philippines,labor productivity growth,openness|
|Download PDF copy|
Other PIDS Publications Authored/Co-Authored by "Llanto, Gilberto M."...
Other PIDS Publications with keyword "total factor productivity"...
Other PIDS Publications with keyword "economic growth"...
Other PIDS Publications with keyword "labor productivity growth"...
Other PIDS Publications with keyword "openness"...