MA Economics
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Browsing MA Economics by Author "Alerta, Ma. Virginita A."
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Item Restricted Philippine-United States trade pattern and Philippine growth: a structuralist perspective(1988-06) Alerta, Ma. Virginita A.; Montes, Manuel F.Trade pattern between Philippines and United States together with OPEC is analyzed with the annual data from 1960 to 1982. The study adopted the model of Taylor (1983) with some modifications to test the hypothesis that Southern growth is determined by the Northern rate. The results give empirical support to such structuralist claim, i.e., (i) an oilshock or a productivity gain in the United States deteriorates the latter's demand which leads to a declining profit and growth rates in both U.S. and Philippines and a worsening of Philippine terms of trade, (ii) but if such oilshock or productivity gain is offset by wage increases, both the regions are benefited, since wage increase stimulates growth, (iii) a brisker export sales of U.S. goods to the Philippines increases the output growth and capacity utilization in the U.S. as well as improves the Philippine terms of trade and stimulates its growth, though the quantitative response is small, and finally, (iv) when the steady state is perturbed by an oilshock or a productivity increases, the profit and growth rates of the two regions decreases, but the Philippine growth will lag in the short-run, and attain a new steady state in the longer-run but with the latter bearing the cost of adjustment. The Philippines is indeed shackled by such trade pattern. Internally-oriented policies particularly, the development of industrial manufacturing sector would enable Philippines to realign its trade pattern which would set Philippines free from the web of this imperialistically-imposed trade pattern.