Added Title
DLSU-AKI Working Paper Series 2023-07-087
Document Type
Working Paper
Publication Date
7-2023
Place of Publication
DLSU-Angelo King Institute, Room 223, LS building, 2401 Taft Avenue, Manila 0922
Abstract
The main gateway for the Philippines to develop and become an upper-middle-income economy—and eventually, a high-income economy—is to expedite the shift of workers out of agriculture and to produce and export more complex products with a higher income elasticity of demand. The actual growth rate is constrained by the balance-of-payments equilibrium growth rate, about 6%—the maximum the country can attain without incurring balance-of-payments problems. We use the Pritchett-Sen-Werker political-economy framework to analyze the role of different types of firms and the deals environment during successive Philippine administrations until the current one. Due to their economic size and political power, only the nation’s conglomerates will be able to lead the transformation of the economy. However, the country’s large groups do not have incentives or see the need to shift to the production and export of tradable. Without this transformation, the country will be able to register positive growth but will not become an internationally competitive economy, and will not be able to achieve, and especially maintain, the growth rate targeted by the current administration: 6.5%–8% per annum during 2023–2028.
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Recommended Citation
Felipe, J., Empeño, D., & Miranda, B. A. (2023). Economic Transformation and Growth in the Philippines: An Analysis of Political Settlements, Rents, and Deals. Retrieved from https://animorepository.dlsu.edu.ph/res_aki/169
Disciplines
Growth and Development
Keywords
economic transformation; deals; Philippines; political settlements; rents
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