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Inception Report

Inception Report

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Productivity Growth in Philippine Agriculture Project
Inception Report
INCEPTION REPORT
The Nature, Sources, and Causes of Productivity Growth in Philippine
Agriculture
1
Productivity Growth in Philippine Agriculture Project
Inception Report
LIST OF FIGURES
Figure 1: Schematic on determinants of productivity growth..............................................6
Figure 2: Project Organizational Chart..............................................................................11
LIST OF TABLES

Table 1: Estimates of TFP growth for selected Asian countries, last two decades (%).......1 Table 2: Program of Work..................................................................................................12 Table 3: Sources of funds, in millions of pesos.................................................................13 Table 4: Project budget, in millions of pesos.....................................................................13

LIST OF ACRONYMS
DA-BAR
Department of Agriculture \u2013 Bureau of Agricultural Research
PhilRice
Philippine Rice Research Institute
SEARCA
Southeast Asian Regional Centre for Graduate Study and Research in
Agriculture
TFP
Total Factor Productivity
2
Productivity Growth in Philippine Agriculture Project
Inception Report
1. INTRODUCTION

Philippine agriculture performed relatively well in the 1960\u2019s and 70\u2019s, but faltered in the
following decades. Several trends portended its stagnation: production increases in
almost all crops decelerated, expansion in cultivated area began to decline, real
commodity prices dropped, and gains from the Green Revolution approached exhaustion.
Policy-related factors may have also played a role, such as the sharp decline in public
investments for agriculture. Cross-country studies suggest that total factor productivity
(TFP) growth in the Philippine agriculture has been negligible to negative from the
1980s, in contrast with the good to impressive performance of other countries in the
region (Table 1).

Table 1: Estimates of TFP growth for selected Asian countries, last two decades (%)
(1)
(2)
(3)
(4)
Philippines
-0.3
0.4
-1.3
0.1
Afghanistan
-0.1
Iran
3.2
Iraq
-1.2
Saudi Arabia
2.2
Syria
1.9
Turkey
0.1
Yemen
2.4
Bangladesh
1.3
1.1
India
2.4
-1.1
Nepal
2.1
1.2
Pakistan
2.5
2.7
Sri Lanka
-0.9
-0.2
Cambodia
2.0
Indonesia
-0.4
-1.1
1.5
Laos
2.5
Malaysia
1.4
1.5
Thailand
1.1
1.4
0.9
Vietnam
3.3
1.0
China
4.8
3.6
Mongolia
-0.5

Notes and Sources:
(1) Avila and Evenson (2004): 1981 - 2001
(2) FAO (2004): 1980-2000
(3) Cororaton and Caparas (1999): 1981 - 1996
(4) Mundlak, Larson, and Butzer (2002): Philippines 1980-1998; Indonesia 1981-

1988; Thailand 1981-1995
1

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