Input-Output Multiplier Analysis for Major Industries in the Philippines.Pdf
11th National Convention on Statistics (NCS) EDSA Shangri-La Hotel October 4-5, 2010
INPUT-OUTPUT MULTIPLIER ANALYSIS FOR MAJOR INDUSTRIES IN THE PHILIPPINES
by Madeline B. Dumaua
For additional information, please contact: Author’s name Designation Affiliation Address Tel. no. E-mail Madeline B. Dumaua Statistician III Statistical Research and Training Center Quezon City +632-4260620 mbdumaua@srtc.gov.ph
INPUT-OUTPUT MULTIPLIER ANALYSIS FOR MAJOR INDUSTRIES IN THE PHILIPPINES1 by Madeline B. Dumaua2 ABSTRACT The study aims to assess the impact of the different major industries of the Philippines using Input-Output Multiplier Analysis. It attempts to do this by using the 2000 Input-Output Accounts of the Philippines (I-O Accounts), the most recently published tables by the National Statistical Coordination Board (NSCB). As the economic importance of the 11 major industries is growing among the policy makers and researchers, this study applied input-output technique in determining economic effects to gauge the significance of these industries in generating output, income and employment. Key sectors are identified in term of multipliers; the higher the multiplier, the stronger is the ability of the corresponding sector to create multiple impacts in the economy. The obtained multipliers showed that among major industries, the Manufacturing Industry showed the highest final demand-to-output multiplier; the Construction Industry gained the highest output-to-output multiplier; and Private Services Industry is found to have the highest income and employment multipliers. KEY WORDS: Input-output, Multiplier
1. Introduction Sectors of an economy are naturally interdependent. An input stimulates production in a sector directly, but it may also stimulate production in other sectors as well, where the intensity can be downgraded. The residual effect of an input beyond the intended sector is called multiplier that describes interrelationships among sectors of
INPUT-OUTPUT MULTIPLIER ANALYSIS FOR MAJOR INDUSTRIES IN THE PHILIPPINES
by Madeline B. Dumaua
For additional information, please contact: Author’s name Designation Affiliation Address Tel. no. E-mail Madeline B. Dumaua Statistician III Statistical Research and Training Center Quezon City +632-4260620 mbdumaua@srtc.gov.ph
INPUT-OUTPUT MULTIPLIER ANALYSIS FOR MAJOR INDUSTRIES IN THE PHILIPPINES1 by Madeline B. Dumaua2 ABSTRACT The study aims to assess the impact of the different major industries of the Philippines using Input-Output Multiplier Analysis. It attempts to do this by using the 2000 Input-Output Accounts of the Philippines (I-O Accounts), the most recently published tables by the National Statistical Coordination Board (NSCB). As the economic importance of the 11 major industries is growing among the policy makers and researchers, this study applied input-output technique in determining economic effects to gauge the significance of these industries in generating output, income and employment. Key sectors are identified in term of multipliers; the higher the multiplier, the stronger is the ability of the corresponding sector to create multiple impacts in the economy. The obtained multipliers showed that among major industries, the Manufacturing Industry showed the highest final demand-to-output multiplier; the Construction Industry gained the highest output-to-output multiplier; and Private Services Industry is found to have the highest income and employment multipliers. KEY WORDS: Input-output, Multiplier
1. Introduction Sectors of an economy are naturally interdependent. An input stimulates production in a sector directly, but it may also stimulate production in other sectors as well, where the intensity can be downgraded. The residual effect of an input beyond the intended sector is called multiplier that describes interrelationships among sectors of
References: ∧ −1 (5) Miller, Ronald E. and Blair, Peter D. Input-Output Analysis: Foundations and Extensions. Englewoods Cliffs, N.J. Prentice Hall 1985. Thijs Ten Raa. The Economics of Input-Output Analysis. Cambridge University Press 2005. National Statistical Coordination Board. The 2000 Input-Output Accounts of the Philippines. Economics Statistics Office 2000. National Statistics Office. 2000 Census of Philippine Business and Industry. Presentation Material of Dr. Cid L. Terosa, UA&P Professor. 21