As the nation moves towards the post-pandemic era, the various options available to rebuild the economy are considered. In this panel, we take a look at how trade policies, health reforms and technological programs can provide the best routes towards an accelerated economic recovery. The papers argue that a more proactive government stance is needed to harness the resources and skills necessary for economy's structural transformation.
Simulating the end-game tariff reduction under RCEP
Tuaño, P.A.
Department of Economics
Ateneo de Manila University
Castillo, C.J.
Department of Economics
Ateneo de Manila University
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Lubangco, C.K.
Department of Economics
Ateneo de Manila University
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The Regional Comprehensive Economic Partnership (RCEP) was signed by ASEAN members with Australia, China, Japan, South Korea, and New Zealand in late 2020 and is set to take effect in 2022. The Philippine Senate is currently deliberating the merits of the said trade deal. However, concerns about the readiness of domestic sectors to a more liberalized trading system delayed its ratification. This study simulates the end-game tariff reduction committed by participating countries in the RCEP to determine the impact of the trade deal on economic activities and on employment in the Philippines. A global computable general equilibrium (CGE) model is used to simulate the impact of tariff reduction on Philippines’ domestic output. The impact on employment is computed from the results of the CGE simulation.
Disaggregating Foreign Aid: An Assessment of the Impact of Health Aid on Infant and Child Mortality in Selected Asia and the Pacific Countries
Charlon B. Mayo
Department of Economics​
Ateneo de Manila University
Over the years, several studies have explored the relationship of foreign aid and economic growth, but there is a limited study assessing the impacts of disaggregated health aid on population health. This study utilizes health production function to assess the impact of health aid and other social, economic, and environmental variables to population health, using panel data of ten selected countries from Asia and the Pacific from 2002-2017. The study also reviews health aid programs that shaped health system in some countries in the region. The fixed effects model results indicate that health aid, GDP per capita, and food production index significantly reduce infant, neonatal, and under-five mortality in selected countries in Asia and the Pacific region, while factors such as population and urbanization have also significant role in the health status of the population. The findings of the study concur with other literature, which conclude that health-specific aid significantly improves the health outcomes of the countries. The paper concludes with suggestions for future research and some evidence-based policy recommendations.
Philippine Structural Transformation in the Context of Technological Change
Leonardo A. Lanzona, Jr.
Department of Economics​
Ateneo de Manila University
One aspiration of the Agricultural Fisheries Modernization Act (AFMA) is the promotion of industry dispersal and rural industrialization. This involves a policy of structural transformation which attempts to transition the economy from a low productivity sector such as agriculture to a high productivity sector such as industry. This study shows that, despite the efforts of AFMA, this process has not been accomplished. Previous literature has attributed this failure to many factors, including policy failure and lack of investments. The paper however argues that the role of technological change has not been given considerable attention. Empirical analysis demonstrates that policy formulation and capital accumulation are not sufficient in achieving structural transformation. Even if the correct policies are implemented and adequate investments are available, the sustainable transition from agriculture to industrialization will require the adoption of appropriate technological which utilizes local resources, including labor. To do this, the government must set up not only an environment for research and development and extension, but also provide incentives in the form of transfers to the private sector to invest in technology.