An Empirical Analysis of Productivity in Philippine Agriculture, 1974–2000

Abstract

Using recent agricultural data sets, we estimate a non‐neutral and non‐homothetic translog variable cost function to empirically investigate Philippine agricultural productivity. Overall, the annual average productivity growth rate is 0.51 percent. The highest productivity level is observed during the post‐Green Revolution period (1974–1980). Thereafter, productivity growth shows a discernible decline up until the late 1990s. This indicates that productivity level during the Green Revolution era has not been sustained or paralleled, despite substantial policy changes put in place since 1986 to invigorate the agricultural sector. The government should therefore continue to promote technological progress in Philippine agriculture; however, this may require redirection of its present policy by placing more emphasis on productivity‐enhancing investments, such as research and development, irrigation and other infrastructure.