The turnaround in Philippine growth: From disappointment to promising successJesus Felipe (), Gemma Estrada () and Matteo Lanzafame Structural Change and Economic Dynamics, 2022, vol. 62, issue C, 327-342 Abstract: Philippine actual growth performance has improved during the last two decades. We obtain potential growth rate estimates for 1959-2019 using Kalman filter estimation of Okun's law. We find that potential growth has been increasing since the mid-1990s. It reached 6.1% in 2017-2019, the highest during the last six decades. As the trend labor force growth displays a downward trend, potential labor productivity growth has accounted for most of the country's potential growth rate recently. A decomposition of labor productivity growth shows that within-sector productivity growth accounted for 79% of overall labor productivity growth during 2009-2019. Most of the within-sector effect is due to manufacturing productivity growth. Analysis of the robust determinants of potential labor productivity growth using Bayesian Model Averaging indicates the relevance of proxy variables of both within-sector and reallocation effects, as well as of policy uncertainty. Keywords: Bayesian model averaging; Kalman filter; Okun's law; Philippines; Potential growth (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:62:y:2022:i:c:p:327-342 DOI: 10.1016/j.strueco.2022.03.016 Access Statistics for this article Structural Change and Economic Dynamics is currently edited by F. Duchin, H. Hagemann, M. Landesmann, R. Scazzieri, A. Steenge and B. Verspagen More articles in Structural Change and Economic Dynamics from Elsevier |
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