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DLSU-ANGELO KING INSTITUTE FOR ECONOMIC AND BUSINESS STUDIES |
Topic: The Political Economy of Structural Transformation in the Philippines and the Role of the Conglomerates: will this time be different?
Speakers:
Professor Jesus Felipe
Mr. Edgar Desher Empeño
Mr. Brendan Miranda
Date:
15 March 2023 (Wednesday), 1:00 PM
Speakers:
Professor Jesus Felipe
Mr. Edgar Desher Empeño
Mr. Brendan Miranda
Date:
15 March 2023 (Wednesday), 1:00 PM
Abstract:
We argue that the main gateway for the Philippines to develop and move up to become an upper-middle-income economy—and eventually, a high-income economy—is to transform its economy, that is, expedite the shift of workers out of agriculture and to produce and export more complex products with a higher income elasticity of demand. The actual growth rate is constrained by the balance-of-payments equilibrium growth rate, about 6%, the maximum the country can attain without incurring balance-of-payments problems. We use the Pritchett-Sen-Werker political-economy framework to analyze the role of different types of firms and the deals environment during successive Philippine administrations, until the current one. Due to their economic size and political power, only the nation’s conglomerates will be able to lead this transformation. However, the country’s large groups do not have incentives or see the need to shift into the production and export of tradables. This means that the country will be able to register positive growth but will not become an internationally competitive economy, and will not be able to achieve, and especially maintain, the growth rate targeted by the current administration, 6.5%-8% per annum during 2023-2028.
About the Speaker:
Jesus Felipe is a Distinguished Professor at De La Salle University, School of Economics. He is also the Director of the Angelo King Institute for Economic and Business Studies. Prior to joining De La Salle University, he worked for the Asian Development Bank (ADB). Professor Felipe also held academic positions with the Georgia Institute of Technology and the Hong Kong University of Science and Technology. He is also a Research Associate with serval international institutions.
He has advised Asian, Latin America and African, governments on questions of long-term growth, economic transformation, diversification, industrial policy, and productivity. His research interests and publications spread across areas such as long-run growth in Asia, the dynamics of structural transformation, industrial policy, inclusive growth and full employment, the impact of technology on employment, productivity, technological progress, functional distribution of income, business cycles, and the path of profit rates.
Professor Felipe holds a Bachelor degree in Economics from the Universidad Autónoma de Madrid (Spain), and a Ph.D. from the University of Pennsylvania (USA).
We argue that the main gateway for the Philippines to develop and move up to become an upper-middle-income economy—and eventually, a high-income economy—is to transform its economy, that is, expedite the shift of workers out of agriculture and to produce and export more complex products with a higher income elasticity of demand. The actual growth rate is constrained by the balance-of-payments equilibrium growth rate, about 6%, the maximum the country can attain without incurring balance-of-payments problems. We use the Pritchett-Sen-Werker political-economy framework to analyze the role of different types of firms and the deals environment during successive Philippine administrations, until the current one. Due to their economic size and political power, only the nation’s conglomerates will be able to lead this transformation. However, the country’s large groups do not have incentives or see the need to shift into the production and export of tradables. This means that the country will be able to register positive growth but will not become an internationally competitive economy, and will not be able to achieve, and especially maintain, the growth rate targeted by the current administration, 6.5%-8% per annum during 2023-2028.
About the Speaker:
Jesus Felipe is a Distinguished Professor at De La Salle University, School of Economics. He is also the Director of the Angelo King Institute for Economic and Business Studies. Prior to joining De La Salle University, he worked for the Asian Development Bank (ADB). Professor Felipe also held academic positions with the Georgia Institute of Technology and the Hong Kong University of Science and Technology. He is also a Research Associate with serval international institutions.
He has advised Asian, Latin America and African, governments on questions of long-term growth, economic transformation, diversification, industrial policy, and productivity. His research interests and publications spread across areas such as long-run growth in Asia, the dynamics of structural transformation, industrial policy, inclusive growth and full employment, the impact of technology on employment, productivity, technological progress, functional distribution of income, business cycles, and the path of profit rates.
Professor Felipe holds a Bachelor degree in Economics from the Universidad Autónoma de Madrid (Spain), and a Ph.D. from the University of Pennsylvania (USA).