The basic framework of the PIDS Annual Macroeconometric Model is presented in this paper. After outlining the general philosophy of the model, the discussion focuses on the production sector of the model in order to trace the manner by which macroeconomic policies affect relative prices and...

Plagued by political instability, energy crisis and natural disasters, this paper attempts to forecast economic performance in the next two years. Against the backdrop of 1990 economic trends, prospects for the next two years and crucial development during the period are presented.

Utilizing qualitative analysis of three measures of operating efficiency, this study attempts to relate the Central Bank’s policies with the behavior of the money market. Results indicate that prior to 1981, the financial market is relatively stable but less efficient. Afterwards, the...

Currency substitution implies the greater share of foreign currency in the asset holdings of domestic residents. Dollarization is the complete replacement of the local currency- in this case, the peso- by a foreign currency, most likely the US dollar. The paper finds that dollarization or...

This article is part of the seminar on “Science Technology Policies in the Philippines" jointly sponsored by PIDS and DOST on May 5, 1989. Several issues are discussed in this paper: the nature of various types of technology, the various ways to develop them, the present state of Philippine...

Based largely on the work of Funke and Hall, estimation results indicate non-causality between money and price level attributed to the interplay of factors such as unstable political and economic environment. P* vector has no significance on potential output since Q instead of Q* has been used.

This article deals with the concept of competitiveness. Competitiveness is technically a firm-level concept. However, it is oftentimes extended to the national level--the idea of a country's 'international competitiveness' with the following analogies: market share--export share of country;...

Using a three-gap model, it can be shown that a reduction in the tariff level will lead to an unambiguous decline in the GDP growth rate if it results in a reduction of the surplus of the government’s primary account. Empirical results using Philippine data show that this condition is...

The Philippines has been more cautious in its policy toward free trade agreements (FTAs) than other ASEAN member-states, having signed, so far, only one bilateral agreement with Japan in addition to the various ASEAN+1 agreements. While the government is expected to progressively reduce...

Unfair trade practices (UTPs) demonstrate anticompetitive behavior which can be characterized into two general types: exclusionary abuse--an act of the firm (or a group of firms) to prevent entry of potential firms; or exploitative abuse--referring to actual abuse of market power. However, this...