Monitoring the behavior of potential output helps policymakers implement appropriate policies in response to an economic crisis. In the short-run, estimates of the output gap will guide the timing of implementation and withdrawal of stimulus measures. In the medium- to long-term, these estimates...

Research and development (R&D) is an important resource for sustained economic growth. New knowledge created by a firm has spillover effects that improve the productivity of other firms and even other sectors. This is the heart of endogenous growth theory. In this framework, government policies...

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...

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...

ASEAN member countries are moving toward achieving the ASEAN Economic Community (AEC) with the timeline set at 2015. It is therefore important for policymakers in the region to sustain the momentum--or perhaps even accelerate the pace--toward establishing the AEC. Policy measures are being...