Date Published:
Jun 01, 2008
Category:
Discussion Papers
Focus Area(s):
Author(s):
Code:
DP 2008-24

Changing the base year (1985) of Philippine GDP in constant prices could change the growth rate and the shares of components even when there is no change in the volume of production, implying that the changes in growth rate and shares are anomalous (i.e., no real basis). This possibility weakens GDP in constant prices as basis for valuing our economy’s production and analyzing its growth performance. This paper demonstrates that conversion to chained prices avoids the above anomalies and also shows smaller and shrinking agriculture and industry sectors and enlarging services sector that is now over 50 percent of the Philippine economy than are shown by valuation in constant 1985 prices. In both contributions to level and growth of GDP, chained prices accentuate more than constant 1985 prices the declining importance of agriculture and industry and the rising importance of services in Philippine economic transformation.

Citations

This publication has been cited 12 times

In other Publications
  1. Cabalfin, Michael R. and Josef T. Yap. 2008. Sustainable development framework for local governance. Governance Working Papers 22619. East Asian Bureau of Economic Research.
  2. Cabalfin, Michael R. and Josef T. Yap. 2008. Sustainable development framework for local governance. Development Economics Working Papers 22624. East Asian Bureau of Economic Research.
  3. Dumagan, Jesus C. 2011. Implementing weights for additivity of chained volume measures in the national accounts. Discussion Papers DP 2011-09. Philippine Institute for Development Studies.
  4. Dumagan, Jesus C. 2008. Implementing US GDP in Chained Prices for Cross-country GDP Growth and Sectoral Comparisons: Application to Selected ASEAN Countries. Discussion Papers DP 2008-28. Philippine Institute for Development Studies.
  5. Dumagan, Jesus C.. 2011. Implementing weights for additivity of chained volume measures in the national accounts. Discussion Papers DP 2011-09. Philippine Institute for Development Studies.
  6. Dumagan, Jesus C.. 2010. Computing additive chained volume measures of GDP subaggregates. Macroeconomics Working Papers 23094. East Asian Bureau of Economic Research.
  7. Dumagan, Jesus C.. 2009. Comparing GDP in constant and in chained prices : Some new results. Finance Working Papers 22953. East Asian Bureau of Economic Research.
  8. Dumagan, Jesus C.. 2009. Comparing GDP in constant and in chained prices: Some new results. Discussion Papers DP 2009-08. Philippine Institute for Development Studies.
  9. Dumagan, Jesus C.. 2009. Comparing GDP in constant and in chained prices : Some new results. Macroeconomics Working Papers 22633. East Asian Bureau of Economic Research.
  10. Dumagan, Jesus C.. 2008. Implementing us GDP in chained prices for cross-country GDP growth and sectoral comparisons : Application to selected ASEAN countries. Macroeconomics Working Papers 22631. East Asian Bureau of Economic Research.
  11. Dumagan, Jesus C.. 2010. Computing additive chained volume measures of GDP subaggregates. Discussion Papers DP 2010-16. Philippine Institute for Development Studies.
  12. Yap, Josef T. and Michael R. Cabalfin. 2008. Sustainable development framework for local governance. Discussion Papers DP 2008-33. Philippine Institute for Development Studies.


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