Sectoral Growth Linkages and the Role of Infrastructure Development: Revisiting the sources of nonfarm development in the rural Philippines

Nobuhiko Fuwa, Arsenio Balisacan, Dennis Mapa (), Carlos Abad Santos and Sharon Faye Piza

No 126456, 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil from International Association of Agricultural Economists

Abstract: This paper analyzes the sources of rural non-farm sector growth in the Philippines, which has become the main driver of rural poverty reduction. We find that agricultural growth has significantly positive effects on service sector growth (with elasticity of about 0.20) but little effects on manufacturing growth, suggesting that rural labor force is sufficiently mobile or capital is relatively immobile across provinces. We also identify different roles played by national road networks, on the one hand, and local roads, on the other. We find that local road facilitates rural service sector development while national road facilitates agricultural growth.

Keywords: Community/Rural/Urban Development; International Development (search for similar items in EconPapers)
Pages: 28
Date: 2012-06-28
New Economics Papers: this item is included in nep-agr, nep-sea, nep-tre and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae12:126456

DOI: 10.22004/ag.econ.126456

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