Efficiency and Technical Change in the Philippine Rice Sector : A Regional Total Factor Productivity Analysis
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We account for regional differences in total factor productivity, efficiency and technological change in the Philippine rice sector during the post-Green Revolution era by using Malmquist productivity indices for the period 1971-90. The Malmquist indices were decomposed into efficiency and technological change. The average annual Malmquist productivity growth was found to be only slightly positive. Productivity growth was negative during the early 70's, and was followed by a period of positive growth, and negative growth in the late 80's. The period of positive growth coincided with the introduction of new rice varieties while the declines may have been caused by intensification of rice production in lowland systems. Certain regions such as Central Luzon, Western Visayas, Southern and Northern Mindanao exhibited higher rates of technological change than others, which seems to have been contributed by higher investments in irrigation, increased adoption of tractors, higher population growth rates and a better agroclimatic environment.
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