Beruflich Dokumente
Kultur Dokumente
Underdevelopment Of The
Philippine Agricultural Sector
A Policy Paper
Theoretical Framework
Generally, Theory of Production in economics is an effort to explain
the principles by which a business firm decides how much of each
commodity that it sells (its “outputs” or “products”) it will produce, and
how much of each kind of labour, raw material, fixed capital good, etc.,
that it employs (its “inputs” or “factors of production”) it will use. The
theory involves some of the most fundamental principles of economics.
These include the relationship between the prices of commodities and the
prices (or wages or rents) of the productive factors used to produce them
and also the relationships between the prices of commodities and
productive factors, on the one hand, and the quantities of these
commodities and productive factors that are produced or used, on the
other. (ENCYCLOPEDIA BRITANNICA 2009)
In economics, factors of product io n (or productive inputs) are the
resources employed to produce goods and services. They facilitate
production but do not become part of the product (as with raw materials)
or are significantly transformed by the production process (as with fuel
used to power machinery). To 19th century economists, the factors of
production were land (natural resources, gifts from nature), labor (the
ability to work), and capital goods (human-made tools and equipment).
Recent textbooks have added entrepreneurship and "human capital"
(labor's education and skills). "Land" can include ecosystems while
sometimes the overall state of technology is seen as a factor of
production. In any event, it is the scarcity of the factors of production
which poses humanity's economic problem, often forcing us to choose
between competing goals. The number and definition of factors varies,
depending on theoretical purpose, empirical emphasis, or school of
economics.
Differences are most stark when it comes to deciding which factor
is the most important. For example, in the Austrian view -- often shared
by neoclassical and other "free market" economists -- the primary factor
of production is the time of the entrepreneur, which, when combined
with other factors, determines the amount of output of a particular good
or service. However, other authors argue that "entrepreneurship" is
nothing but a specific kind of labor or human capital and should not be
treated separately. The Marxian school goes further, seeing labor (in
general, including entrepreneurship) as the primary factor of production,
since it is required to produce capital goods and to utilize the gifts of
nature. It is unlikely that this difference of opinions between the
"Austrians" and the Marxists will be ended soon. But this debate is more
about basic economic theory (the role of the factors in the economy) than
it is about the definition of the factors of production. (WIKIPEDIA, 2009)
With reference to the production theory, the dependent variable
shall be the Philippines’ Gross Domestic Product (GDP) since a huge
portion of the GDP is accounted to the said sector.
Where:
Descriptive Statistics
N Skewness Kurtosis
Statistic Statistic Std. Error Statistic Std. Error
Correlations
Fertilizer
log_gdp inv_loans inv_irrigation log_employment Supply sq_land
b
Model Summary
Total .433 12
a. Predictors: (Constant), sq_land, inv_loans, inv_irrigation, Fertilizer Supply,
log_employment
b. Dependent Variable: log_gdp
a
Coefficients
1994 1,692,932.00 74,335.70 883,265.00 11,289.00 2,267,192.00 11,515,546.00 6.23 0.000013 0.000001 4.05 132,607,799,678,116.00
1995 1,905,951.00 82,571.10 848,227.00 11,147.00 2,627,346.00 11,255,521.00 6.28 0.000012 0.000001 4.05 126,686,752,981,441.00
1996 2,171,922.00 564,718.80 876,109.00 11,645.00 2,809,595.00 11,643,131.00 6.34 0.000002 0.000001 4.07 135,562,499,483,161.00
1998 2,665,060.00 115,078.60 870,014.00 10,091.00 1,968,627.00 10,338,565.00 6.43 0.000009 0.000001 4.00 106,885,926,259,225.00
1999 2,976,905.00 170,479.70 831,283.00 10,774.00 2,390,059.00 11,613,477.00 6.47 0.000006 0.000001 4.03 134,872,848,029,529.00
2000 3,354,727.00 114,506.20 932,207.00 10,181.00 2,401,370.00 11,487,245.00 6.53 0.000009 0.000001 4.01 131,956,797,690,025.00
2001 3,631,474.00 122,596.20 949,918.00 10,850.00 2,232,515.00 11,480,701.00 6.56 0.000008 0.000001 4.04 131,806,495,451,401.00
2002 3,883,230.00 123,460.30 978,737.00 11,122.00 2,236,205.00 11,427,542.00 6.59 0.000008 0.000001 4.05 130,588,716,161,764.00
2003 4,316,402.00 135,158.40 949,038.00 11,219.00 2,699,701.00 11,477,914.00 6.64 0.000007 0.000001 4.05 131,742,509,791,396.00
2004 4,871,555.00 167,956.90 953,584.00 11,381.00 2,884,968.00 11,766,588.00 6.69 0.000006 0.000001 4.06 138,452,593,161,744.00
2005 5,444,039.00 108,935.90 966,465.00 11,628.00 2,492,205.00 11,600,147.00 6.74 0.000009 0.000001 4.07 134,563,410,421,609.00
2006 6,032,835.00 93,228.00 972,692.00 11,682.00 2,216,936.00 11,958,481.00 6.78 0.000011 0.000001 4.07 143,005,267,827,361.00
2007 6,648,245.00 153,832.20 964,710.00 11,786.00 2,431,277.00 12,216,200.00 6.82 0.000007 0.000001 4.07 149,235,542,440,000.00