Selected factors affecting the subsectors of the Philippine agriculture: A panel regression analysis
Patrick R. Diaz
Abstract
The study examined the effects of exports to Gross Domestic Product (GDP), employment, and production loans granted in the GDP agriculture of the Philippines. This paper employed descriptive and quantitative techniques to analyze the behavior of GDP, production loans granted (PLG), exports to GDP (EGDP), and employment (EMP) from 2005 to 2015 totalling 33 observations of agriculture, forestry, and fishery sectors. Specifically, panel data analysis was used to assess the effects of APLG, EMP, GDPt-1 and AEGDPt-1 in GDP. The fixed effect model corrected from autocorrelation and heteroscedasticity, a one percentage unit increase in the exports to GDP, on the average, leads to Php 774.96 increase in the GDP, other things equal; and a one-unit increase in employment, on the average, leads to PhP23.55 increase in the GDP, other things equal; a one peso increase in the production loans granted lagged by one period, on the average, leads to Php 0.4760 increase in the GDP, other things equal. Using the fixed effect model, all the explanatory variables such as, exports to GDP, employment and production loans granted lagged by one period exhibited significant effect on the GDP agriculture. Hence, the model is considered satisfactory from statistical perspective. The results from the fixed effect model were consistent with the priori expectations that exports to GDP, employment and production loans granted lagged by one period positively affect the GDP agriculture.
Keywords
agriculture, GDP, exports, production loans, employment
Author information & Contribution
Patrick R. Diaz. Graduate of the Master of Arts in Economics program in 2019 and Bachelor’s degree in Banking and Finance in 2013 at the Polytechnic University of the Philippines. He is working as a lead specialist for an international financial technology company.
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Institutional Review Board Statement
AI Declaration
Notes
This paper is presented in the 3rd International Conference on Multidisciplinary Industry and Academic Research.
Acknowledgement
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Cite this article:
Diaz, P.R. (2022). Selected factors affecting the subsectors of the Philippine agriculture: A panel regression analysis. International Journal of Academe and Industry Research, 3(3), 43-64. https://doi.org/10.53378/352911
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