Vertical specialisation indicator based on supply-driven input-output model

“Import content of exports”, based on Leontief’s demand-driven input-output model, has been widely used as an indicator to measure a country’s degree of participation in vertical specialisation trade. At a sectoral level, this indicator represents the share of inter-mediates imported by all sectors embodied in a given sector’s exported output. However, this indicator only reflects one aspect of vertical specialisation – the demand side. This paper discusses the possibility of using the input-output model developed by Ghosh to measure the vertical specialisation from the perspective of the supply side. At a sector level, the Ghosh type indicator measures the share of imported intermediates used in a sector’s production that are subsequently embodied in exports by all sectors. We estimate these two indicators of vertical specialisation for 47 selected economies for 1995, 2000, 2005 using the OECD’s harmonized input-output database. In addition, the potential biases of both indicators due to the treatment of net withdrawals in inventories, are also discussed.

Where does Philippine education go? : the "K to 12" program and reform of Philippine basic education

In 2012 the Philippines launched its "K to 12" Program, a comprehensive reform of its basic education. Through this reform, the Philippines is catching up with global standards in secondary education and is attaching a high value to kindergarten. The structure, curricula, and philosophy of the education system are undergoing reform and improvement. The key points of the new policy are "preparation" for higher education, "eligibility" for entering domestic and overseas higher educational institutions, and immediate "employability" on graduating, all leading toward a "holistically developed Filipino". This policy appears admirable and timely, but it faces some pedagogical and socioeconomic problems. The author wants to point out in particular that the policy needs to address gender problems and should be combined with demand-side approaches in order to promote poverty alleviation and human development in the Philippines.

Does market upgrading benefit farmers? : market differentiation, contract farming, and professional cooperatives in China's pork processing industry

This study tested whether contract farming or farmers professional cooperatives (FPCs) improved the social benefit of pork production and income of breeding farmers in China. The main concern of this study is whether institutional arrangement like contract farming or FPCs actually improved the welfare of farmers as expected. To answer this question accurately, we estimated the differentiated market demand of pork products in order to quantify the benefit by transaction types. Our study finds that contract farming or FPCs improved the benefits of pork products, but farmer's income remained lower than that of traditional transaction types. This finding is new in terms of quantifying distribution of the economic values among sales outlets, agro-firms and farmers. It is more reliable because it explicitly captures impacts from both demand side and supply side by structural estimation. In practice, we need to keep it mind the bargaining power of small farmers will not improve instantly even when the contract farming or FPCs are introduced.