Iloilo, Philippines Direct and Indirect Effects of Agriicultural Development on Structure of the Economy : The Case of Iloilo Province Philippines

Abstract

Using the input-output framework and the semi-input-output’ method, this paper attempts to quantity the direct and indirect effects of the new cropping systems technology and the irrigation project on output and income structure in a rural economy. Effects on structural linkages are also investigated. The analysis of the economic structure before and after the development periods (1974/75 and 1979/80) indicates that the rural economy experienced high average annual growth rates of nine and six percent of aggregate output and income respectively. Employment grew more than population despite the rapid adoption of farm machinery in the region. Income distribution structure over the period changed in favor of non-agricultural households and farm households in fully and partially irrigated areas. In general, income distribution of the rural economy over the period did not improved. After the development, the production and value added linkages of the rural economy were strengthened and the import linkage subsequently declined. Employment linkages of agricultural production sectors declined substantially. Moreover, the agricultural production structure shifted from interdependence within agriculture to between agriculture and non-agriculture.