However, in 1996 and 1997, there was a sharp decline in the capital-labor ratio for domestic and export oriented industries with figures of US$44,000 and US$6,800 respectively, in 1997. It is necessary that the declining trend be sustained in the coming years to make the incentive system consistent with the goal of promoting labor-intensive industries to help address the problem of high unemployment and underemployment in the country.
Figure 6 Share of domestic producers in total project cost of BOI-approved projects, by sector, 1988-1997 (percent) 60.00 Manufacturing
50.00
Agriculture Mining
percent
40.00 30.00 20.00
10.00 0.00 1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
Source: BOI, DTI.
Figure 7 Share of export producers in total project cost of BOI-approved projects, by sector, 1988-1997 (percent) 60.00 Manufacturing
50.00
Agriculture Mining
percent
40.00 30.00 20.00 10.00 0.00 1988
1989
1990
1991
1992
Source: BOI, DTI
14
1993
1994
1995
1996
1997