12
Declinin_
Total
Factor
Productivity
From 1956 to 1970, total factor productivity in manufacturing was estimated by Hooley (1985) to have increased by 0.56 percent annually, while from 1971 to 1980, total factor productivity was estimated to have declined at the rate of 1.2 percent per year. Over the whole period 1956 to 1980, total factor productivity growth was a negative 0.15 percent per year. Within individual industries, however, total factor productivity increased throughout the whole period. The negative productivity growth across industries accompanied by positive productivity growth within industries suggests a shift from industries with high productivity to industries with low productivity during the 1950s through the 1970s (Table 5). Little
Chan_e
in
Structure
The structure of production within manufacturing has not changed much since 1970, with theproduction of consumer goods accounting for the largest share of about one-half of manufacturing value added on the average, followed by the production of intermediate goods and capital goods (Table 6). Among consumer goods, the manufacture of food products alone represented 40.0 percent of manufacturing value added in 1985. The share of intermediate goods in manufacturing value added rose to 31.1 p'ercent in 1975 from 27.9 percent in 1970 mainly on account of the increase in the production of chemical products, but this has settled down to an average of 25.0 percent in 1980 and 1985. Capital goods production has accounted for an average share of about 20.0 percent of value added in the manufacturing sector since 1970.
TOTAL IN
FACTOR
Table 5 PRODUCTIVITY
PHILIPPINE
GROWTH
MANUFACTURING
(%)
1956-80
AIi
Manufacturing Within Across
Source:
-0.15
Industry Industries
Hooley
(1985)
0..49 -0.64
1956-70
1971-80
0.56
-1.23
0.77 -0.21
0.34 -1.57