Economic modeling of technology differences and global competitiveness of the abaca fiber industry in the Philippines
2007
Abamo, A.P., Leyte State Univ., Baybay, Leyte (Philippines) | Aragon, C.T., Philippines Univ. Los Banos, College, Laguna (Philippines)
A cross section data from four major abaca fiber-producing regions in the Philippines was analyzed using a multi period policy analysis matrix (PAM) and stochastic frontier production function model to assess the technical efficiency and global competitiveness of the Philippine abaca fiber industry. Results showed that across technology options, the Philippine abaca fiber industry has comparative advantage and that, machine-stripping technology is competitively advantageous than handstripping technology. Technical efficiency analysis also revealed that machine stripping technology adopters were more efficient than hand stripping technology adopters and that farmers located in areas with better transportation infrastructure were more technically efficient than those with relatively poor transportation facilities. This paper underscores the need to encourage abaca fiber grading even at the farm level. Finally, in order to improve the productivity of the Philippine abaca fiber industry there is a need to address the issue of improvement on farm-to-market roads in remote abaca-producing areas.
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