Equity and employment effects of technological change in corn in the Philippines
1988
Perez, M.L.
The study was conducted to analyze the effect of technological change in corn on income distribution among and between producers and consumers; trace its impact on employment and the process of research prioritization in the country with special emphasis on corn. Results showed that researchers and policy makers alike had realized the potentials of improving corn productivity through technological development. Researchers are now focusing not only on yield improvement but also in improving corn genetic material particularly pest resistance. Technological development in corn led to increased welfare gains for the society. Small farmers being major consumers themselves absorbed part of the welfare gains in terms of consumer surplus in addition to the producers' surplus resulting from technological change. The strong linkage of the feed industry with the livestock industry also resulted to positive spill-over effects which benefited not only the livestock producers but the consumers in general. Technological change was shown not only to contribute to increases in corn supply in the country but also in stabilizing prices and increasing import substitution. Similarly, technological change showed very significant positive effects on labor use. The more important implication of the employment effects however, was the increase in labor productivity resulting from technological change thereby further improving equity in the rural areas. Thus, the principal impact of technological change in employment lies beyond the direct impact farm employment but on the entire income streams generated by the new technology. Results of the study documented the positive benefits from technological change in corn emphasizing and rationalizing the need for increased research expenditures.
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