Analyzing the Determinants of Philippine Rice Trade and the Effects of Rice Tariffication Law: A Gravity Model Approach

Date

6-2024

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Emmanuel Genesis Andal

Committee Member

Paul Joseph Ramirez, Gideon P. Carnaje, Ma. Angeles O. Catelo

Abstract

The Rice Tariffication Law (RTL), or RA 11203, drastically shifted the rice industry in the country, and the Rice Competitiveness Enhancement Fund that was created from the revenue generated from tariffication allowed for the provision of resources for increasing the productivity of Filipino farmers. The removal of the quantitative restrictions on the volume of rice imports liberalized rice importation and allowed for higher import volumes. The impact of this policy on the various stakeholders was ambiguous and varied; consumers enjoyed lower retail rice prices, while producers suffered from the plummeting of local farmgate prices. Despite numerous studies dedicated to the analysis of the RTL, there remains a lack of consensus regarding the policy's overall impact on the country. The main objective of this study is to analyze both internal and external factors that influence the value of rice importation in the country through the augmented gravity model of international trade. The main objective of this study is to analyze both internal and external factors that influence the value of rice importation in the country through the augmented gravity model of international trade. It was determined that the GDP, population, distance from trading partners, language commonality, and the implementation of the RTL all had significant impacts on the value of rice imports in the Philippines from 1995 to 1996. Meanwhile, it was determined that the RCEF failed to meet the goals set during its creation. The findings of this study suggest that both internal and external factors, such as the social, economic, and political conditions in the Philippines and the rice exporting partners, impact the value of rice exports in the country.

Language

English

LC Subject

Rice Trade, Gravity model of international trade

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 E2 L46

Notes

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Document Type

Thesis

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