Analyzing the Effect of the One Town, One Product (OTOP) Program on the Income of Food Production Enterprises in Batangas Province

Date

6-2025

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Richard B. Daite

Committee Member

Niño Alejandro Q. Manalo, Gideon P. Carnaje, Maria Angeles O. Catelo

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Abstract

This study examined the income differences between food production enterprises that participated in the One Town, One Product (OTOP) Program and those that did not, focusing on small and medium enterprises in Batangas Province. Using primary survey data collected from 100 food production enterprises across selected cities in Batangas, the study employed Propensity Score Matching (PSM) to address potential selection bias between program participants and non-participants. Variables such as the owner’s age, educational attainment, business experience, initial capital, access to credit, and location were included in estimating the probability of joining the OTOP program.

The results suggested that, on average, OTOP-affiliated enterprises reported a statistically higher gross income and net income in 2024 compared to non-OTOP enterprises, even after controlling for observable characteristics. While the study did not capture the full effect of the program or long-term effects, it provided indicative evidence that OTOP participation may have offered income-related benefits for food businesses in the province. These findings highlighted the potential of targeted government support programs like OTOP in boosting small enterprise performance. Based on the results, further research is encouraged to explore other aspects such as sustainability, profitability, and non- income outcomes of program participation.

Language

English

LC Subject

Business enterprise, Food industry and trade—Production control, Income, Economic development

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2025 E2 A38

Notes

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Document Type

Thesis

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