MANUFACTURING SECTOR IN THE PHILIPPINE SYSTEM OF NATIONAL ACCOUNTS

1
MANUFACTURING SECTOR IN THE PHILIPPINE SYSTEM OF
NATIONAL ACCOUNTS

• By
• Ms. Minerva D. Martin

2
Presentation Outline

• 1. Significance of Manufacturing in the PSNA
• 2. Components of the Philippine GDP GNP at
  Constant Prices
• 3. Definition of the Manufacturing Sector
• 4. Scope and Coverage
• 5. Sources of Data
• 6. Estimation Methodology
• 7. Problems and Issues
• 8. Future Plans

3
2000 levels share of Manufacturing to

• 1. GDP 25
• 2. GNP 23
• 3. Industry 72
• 4. Employment 10
• 5. Merchandise Exports 95

4
2000 levels share of Manufacturing to Industry

• 1. Manufacturing 72
• 2. Construction 15
• 3. Electricity and Water 10
• 4. Mining and Quarrying 3

5
GNP and GDP by Industrial Origin at Constant
PricesPercent Distribution
6
Manufacturing

• Manufacturing is the mechanical or chemical
  transformation of inorganic or organic materials
  into new products, whether done by machines or by
  hand, in factories or in households, for sale or
  for own consumption

7
20 Manufacturing Sub-sectors in the PSNA

• 1. Food
• 2. Beverage
• 3. Tobacco
• 4. Textile
• 5. Footwear and Wearing Apparel
• 6. Wood and Wood Products
• 7. Furniture and Fixtures
• 8. Paper and Paper Products
• 9. Publishing and Printing
• 10. Leather and Leather Products

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20 Manufacturing Subsectors in the PSNA

• 11. Rubber Products
• 12. Chemicals and Chemical Products
• 13. Products of Petroleum and Coal
• 14. Non-Metallic Mineral Products
• 15. Basic Metal Industries
• 16. Metal Products
• 17. Machinery except Electrical
• 18. Electrical Machinery
• 19. Transport Equipment
• 20. Miscellaneous Manufacturing

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Food Manufacturing

• 1. Bakery Products
• 2. Coconut Products
• 3. Milk and Dairy Products
• 4. Grain Mill Products
• 5. Processed Meat and Fish
• 6. Processed Fruits and Vegetables
• 7. Milled and Refined Sugar
• 8. Vegetables/Animal Oils and Fats
• 9. Animal Feeds
• 10. Miscellaneous Foods

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Chemicals and Chemical Products

• 1. Basic Industrial Chemicals and Industrial
  Gases
• 2. Drugs and Medicines
• 3. Fertilizers
• 4. Paints
• 5. Plastic
• 6. Cosmetics and Toilet Preparations
• 7. Miscellaneous Chemicals

11
Non-Metallic Products

• 1. Cement
• 2. Glass and Glass Products
• 3. Miscellaneous Non-Metallic Mineral Products

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Basic Metal Industries

• 1. Iron and Steel
• 2. Non-Ferrous Metals

13
Electrical Machineries

• 1. Electrical Appliances
• 2. Electrical Lamps and Fixtures
• 3. Batteries
• 4. Electrical Wire and Wiring Products
• 5. Microcircuits

14
Sources of Data

• 1. National Statistical Office
• a) Monthly Integrated Survey of Selected
  Industries (MISSI)
• b) Quarterly Survey of Philippine Business and
  Industries (QSPBI)
• c) Integrated Survey of Households (ISH)
• d) Wholesale Price Index (WPI)

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Sources of Data

• 2. Administrative Data
• a) Department of Energy (DOE)
• b) Philippine Cement Manufacturers Corporation
  (PHILCEMCOR)
• c) Sugar Regulatory Administration (SRA)
• d) Philippine Associated Smelting and
  Refining Corporation (PASAR)

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Initial Quarterly Estimates (1981)

• GVAt GVA81 GPIt /
• where
• GVAt gross value added for quarter t
• GVA81 1981 annual gross value added
• GPIt gross production index for quarter
  t of 1981 gross production index for
  1981

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Current Estimates of GVA

• GVAqt GVAqt-1 (Xqt/Xqt-1)
• where
• GVAqt gross value added at quarterly q
  of year t
• GVAqt-1 gross value added at quarter q
  of the preceding year
• Xqt production of quarter q of year t
• Xqt-1 production at quarter q of the
  preceding year

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MISSI Value of ProductionCurrent prices
19
First Quarter 2001 Estimation of Food
Manufacturing
AT CURRENT PRICES
Published Food Mfg. Q1
at Current Prices
77,933


2000
Multiplied by the Weighted Growth of MISSI
1.10078


Estimated Food Mfg. Q1
at Current Prices
85,787


2001
20
Constant Price EstimationWholesale Price Index
(WPI)
21
First Quarter 2001 Estimation of Food
Manufacturing
DEFLATOR
Published Food Mfg. Q1
Implicit Price Index
370.88
2000
Multiplied by the Weighted Growth of WPI
1.08026
Estimated Food Mfg. Q1
Deflator
400.65
2001
AT CONSTANT PRICES
Estimated Food Mfg. Q1
at Current Prices
85,787


2001
Divided by the Estimated Deflator
4.00658
Estimated Food Mfg. Q1
at Constant Prices
21,412


2001
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Problems and Issues

• 1. Low response rate during quarterly
  estimation
• 2. Inconsistent data being reported in the
  survey and those of press release
• 3. Existing price data do not cover all
  commodities
• 4. Appropriateness of using output and input
  price deflators for estimating constant GVA
• 5. Proper price deflator

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Future Plans

• 1. Rebasing to 2000
• 2. Improvement of the coverage to estimate for
  the subgroups of other manufacturing
  sub-sectors up to 4-digit level of the PSIC
• 3. Conduct of study to improve the current
  methodology to incorporate changes in the
  statistical system

24
Thank you very much!
25
Initial Quarterly Estimates 1981

• GVA cu 1981 222,785
• GPI
• Q181 122.32
• Q281 128.23
• Q381 132.47
• Q481 141.21
• TOTAL 524.23

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Initial Quarterly Estimates 1981

• Q181 122.32 / 524.23 GVAcu81(222,785)
• 0.2333 222,785
• Q181 51,983
• Q1 0.2333 222,785 51,983
• Q2 0.2446 222,785 54,495
• Q3 0.2526 222,785 56,296
• Q4 0.2694 222,785 60,011
• GVAcu1981 222,785