Australian Journal of Agricultural Economics, Vol. The international demand for Philippine exports of coconut products is examined in this paper. mat. Read more. In particular, export concentration on primary commodities, or âcommodity dependenceâ, has ⦠Import of commodities to the Philippines 2018 Value of U.S. agricultural exports to the Philippines 1990-2019 Import of goods to China from the Philippines 2005-2019 Primary commodities are: (i) agricultural raw materials (SITC section 2 excluding divisions, 22, 27, and 28), (ii) food and beverages (SITC sections 0, 1, 4 and division 22), (iii) fuels (SITC section 3), and (iv) metals and ores (SITC divisions 27, 28, and 68). Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices. In contrast, exports fell for other mineral products (-14.4%), other manufactured products (-14.4%), and machinery and transport equipment (-5.9%).Shipments increased to the US (6.2%), China (32.5%), Malaysia (4.0%), Thailand (8.6%), Germany (0.4%), Taiwan (18.4%), and the ASEAN countries (3.3%). 1. Sharp fluctuations in prices: Historically, world
; vegetables; beverages, non-alcoholic. Downloadable (with restrictions)! As indicated earlier in the paper, the typical SSA country depends on three or less of these primary commodities for more than 50 per cent of their foreign exchange earnings. Philippines's main export partners are: Japan (21 percent), the United States (15 percent), China (12 percent) and Hong Kong (8 percent). The hypothesis that the Philippines is a 'small country' exporter of coconut products is rejected using the ⦠Among the 43 countries in the table, sugar was the leading export commodity
than growth in exports of the rest of the world. The economic case for taxing exports rests on the elasticity of demand for the exports concerned, but the true values of these elasticities are controversial. THE DEMAND FOR LDC EXPORTS OF PRIMARY COMMODITIES: THE CASE OF THE PHILIPPINES. countries, Other
countries as a group has declined sharply, from 7 percent in 1980-89 to 3.9
A ; cocoa beans, Cake of soybeans; oil of soybeans; soybeans, Sugar raw; bananas; beverages dist. exports of industrial economies). of changes in technology in the rest of the world. note. export revenue and more than 50 percent of total agricultural export revenue
By way of explanation, they argue that primary commodity dependence creates better opportunities to ⦠for seven countries, coffee for six, bananas for six, cotton lint for five
Implications for single commodity
Explanatory factors are likely to be the effect
Ghana, Panama, Fiji and Guatemala - there was a relative decline in their
Real agricultural
For the full year of 2020, exports fell 10.1% from a year earlier, after a 2.3% rise in 2019. mat. rigidity of short-term supply and the low price elasticity of demand in
37-49 THE DEMAND FOR LDC EXPORTS OF PRIMARY COMMODITIES: THE CASE OF THE PHILIPPINES* PETER G. WARR and FRANCES WOLLMER Department of Economics, Research School of Pacific and Asian Studies, Australian National University, Canberra, ACT The economic case for taxing exports ⦠January 13, 2021 Often they depend, and continue to depend, on a
exports in developing countries and describes salient market features of the
Oil of coconuts; cake of coconuts; crude org. developing countries is that relatively few commodities account for a large
crops, caused alternating short periods of boom conditions and long periods of
But as its agriculture sector grew, Brazil became one of the worldâs leading exporters of ⦠share of total export earnings. of the average for 1980. in the revenues from that commodity. Two features have dominated world agricultural primary
was steeper. commodity price trends (1980 = 100) (deflated by the price index of manufactured
In 2013, Brazilâs total exports represented only 13% of the countryâs GDP, compared with 32% in the case of Mexicoâs exports (and 14% in the case of U.S. exports), according to the World Bank. Long-term forecasts are not encouraging. merchandise export earnings as well as total agricultural export earnings. Conversely, exports rose for other mineral products (47.1%), coconut oil (40.4%), ignition wiring sets and other wiring sets used in vehicles, aircraft, and ships (12.9%), metal components (19.8%), chemicals (9.1%), electronic products (4.9%) and other manufactured products (1.9%). unless they have a major cost or quality advantage over competitors. Many developing countries continue to have high dependence on extracting & then exporting primary commodities. instability tends to be higher for agricultural raw materials and beverages than
Total export receipts for all commodities expanded by 1.8 percent during the fourth quarter of 2016. Countries with high dependence on a single export commodity are concentrated
Sugar (centrif., raw); beverages; food prep. earnings. Data Briefs. lead to a general decline in the share in world trade for commodity exporters. according to the share of the leading agricultural commodity in total
commodity in: Total
and cocoa beans for four. percentage
This note examines levels of dependence on single commodity
mat. âReducing dependence on commodities through vertical and horizontal diversification remains the surest way to avoid the vulnerability of producing countries to changes in commodity prices. employment, and the price level with consequent detrimental effects on growth. Exports of primary commodities in percent of total merchandise exports. ; skin, dry salted sheep, Vegetables fresh; fruit prep. By contrast, sales fell to Japan (-7.0%), Hong Kong (-5.4%), South Korea (-21.8%), Malaysia (4.0%), Singapore (-2.6%), and the EU (-5.8%). Cigarettes; chicken meat; crude org. oversupply. Exports from the Philippines rose by 2.2 percent year-on-year to USD 6.22 billion in September 2020, after a downwardly revised 12.8 percent plunge in August. Sugar (centrif., raw); food prep. importing countries, combined with the long gestation period for many of these
; crude org. alcoholic, Hazelnuts, shelled; tobacco leaves; raisins, Cigarettes; beverages, dist. Large fluctuations in export
Table 3 ranks the major agricultural commodities in terms of
1996 and lost as much as 20 percent with the drop in cotton prices for 1997 to
Shipments declined to Singapore (-17.3%), South Korea (-10.8%), Japan (-4.7%), China (-3.0%) and the EU (-7.1%). Second, sluggish world demand for commodities is likely to
It allows API clients to download millions of rows of historical data, to query our real-time economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds. Asian economies, which relied least on primary commodity exports, also witnessed the slowest growth in their share of primary commodities exports (from 25 percent in 1995 to 27 percent in 2009). the instability of annual nominal world prices for the period 1986-99. In contrast, exports fell for bananas (-32.9%), machinery and transport equipment (-2.7%), and ignition wiring sets and other wiring sets used in vehicles, aircraft, and ships (-1%). As shown earlier, these are the same commodities on
primary commodities can be expected to have a declining share in world trade
Thirty-two of these countries
Beverages; sugar; beverages, dist. On the flip side, sales rose to China (12.7%), Thailand (10.5%), Germany (4.7%), Taiwan (12.1%), Vietnam (23.4%), and the ASEAN countries (10.4%). 40, issue 1, 37-49 Date: 1996 References: Add references at CitEc Citations: View citations in EconPapers (2) Track citations by RSS feed. The international demand for Philippine exports of coconut products is examined in this paper. Table 2 shows for the same countries, changes in the degree of
Fruits and nuts was the fastest grower among the Philippinesâ top 10 export categories, up 25.5% from 2018 to 2019. Primary product dependence can be a significant barrier to economic growth and development. Table 1. Direct access to our calendar releases and historical data. Curated by Knoemaâs data analysts to deliver leading short-term and long-term indicators and forecasts from trusted sources for each of the covered industries. Sugar (centrif., raw); bananas; orange juice, Tobacco leaves; cotton lint, sugar (centrif., raw). The
Coffee, green; cloves (whole and stems); vanilla, Coffee, green; crude org. In addition, most of these countries have
overall export performance of SCEs is inevitably tied to trends and fluctuations
Philippines is also the world’s largest producer of coconut, pineapple and abaca. merchandise
Crude org. commodity-dependent economies. There are a number of reasons,
Variability in total export earnings could also
percent in 1990-99, reflecting slower growth in their commodity export earnings
export proceeds following the increase in world prices of cotton from 1994 to
exports (3), Total
exports, Total
Abstract. Cinnamon; beverages, dist. For tropical beverages, sugar and cotton, the decline
In other words, export concentration of primary commodities is linked to underdevelopment; the higher the dependence, the lower the countryâs development, measured by its GDP per capita. commodity exports in developing countries: magnitude and
Shipments rose to China (43.3%), Japan (0.7%), the US (14.5%), Singapore (9.1%), Thailand (21.9%), Germany (7.7%), and the ASEAN countries (10.1%). Dependence on single agricultural commodity exports in developing countries: magnitude and trends. agricultural commodities for many years to come. ; sugar conf. mat. Sales expanded for cathodes and sections of cathodes (133.9%), other mineral products (73.3%), metal components (32.9%), chemicals (25.9%), electronic equipment and parts (24.3%), other manufactured goods (5.4%), and electronic products (0.8%). Peter Warr and Frances Wollmer. In sum, overall growth and stability of export earnings in the
alcoholic. In view of the high dependence on a single commodity, the
Thus, unstable and generally declining
Concerns about the harmful effects of high dependence on primary commodity exports are founded on the assumption that primary commodity exporters are affected by the secular deterioration in their terms of trade, and primary exports may be characterized by high price volatility and low productivity growth (Prebisch, 1950, 1959; Singer, 1950). Download historical data for 20 million indicators using your browser. Meanwhile, exports rose to the US (1.2%), Thailand (12.4%), Germany (12.1%), Taiwan (10.1%), and the ASEAN countries (2.9%). the recurring conditions of boom and slump in their exports have created
Coffee; dry-salted sheepskin; crude org. According to the United Nations (2019) Exports from the Philippines dropped by 2.2 percent year-on-year to USD 6.20 billion in October 2020, after an upwardly revised 2.9 percent gain in September, as the COVID-19 disruption crippled global demand. A country is considered to be dependent on commodity exports when commodities constitute the predominant share of its exports. highly open economies, with exports of the top single commodity corresponding to
The Trading Economics Application Programming Interface (API) provides direct access to our data. (1 - 3), 43 commodity-
exports (4), (percentage
First, volatile world commodity prices are believed to have
These economies are vulnerable to volatile global prices. It includes the volume and value of exports and imports of selected agricultural crops, share of agriculture in total foreign trade as well as the share of Philippine agricultural crops in the total world export trade. including changes in world commodity prices. The international demand for Philippine exports of coconut products is examined in this paper. The combination of a high concentration of exports and the large share of commodities in those exports has important implications for development. Philippines: Merchandise exports swing into contraction in the last month of 2020. The hypothesis that the Philippines is a 'small country' exporter of coconut products is rejected using the specification ⦠Philippines: Remittances grow for third month running in November, albeit marginally. their 1990s peaks. Major exports are: electronic products (42 percent), other manufactures (10 percent) and woodcrafts and furniture (6 percent). The last UNCTAD report on the âState of Commodity Dependenceâ, issued in 2019, shows that all the Horn of Africa (HoA) countries are commodity-dependent, in most cases agricultural commodities-dependent. Overview: In September 2020 Philippines exported $5.91B and imported $8.48B, resulting in a negative trade balance of $2.57B.Between September 2019 and September 2020 the exports of Philippines have decreased by $-77.3M (-1.29%) from $5.98B to $5.91B, while imports decreased by $-971M (-10.3%) from $9.45B to $8.48B. Philippines top 10 exports accounted for over four-fifths (81.8%) of the overall value of its global shipments. Table 1 Indicators of dependence on primary commodities Exports from the Philippines rose by 3.0 percent year-on-year to USD 5.79 billion in November 2020, after a 1.2 percent fall in October, amid recovering global demand as more countries eased COVID-19 lockdown restrictions. of primary commodity exports to total exports in two periods, 1975-1979 and 2000-2004. In some cases, the dependence is extreme. Similarly, agricultural exports increased by 34.2 percent to $1.434 billion in the fourth quarter of 2016 from $1.068 billion in the same quarter of 2015. Introduction. dependent
The crux of the model is that the ratio of a LDCâs total external debt to export is a function of its terms of trade, the relative price level, the real cost of borrowing, and the extent of its openness to the rest of the world. The economic case for taxing exports rests on the elasticity of demand for the exports concerned, but the true values of these elasticities are controversial. Oil of coconuts; bananas; crude org. Exports in Philippines averaged 1733957.57 USD Thousand from 1957 until 2020, reaching an all time high of 6341727.87 USD Thousand in October of 2019 and a record low of 23000 USD Thousand in October of 1957. countries, Average annual percentage growth in total merchandise exports, Average annual percentage growth in total agricultural exports, Share of world agricultural exports (percent)[108], Dependence on single agricultural
Developing countries and territories: shares of
Philippines Retail Prices Rise the Least in 7 Months, FDI into the Philippines Shrinks at Softer Pace, Philippines Inflation Rate Hits 2-Year High, Philippines Manufacturing PMI Highest in 25 Months, Philippines Economy Expands 5.6% QoQ in Q4, Philippines Q4 Economy Shrinks Less than Expected, Philippines Trade Gap Narrows in December, Philippines Imports Drop the Least in 11 Months, Taiwan Q4 GDP Annual Growth Revised Higher, China Keeps Benchmark LPR Steady for 10th Month. According to World
These observations are worthy of
4. Primary Commodities and Strategies for Development in ASEAN ... ing partners reveals a relatively high dependence of the ASEAN group on economic linkages with two nations: Japan and the United States, which ... % of all exports 1 % PHILIPPINES 1% % of all exports 0.01% SINGAPORE 337 % of all exports 1 % The hypothesis that the Philippines is a 'small country' exporter of coconut products is rejected using the specification of a price-normalised demand equation and the implications of this finding are discussed.Demand and Price Analysis, 1999. generate adverse short-term effects on income, investment and employment. result from changes in export volumes, which can be caused by several factors
A prominent feature of agricultural commodity exports in many
merchandise
commodities have experienced sluggish world demand and a downward trend in real
In 1999 the price index of agricultural commodities deflated
agricultural
(1998). Sales fell the most for bananas (-42.5%), followed by ignition wiring sets and other wiring sets used in vehicles, aircraft, and ships (-9.5%), miscellaneous manufactured articles (-7%), machinery and transport equipment (-6.3%), and electronic products (-0.3%). been a major factor causing instability in total export earnings in
addition, with slow demand conditions, countries specialising in production of
single commodity-dependence. typically undiversified primary commodity-dependent LDC and the degree of its dependence on primary commodities. The share of primary commodities in exports increased across all regions of the developing world, albeit at different rates (Chart 2.2). alcoholic, Rubber, natural dry; oil of palm; cocoa beans, Oil of maize; oil of palm; flour of wheat, Fruit juice; beverages, non-alcoholic; flour of wheat, Dates; sugar conf. Bank estimates for 2015, although real prices of most agricultural commodities
proceeds are believed to have adverse short-term effects on income, investment,
mat. exports (1), Total
In
In contrast, sales fell to the US (-3.4%), Hong Kong (-7.5%), South Korea (-47%), and the EU (-6.9%). Primary Commodities and Economic Development addresses the changing position of primary commodities in the world economy and investigates their importance for commodity exporting under-developed countries. This was the first rise in exports since February, as more countries relaxed COVID-19 lockdowns. SCEs will continue to be determined by what happens in their leading primary
notably with respect to sugar, coffee, bananas, cotton lint and cocoa beans. Sugar; beverages (non-alcoholic); fat prep. countries comprise those for which more than 20 percent of total merchandise
Dependence on single commodity exports. in certain regions: 21 in Sub-Saharan Africa, 14 in Latin America and the
Downloads: (external link) 40, No. by the price index of manufactured exports of industrial economies was one half
which single commodity exporters (SCEs) depend the most for export
exports of industrial economies), Figure 1 - B. points)
A Handbook Of Primary Commodities In The Global Economy Marian Radetzki , Linda Wårell The dramatic price falls of 2014â2015 marked the end of the most powerful and enduring commodity boom since the Second World War. come from one agricultural commodity. in total export earnings increased in the latter period. for temperate-zone products. In contrast, exports grew for cathodes and sections of cathodes (367.8%), other mineral products (76.6%), metal components (14.9%), chemicals (11.2%), and other manufactured goods (8.6%). 2. mat. merchandise
earnings are well known to make development planning more difficult and to
Publish your articles and forecasts in our website. Salient features of agricultural primary commodity
commodity prices greatly compound the problems of commodity-dependent economies,
The information is presented for the entire aggregate primary commodities and for its four main components: food, agricultural raw materials, fuels and base metals. exports, as a
supply/demand imbalances that were reflected in volatile prices. prices (Figure 1), essentially because of low income elasticity of demand and
Concerns about the harmful effects of high dependence on primary commodity exports are founded on the assumption that primary commodity exporters are affected by the secular deterioration in their terms of trade, and primary exports may be characterized by high price volatility and low productivity growth (Prebisch, 1950, 1959; Singer, 1950). 1 (April 1996), pp. January 27, 2021. are projected to rise above current 2001 levels, they would still remain below
Australian Journal of Agricultural and Resource Economics, 1996, vol. Conversely, in seven countries - Dominica, Uganda, Cuba, Rwanda, Comoros,
exports (2), Total
Unstable commodity prices and export
problems for commodity-dependent economies. trends. alcoholic, Cotton lint; cashew nuts (shelled); sugar, Oil of palms; rubber; oil of palms kernels, Coffee, green; vegetables prep; asparagus, Sesame seed; sheep; skin, dry salted sheep, Oil of groundnuts; cotton lint; cashew nuts, Beverages; fruit prep; grapefruit & pomelos, Chocolate products; flour of rye; goat meat, Cocoa beans; rubber, natural; oil of palm. Shipments shrank to the US (-6.6%), Japan (-1.4%), Hong Kong (-14.7%), South Korea (-16.9%), Malaysia (-1.9%), Netherlands (-10.8%), and the EU (-10.5%).