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Article: Tax reform and energy in the Philippines economy: a general equilibrium computation.
- Article from:
- The Energy Journal
- Article date:
- April 1, 1994
- Author:
CopyrightCOPYRIGHT 1994 International Association for Energy Economics. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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INTRODUCTION
During the period 1983-85 the Philippines experienced a rapid decline in national saving and economic growth. The real GDP grew at a negative rate of -7.6 and -7.4 in 1984 and 1985, respectively (International Financial Statistics, 1992). To deal with the problem, fiscal policy was assigned a major role. In order to sustain economic growth, the government decided to restructure the tax system.
Since the energy sector is the largest non-agricultural industry-its share in the total value added produced by the economy is about 9%, (Philippines Statistical Yearbook, 1989)--one possible way to improve the economic conditions is to expand the energy ...