APPLIED ECONOMICS

Types of Industry

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Objectives:
At the end of the chapter:
• distinguish the different services/products of
business and industry in the locality

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Agriculture - Coconut, Corn, Rice, etc.

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Agriculture in the Philippines employs 30%

of the Filipino workforce as of 2013, according
to World Bank statistics. Agriculture accounts for
12% of Filipino GDP as of 2013, according to the
World Bank.

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• Laborers/OFWs

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The preliminary results of the Annual Labor and

Employment Estimates for 2015 based on the average
of the four (4) LFS rounds (January, April, July and
October) reported an annual labor force participation
rate of 63.7 percent out of the 64.9 million population
15 years old and over.

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This is equivalent to about 41.3 million

economically active population comprising
either the employed or unemployed persons.
More so, the annual employment rate was
reported at 93.7 percent and the annual
unemployment rate, 6.3 percent. The annual
underemployment rate was estimated at 18.5
percent. These annualized rates for 2015 do not
include data from Leyte of Eastern Visayas or
Region VIII.

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The total employed persons was

approximately 38.7 million in 2015. Employed
persons are grouped into three major sectors -
agriculture, industry and services sector. Those
in the services sector comprised more than half
(54.7 %) of the total employed persons.

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About 18.9 percent were engaged in

wholesale and retail trade or in the repair of
motor vehicles and motorcycles. Workers in the
agriculture made up the second largest sector
accounting for 29.1 percent, while those in the
industry sector, 16.2 percent.

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• Tourism

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In 2015, the travel and tourism

industry contributed 10.6% to the
country's GDP. The Philippines is an
archipelagic country composed of
7,107 islands with 82 provinces
divided in 18 regions. The country is
known for having its rich biodiversity
as its main tourist attraction. .

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Its beaches, mountains, rainforests, islands

and diving spots are among the country's most
popular tourist destinations. The country's rich
historical and cultural heritage are also one of
the attractions of the Philippines. Popular
destinations among tourists are El Nido in
Palawan, Davao, Boracay, Siargao, Cebu, Manila
and many more.

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As of 2015, 4.99 million Filipinos have

been employed in the tourism sector and the
government collected P227.62 billion pesos
from foreign tourists. The country attracted a
total of 5,360,682 foreign visitors in 2015

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• BPOs - Call centers

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The BPO industry is the fastest growing

sector in the country and is expected to
overtake OFW remittances in 2017. Because of
this rapid growth, the question arises whether
or not this growth is inclusive.

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Negros Occidental Governor Alfredo

Marañon Jr said that IT will close the gap
between the rich and the poor: "65% of our
population is below 35 years old. Make your
future bright. I believe that IT is the answer to
your future.

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• Telecommunications - SMART, Globe, Sun,

PLDT, etc.

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Growth in the mobile segment of the

Philippines telecom market has been moderating
after years of strong expansion. Initially the slowing
in the market was partly due to a general downturn
in the Philippine economy; however, even as the
economy picked up, it became obvious that mobile
subscriber numbers were continuing to increase
but at a generally slower pace.

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Mobile revenue growth also down in what

has for many years been a highly competitive
market. Into 2014 the Philippines had around
105 million mobile subscribers. Penetration,
having eased past the 100% milestone, ongoing
annual subscriber growth of between 5% and
10% looked to be the pattern in the short term.

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• Electronics

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• Mining - Raw Materials - Nickel, etc.

With an estimated US$ 1.4 trillion in mineral
reserves, especially gold, copper, nickel,
aluminum, and chromite, the mining potential
of Philippines is one of largest in the world.

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According to the Mines and Geosciences

Bureau (MGB), the archipelago is second in the
world in gold and third in copper resources. The
country is ranked top five in the world for overall
mineral reserves, covering an estimated nine
million hectares, although less than 2% has
received mining permits.

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• Furniture/Handicrafts

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The Philippine furniture industry is one of the

most labor-intensive and artistic industries in
the country. Furniture companies tap the
hardworking, creative and enterprising qualities
of Filipinos in manufacturing high-quality
furniture.

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Because of this, the Philippines is known

as the “Milan of Asia.” The industry, which is
98% categorized under SMEs, provides 2.1
million indirect workers nationwide and
provides business to 5.4 million in its supply
chain.

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• Finished Foods - Jollibee, Chowking,

Universal Robina, etc
“Fast food” generally refers to the type of
restaurants that sell quick, inexpensive take-out
food. The food service industry in the
Philippines has improved over the m years. It
has been a part of the Filipino culture to dine
out during work breaks and when celebrating
different occasions.

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The introduction of foods like hamburger,

spaghetti, sushi, Thai food and even Korean
dishes has contributed to Filipinos’ food
preference. Another reason is the
industrialization and growth among the number
of women in the workforce.

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ACTIVITY:
Answer the following question, as a
businessman.
• What is the importance of knowing
government regulations in your business
enterprise.
• What is the significance of an increasing
number of families receiving remittances on
the profitability of restaurants?

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• What is the impact of an aging societies like

Japan and some Europeans countries on the
demand for health services.

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• Conduct a class debate on the proposition

that the ASEAN economic integration opens
huge opportunities for business enterprise in
the country.

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Quiz:
Give at least (3) kinds of leading industry in the
Philippines and define each.

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Reference:
• Tullao Jr., Tereso S. Applied Economics For A
Progressive Philippines. Phoenix Publishing House;
927 Quezon Ave., Quezon City. 2016
• Pagoso, Cristobal M. Philippine Economics (Macro
Approach). NELSON PUBLICATION; Marimar
Village Paranaque City. 2003
• Carnaje, Gideon P. Applied Economics. Vibal Group
Inc, Araneta Avenue, Quezon City. 2016

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