Journal of Asian Business and Economic Studies
Vol. 26(S02) , October 2019, Page **-**


The Philippine Mango Global Value Chain: An Empirical Study Using Gravity Model Approach
Michael Fernandez Centino & Mary Caroline Castano

DOI:
Abstract
To maintain the competitive edge status of the Philippines in agricultural products trading, this study identify factors that significantly influence the mango global value chain participation of the Philippines. The study employed a causal research design with panel regression analysis using Pooled Regression, Fixed Effect Model and Random Effects Model and determined the robustness of the model using Hausman test.The resulting Fixed Effect model found out that GDP, remoteness and global competitiveness has a significant positive effect to gross exports and value-added. While land lock and bilateral distance has a significant negative effect. Among the identified variables, remoteness has the most influence. The resulting model is limited in the analysis of the Philippine mango global chain’s integration in terms of gross exports and value-added contribution to the economy of the country. Underlying factors not included in the model was not given emphasis. This study will provide factors that will correctly estimate the Philippine mango global integration. Policy recommendations which if implemented can guarantee strong integration of Philippine mangoes in the global chain. Strong integration will in effect facilitates the flow of factor payments in the economy thereby uplifting the standard of living of its citizen and in the end creating more social protection to its people. Despite the fact that there are studies conducted describing the Philippine Global Value Chain Integration, their study is limited in using descriptive analysis and not identifying the factor/s that will improve the mango global value chain integration.

Keywords
Philippine Mango, Global Value Chain, Gravity Model, Panel Regression
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