ASEAN IN TODAY’S WORLD 2013 The Economic Structure and Employment of the Philippines

This paper is written to accomplish the requirement of ASEAN Economics Studies of ASEAN Today’s World 2013 in Ateneo de Manila University, Philippines

Lecturer: Prof. Victor S. Venida, Ph.D.

Written by: Nur Isnaini Masyithoh

Faculty of Economics and Business Universitas Gadjah Mada

2013 I. Background Sectorial Structures of World Economies According to World Bank, one way to determine the structure of economy is by analyzing its three main sectors; agriculture, industry, and services in the country’s total output and employment. Initially, the agriculture is the main sector of developing countries. The shift comes to industrialization and post-industrialization. Industrialization assumed to increase and replace the agriculture because modernization refers to specialization of economic function, monetization of transaction, and homogenization of goods and services (Venida, 2000). The homogenization is formed by the improvement and innovation in technology enhancing the agricultural products. As the requirement of productivity and quality in agriculture increases, the innovation and function of technology has become the obstacle of the growing industry.

Source: World Bank (http://www.worldbank.org/depweb/beyond/beyondco/beg_09.pdf) As the income rises, goods become immaterial. People no longer rely on materials since needs are already satisfied. Instead, they will concern about services including health, education, entertainment, etc. Unfortunately, services sector tend to be less mechanization since services generally cannot be completed by machines. Therefore, the demand of service labors keep increasing. Developed country tend to be undergoing “post industrialization” which the country give less dependence to agriculture.

This study is purposed to analyze the economic