The impact of trade, trade policy and external shocks on the Philippine economy based on the PIDS-NEDA macaroeconometric model

Abstract

This report analyzes the impact of the external 'sector and of Some economic policies on the Philippine economy ba'sed on the reSultS of the simulations Suggested for this year's Model Comparisons WOrkShop, The Simulation's were done uSing the latest verSion of the PIDS-NEDA Annual Macroeconometric Model for the Philippines. ThiS report alSo deScribe's how the simulation's were carried out and what adjustments and aSSumptionS were made. To allow a better appreciation and understanding of the re'sult's, a brief description of the model structure iS presented with particular emphaSiS on the external 'sector and itS linkages with the real and financial SectorS. The baseline Solution and the simulations were done for the period 1980-1986. No constant adjustments were incorporated and So the estimated values are not the Same aS the actual values, although they are reasonably close to each other.