MSU Agricultural, Food, and Resource Economics
Dissertations, Theses and Plan B Papers -- Abstract
, Shunji. Philippine Coconut Industry and the International Trade
Plan B Paper,
Major Professor: Bernsten.
This study explores effects of Philippines' coconut policies on the performance
in the international market. Analysis of the coconut sector found that the Philippine
government successfully changed the structure of coconut industry during the
1970s using a fund collected as coconut levies. Since the Philippines dominated
the international trade market of coconut products, it could exercise dominant
market power in the world trade, by integrating the domestic sector. However,
the industrial policies were not effective. Results of an econometric analysis
show that the Philippines did not gain the market power despite the heavy investment
on the coconut sector. Due to technological development in the oil processing
sector, other oil products became close substitutes for the coconut products.
Shift in coconut oil utilization from edible use to inedible use also accelerated
the substitutability. Under the competitive market, the Philippines could not
gain monopolistic profits from the exports.