Transformation of the Rural Economy in the Philippines, 1988–2006

This research explores the changing structure of the rural economy in the Philippines from 1988 to 2006. We found that the expansion and upgrade of infrastructure such as electricity and roads and investment in secondary and tertiary education are important factors that induced the economic transformation of the rural economy. The importance of higher education as an entry requirement to the nonfarm labor market has declined over time, indicating that the rural nonfarm sector has been increasingly providing employment opportunities to the unskilled and the uneducated, who form the bulk of the rural poor.