Sugar Woes: Assessing the efficiency of land, labor and capital affecting the productivity of the sugarcane industry in the Philippines Arcega, James Daniel H., Benavidez, Deo Benedicto A., Bernardo, Janine C., Canlas, Yvonne Nicole M., Dayang, Mark Vincent, Grabador, Allyana Marie T., Ocampo, Andrea Khaye M., Rivera, Justine Lawrence S., Tarca, Jamie C., Villaraga, Jade S. 6

Research Paper: (BSBA major in Business Economics) - Pamantasan ng Lungsod ng Maynila, 2023 56

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ABSTRACT: Sugarcane is one of the most important industrial crops as it has contributed annually to the Philippines' economy since the nineteenth century. This study mainly focuses on and aims to determine the significant relationship between the factors of production particularly in land, labor, and capital to the total production of the sugarcane industry. This research used a quantitative correlational design on the statistical data gathered through the Sugar Regulatory Administration (SRA). For the past 26 years, the data showed that there is a predominant decline in land per hectare and agricultural workers while capital (total direct cost) has constantly increased, possibly causing fluctuation in the total production. With the help of multiple regression models, the findings resulted in a p-value of 0.000016, showing a significant relationship between the output and explanatory variables. Therefore, it affects the productivity of sugarcane whether it is land, labor, or capital. Hence, the individual factors stated were found insignificantly. The correlation of coefficient (VIF) of land and labor shows a negative correlation, whilst the correlation of the coefficient of capital shows a direct relationship to the total production. In line with this, the researchers suggest an Economic Policy be implemented under Sugar Regulatory Administration.

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