Thesis (BS Agribusiness Economics) -- University of the Philippines Mindanao, July 2022

The manufacturing and service sectors were observed to be significant drivers of economic growth and development. Both sectors contribute to the Gross Domestic Product (GDP), creation of value-added goods, the introduction of innovation, and employment generation. The Philippines, a developing economy, recognized export-oriented services sector, rising Foreign Direct Investment (FDI), progressive manufacturing sector, and effective human capital as factors that contribute to the increase in the GDP and in reducing poverty. Many services exist because of the manufacturing sector. However, the general performance of the manufacturing sector was becoming weak and sluggish, this not only affects the services sector but also in the competitiveness of the country in the global market. This diminishing performance of the manufacturing and service sectors is alarming as it translates to poor structural reformation and inefficient performance. Hence, this study aimed to measure the technical efficiency of manufacturing and service sectors in NCR, Manila, region III, Region IV, and Metro-Cebu based on the national enterprise survey conducted by the World Bank in 2015. Data Envelopment Analysis was employed in estimating the level of production efficiency. To identify the significant sources of technical efficiency, Bootstrapped DEA was used. Findings have shown that overall performance of most manufacturing and service sector firms in selected locations in the Philippines were performing at an average technical efficiency as the scores are heavily concentrated in values between 0.70 to 0.90. moreover, the significant sources of technical efficiency identified were firm age firms owned through shareholding with non-traded shares or shares traded privately, partnership firms and firms owned by females. Competition against unregistered or informal firms and process innovation were also found to significantly improve the technical efficiency of the firms. Promotion of equal opportunities for women is significant in addressing barriers concerning gender inequality. Moreover, thorough discussions on wage policies must be considered to generate mutually advantageous policy for both laborers and owners