Conceptual Framework The economic model commonly used to determine the effect between the selected determinants and

the output in agriculture is production function model. In agriculture, the production inputs consist of agricultural land area (land), employment in agriculture (labor), and agricultural production loans (capital) as the basic determinants of production. In Figure 1 presents some of these determinants including agricultural land area, employment in agriculture and agricultural production loans. How each or the combination of the said determinants affect the Philippine Agricultural output is an important question. FIGURE 1

INDEPENDENT Agricultural Land Area

PROCESS

DEPENDENT

Employment in Agriculture Regression Analysis Philippine Agricultural Output

Agricultural Production Loans

The research paradigm reflects the Independent variables, Process, and Dependent variable of the model. The Dependent variable or the result is determined and examined based on the required inputs which are the independent variables which can affect the behavior of the result in the dependent variable. And the necessary process which is the Regression Analysis is thereby arriving at a systematic and logical decision to know the best result. This paradigm will clearly reflect the very purpose of this study. (tama ba??? Maiiba na ang Figures ntin ah.. nadagdagan eh) The independent of the study includes the following: (a) agricultural land area; (b) employment in agriculture; (c) agricultural production loans The regression of the data gathered and the interpretation of the regression results were considered as the process. The value of agricultural land area and employment in agriculture has a significant relationship with the Philippine agricultural output at 0.05 percent level of significance. On the other, agricultural production loans has no significant relationship to agricultural output at 0.05 percent level of significance. All the explanatory variables, land area and employment in agriculture agricultural production loans have a direct relationship with the Philippine agricultural output.

Hence, the relationship is summarized in functional form: AO = f(ALA, EA, APL) Where: AO = Agricultural Output, in billion pesos

ALA EA APL

= Agriculture Land Area, in thousand hectares = Employment in Agriculture, in million persons = Agricultural Production Loans, in billion pesos