Mining Sector: Towards Contributing to Inclusive Growth

This paper tests if the mining sector has contributed to inclusive growth in the Philippines. The results of the econometric test indicate that households--both poor and non-poori--whose members are employed in the mining sector are neither likely to exit nor enter poverty, suggesting that mining has a neutral impact on poverty status. The results also show that households whose members are in the agriculture, forestry, and hunting sectors are statistically likely to enter poverty, and less likely to exit it. The analysis also indicates that households engaged in entrepreneurial activities are the best candidates to exit poverty in the next period. The findings suggest that the mining sector in its current state cannot be relied on to directly contribute to poverty reduction. Moreover, it suggests that poverty reduction could be very likely attained by promoting and supporting entrepreneurship among poor households.