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Growth and Redistribution: Is there 'Trickle Down' Effect in the Philippines?

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  • Parel, Danileen Kristel C.

Abstract

This paper aims to explore the determinants of household income and expenditure growth, and assess whether the poor are benefiting from economic development. Using regression analysis, five factors were examined: (1) location of the household, (2) access to infrastructure, (3) changes in rice prices, (4) peace situation, and (5) initial household endowments. The most important finding is that impacts of the five factors vary significantly across households belonging to different income groups--the rich benefit more than the poor. This calls for an effective policy intervention in targeting the poor.

Suggested Citation

  • Parel, Danileen Kristel C., 2014. "Growth and Redistribution: Is there 'Trickle Down' Effect in the Philippines?," Discussion Papers DP 2014-02, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_2014-02
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    File URL: https://www.pids.gov.ph/publication/discussion-papers/growth-and-redistribution-is-there-trickle-down-effect-in-the-philippines
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    References listed on IDEAS

    as
    1. Dollar, David & Kraay, Aart, 2002. "Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
    2. Gaurav Datt & Martin Ravallion, 2002. "Is India's Economic Growth Leaving the Poor Behind?," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 89-108, Summer.
    3. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," The World Bank Economic Review, World Bank, vol. 10(3), pages 565-591, September.
    4. David Owyong, 2000. "Measuring the trickle-down effect: a case study on Singapore," Applied Economics Letters, Taylor & Francis Journals, vol. 7(8), pages 535-539.
    5. Lu, Ding, 2002. "Rural-urban income disparity: impact of growth, allocative efficiency, and local growth welfare," China Economic Review, Elsevier, vol. 13(4), pages 419-429, December.
    6. Philippe Aghion & Patrick Bolton, 1997. "A Theory of Trickle-Down Growth and Development," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(2), pages 151-172.
    7. Khan, Haider A., 1999. "Sectoral Growth and Poverty Alleviation: A Multiplier Decomposition Technique Applied to South Africa," World Development, Elsevier, vol. 27(3), pages 521-530, March.
    8. Tabuga, Aubrey D. & Reyes, Celia M., 2011. "A Note on Economic Growth, Inequality, and Poverty in the Philippines," Discussion Papers DP 2011-30, Philippine Institute for Development Studies.
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    Cited by:

    1. Rafael Martin M. Consing & Angelo Jose B. Lumba & Julian Thomas B. Alvarez, 2018. "Linking Inflation Differential Across Regions to Unemployment in the Philippines," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 6(3), pages 356-373, September.
    2. Sheilla Nyasha Author-Name: Yvonne Gwenhure & Nicholas M. Odhiambo, 2017. "Poverty and Economic Growth in Ethiopia: A Multivariate Causal Linkage," Journal of Developing Areas, Tennessee State University, College of Business, vol. 51(1), pages 343-359, January-M.

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    Keywords

    poverty; education; inequality; Philippines; growth; redistribution;
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