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Do Regions Gain from an Open Economy?

Author

Listed:
  • Ernesto M. Pernia

    (School of Economics, University of the Philippines Diliman)

  • Janine Elora M. Lazatin

    (School of Economics, University of the Philippines Diliman)

Abstract

This paper looks into whether and how sub-national regions can benefit from a country’s economic openness. Using data on the Philippines, it first notes marked disparities across its regions as reflected in economic and social indicators. The dominance of Metropolitan Manila in the national economic landscape persists, albeit spread effects into adjacent regions are increasingly apparent. Applying econometric analysis to panel data, the paper then examines how regional economic growth is influenced by economic openness. Results show that regional gains appear to be uneven with the ex-ante lagging regions at a disadvantage; by extension, the welfare effect on the poor appears unequal, as well.

Suggested Citation

  • Ernesto M. Pernia & Janine Elora M. Lazatin, 2016. "Do Regions Gain from an Open Economy?," UP School of Economics Discussion Papers 201602, University of the Philippines School of Economics.
    • Handle: RePEc:phs:dpaper:201602
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    File URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/1489
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    References listed on IDEAS

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    More about this item

    Keywords

    economic openness; regional development; poverty; Philippines; Asia;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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