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The Economic Transition and Growth of Philippine Regions

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  • Mapa, Dennis S.
  • Sandoval, Monica Flerida B

Abstract

The paper applies the economic transition models and econometric convergence tests proposed by Phillips and Sul (2006) using data on per capita Gross Regional Domestic Product (1988-2008) to determine if 14 Philippine regional economies converge to a steady state path over a period of time. The paper explores modeling and analyzing the economic transition behavior of the regions. Regional relative transition paths are investigated to generate a graphical overview of the behavior of the regional economies. The log t convergence test, which is constructed from a transition differential decay model, is used to establish if a region converges to a steady state path or diverges from a steady state path. The test basically provides the basis for a stepwise clustering algorithm in finding convergence clusters and analyzing transition behavior between clusters. The paper identifies convergence clubs and determines divergent regional economies using a recursive procedure that revolves around the log t convergence test.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 28267.

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Date of creation: Jan 2011
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Handle: RePEc:pra:mprapa:28267

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Keywords: log t convergence test; convergence clubs;

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  1. repec:phd:dpaper:pjd_2006_vol._xxxiii_nos._1and2-b is not listed on IDEAS
  2. Hal Hill & Budy P. Resosudarmo, 2012. "Introduction," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 48(2), pages 129-142, August.
  3. repec:phd:pjdevt:pjd_2006_vol._xxxiii_nos._1and2-b is not listed on IDEAS
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