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The Relationship between Population Dynamics and Investments for Energy and Telecommunication Infrastructures in the Philippines

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  • Busilac, Aileen Jean
  • Deluna, Roperto Jr

Abstract

The study examined the relationship between population dynamics and investments for energy and telecommunication infrastructures in the Philippines from 1990-2011. Ordinary Least Squares (OLS) and Two-Stage Least Squares (2SLS-IV) were explored to estimates the coefficients of the models. However, Hausman Specification test rejected the hypothesis of simultaneity problem in the models. Therefore, results of the OLS estimation is preferred than the results of 2SLS-IV. Results revealed that investment for energy and telecommunication is negatively affected by total population but positively affected by the level of population below 15 years old and above 65 years old. Urban agglomeration has significantly increased investments for telecommunication. In general, level of population and its dynamics significantly affects the aggregate infrastructure investments.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 51845.

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Date of creation: 01 Apr 2013
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Handle: RePEc:pra:mprapa:51845

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Keywords: Population Dynamics; 2SLS-IV; Investment;

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  1. Commission on Growth and Development, 2008. "The Growth Report : Strategies for Sustained Growth and Inclusive Development," World Bank Publications, The World Bank, number 6507, October.
  2. Sturm, Jan-Egbert, 2001. "Determinants of public capital spending in less-developed countries," CCSO Working Papers 200107, University of Groningen, CCSO Centre for Economic Research.
  3. David Aschauer, 1988. "Is public expenditure productive?," Staff Memoranda 88-7, Federal Reserve Bank of Chicago.
  4. Benjamin E. Diokno, 2010. "Philippine fiscal behavior in recent history," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 47(1), pages 39-87, June.
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