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What really matters for income growth in the Philippines: Empirical evidence from provincial data

Author

Listed:
  • Mapa, Dennis S.
  • Balisacan, Arsenio
  • Briones, Kristine Joy S.
  • Albis, Manuel Leonard F.

Abstract

The provincial per capita income growth in the Philippines can be considered as generally dismal in the last three decades. In trying to investigate this phenomenon, the paper applies robustness procedures to identify variables strongly correlated with provincial income growth in the Philippines. The extreme bound analysis and Bayesian averaging of classical estimates procedures are applied to fifteen determinants of income growth from a data set consisting of 74 Philippine provinces for the period 1985 to 2003. Results show that the high level of inequality is a serious obstacle to Philippine economic growth. The study also shows that the percentage of young dependents, or those aged 0 to 14 years, over the total population also hinders the provincial income growth.

Suggested Citation

  • Mapa, Dennis S. & Balisacan, Arsenio & Briones, Kristine Joy S. & Albis, Manuel Leonard F., 2009. "What really matters for income growth in the Philippines: Empirical evidence from provincial data," MPRA Paper 19449, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:19449
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    File URL: https://mpra.ub.uni-muenchen.de/19449/1/MPRA_paper_19449.pdf
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    References listed on IDEAS

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    Cited by:

    1. Takahiro Akita & Mark Saliganan Pagulayan, 2014. "Structural Changes And Interregional Income Inequality In The Philippines, 1975–2009," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 26(2), pages 135-154, July.
    2. Valenzuela, Maria Rebecca & Wong, Wing-Keung & Zhen, Zhu Zhen, 2017. "Income and Consumption Inequality in the Philippines: A Stochastic Dominance Analysis of Household Unit Records," ADBI Working Papers 662, Asian Development Bank Institute.
    3. Takahiro Akita & Sachiko Miyata, 2020. "Urban and Rural Dimensions of the Role of Education in Inequality: A Comparative Analysis between Indonesia, Myanmar, and the Philippines," Working Papers EMS_2020_04, Research Institute, International University of Japan.
    4. Takahiro Akita & Sachiko Miyata, 2023. "Education and Expenditure Inequality in Indonesia and the Philippines: A Comparative Analysis in an Urban and Rural Dual Framework," Working Papers EMS_2023_03, Research Institute, International University of Japan.

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    More about this item

    Keywords

    Extreme Bound Analysis; Bayesian Averaging of Classical Estimates; Inequality; Young Dependents;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • 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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