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Economic Growth, Financial and Trade Globalization in the Philippines: A Vector Autoregressive Analysis

Author

Listed:
  • Deluna, Roperto Jr
  • Chelly, Antiquisa

Abstract

This study was conducted to examine the relationship among Economic Growth, Financial and trade Globalization in the Philippines from 1980 to 2011. The study used the Vector Autoregressive VAR (1) model and Granger Causality test. It was found out that the current value of GDP is positively affected by the previous value of itself and trade openness. The estimation results suggested that growth in trade volumes accelerate economic growth. However, financial openness has no significant effect on the current value of GDP. This implies that the level of openness of the Philippine economy is not sufficient to obtain the potential benefits of financial globalization in enhancing economic growth.

Suggested Citation

  • Deluna, Roperto Jr & Chelly, Antiquisa, 2014. "Economic Growth, Financial and Trade Globalization in the Philippines: A Vector Autoregressive Analysis," MPRA Paper 60206, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:60206
    as

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    File URL: https://mpra.ub.uni-muenchen.de/60206/1/MPRA_paper_60206.pdf
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    References listed on IDEAS

    as
    1. Bartolini, Leonardo & Drazen, Allan, 1997. "Capital-Account Liberalization as a Signal," American Economic Review, American Economic Association, vol. 87(1), pages 138-154, March.
    2. Gene M. Grossman & Elhanan Helpman, 1991. "Quality Ladders in the Theory of Growth," Review of Economic Studies, Oxford University Press, vol. 58(1), pages 43-61.
    3. Arestis, Philip & Basu, Santonu, 2004. "Financial globalisation and regulation," Research in International Business and Finance, Elsevier, vol. 18(2), pages 129-140, June.
    4. Peter Blair Henry, 2000. "Stock Market Liberalization, Economic Reform, and Emerging Market Equity Prices," Journal of Finance, American Finance Association, vol. 55(2), pages 529-564, April.
    5. Paul R Masson, 2001. "Globalization Facts and Figures," IMF Policy Discussion Papers 01/4, International Monetary Fund.
    6. Marius C. APOSTOAIE, 2011. "Measuring Economic Globalization – Facts And Figures," The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration, vol. 11(2(14)), pages 99-109, December.
    7. Richard A. Brecher, 1974. "Minimum Wage Rates and the Pure Theory of International Trade," The Quarterly Journal of Economics, Oxford University Press, vol. 88(1), pages 98-116.
    8. Krugman, Paul R, 1981. "Intraindustry Specialization and the Gains from Trade," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 959-973, October.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    VAR; Globalization; Economic Growth; Development;

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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