Mapa, Dennis S. and Balisacan, Arsenio and Briones, Kristine Joy S. and Albis, Manuel Leonard F. (2009): What really matters for income growth in the Philippines: Empirical evidence from provincial data.
Download (399Kb) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||What really matters for income growth in the Philippines: Empirical evidence from provincial data|
|Keywords:||Extreme Bound Analysis, Bayesian Averaging of Classical Estimates, Inequality,Young Dependents|
|Subjects:||O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O18 - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources; Human Development; Income Distribution; Migration
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
|Depositing User:||Dennis S. Mapa|
|Date Deposited:||24. Dec 2009 01:30|
|Last Modified:||13. Feb 2013 09:12|
Abreu, M., H.L.F. De Groot, and R.J.G.M. Florax, 2004, Space and Growth: A Survey of Empirical Evidence and Methods. Working Paper, Department of Spatial Econometrics, Vrije Universiteit,The Netherlands..
Anselin, L. 1988, Spatial Econometrics: Methods and Models. Boston, Kluwer Academic.
Balisacan, A. M. 2007, Local Growth and Poverty Reduction. In: The Dynamics of Regional Development: The Philippines in East Asia (eds Balisacan A. and Hill H.). Ateneo De Manila University Press, 398-421.
Balisacan, A.M. 2005, “Sub-National Growth and Poverty Reduction.” Paper prepared for the Finalization Workshop on Policies and Institutions for Advancing Regional Development: “The Philippines in Comparative East Asian Context”. Asian Development Bank, Manila, February 2005.
Balisacan, A. M. 2003, Poverty and Inequality. In: The Philippine Economy: Development, Policies and Challenges (eds A.M. Balisacan and H. Hill), pp311-41. Ateneo de Manila University Press.
Balisacan, A.M. and H. Hill, 2007, The Dynamics of Regional Development: The Philippines in East Asia. Ateneo De Manila University Press Balisacan, A.M. and H. Hill, 2003, An Introduction to the Key Issues. In: The Philippine Economy: Development, Policies and Challenges (eds A.M. Balisacan and H. Hill). New York: Oxford University Press.
Balisacan, A.M. and N. Fuwa, 2002, “Going Beyond Cross-Country Averages: Revisiting Growth, Inequality and Poverty in the Philippines.” Discussion Paper Series on International Development Strategies No. 2001-005, March 2002, Foundation for Advanced Studies on International Development, Tokyo.
Balisacan, A.M. and E.M. Pernia, 2003, Poverty, Inequality and Growth in the Philippines. In: Poverty, Growth and Institutions in Developing Asia (Eds E.M. Pernia and A.B. Deolalikar).Hampshire, England: Palgrave Macmillan Publishers.
Barro, R.J. and J.W. Lee 2001, International Data on Educational Attainment: Updates and Implications, Oxford Economic Papers, 541-563.
Barro, R.J. and X. Sala-i-Martin, 1995, Economic Growth. McGraw-Hill, Inc.
Barro, R.J. and X. Sala-i-Martin, 2004, Economic growth, 2nd Ed. Cambridge, Mass, MIT Press, 2004.
Baumont C., C. Ertur, and J. Le Gallo, 2001, “A spatial econometric analysis of geographic spillovers and growth for European regions, 1980-1995.” Working Paper No. 2001-04, LATEC, University of Burgundy, Dijon - France.
Bloom, D.E., D. Canning, and P.N. Malaney, 1999, “Demographic Change and Economic Growth in Asia.” CID Working Paper.
Bloom, D.E. and J.G. Williamson, 1997, Demographic Transitions, Human Resource Development,and Economic Miracles in Emerging Asia. In: Emerging Asia (Eds J. Sachs and D. Bloom).Manila: Asian Development Bank.
Canlas, D. B., 2008, Comments on Robust Determinants of Income Growth in the Philippines. In:Human Capital and Development in the Philippines (Eds Capuno, J. and Orbeta A.). Philippines Institute for Development Studies (PIDS), Makati City.
Kelly, A. C. and R. M. Schmidt, 2007, Evolution of Recent Economic-Demographic Modeling: A Synthesis. In: Population Change, Labor Markets and Sustainable Growth: Towards a New Economic Paradigm (Eds Mason A. and Yamaguchi M.).Elsevier, 5-37.
Leamer, E. E., 1983, Let’s take the con out of conometrics. American Economic Review 73: 31-43.
Levine, R. and D. Renelt, 1992, A Sensitivity Analysis of Cross Country Growth Regressions,American Economic Review, 82: (4) 942-963.
Mankiw, N.G, D. Romer, and D.N. Weil, 1992, A contribution to the empirics of economic growth. Quarterly Journal of Economics, Vol. 107, pp. 407-437, May 1992.
Mapa, D. S., A. M. Balisacan and K. J. S. Briones, 2008, Robust Determinants of Income Growth in the Philippines. In: Human Capital and Development in the Philippines (Eds Capuno J. and Orbeta A.). Philippines Institute for Development Studies (PIDS), Makati City.
Mapa, D. S. and A. Balisacan, 2004, Quantifying the Impact of Population on Economic Growth and Poverty: The Philippines in an East Asian Context. In: Population and Development in the Philippines: The Ties That Bind (Ed Sevilla, L.A.). AIM Policy Center, Makati City.
Mapa, D. S., A.M. Balisacan, and K.S. Briones, 2006, Robust Determinants of Income Growth in the Philippines. Philippine Journal of Development, Volume XXXIII, Nos. 1-2, pp. 1-32.
Mapa, D. S. and K.J.S. Briones, 2007, Robustness Procedures in Economic Growth Regression Models. The Philippine Review of Economics, Vol. XLIV (2), pp. 71-84.
Obstfeld, M. and K. Rogoff, 1996, Foundation of International Macroeconomics. The MIT Press,Cambridge, Massachusetts.
Radelet, S., J. Sachs, and J. Lee, 1997, Economic Growth in Asia. Emerging Asia: Changes and Challenges. Asian Development Bank.
Sala-i-Martin, X, G. Doppelhoffer, and R. Miller, 2003, Determinants of Long Term Growth: A Bayesian Average of Classical Estimates Approach, American Economic Review, September 2003.