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

Busilac, Aileen Jean and Deluna, Roperto Jr (2013): The Relationship between Population Dynamics and Investments for Energy and Telecommunication Infrastructures in the Philippines.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Population Dynamics, 2SLS-IV, Investment
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C36 - Instrumental Variables (IV) Estimation; H - Public Economics > H5 - National Government Expenditures and Related Policies > H54 - Infrastructures ; Other Public Investment and Capital Stock; J - Labor and Demographic Economics > J1 - Demographic Economics > J11 - Demographic Trends, Macroeconomic Effects, and Forecasts

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