Browsing by Author "Bautista, Jun Ray C."
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Item Restricted Foreign direct investment in services: the effect on Philippine economic growth(2006-03) Bautista, Jun Ray C.; Dela Cruz, Marian A.; Bautista, Ma. Socorro GochocoThis paper contributes to the literature on the relationship between foreign direct investment and Philippine economic growth. Following the literature, FDI inflows in the different economic sectors namely, primary, manufacturing and services sector, exert varied effects on economic growth. We assess the effect of FDI in these different sectors with a primary focus on the services sector as it is the fastest growing sector in the economy and it was previously found out to have an ambiguous effect on economic growth. For this empirical analysis, we used a distributed lag model using time series data for period 1974 to 2003. We regressed GDP per capita growth against FDI and other explanatory variables. The regression results show that FDI in the services sector has a positive and significant effect on Philippine economic growth. FDI in the primary and manufacturing sectors also have a positive and significant effect on economic growth. This study has consistent findings with other studies that FDI promotes economic growth.