Economic zones and the regional income inequality in the Philippines

Date

2009-04

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Abstract

In 1995, the Special Economic Zone (SEZ) Act was passed to stimulate the establishments of numerous economic zones. Furthermore, the thrust of this law is to promote balanced growth throughout the country. Economic zones contribute to balanced growth by generating employment and encouraging investments in specific areas. In this study, we evaluate the success of this policy by determining· the relationship between the existence of economic zones and regional income inequality. The findings show that the policy was successful to some extent but it neglected some regions in the country.

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Keywords

Regional income inequality, Economic zone, Economic growth, Regional development, Regional investment

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