The sectoral composition of growth and its effect on poverty alleviation in the Philippines
Date
2014-12
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Abstract
Numerous studies have analyzed the impact of aggregate economic growth on poverty alleviation. One key finding is that the composition of growth also has an effect on reducing poverty. Constructing a sub-national panel data composed of the gross regional domestic product, value added to output by the three sectors and poverty incidence of the 16 regions in the country, results of the panel estimation show that both the primary and tertiary sector have been significant in contributing to the Philippines's endeavor to raise real incomes and reduce poverty. The revealed
importance of both the agricultural and services sector to the Philippine's goal of further reducing poverty should be taken into account in policy formation. Fostering an environment conducive for growth in both primary and tertiary sectors must be central to an effective strategy for poverty reduction in the Philippines.
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Keywords
Economic growth, Poverty, Poverty reduction