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Item Restricted Government spending and endogenous growth: Time-series evidence in the case of the Philippines(2014-12) Nahial, Kelvin Charles; Shiraishi, Joji; Carlos, Fidelina N.This paper, based on the endogenous growth theory, examines the empirical evidence on the relationship between government spending and economic growth. This assumes that increasing government spending in the absence of diminishing return invariably raises the steady-state growth of an economy. Growth is primarily driven by investments on human capital which posits externalities and spillover effects on productivity. Ordinary least square (OLS) and Granger causality test were utilized in order to determine the linearity and causality of the parameters using a time-series data from 1987 through 2013. The empirical result suggests that increased share of government spending to GDP is not statistically significant in predicting per capita growth. However, the relationship is negatively linked. This paper also determines the effect of various dis-aggregated components of government spending on per capita growth. Estimated effects at the dis-aggregated level suggest that health is positively linked and defense spending is negatively related to per capita GDP growth. Expenditures on education and infrastructure are positively linked to economic growth, but both are statistically insignificant. In general, the results of this paper confirm a prior expectations based on the literature. This study has an implication for policymakers on how to allocate capital resources for optimal outcomes especially in the developing countries like the Philippines.Item Restricted Endogenous growth theory: an empirical analysis using panel regression(2003-03) America, Adrian C.; Ancog, Janette R.; Reside, Renato R.This study aimed to test the significance of the variables that the endogenous growth theory predicts to have an effect on long-term economic growth. This study tested the variables: natural logarithm of the per capita gross domestic product for 1980, natural logarithm of the enrolment ratios, natural logarithm of the R&D expenditures as per cent of gross national product, per cent investment share of gross national product, and openness. Three regression equations were generated: G7 countries, selected Asian countries, and G7 countries and selected Asian countries combined. The results suggested that the significant variables that contribute to economic growth vary based on the nature of the country.