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    Analyzing the effects of investments in public infrastructure on regional poverty reduction
    (2006-04-10) Aruta, Joseph Ricardo; De Guzman, Rodette Bon; Arcenas, Agustin
    Poverty remains to be one of the most pressing issues of the Philippine society. The government has resorted to different means in order to combat this problem, such as providing sources of income, shelter and healthcare. But one of the less visible ways by which the government attempts to reduce poverty is through its investments in public infrastructures, specifically in roads, electricity, education, irrigation and the Comprehensive Agrarian Reform Program. These infrastructures have both its direct effects on poverty alleviation, and indirect effects because it goes through certain channels, namely wages, agricultural employment and non-agricultural, which then have impacts on poverty. The aim of this study is to measure just how significant the investments of the government in these infrastructures are on regional poverty reduction. Data from 1990 to 2005 on the amount of government expenditure on these infrastructures were gathered and regressed against poverty incidence and the channels. Regression results show that government spending on roads has the largest direct effect on poverty reduction. Both education and electricity have the largest indirect impact on improving the welfare of the poor through its effects on the three channels mentioned above. These results suggest that the government should be wiser in deciding where to allocate resources if its main objective is to lift people out of poverty. It should be more flexible in imposing policies and ensure that the benefits are felt by the people.
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    The impact of roads on output at regional level
    (2009-04) Empaynado, Karen G.; Medalla, Ma. Sofia C.; Reside, Renato
    This paper intended to examine the relationship between regional road transport infrastructure and regional economic growth. It aimed to prove that transport infrastructure, roads and bridges can decrease transport costs and consequently lead to a higher level of output. The study involved the 16 regions in the Philippines, their Gross Regional Domestic Product and the land infrastructure, particularly of roads and bridges in each region. The time frame of 11 years, from 1997 to 2007 was used. The production function was used as the model to estimate output. Explanatory variables for output per labor were capital per labor, labor, national roads and national bridges. The variables for infrastructure were lagged up to three years to account for simultaneity. Regressions that included instrumental variables were used as alternatives for lagging. Motor vehicle per land area, population per land area, poverty incidence among population and internal revenue allotment were the instruments for roads. In most of the estimations, capital-labor ratio, employment, and national road density were positive and significant. National bridges on the other hand had a negative coefficient. Road density was positive and significant. Lagging road density decreased the coefficient and made it insignificant. With the · inclusion of all instrumental variables, road density was positive and significant. This study was able to prove that roads contribute to output. High economic activity indicates high demand for roads. Thus, more roads are built where needed.
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    Impact of roads on economic development
    (1986-04-08) Bernardo, Ma. Lizette C.; Hipolito, Rowena R.
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    The impact of collective public infrastructure on regional income disparities
    (1997-03) Basilio, Leilanie Q.; Gundaya, Debbie M,; Esguerra, Emmanuel F.
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    The impact of public infrastructure on regional income disparities (1995-2002)
    (2006-03) Cañete, Edan Marri R.; Diaz, Mario Vincent N.
    Infrastructure plays an important role in a country's economy, a critical index of economic vitality. Furthermore, its absence or failure introduces a major obstacle to growth and competitiveness. With the government's fiscal deficit (3.8 percent of GDP in 2004), deficiency of private investment (20% of GDP or less), and the constant political instability facing the Arroyo administration, the government is faced with the challenge of determining which public investments should be prioritized and in which regions should be the allocation be properly placed. The paper aims to assess the effect of public investment on Gross Regional Domestic Product growth and to investigate if differences in government investment in infrastructure contribute significantly to differences in Gross Regional Domestic Product. The results showed a positive correlation between the General Infrastructure indicator and the standardized Gross Regional Domestic Product while the negative correlation of the employment rate with the standardized Gross Regional Domestic Product showed higher income disparity among the Philippine regions. Moreover, Economic Infrastructure Indicators (composed of transport, communication, wafer supply, energy supply and irrigation development) and Social Infrastructure Indicators (composed of health an education) have different impacts on standardized GRDP. The former has a positive coefficient while the latter has a negative coefficient. The study shows that there are substantial disparities in infrastructure levels from the different regions. Also, there is a tendency for infrastructure investments to cluster at the metropolitan areas. Indeed, differences in infrastructure levels have significant effects on regional income disparities.