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Item Restricted The role of foreign direct investment and public-private partnership in economic growth: Philippines, 1991-2020(2023-01-19) Agustin, Juan Carlos P.; Sales, Marianne C.; Mendoza, Adrian R.The role of foreign direct investment (FDI) and public-private partnership (PPP) projects in economic growth has been a topic of discussion for some time now. However, the conclusions from empirical studies tend to vary, including those in the Philippines. Using data from the World Development Indicators database of the World Bank, the Philippine Statistics Authority (PSA), and the Public-Private Partnership Center (PPPC) of the Philippines, this study employs descriptive and econometric analysis to estimate the impact of FDI inflows and PPP projects on the economic growth of the Philippines over the period 1991–2020, along with the usual components of GDP, i.e., consumption spending, investment, and government expenditure. The evidence shows that FDI and PPP infrastructure projects have a positive impact on economic growth, but only PPP infrastructure projects produce significant results. Unfortunately, the COVID-19 pandemic posed a major constraint on FDI and PPP projects. Nevertheless, it is hoped that the results of this study will lead to policy implications that would promote FDI and PPP projects for faster economic growth and inclusive development.Item Restricted The effect of natural resource dependence on innovation: a within-country and cross-country analysis(2023-01-10) Apostol, Gabriel Tristan D.; Estudillo, Jonna P.The paper aims to examine the effect the degree of natural resource dependence in a country has on its level of innovation. The researchers used a within-country dataset consisting of all 17 regions of the Philippines running from 2006 to 2016 and a cross- country dataset made up of 33 lower-middle income countries from 2011 to 2020 to estimate the effect. Innovation is measured by the gross fixed capital formation in intellectual property and products (IPP) in the within-country dataset and by the Global Innovation Index score in the cross-country dataset. Other control variables were added. The results showed mixed evidence between the cross-country and the within- country models. In the cross-country model, estimates were not significant and indicated a positive effect of natural resource dependence on innovation. The within- country model, on the other hand, exhibited a negative, but not statistically significant relationship. The researchers also observed divergence between the expected values of some control variables with their hypothesized result.Item Restricted Fiscal decentralization and regional economic growth: the case for the Philippines(2016-12) Madridejos, Joanne Nicole Marie L.; Tipan, Aaron Cielo G. ; Escresa, Laarni C.In the past years, there has been an increasing policy trend towards fiscal decentralization, especially in developing countries. This practice is expected to promote rural economic development by increasing government efficiency and responsiveness, and for that reason, it became the subject of many empirical studies. However, the existing theoretical and empirical discussions which address the question whether decentralization accelerates economic growth portray mixed results. This study aims to fill this gap by measuring the effect of fiscal decentralization in regional economic growth in the context of the Philippine economy using the different measures of decentralization introduced by Uchimura and Suzuki (2009) and another innovative measure by the researchers. Using fixed effects model in the empirical analysis of the Philippine regions from 2001 to 2011, excluding National Caspital Region (NCR) and Autonomous Region of Muslim Mindanao (ARMM), this paper demonstrates that increasing the capabilities of the local government units to self-generate their sources of revenue and their fiscal autonomy until it reaches its optimal level of decentralization have a positive effect on regional economic growth. Moreover, among all the measures of fiscal decentralization, revenue decentralization has the largest economic significance which suggests its important role on regional growth.Item Restricted Financial development, economic growth, international trade, and environmental degradation: the ASEAN+ case(2019-05) Quejada, Angel Derrickvhel ; Jandoc, Karl Robert L.Item Restricted Education and job mismatch: measuring over-education in the Philippine labor market during fast economic growth years(2018) De Castro, Gregory Silver ; Evardone, Benju M. ; Jandoc, Karl Robert L.This paper aims to analyze the incidence of over-education in the Philippines in 2012 and 2015, which are years when the country experienced relatively fast economic growth. The research employs the use of the method proposed by Epetia (2018) which will be discussed in depth in the later chapters of this paper. The paper by Epetia (2018) studies the incidence of over-education in the Philippines in 2003 and 2009, which were slow economic growth years of the country. This paper aims to extend the analysis by determining the incidence of over- education in fast economic growth years in 2012 and 2015. The research found that 13,918 out of 79,446 individuals are over-educated. This amounts to 17.52% of the sample, and is lower than the level of over-education during 2003 and 2009 as determined by Epetia (2018).Item Unknown Military expenditure, foreign direct investments and economic growth: a cross-country analysis of thea ASEAN region(2019-05) Cuevas, Isabel Lorraine A. ; Ramos, Dindo L. Jr.; Capuno, Joseph J.Using a panel data of the ASEAN countries for the period 2008 to 2017, we analyzed the effect of military expenditure on economic growth. Two possible channels by which military expenditure affects growth are considered. First, a direct causal pathway shows that the impact of military spending on growth is stimulated by the government. Second, an indirect effect presents FDI as a causal pathway of military expenditure to growth. Four models were used to look into the relationships between the three variables. Results show that military expenditure does not have a direct effect on growth. However, it does have an indirect effect. As military spending increases, FDI inflow decreases. Moreover, FDI spurs growth. This shows that military expenditure has a negative effect on economic growth when FDI acts as a causal pathway.Item Restricted The effect of middle class size on GDP growth in the Philippines(2016-12) Fernandez, Joan Eunise A. ; Frias, Renzi G. ; Ravago, Majah-Leah V.Despite the significant changes in the size of the middle-income class, it still gains little attention in the context of the Philippines. As its demographic changes through time, it also impacts the country’s economic growth. Using panel data from 16 regions for the period 1985-2012, we study the relationship between the Philippine middle-income class and GDP growth. We use instrumental variable (IV) estimation, specifically the two-stage least squares method, to quantify the effect of the changes in the middle class size on Philippine economic growth and vice versa. The instruments that we use are fuel consumption for regional GDP and the percentage of households with strong roofing for middle class. Similar with studies from other countries, the results show that there is a positive relationship between the middle class size and economic growth. We find that in the Philippines, expansion of the middle class contributes to economic growth and conversely, economic growth expands the middle class.Item Restricted Will banking development result in economic growth? evidence from the Philippines(2019-11) De Guzman, John Patrick C. ; Vivar, Kimberly Mae S. ; Debuque-Gonzales, MargaritaThis paper provides empirical evidence on whether banking development results in economic growth in the case of the Philippines. It also examines the effects of banking development on investment and productivity growth, which we consider to be the channels to economic growth. Moreover, the magnitude of the impact of banking development on the economic sectors is also examined. We use vector autoregression and 'innovation accounting’, a method that includes forecast error variance decomposition and impulse response functions, to estimate the time-series data from 1989 to 2018.Results show that banking development does not seem to have an impact on economic growth, and this is true for all sectors except for the industrial sector. Banking development only weakly affects investment and productivity. Instead, there is substantial evidence based on the same method that the direction of possible causality runs from economic growth to banking development.Item Restricted Nexus between population growth and economic growth: a provincial-level analysis using Philippine data(2019-01) Cayanga, Juan Luis F. ; Del Rosario, Kate D. ; Solon, Orville Jose C. ; Quimbo, Stella Luz A.Numerous studies have shown mixed results on the effect of population changes on the economic growth of a country. In this paper, we try to estimate changes in wealth brought about by different contraceptive consumption behaviors in the Philippines using provincial-level data from the National Demographic and Health Survey years 2008, 2013, and 2017. By using Ordinary Least Squares, we find that an increase in the proportion of women using contraceptives in a Philippine province at a previous time period has a positive and significant effect on a province’s current average wealth. We also find that contraceptive use reduces the provincial average gap between a household’s desired and actual family size, depending on the predicted number of children. These findings strengthen certain sections of the Reproductive Health Law concerning wider provision of contraceptives.Item Restricted Can natural disasters be good for the economy?(2017) Cañaveral, Patricia lynn P.; Rix, Mayumi Katrina B. ; Pajaron, Marjorie C.This paper explores the possibility that natural disasters bring a positive impact on regional economic growth in the Philippines under certain conditions, as described by Schumpeter’s theory of creative destruction or the paradoxical idea that destruction of old capital results in the creation of new ones, which leads to economic growth. Using regional data on the occurrence, severity, and amount of damages brought about by tropical cyclones from 2002 to 2015, we examine how such exogenous shocks affect changes in regional aggregate output, expenditures, and gross value added of the three major sectors of the economy. Using Ordinary Least Squares (OLS), Random Effects (RE) and Fixed Effects (FE), Two-Step Heckman Selection, and Propensity Score Matching (PSM), our results reveal a positive relationship between natural disasters, conditional on damages, which are considered as the main driver of creative destruction, and regional economic growth in the Philippines. OLS, FE, and RE panel regressions indicate that tropical cyclones that result in damages are positively correlated with regional economic growth. The Two-Step Heckman Selection models show that regional geography variables, such as location and land area, must be taken into account to correct for selection bias in regions that experience damages while the PSM results indicate that regions that experience at least three damaging tropical cyclones in a year register greater regional economic growth relative to those that do not. The key finding of this thesis, which suggests that the more damaging a typhoon is the higher the regional economic growth in the short run, does not downplay the huge negative impact of natural disasters on properties, income, and human capital. Our thesis merely provides another perspective about the impact of natural disasters albeit controversial.