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Trade openness and regional development in a developing country

In: Globalization and Urban Development

Author

Listed:
  • Ernesto M. Pernia

    (Asian Development Bank)

  • Pilipinas F. Quising

    (Asian Development Bank)

Abstract

This paper examines how economic openness influences regional development in a developing country, with the Philippines as a case study. It first looks at the disparities in economic and social indicators across the country’s 14 regions and over time. Metro Manila continues to tower over the national economic landscape, although economic dispersal especially in adjacent regions appears to be expanding. The paper then analyzes the determinants of regional development, using five-year panel data. Trade openness appears to be beneficial to regional economic growth and, via growth, poverty reduction. However, it cannot by itself be expected to bring about more balanced regional development.

Suggested Citation

  • Ernesto M. Pernia & Pilipinas F. Quising, 2005. "Trade openness and regional development in a developing country," Advances in Spatial Science, in: Harry W. Richardson & Chang-Hee Christine Bae (ed.), Globalization and Urban Development, pages 79-94, Springer.
    • Handle: RePEc:spr:adspcp:978-3-540-28351-5_6
    DOI: 10.1007/3-540-28351-X_6
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    Cited by:

    1. Muttur Ranganathan Narayana, 2008. "Globalization and Urban Growth: Evidence for Bangalore (India)," CIRJE F-Series CIRJE-F-544, CIRJE, Faculty of Economics, University of Tokyo.
    2. Diego Ocampo & Mayra Janet Ortega & Elisenda Paluzie, 2024. "Tariffs and industrial location in Ecuador," UB School of Economics Working Papers 2024/471, University of Barcelona School of Economics.
    3. Ardeshiri, Mansour & Moghaddasi, Reza & Yazdani, Saeed & Mohamadinejad, Amir, 2019. "Trade Openness and Spatial Distribution of Manufacturing Industries: Iranian Provincial Evidence," Asian Journal of Applied Economics/ Applied Economics Journal, Kasetsart University, Faculty of Economics, Center for Applied Economic Research, vol. 26(1), pages 21-44, June.
    4. Joseph J. Capuno, 2005. "The quality of local governance and development under decentralization in the Philippines," UP School of Economics Discussion Papers 200506, University of the Philippines School of Economics.
    5. Iyke Bernard Njindan, 2017. "Does Trade Openness Matter for Economic Growth in the CEE Countries?," Review of Economic Perspectives, Sciendo, vol. 17(1), pages 3-24, March.
    6. Joseph J. Capuno, 2010. "Spatial development and the law of one price : Evidence of convergence of land values," UP School of Economics Discussion Papers 201001, University of the Philippines School of Economics.
    7. L. G. Burange & Rucha R. Ranadive & Neha N. Karnik, 2019. "Trade Openness and Economic Growth Nexus: A Case Study of BRICS," Foreign Trade Review, , vol. 54(1), pages 1-15, February.
    8. Yasuyuki Sawada & Jonna P. Estudillo, 2006. "Trade, Migration, and Poverty Reduction in the Globalizing Economy: The Case of the Philippines," WIDER Working Paper Series RP2006-58, World Institute for Development Economic Research (UNU-WIDER).
    9. B. Graizbord & D. Mookherjee & H.S. Geyer, 2011. "Differential Urbanization: Linking First and Developing World Experiences," Chapters, in: H. S. Geyer (ed.), International Handbook of Urban Policy, Volume 3, chapter 5, Edward Elgar Publishing.
    10. Ernesto M. Pernia & J.M. Ian S. Salas, 2005. "Investment Climate and Regional Development in the Philippines," UP School of Economics Discussion Papers 200501, University of the Philippines School of Economics.
    11. Marius Brülhart, 2011. "The spatial effects of trade openness: a survey," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(1), pages 59-83, April.
    12. Hirte, Georg & Leßmann, Christian, 2014. "Trade, Integration and Interregional Inequality," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100610, Verein für Socialpolitik / German Economic Association.
    13. Ernesto M. Pernia & Janine Elora M. Lazatin, 2016. "Do Regions Gain from an Open Economy?," UP School of Economics Discussion Papers 201602, University of the Philippines School of Economics.
    14. Gavin Shatkin, 2004. "Planning to Forget: Informal Settlements as 'Forgotten Places' in Globalising Metro Manila," Urban Studies, Urban Studies Journal Limited, vol. 41(12), pages 2469-2484, November.
    15. Ernesto M. Pernia, 2006. "Diaspora, Remittances, and Poverty in RP’s Regions," UP School of Economics Discussion Papers 200602, University of the Philippines School of Economics.
    16. Nazarczuk Jarosław M. & Umiński Stanisław, 2018. "The geography of openness to foreign trade in Poland: The role of special economic zones and foreign-owned entities," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 39(39), pages 97-111, March.
    17. Laeeq Razzak Janjua & Orhan Sanli & Mirela Panait & Mirela Cristea & Atteeq Razzak, 2024. "Impact of energy security and economic growth on poverty: sample of Sub-Saharan Africa," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(10), pages 25459-25484, October.
    18. Ertan Oktay & Giray Gozgor, 2013. "Trade And Regional Development In A Developing Country: The Case Of Turkey," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 25(3), pages 201-212, November.
    19. Rabail Amna Intisar & Muhammad Rizwan Yaseen & Rakhshanda Kousar & Muhammad Usman & Muhammad Sohail Amjad Makhdum, 2020. "Impact of Trade Openness and Human Capital on Economic Growth: A Comparative Investigation of Asian Countries," Sustainability, MDPI, vol. 12(7), pages 1-19, April.
    20. Georg Hirte & Christian Lessmann, 2014. "Trade and Interregional Inequality," ERSA conference papers ersa14p304, European Regional Science Association.

    More about this item

    Keywords

    Gross Domestic Product; Regional Development; Poverty Reduction; Trade Openness; Consumption Expenditure;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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