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Economic Growth in the Philippines : Theory and Evidence

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  • Dante B. Canlas

    (School of Economics, University of the Philippines Diliman)

Abstract

Economic growth in the Philippines is studied using Robert Solow’s neoclassical growth model, which predicts savings and population growth to have positive and negative effects, respectively, on growth of per capita output. The empirical results tend to support the predictions of the model, but some limitations are evident. Human capital or education, which underpins technological progress, shows the expected sign but is not statistically significant. This suggests the need for some extensions of the Solow model, say, along the lines of endogenous growth theory. From a policy standpoint, the results suggest that raising savings, investments, and human capital, and slowing down population growth, continue to be well advised.

Suggested Citation

  • Dante B. Canlas, 2003. "Economic Growth in the Philippines : Theory and Evidence," UP School of Economics Discussion Papers 200304, University of the Philippines School of Economics.
    • Handle: RePEc:phs:dpaper:200304
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    File URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/107/101
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    References listed on IDEAS

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    2. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    3. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:

    1. Khattak, Naeem Ur Rehman & khan, jangraiz, 2012. "The Contribution of Education to Economic Growth: Evidence from Pakistan," MPRA Paper 51180, University Library of Munich, Germany.
    2. Risti Permani, 2009. "The Role of Education in Economic Growth in East Asia: a survey," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 23(1), pages 1-20, May.
    3. Llanto, Gilberto M., 2012. "Philippine Productivity Dynamics in the Last Five Decades and Determinants of Total Factor Productivity," Discussion Papers DP 2012-11, Philippine Institute for Development Studies.
    4. Canlas, Dante B., 2016. "Investing in Human Capital for Inclusive Growth: Focus on Higher Education," Discussion Papers DP 2016-02, Philippine Institute for Development Studies.

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    More about this item

    Keywords

    Solow growth model; steady state; savings; investments; human capital Classification-JEL : I11; I12; I21;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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