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The Economic Transition and Growth of Philippine Regions

Author

Listed:
  • Mapa, Dennis S.
  • Sandoval, Monica Flerida B

Abstract

The paper applies the economic transition models and econometric convergence tests proposed by Phillips and Sul (2006) using data on per capita Gross Regional Domestic Product (1988-2008) to determine if 14 Philippine regional economies converge to a steady state path over a period of time. The paper explores modeling and analyzing the economic transition behavior of the regions. Regional relative transition paths are investigated to generate a graphical overview of the behavior of the regional economies. The log t convergence test, which is constructed from a transition differential decay model, is used to establish if a region converges to a steady state path or diverges from a steady state path. The test basically provides the basis for a stepwise clustering algorithm in finding convergence clusters and analyzing transition behavior between clusters. The paper identifies convergence clubs and determines divergent regional economies using a recursive procedure that revolves around the log t convergence test.

Suggested Citation

  • Mapa, Dennis S. & Sandoval, Monica Flerida B, 2011. "The Economic Transition and Growth of Philippine Regions," MPRA Paper 28267, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:28267
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    References listed on IDEAS

    as
    1. repec:phd:dpaper:pjd_2006_vol._xxxiii_nos._1and2-b is not listed on IDEAS
    2. Arsenio M. Balisacan, 1997. "Growth and Equity in the Philippines," UP School of Economics Discussion Papers 199705, University of the Philippines School of Economics.
    3. Balisacan, Arsenio M. & Hill, Hal (ed.), 2003. "The Philippine Economy: Development, Policies, and Challenges," OUP Catalogue, Oxford University Press, number 9780195158984.
    4. repec:phd:pjdevt:pjd_2006_vol._xxxiii_nos._1and2-b is not listed on IDEAS
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    More about this item

    Keywords

    log t convergence test; convergence clubs;

    JEL classification:

    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • 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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