Assessment of the Philippines economic performance / by Noime S. Cunanan

Thesis (BS Economics--Business Economics) Cavite State University

Includes bibliographical references.

College of Economics, Management and Developmental Studies (CEMDS)

CUNANAN, NOIME S. and SANGALANG, LEA MARIE G. "Assessment of the Philippine Economic Performance". Undergraduate Thesis. Bachelor of Science in
Economics. Major in Business Economics, Cavite State University, Indang, Cavite, April 2015. Adviser: Marlon A. Mojica
The study was conducted to assess the Philippine economic performance; describe the trend of the selected national economic indicators namely: Gross Domestic Product (GDP), overall employment, inflation and wages from 2000-2014; determine the contribution of each sector (Agriculture, Industry, and Service) to the Philippines GDP and overall employment from 2000-2014; determine the relationship of Agriculture, Industry, Service and overall labor productivity to Agriculture, Industry, Service and overall employment from 2000-2014; determine the relationship between wages and overall labor productivity from 2000-2014; determine the relationship between wages and inflation from 2000-2014; and to forecast the value per sector (Agriculture, Industry, and
Service) of the selected national economic indicators namely: Gross Domestic Product (GDP), overall employment and overall labor productivity in the next five years.
The study used fourteen year-quarterly data of Gross Domestic Product (GDP) at constant 1985 prices and overall employment from Philippine Statistics Authority National Statistics Coordination Board (PSA-NSCB). The study also utilized annual regional data of wages from 2001-2014 in terms of average daily basic pay from National
Productivity and Wage Commission (NWPC). Annual regional inflation data from Philippine Statistics Authority-National Statistics Office (PSA-NSO) from 2000-2013
using Consumer Price Index series (2000—100) was also used

Results of trend analysis showed that the quarterly Gross Domestic Product in the Philippines exhibited a dramatic increase during the first quarter of 2008 led by the sudden increase of Service sector brought about by the robust performances of Trade, Agriculture and Fishery, Private Services, Construction and Transport Communication and Storage, with the rest of the sectors posting positive growths. On the other hand, during the past decade, the overall employment in the Philippines has consistently grown yet on a slow pace. However, overall employment posted a noticeable decrease in the first quarter of 2014 led by the agriculture sector due to Typhoon Yolanda which destroyed crops, lives, and farmlands in Eastern Visayas. Meanwhile, inflation rate in Philippines using the Consumer Price Index series (2000=100) of National Statistics Office showed a fluctuating performance. Moreover, the average daily basic pay for the last fifteen years exhibited an increasing trend.
Based on the results, the highest contributor to the Gross Domestic Product was Service sector, followed by the industry sector and the agriculture sector. Likewise, the highest contributor to overall Employment was Service sector.
The results of the simple linear regression using Ordinary Least Squares (OLS) showed that there exists a significant relationship between overall employment and overall labor productivity; wages and overall labor productivity; and, wages and inflation.
Furthermore, GDP, overall employment, and overall labor productivity are expected to grow at an increasing rate in the succeeding years.

Submitted to the University Library 10/07/2016 T-6054