Determinants of GDP Growth in the Philippines: 1970-2020

Abstract

Gross Domestic Product Growth (GDPG) is one of the driving factors of economic development. The study aims to create an econometric model for the determinants of GDP growth in the Philippine setting. It also tackles a new approach while giving insights into how the selected variables of the researchers affect economic growth. The analysis used Gretl to acquire the results needed for the study. Microsoft Excel, on the other hand, was used to generate the trendlines of the variables. The result of the analysis shows that there is a significant relationship between the variables: General Government Consumption Expenditure (GGCE), Household and NPISHs Final Consumption Expenditure (HFCE), and Exports of Goods & Services (EoGS), the dependent variable, GDPG, also increases/decreases respectively. However, the relationship to Foreign Direct Investment (FDI) does not have a significant relationship with GDPG. Overall, the graphs have shown a positive uptrend; however, due to economic shocks, the economy experienced a rapid decline, especially between the years 1980-1990 and 2020 during the COVID-19 pandemic.