Impact of Selected Macroeconomic Variables in Economic Growth: Empirical Study in the Philippines

Abstract

This study investigates the relationship between foreign direct investment (FDI), household final consumption expenditure (HFCE), gross national income per capita (GNI), and the GDP growth rate in the Philippines. This study uses OLS estimation with annual time series data spanning 1981 to 2021 to assess the impact of these variables on the nation's economic progress. The Philippines' economy has developed significantly in recent years. Because the GDP growth rate is an important indicator of economic progress, policymakers must understand the factors that contribute to it in order to sustain economic growth. The study's findings offer important insights into the drivers of economic progress in the Philippines. Understanding the impact of FDI, HFCE, and GNI per capita on GDP growth rate enables policymakers to make informed decisions that encourage sustainable economic growth and increase the well-being of the entire population.