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Probing Beneath Cross-National Averages: Poverty, Inequality, and Growth in the Philippines

Author

Listed:
  • Arsenio M. Balisacan

    (School of Economics, University of the Philippines Diliman)

  • Ernesto M. Pernia

    (School of Economics, University of the Philippines Diliman)

Abstract
Recent research papers employing cross-national regressions report that the incomes of the poor move one-for-one with overall average incomes, suggesting that poverty reduction requires nothing much more than promoting rapid economic growth. This paper attempts to probe beneath cross-country averages by analyzing provincial data on the poverty-growth nexus in the Philippines. The results show that economic growth explains a lot but not all about poverty. The balance which seems fairly large can be accounted for by other factors (e.g. infrastructure, human capital, and location-specific characteristics) and institutions (e.g., political economy and agrarian reform). Thus, while growth is indeed good for the poor, it is not good enough. How much is not good enough is illustrated by this paper and will become clearer still as subnational analysis is etended to more countries. For policy purposes, an intra-country examination of the determinants of poverty reduction seems clearly superior to cross-country analysis.

Suggested Citation

  • Arsenio M. Balisacan & Ernesto M. Pernia, 2001. "Probing Beneath Cross-National Averages: Poverty, Inequality, and Growth in the Philippines," UP School of Economics Discussion Papers 200111, University of the Philippines School of Economics.
    • Handle: RePEc:phs:dpaper:200111
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    File URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/50/42
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    Citations

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    Cited by:

    1. Aniceto C. Orbeta, 2006. "Poverty, Vulnerability and Family Size: Evidence from the Philippines," Chapters, in: John Weiss & Haider A. Khan (ed.), Poverty Strategies in Asia, chapter 6, Edward Elgar Publishing.
    2. Antonio Estache, 2010. "A survey of impact evaluations of infrastructure projects, programs and policies," Working Papers ECARES 2010_005, ULB -- Universite Libre de Bruxelles.
    3. Seetanah, B. & Ramessur, S. & Rojid, S., 2009. "Does Infrastructure Alleviates Poverty in Developing Countries?," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 9(2).
    4. Llanto, Gilberto M., 2012. "The Impact of Infrastructure on Agricultural Productivity," Discussion Papers DP 2012-12, Philippine Institute for Development Studies.
    5. Ernesto M. Pernia & Janine Elora M. Lazatin, 2016. "Do Regions Gain from an Open Economy?," UP School of Economics Discussion Papers 201602, University of the Philippines School of Economics.
    6. Solita C. Monsod and Toby C. Monsod, 2003. "Philippines: Case Study on Human Development Progress Towards the MDG at the Sub-National Level," Human Development Occasional Papers (1992-2007) HDOCPA-2003-09, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    7. Gilberto M. Llanto, 2016. "Philippine Infrastructure and Connectivity: Challenges and Reforms," Asian Economic Policy Review, Japan Center for Economic Research, vol. 11(2), pages 243-261, July.
    8. Arturo Martinez Jr. & Mark Western & Michele Haynes & Wojtek Tomaszewski, 2014. "Is there income mobility in the Philippines?," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 28(1), pages 96-115, May.
    9. Arturo Martinez Jr. & Mark Western & Michele Haynes & Wojtek Tomaszewski, 2015. "How Income Segmentation Affects Income Mobility: Evidence from Panel Data in the Philippines," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 2(3), pages 590-608, September.
    10. Sajjad Ali Khan, 2013. "Decentralization and Poverty Reduction: A Theoretical Framework for Exploring the Linkages," International Review of Public Administration, Taylor & Francis Journals, vol. 18(2), pages 145-172, August.
    11. Rosario G. Manasan, 2007. "Financing the Millennium Development Goals : The Philippines," Development Economics Working Papers 21928, East Asian Bureau of Economic Research.
    12. Andres,Luis Alberto & Biller,S. A. Dan & Herrera Dappe,Matias, 2014. "Infrastructure gap in South Asia : inequality of access to infrastructure services," Policy Research Working Paper Series 7033, The World Bank.
    13. Michael R. Cabalfin & Josef T. Yap, 2008. "Sustainable Development Framework for Local Governance," Governance Working Papers 22619, East Asian Bureau of Economic Research.
    14. Manasan, Rosario G., 2007. "Financing the Millennium Development Goals: The Philippines," Discussion Papers DP 2007-06, Philippine Institute for Development Studies.
    15. Takahiro Akita & Sachiko Miyata, 2020. "Urban and Rural Dimensions of the Role of Education in Inequality: A Comparative Analysis between Indonesia, Myanmar, and the Philippines," Working Papers EMS_2020_04, Research Institute, International University of Japan.

    More about this item

    Keywords

    Welfare; poverty; inequality; economic growth; Philippines;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • 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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