Do Regions Gain from an Open Economy?

Ernesto Pernia (ernestompernia@gmail.com) and Janine Elora Lazatin
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Janine Elora Lazatin: School of Economics, University of the Philippines Diliman

No 201602, UP School of Economics Discussion Papers from University of the Philippines School of Economics

Abstract: This paper looks into whether and how sub-national regions can benefit from a country’s economic openness. Using data on the Philippines, it first notes marked disparities across its regions as reflected in economic and social indicators. The dominance of Metropolitan Manila in the national economic landscape persists, albeit spread effects into adjacent regions are increasingly apparent. Applying econometric analysis to panel data, the paper then examines how regional economic growth is influenced by economic openness. Results show that regional gains appear to be uneven with the ex-ante lagging regions at a disadvantage; by extension, the welfare effect on the poor appears unequal, as well.

Keywords: economic openness, regional development; poverty, Philippines, Asia (search for similar items in EconPapers)
JEL-codes: I32 O18 R11 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2016-02
New Economics Papers: this item is included in nep-cse, nep-geo and nep-sea
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Citations: View citations in EconPapers (1)

Published as UPSE Discussion Paper No. 2016-02, March 2016

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Persistent link: https://EconPapers.repec.org/RePEc:phs:dpaper:201602

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