An Analysis of the Economic Growth Indicators of the Philippines: 1990-2020

Abstract

Considering that GDP is one of the main indicators that influence the economic growth of a country, there are certain factors that affect its increase or decrease. This study was conducted to understand the relationship between the Philippines’ economic growth (Gross Domestic Product) and its economic factors namely: Trade Openness, Inflation rate, Foreign Direct Investment, and Labor Force. The researchers used a quantitative-correlational approach to determine the strength of the relationships between the variables. Moreover, the researchers concluded that the variables of Foreign Direct Investment, Trade Openness, Labor Force were significant determinants to explain economic growth, while Inflation Rate was insignificant. The Philippine government may utilize the paper to emphasize the relationship of the variables towards economic growth, specifically, the Trade openness variable, which showed a significant relationship towards economic growth yet had unsatisfactory results as an indicator for economic growth.