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Economic Growth and Provincial Inequality in Mindanao, Philippines

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Event details

Date & time

Friday 06 August 2010
9.30am–11.00am

Venue

Seminar Room B, Coombs Building, Fellows Road, ANU

Speaker

Acram Latiph, PhD Candidate, ACDE - Panel Members: Assoc Prof Chris Manning, Prof Hal Hill Discussant: Sitthiroth Rasphone

Contacts

PhD Convenor: PC Athukorala
61258259 / 61252188
Mindanao, the southern island of the Philippines is marked by high income inequality and disparity in human development. Understanding the dynamics of provincial growth in Mindanao is quite important, not only does it affect the overall performance of the country but poor economic growth in some provinces breeds discontent and insurgency. The purpose of this paper is to provide some insights on the economic growth and disparity in the provinces of Mindanao. The paper examine the convergence of the provincial per capita income growth of the 25 provinces of Mindanao from 1985 ’ 2006 and carried out two convergence test ’ beta-convergence and sigma-convergence. The result indicates increasing inequality and divergence in growth into three convergence club. Those provinces where highly urbanized area is situated grow faster and those in the periphery grow at a moderate rate while four of the provinces belonging to the Autonomous Region in Muslim Mindanao (ARMM) converge into a much lower income growth. The findings suggest the need to enhance strong economic linkages among the provinces in Mindanao and to improve the socio-economic infrastructure in ARMM to allow it to participate in the economic growth in the region.

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