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# Factors That Affect Gdp Of The Philippines

4811 words - 20 pages

FACTORS
THAT
AFFECT
THE
GROSS
DOMESTIC
PRODUCT
OF
THE
PHILIPPINES

Table
of
Contents

I.
Introduction

1.
Background
of
the
Study
2.
Statement
of
the
problem
3.
Objective
of
the
study
4.
Significance
of
the
study
5.
Scope
and
limitations

II.
Review
of
related
literature

1.
Unemployment
Rate
2.
Unemployment
Rate
and
Gross
Domestic
Product
Growth
Rate
3.
Savings
4.
Savings
and
Gross
...view middle of the document...

It
can
basically
be
computed
through
two
methods,
which
are
income
or
expenditure
methods.
The
first
one,
income
method,
is
done
through
the
summation
of
all
the
earnings
that
particular
time,
while
the
second
method,
expenditure
method,
is
done
through
summing
up
all
the
expenditures
that
particular
time
(investopedia,
2007).
In
the
macroeconomic
course,
it
was
taught
that
Y
=
C
+
I
+
G
+
X
–
M
where
Y
is
the
output
of
the
economy,
C
is
the
consumption
of
households,
I
refers
to
the
investments
G
is
the
government
spending,
X
represents
exports
by
the
country
and
M
stands
for
imports.
As
you
can
see,
the
economic
growth
of
one’s
country
does
not
depend
within
the
country
alone
because
it
is
an
open
economy,
which
means
that
it
has
transactions
with
other
countries
that
contribute
to
its
wellness.
This
equation
will
help
understand
the
next
parts
of
the
paper.
GDP
growth
rate
is
the
change
in
the
output
of
the
economy,
which
can
be
computed
as
[(present
GDP
–
previous
GDP)
/
previous
GDP]
x
100.
There
are
three
facts
of
growth:
growth
miracle,
growth
disaster
and
inclusive
growth.
The
first
one,
growth
miracle,
shows
that
the
episodes
wherein
domestic
economy
is
growing
faster
than
the
world
average.
For
example,
the
Philippine
economy
has
a
GDP
growth
of
8%
while
the
world
GDP
is
only
growing
at
5%.
Second
is
growth
disaster,
which
is
the
opposite
of
growth
miracle.
Here,
it
shows
the
episodes
wherein
domestic
economy
is
growing
slower
than
the
world
average.
For
example,
the
Philippine
GDP
is
growing
at
8%
while
the
world
GDP
is
growing
at
10%.
Third
is
the
inclusive
growth,
which
shows
that
the
growth...

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