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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
  made,
  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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