DOF Economic Bulletin on Gross Regional Domestic Product
Gross regional domestic product GRDP) continued to show increasing inequality in 2016 but this has been tempered slightly in 2017 as the less affluent regions grew faster than the traditional growth centers. The coefficient of variation increased from 1.901 in 2015 to 1.970 in 2016 but this declined slightly to 1.969 in 2017. (Table 1)
The coefficient of variation (CV) is a statistical measure of relative variability. It is the ratio of the standard deviation to the mean (average).
Table 1. GROSS REGIONAL DOMESTIC PRODUCT
AT CONSTANT 2000 PRICES
In Thousand Pesos
REGION / YEAR 2015 2016 2017
8122.741433 8665.707506
PHILIPPINES 7,600,175,070 8,122,741,433 8,665,707,504
NCR METRO MANILA 2,770,552,677 2,976,234,624 3,158,081,656 CAR CORDILLERA 133,848,201 136,873,913 153,411,322
I ILOCOS 237,178,755 257,277,270 272,257,487
II CAGAYAN VALLEY 134,444,616 139,548,688 149,578,296 III CENTRAL LUZON 706,343,196 773,108,325 844,709,530 IV SOUTHERN TAGALOG 1,424,555,928 1,490,168,850 1,589,316,340 IVA CALABARZON 1,302,297,272 1,364,736,594 1,456,088,132
IVB MIMAROPA 122,258,656 125,432,256 133,228,208
V BICOL 155,449,066 164,065,917 172,358,884
VI WESTERN VISAYAS 305,503,332 323,535,392 350,821,902 VII CENTRAL VISAYAS 482,898,676 524,597,384 551,179,952 VIII EASTERN VISAYAS 153,224,685 171,610,264 174,669,515 IX ZAMBOANGA PENINSULA 157,640,786 164,866,496 168,702,094 X NORTHERN MINDANAO 283,769,262 304,952,799 323,009,662 XI DAVAO REGION 304,412,137 333,405,134 369,797,076 XII SOCCSKSARGEN 203,183,377 213,182,370 230,598,148
XIII CARAGA 96,587,795 98,511,669 102,701,036
ARMM MUSLIM MINDANAO 50,582,581 50,802,338 54,514,604 Coefficient of
variation 1.901 1.970 1.969
For instance, the share of NCR in GRDP declined from 36.64% in 2016 to 36.44% in 2017.
Likewise, the share of Southern Tagalog, the country’s manufacturing heartland, dropped from 18.74% in 2015 to 18.34% in 2017. Meanwhile, the share of Cordillera rose from 1.69%
in 2016 to 1.77% in 2017. The coefficient of variation of the regional shares in GRDP confirm the earlier finding that regional inequality rose in 2016 but dropped in 2017. (Table 2)
Table 2. GROSS REGIONAL DOMESTIC PRODUCT
AT CONSTANT 2000 PRICES
% of Total
REGION / YEAR 2015 2016 2017
PHILIPPINES 100.00% 100.00% 100.00%
NCR METRO MANILA 36.45% 36.64% 36.44%
CAR CORDILLERA 1.76% 1.69% 1.77%
I ILOCOS 3.12% 3.17% 3.14%
II CAGAYAN VALLEY 1.77% 1.72% 1.73%
III CENTRAL LUZON 9.29% 9.52% 9.75%
IV SOUTHERN
TAGALOG 18.74% 18.35% 18.34%
IVA CALABARZON 17.14% 16.80% 16.80%
IVB MIMAROPA 1.61% 1.54% 1.54%
V BICOL 2.05% 2.02% 1.99%
VI WESTERN VISAYAS 4.02% 3.98% 4.05%
VII CENTRAL VISAYAS 6.35% 6.46% 6.36%
VIII EASTERN VISAYAS 2.02% 2.11% 2.02%
IX ZAMBOANGA
PENINSULA 2.07% 2.03% 1.95%
X NORTHERN
MINDANAO 3.73% 3.75% 3.73%
XI DAVAO REGION 4.01% 4.10% 4.27%
XII SOCCSKSARGEN 2.67% 2.62% 2.66%
XIII CARAGA 1.27% 1.21% 1.19%
ARMM MUSLIM MINDANAO 0.67% 0.63% 0.63%
Coefficient of
variation 1.901 1.904 1.903 Source: National Statistical Coordination
Board
Regression analysis using 2014 to 2016 data shows that the most significant variables affecting GRDP per capita are investment rate and infrastructure endowments (using paved roads per square km. of cultivated land as proxy).
Table 3. REGRESSION RESULTS
Independent variable: GDP per capita at constant pesos
Dependent variables Coefficient t-statistic
Investment rate (Capital
formation/GRDP) 0.823 5.137*
Paved roads per sq km
of cultivated land 12.176 16.333*
*Significant at 1% level of
significance
Adjusted R2 = 0.85
N = 48
