"The Effect of Unemployment and Institutional Quality on Poverty in the Philippines: A New Perspective Using Nonlinear ARDL 1"

Abstract

Listen

Translate article

This work aims to give new insight into the nonlinear correlation between unemployment, institutional quality, and poverty in the Philippines. To this end, we analyze data from 2001 to 2019 using a nonlinear Autoregressive Distributed Lag Model. The results provide insight that poverty moves asymmetrically due to positive or negative shocks in unemployment and institutional quality. Moreover, the results reveal that applying linear models in poverty modeling may be misleading. The findings of the study imply that policymakers should consider the nonlinear behavior of poverty for more efficient policymaking.