The Impact of Inflation, Unemployment, and Population Growth on Philippine Economic Growth

Abstract

This study aims to investigate the impacts of inflation, unemployment, and population growth on Philippine economic growth over the period of 1991 to 2020. The data of this study was obtained from the World Bank Open Data. To investigate the impact of the following variables, the researchers will be employing the following tests: a.) Unit Root Test and b.) Johansen Cointegration Test. The findings of this study reveal that The Ordinary Least Square (OLS) results suggest that inflation has a positive impact on economic growth. Meanwhile, unemployment and population growth indicate a negative impact on economic growth. The Unit Root Test confirms that unemployment, population growth, and economic growth are non-stationary while inflation happens to be stationary. However, the 1st difference shows unemployment, population growth, and economic growth became stationary through the Augmented Dickey-Fuller Test. Further, Johansen’s Cointegration Test result shows that the variables are cointegrated, and there is an existence of a long-run relationship.