The Relationship of Education, Employment and Population

8/8/2019 The Relationship of Education, Employment and Population

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The Relationship of Education,Employment and Population in the

Philippines Economic Growth


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Statement of the Problem

This study attempts to assess how thedifferent determinants such as population,education and employment affects thePhilippine Economy during the year 1995-

2005. In line with this, the researchers willsearch for the answers of the followingquestions:

What is the profile of the Philippines in terms

of education, employment and population?How do variables- population size,

budgetary allocations for education, andthe number of persons employed affect

the Philippine economic growth?


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Population and economic growth?Ho = there is no significant correlation

between population and economic growth

Ha= there is a significant correlation

between population and economic growthBudgetary allocations for education and

economic growth?Ho= there is no significant correlation

between budgetary allocations foreducation and economic growth

Ha= there is a significant correlationbetween budgetary allocation in educationand economic growth


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The number of persons employed andeconomic growth?Ho= there is no significant correlation

between the number of persons employed

and economic growthHa= there is a significant correlation

between the number of the personsemployed and economic growth.


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Scope and Limitations

This research is focused on the geographicallimits of the Philippine area ofresponsibility, which includes the Kalayaangroup of islands and the islands

surrounding the mainland Philippines.Also, it will cover four administrations from

year 1995-2005, a ten series from RamosEstrada and Arroyo Administrations

following the newly revised 1988constitutions.

In this line, the research will focus on threeindependent variables that will measure

the national economic growth: population,


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Scope and Limitations

Lastly, this research will limits itself to theGross national Product (G.D.P.) as anindicator of economic growth.


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Significance of the studyThe importance of this study can be beneficial

and significant to the different field ofinterests and knowledge in which this studycan be viewed as a helpful tools.

It can also be seen as a helpful input towards

understanding the hows and whysregarding the past and the current economicsituation of the Philippines, thus providing amacroeconomic data that can be useful as areference and means for the public plannersinvolved in making principles concerningdifferent developmental strategies andpolicies which can muster the effects of thethree determinants such as population,

education and employment, being studied inline with this research work, thus determining


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Significance of the study

The result of this research can also serve asa backup or reference as guiding tool inthe proper legislation of economic bylawsor acts that can aid and improve the

present economic situation of thePhilippines.

This research can also be viewed as usefulportfolio of the economy of the Philippines

that can be beneficial to the private andinvestment firms for them to effectivelywork on the environment of the Philippines


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Significance of the study

The results of this study can also be valuableto the different academic institutions andother researchers most especially in thefield of economics. The outcome of this

can somehow bestow different economicinsights regarding the different rolesplayed by education, employment andpopulation that can affect the economy of

the Philippine and can serve as a helpfulbasis and guide for future researches sincethis study can provide a description ofwhat the Philippines has been between theyears 1995-2005.


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Theoretical Framework

Solows Theory of Economic growthThis theory is projected by the ratio of

national saving to output (s) on the left-hand side of the equation is determined by

the saving decisions of households,business firms, and the government, whilethe ratio of output to capital (Y/K) isdetermined by technological factors. And

the growth rate of labor input (n) anddepreciation rate (d) on the right-hand sideof the relationship between saving andsteady-state investment are determined by

totally different considerationsbirthrates, death rates, immi ration, and the


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Research Design

This research was designed to use datarelated to national macro economic dataduring the period under review. From thisset of data it was determined whether they

had been a significant correlation betweenthe three independent variables namely:population, education and employment, tothe behavior of economic growth of the

Philippines. The behavior of each of thesevariables for the period under analysis wasanalyzed in terms of their trends, growthrate, and direction of movement. Theirbehavior of growth was also assessed inorder to determine their volume and


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Research Design

The behavior of every dominantindependent variable was defined throughthe use of an econometric model. Throughthe use of the econometric model

designed specifically for this study showsthe significant impact on the dependentvariable. The results of the econometricdata analysis were used as the bases for

providing the answers in the objectives theresearches wishes to answer.


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Conceptual Framework

Population

Education

Employment

Behavior of the PhilippineEconomic Growth


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Research Instruments

Data Collection Procedure: Statistical Data pertaining to this

research were gathered from the followingagencies:

Asian Development BankNational Statistics Office

National Statistical Coordinating Board

Department of Labor and EmploymentUnited Nations


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The Econometric Model

Specifically for the intention to measuretrend, growth analysis and correlationanalysis, statistical data taken from variousagencies were used in order to determine

how the independent variables namely,population, employment and educationsignificantly affect the dependent variablewhich is the economic growth of the

Philippines. In determining specificallythese independent and dependentvariables, the researchers have made useof the econometric model based oneconomic theories.


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The Econometric Model

Y = 0

+ 1x

1+

2x

2+

3x

3+

T h e a b o v e re la tio n sh ip is tra n sfo rm e d in to are g re ssio n e q u a tio n a n d w as a p p lie d to d e te rm in eh o w m u ch e con om ic g ro w th is ge n e ra te d b y th e

,b e h a vio r o f p o p u la tion e d u catio n a n d e m p lo ym e n t( - )fo r th e p e riod cove re d b y th e stu d y 1 9 9 5 2 0 0 5


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Presentation, Analysis andInterpretation of Data.

What is the profile of the Philippines in termsof population, education, and employmentduring the year 1995-2005?


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ow o var a es- popu a on s ze u ge ary


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ow o var a es popu a on s ze, u ge aryallocations for education, and the number ofpersons employed affect the Philippine economicgrowth?

Population and economic growth?Ho = there is no significant correlation between

population and economic growthHa= there is a significant correlation between

population and economic growthRegression result:Y= -1.03 7.40(pop) + 3.50 (educ) 7.51 (emp)R2 = 86% ; perfect correlation is 1 Interpretation high degree of correlation

t = -6.32; critical value = 2.262Interpretation : reject the null hypothesis



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Budgetary allocations for education andeconomic growth?

Ho= there is no significant correlation betweenbudgetary allocations for education andeconomic growth

Ha= there is a significant correlation betweenbudgetary allocation in education andeconomic growth

Regression result:

Y= -1.03 7.40(pop) + 3.50 (educ) 7.51 (emp)R2 = 73% ; perfect correlation is 1 Interpretation moderately degree of

correlationt = 2.49; critical value = 2.262Interpretation : reject the null hypothesis



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The number of persons employed and economicgrowth?

Ho= there is no significant correlation betweenthe number of persons employed andeconomic growth

Ha= there is a significant correlation betweenthe number of the persons employed andeconomic growth.

Regression result:

Y= -1.03 7.40(pop) + 3.50 (educ) 7.51 (emp)R2 = 89% ; perfect correlation is 1 Interpretation very high degree of

correlationt = -3.56; critical value = 2.262Interpretation : reject the null hypothesis


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Summary of Findings

Philippines population is directly related toeconomic growth which means that with theincrease of population size, economy isgrowing.

In the previous studies conducted, populationgrowth increases supply in labor which is an

input in economic production.The governments budgetary allocation for

education is moderately contributed in

promoting the countrys economic growth.An investment in human capital affects the

economic growth in the long run which isobviously experienced in present time due

to globalization.


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Summary of Findings

The economic value of education in thePhilippines is more functional in properlyutilizing the resources available in industrysince people are educated they could

properly used the resources in producingoutput.

Also, it is inevitable that employmentdetermines the value of the purchasing

power of the individual and gives properallocation in the Business Cycle.

In international trading, investment is a bigfactor in employment; if the government

creates satisfactory confidence to investors


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Conclusions

1. It is very important for the Philippines tocontrol its population to support thecountrys continuous economic growth.

The budgetary allocation for the

educational system of the Philippines isalso a contributing factor to the countryseconomic growth due to the fact that itserves as means of developing better

capabilities and more flexibility inanswering the demands of employment.


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Conclusions

2. The Philippines declining populationgrowth contributed very much to itseconomic growth, as justified with the highdegree of correlation between population

size and economic growth. The level ofemployment had also become a factor indetermining the countrys economicgrowth; the reason for this is that the

countrys budgetary allocation has boostedthe countrys employment rates.


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Conclusions

3. Furthermore, with proper budgetaryallocation for education can boost theconfidence of international investors, thus,can create more appropriate jobs. But, we

have to consider that outsourcing andvocational/technical jobs must be givensome priority so that can supply enoughand competent individual to the

international market.


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Conclusions

4. Employment is an important factor thatwould determine the individuals capabilityto be part of the market. His participationthrough purchasing is an important act

that would make the demand and supplywould work clearly. If education fails toimply the importance of employment, thus,it can make the market in a down-sloping.


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Recommendations

Philippines educational system must begiven full attention to be more flexible inproviding students to properly utilize theirhuman resources to the needed areas of

education to gratify the changing demandsof growing economy.

The government must improve its system insupporting the needs of economy, for this

would help improve the skills of themajority where most population belongs tothe low educational profile.


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Recommendations

The educational program of the Philippinesshould further encourage highereducation, and make educationalopportunities more affordable and

accessible to deserving students.The Philippines must encourage and boost

the need for family planning to furtherimprove the population growth rates,

governmental actions regarding populationcontrol must be continually pursued andsupported.


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!hank you very much=)e Kind

The Relationship of Education, Employment and Population

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