This paper examines how economic openness influences regional development
in the Philippines. It first looks at the disparities in economic and social indicators across
the country’s 14 regions and over time. Metro Manila continues to tower over the national
economic landscape, though economic dispersal especially to the adjacent regions appears
to be picking up. The paper then analyzes the determinants of regional development,
using five-year panel data. Trade openness appears to be beneficial to regional economic
growth and–through growth–poverty reduction. However, it cannot by itself be expected
to bring about more balanced regional development.
