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.
