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Interdependence of Mindanao Regional Economies: An Analysis Using Seemingly Unrelated Regression (SUR)


GRDP or the Gross Regional Domestic Product is a measure of the economic performance of a specific region. It is the total value of goods and services produced within that region over a certain period of time. The GRDP is similar to the national Gross Domestic Product (GDP), only that it is narrower in spatial area, like in a region. It includes the contributions of three primary sectors including Agriculture, Forestry, and Fishing (AFF); Industry; and Services. The GRDP can be reported in nominal terms such as current prices or real terms such as constant prices removing inflation effects. The measurement of GRDP is essential to the understanding and managing the regional economy. The government and policy-makers employ the GRDP to develop economic strategies to sustain growth, recover from contraction allocate resources, and for investment priorities. Investors also view GRDP as a barometer of the economic vigor and stability of the region. Regions with high GRDP attract more investors, maintain better infrastructures and social protection, rising public spending, leading to further economic expansion. The GRDP allows comparison of economic performance with other various regions which reveals disparities, integration, influence and similarities. The information serves as guide in promoting balanced regional development as regions with lower GRDP can receive additional support and public funds to stimulate economic activities.


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