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The Impact of Public Infrastructure on Regional Income Disparaties


For a number of years, the Philippines have adopted policies in an effort to rectify the unbalanced interregional development. In the past, planning in the country was heavily sectoral in character. That is, adopted plans were able to identify sectoral requirements in their degree of investments but often unable to identify geographically where they should be located. The unevenness of infrastructure prioritization and development in the past is manifested in the failure to divert economic activity away from the primate urban region (Metro Manila) and its frontiers from the outlying regions of the country. The objective of the study is to determine the impact of public infrastructure on the regional income disparaties on a time-series data for the period of 1981-1995. Results indicate that there is a wide disparaty of performance between NCR and the rest of the regions in terms of their per capita GRDP, that infrastructure is an explanatory factor in accounting regional income difference, that there are considerable disparaties in infrastructure at aggregate level, or in the different categories for the 13 regions within the 15-year period, and that the more pronounced of these differences are public investment in economic infrastructures while access to social services and facilities on the other hand is fairly dispersed throughout the country.

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