Open AccessThe Effects of Infrastructure Investments on Services and Wholesale/Retail Productivity: A Panel-Data Evidence from the Philippines
Author(s) -
James Cristofer Mendoza Hermoso,
Jan Myles Madriaga Sadang,
Nathan Carlo Blanco Evangelista,
Marie Antoinette Lukban Rosete
Publication year - 2021
Publication title -
malaysian journal of social sciences and humanities
Language(s) - English
Resource type - Journals
ISSN - 2504-8562
DOI - 10.47405/mjssh.v6i12.1186
Subject(s) - productivity , business , panel data , investment (military) , retail trade , agricultural economics , finance , industrial organization , economics , commerce , economic growth , econometrics , politics , political science , law
In recent years, infrastructure investments in the Philippines have sharply increased; however, there has been a limited study about whether these have effectively improved productivity, specifically in the Philippines' services and wholesale/retail sectors. This paper examines the effects of investments in roads, bridges, and water supply systems on services and wholesale/retail productivity using the annual dataset from 15 regions in the Philippines from 2017 to 2019. The results of a panel-data analysis with Panel-Corrected Standard Errors (PCSE) show that investments in roads, bridges, and water supply systems positively influence productivity in services and wholesale/retail, with investment for the construction or rehabilitation of roads having the greatest impact.