JEFMS Journal

Google Scholar

Article Pdf

---

ABSTRACT:

The Industrial sector is essential to innovation, economic development, and job creation, it also significantly influences how economies are shaped internationally and domestically. As such, this study examines the effects of the industrial sector on the annual economic development of the Philippines historically and currently, with a focus on critical periods such as pre-pandemic and pandemic periods utilizing variables like employment and trade balance. The major assumption underlying this study is that the industrial sector plays a significant role in driving the Philippines’ economic development, particularly during the specified periods. To compute the relevance of the factors, the data sets from PSA and World Bank of the variables: Employment and Trade exports were generated independently and paired with GDP values and analyzed using the Pearson Regression Test. The r-coefficients for Employment and Trade exports independently paired with GDP are 0.950 and 0.831, respectively, indicating significant positive linear relationships. Additionally, with a p-value of 0.004, employment has a significant effect on the GDP. However, the same cannot be said for the Trade export variable. With the p-value of 0.041, it signifies that Trade export has no significant effect on the GDP. Results indicate that Employment, Trade Exports, and GDP Distribution did not exhibit statistically significant differences between the pre-pandemic and pandemic periods, suggesting resilience within the industrial sector despite external shocks. To effectively teach students, educators and administrators must grasp how employment and trade balance affect the Philippines' economic development. Based on the results of the study, more focus should be placed on education about the topic of employment. Collaboration with local media is critical for disseminating economic information and pressing the government to develop methods for widespread employment and managing trade imbalances in order to stimulate economic development in the face of chronic poverty, paving the way for a bright future.

KEYWORDS:

Industry, Economic Development, Pandemic, Employment, Trade Export, GDP

REFERENCES:

1) Arize, John, & Emmanuel. (2017, May). Do exchange rate changes improve the trade balance: An asymmetric nonlinear cointegration approach (Vol. 49). https://doi.org/10.1016/j.iref.2017.02.007

2) Blomqvist, S., Högnäs, R. S., Virtanen, M., LaMontagne, A. D., & Magnusson Hanson, L. L. (2023). Job loss and job instability during the COVID-19 pandemic and the risk of depression and anxiety among Swedish employees. SSM - population health, 22, 101424. https://doi.org/10.1016/j.ssmph.2023.101424

3) De Dios, E. S., & Williamson, J. G. (2015). Deviant behavior. In Elsevier eBooks (pp. 371–400). https://doi.org/10.1016/b978-0-12-800347-3.00021-2

4) Franciosi, C., Voisin, A., Miranda, S., Riemma, S., & Iung, B. (2020). Measuring maintenance impacts on sustainability of manufacturing industries: from a systematic literature review to a framework proposal. Journal of Cleaner Production, 121065. doi:10.1016/j.jclepro.2020.121065

5) Francis, B. (2016, April). Chapter 8. diversification and the economy: The role of government in enhancing the industrial base. IMF eLibrary. https://www.elibrary.imf.org/display/book/9781513537863/ch009.xml

6) Haider, A. (2018). The multiplier effects of manufacturing consumption. UNIDO. https://downloads.unido.org/ot/10/30/10300559/WP_10%5B100760%5D.pdf

7) Ganti, A. (2024, February 16). Real Gross Domestic Product (Real GDP): How to Calculate It, vs. Nominal. Investopedia. https://www.investopedia.com/terms/r/realgdp.asp

8) Bajpai, P. (2020). Emerging markets: Analyzing the Philippines’s GDP. New York: Newstex, 4.

9) GDP growth rate drops by 16.5 percent in the second quarter of 2020; the lowest starting 1981 series | Philippine Statistics Authority | Republic of the Philippines. (2020, August 6). https://psa.gov.ph/content/gdp-growth-rate-drops-165-percent-second-quarter-2020-lowest-starting-1981-series

10) Jacobs, Juliet. (2023, April 5). Rostow's Stages of Growth Development Model. Retrieved from https://www.thoughtco.com/rostows-stages-of-growth-development-model-1434564

11) Kapoor, K., Bigdeli, A. Z., Dwivedi, Y. K., & Raman, R. (2021). How is COVID-19 altering the manufacturing landscape? A literature review of imminent challenges and management interventions. Annals of operations research, 1–33. Advance online publication. https://doi.org/10.1007/s10479-021-04397-2

12) Klevtsova1, M., Vertakova1, Y., & Polozhentseva1, Y. (2021). SHS-Conferences. Analysis of the Development of the Industrial Sector in the Context of Global Transformation of Economic

13) Ionescu, L., & Andronie, M. (2021). Big Data management and Cloud Computing: Financial implications in the digital world. SHS Web of Conferences, 92, 05010. https://doi.org/10.1051/shsconf/20219205010

14) Kniivilä, M. (2004). Industrial development and economic growth: Implications for poverty reduction and income inequality. https://www.un.org/esa/sustdev/publications/industrial_development/3_1.pdf

15) Lay, G., Copani, G., Jäger, A., & Bege, S. (2010). The relevance of service in European manufacturing industries. Journal of Service Management, 21(5), 715–726. doi:10.1108/09564231011092908

16) Liu, Y., Lee, J.M. & Lee, C. The challenges and opportunities of a global health crisis: the management and business implications of COVID-19 from an Asian perspective. Asian Bus Manage 19, 277–297 (2020). https://doi.org/10.1057/s41291-020-00119-x

17) Maddison, A. ``Contours of the World Economy 1-2030 AD.” Essays in Macro-Economic History, 2007. Bowker, https://doi.org/10.1604/9780199227204.

18) Martinico-Perez, M. F. G., Schandl, H., Fishman, T., & Tanikawa, H. (2018). The Socio-Economic Metabolism of an Emerging Economy: monitoring progress of decoupling of economic growth and environmental pressures in the Philippines. Ecological Economics, 147, 155–166. https://doi.org/10.1016/j.ecolecon.2018.01.012

19) McCloskey, D. N. (2010). Bourgeois dignity: Why economics can't explain the modern world. University of Chicago Press.

20) Medina-Smith, J. (2001). Is the Export-Led Growth Hypothesis valid for developing countries? A case study of Costa Rica. United Nations Conference on Trade and Development.

21) https://unctad.org/system/files/official-document/itcdtab8_en.pdf

22) Morgan, J.P. (2020, June). The business case for women in business and management in the Philippines. International LabourOrganization.https://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/---ilo-manila/documents/publication/wcms_755607.pdf

23) North American Industry Classification System—Revision for 2022: Vol. Vol. 86, No. 242. (2021). https://www.census.gov/naics/federal_register_notices/notices/fr21dc21.pdf

24) Philippine Statistics Authority. 10 October 2023. Highlights of the Philippine Export and Import Statistics, August 2023 (Preliminary). https://psa.gov.ph/statistics/foreign-trade

25) Rae, D. (2007, November 27). Connecting enterprise and graduate employability. Education + Training, 49(8/9), 605–619. https://doi.org/10.1108/00400910710834049

26) Rodlauer, M. (2000b). Philippines: Toward sustainable and rapid growth. In Occasional paper. International Monetary Fund. https://doi.org/10.5089/9781557758613.084

27) Rodrik, D. (2014b). Worldbank. Global Productivity: Trends, Drivers, and Policies. https://thedocs.worldbank.org/en/doc/564831593465310359-0050022020/original/GlobalProductivityChapter7.pdf

28) Saha, S. S. (2019, January). Manufacturing and jobs in South Asia Strategy for sustainable Economic Growth: Strategy for Sustainable Economic Growth. https://www.researchgate.net/publication/334855882_Manufacturing_and_Jobs_in_South_Asia_Strategy_for
_Sustainable_Economic_Growth_Strategy_for_Sustainable_Economic_Growth

29) Schindler, M., Korinek, A., & Stiglitz, J. E. (2021). Technological progress, artificial intelligence, and inclusive growth. IMF Working Paper, 2021(166), 1. https://doi.org/10.5089/9781513583280.001

30) Schmid, G. (2014). Inclusive growth: What future for the European social model? https://hdl.handle.net/10419/104984

31) Segal, T. (2024, April 16). What are exports? Definition, benefits, and examples. Investopedia. https://www.investopedia.com/terms/e/export.asp

32) Statista. (2023, June 22). Trade balance of goods of the Philippines 2022. https://www.statista.com/statistics/578821/trade-balance-of-philippines/

33) Statistics Sweden. Serie AM110. The Swedish Labor Force Survey. URN:NBN:SE:SCB-2021-AM110SM2101_pdf; 2022. Labour Force Surveys (LFS) – Theme: The labour market during the COVID-19 pandemic.

34) Sumanasiri, Ab Yajid, & Khatibi. (2015, August 1). Review of Literature on Graduate Employability. Journal of Studies in Education, 5, 1. https://doi.org/10.5296/jse.v5i3.7983

35) Thornton, P. H., Ribeiro-Soriano, D., & Urbano, D. (2011). Socio-cultural factors and entrepreneurial activity: An overview. International Small Business Journal, 29(2), 105–118. https://doi.org/10.1177/0266242610391930

36) TRADING ECONOMICS. (n.d.). Philippines - Employment In Industry (% Of Total Employment) - 2023 Data 2024 Forecast 1971-2021 Historical.\ https://tradingeconomics.com/philippines/employment-in-industry-percent-of-total-employment-wb-data.html#:~:text=Employment%20in%20industry%20(%25%20of%20total%20employment)%20
(modeled%20ILO%20estimate,compiled%20from%20officially%20recognized%20sources

37) Okon, E. O., Onesie, S. W., (2017) HAZARDS OF MANUFACTURING SECTOR AND ECONOMIC GROWTH IN NIGERIA, IJSSHE-International Journal of Social Sciences, Humanities and Education Volume 1, Number 1, 2017 ISSN 2521-0041

38) What is Employment? | peopleHum. (n.d.-b). Peoplehum. https://www.peoplehum.com/glossary/employment#:~:text=Employment%20definition%20is%20termed%20as,or%
20tasks%20for%20an%20organization

39) Sola, O., Obamuyi, T., Adekunjo, Ogunleye E. (2013) MANUFACTURING PERFORMANCE IN NIGERIA: IMPLICATION FOR SUSTAINABLE DEVELOPMENT - Asian Economic and Financial Review, 2013, 3(9):1195-1213

40) Eaton, J., S. Kortum, B. Neiman, and J. Romalis. 2016. “Trade and the Global Recession.” American Economic Review 106(11): 3401-3438.

41) Negi, R. (2021). Engineering Export of India–Bliss or Blasé. Negi, R., Muthusamy, A., Nomani, A. and Gupta, P.(2021). ENGINEERING EXPORT OF INDIA–BLISS OR BLASÉ. Indian Journal of Economics and Business, 20(2), 167-194.

42) Yong, L., & LI Yong is former Director General of the United Nations Industrial Development Organization (UNIDO). (2021, May). Why Industrial Development Matters now more than ever before. Industrial Analytics Platform. https://iap.unido.org/articles/why-industrial-development-matters-now-more-ever