Status : Verified
| Personal Name | Carreon, Lea Bernadette A.; Dizon, Francis Clare G. |
|---|---|
| Resource Title | Convergence theory: exploring growth among the regions in Luzon |
| Date Issued | 1 July 2026 |
| Abstract | This study investigated the long-run tendency of income levels to converge among the eight regions of Luzon. It aimed to empirically test Convergence Theory using regional PcGDP data for the years 2000 to 2023 and to identify the factors affecting dynamic convergence patterns by analyzing the Solow Model Growth determinants—capital, labor, technology, and investment — for the years 2004 to 2023. The study found that the Luzon region experienced PcGDP disparities across the covered years. In these economies, rapid growth was largely due to the difference in their economic trajectories, ranging from agricultural to service to industrial. Regardless, analysis of Convergence Theory revealed a decline in regional per capita income, allowing lagging regions (Region V, Region IV-B, Region I, Region II, Region III) to catch up to leading regions (NCR, Region IV-A, and CAR) at an annual convergence speed of 1.45%. The regression results also indicated that Gross Fixed Capital Formation, Government Financial Consumption Expenditure, and College Graduates statistically contributed to regional income. On the other hand, the findings further suggested that employment was not significant at the aggregate Luzon level, indicating the need to strengthen regulatory frameworks to maximize potential benefits. In this sense, the study recommended: (1) Agro-industrial Development, (2) Improve Labor Market Quality; (3) Resilient Economic Environment; (4) Extending Time Horizons; and (5) Broader Geographic Coverage, Variables, and other Model Considerations, as a basis for further research. |
| Degree Course | Bachelor of Arts in Business Economics |
| Language | English |
| Keyword | Convergence Theory; Solow Model Growth; Luzon Convergence; Catch-up Effect; Luzon; Regional Development; Regional Growth Regression |
| Material Type | Thesis/Dissertation |
Preliminary Pages
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Category : F - Regular work, i.e., it has no patentable invention or creation, the author does not wish for personal publication, there is no confidential information.
Access Permission : Open Access