Angelica Marie B. Orsua | John Conan E. Herce | Maridor B. Bueno
Discipline: Economics
This study aimed to know how capital investments, in the form of capital expenditures in the Philippines, reacted to various economic indicators through time. Pure secondary data from concerned offices in the Philippines were adopted. All observations came from the National Statistical Coordination Board; hence, national data were used. These data were analyzed through regression analysis by formulating an economic model based on national level data and were further utilized for prediction in the regional level, specifically, Region IV-A (CALABARZON).
It was found that out of the seven macroeconomic indicators included in the study, only price inflation posed an inverse relationship with capital expenditure increase. Moreover, only price inflation, peso-US dollar exchange rate, price level of investment, labor force, and unemployment were found to be significant. These significant variables were used in predicting for estimations in the region.
The study recommended that certain policies should be well formulated to address the weaknesses of some macroeconomic indicators which have negative reinforcements on the investment climate of the Philippine economy.
ISSN 1908-3866 (Print)
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