Philippine E-Journals

Philippine Economic Growth: The Significance of TVET©

Grace Edmar Elizar-del Prado

 

Abstract:

The study revisits the impact of TVET sub-sector to Philippine economic growth. With the enactment of TESDA in 1994, the economy expects to achieve economic growth, poverty reduction and ultimately, development. The multiple regression technique, with GDP growths as the dependent variable and growths in agriculture, industry, services sectors and a dummy variable for TVET and its interactions as quantitative and qualitative regressors, was used. The observation period runs from 1985 to 2012. Results showed that while TVET relates significantly to real GDP growths 99%, its impact is unfelt in the agriculture sector, the largest employing sector of the country. Moreover, although its effect is significant in both the services and industry sectors, the impact is rather low or opposite to expectations. To this effect, despite the presence of TVET, poverty in Philippine society remains a sticky challenge.