Determinants of Inflation in the

Philippine Setting
[DOCUMENT SUBTITLE]
Myla Ruth Duana



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INTRODUCTION
BACKGROUND OF THE STUDY
In a world constantly progressing, development can be seen happening all
over the world. Developments in infrastructure, innovations in technology, and
Gross Domestic Product are only a few of the macroeconomic indicators
available to measure a countrys growth. The influx of investment in
infrastructure helps flourish different countries and these developments cascade
down to the different sectors of the countries economies. Furthermore,
increases in productivity due to increase in labor and efficiency in technology
further enhance a countrys capability to be globally competitive. Gross Capital
Formation is one of the many measures of a countrys development.
Gross capital formation or gross domestic investment is defined by
worldbank.org as an indicator that consists of outlays on additions to the fixed
assets of the economy plus net changes in the level of inventories. Fixed assets
include land improvements (fences, ditches, drains, and so on); plant, machinery,
and equipment purchases; and the construction of roads, railways, and the like,
including schools, offices, hospitals, private residential dwellings, and
commercial and industrial buildings.



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STATEMENT OF THE PROBLEM
Since measures of a countrys development are often taken as aggregate values
(i.e GDP), people are prone to failure in recognizing the specific sectors in the
economy that contribute to these aggregate values. Additionally, policies
implemented based on these aggregate values are prone to be destabilizing
rather than being effective due to the lack of presence of specific measures.




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OBJECTI VES









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SCOPE AND LI MI TATI ONS






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REVIEW OF RELATED LITERATURE


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THEORETI CAL FRAMEWORK
AGGREGATE PRODUCTI ON FUNCTI ON

The Aggregate Production function
















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CONCEPTUAL FRAMEWORK

OPERATI ONAL FRAMEWORK
VARI ABLE LI ST
MODEL SPECI FI CATI ON
A-PRI ORI EXPECTATI ONS

METHODOLOGY
EMPIRICAL RESULTS AND MODEL TESTING

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CONCLUSIONS AND RECOMMENDATIONS

BIBLIOGRAPHY




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