Education and Gross Domestic Product of the Philippines

program line and unrefined Domestic growth of the PhilippinesMarione Tomas T. PadillaABSTRACTThe research paper is nearly determining whether certain factors of gentility concord an effect on the boilersuit Gross Domestic Product of the Philippines. Intuition would tell us that precept has an effect on gross domestic product. In addition, figure allocations for rearing in the Philippines ar high compargond to the new-fashioned(prenominal) sectors in the government.Table of ContentsIntroduction stage machinateting of the Study . 4Statement of the Problem . 5Objectives of the Study . 6Signifi crumbce of the Study . 6S do and Limitation . 7 fall over of associate LiteratureCivilian Discretionary Spending 8 tender-hearted great and genteelness 9Education in the PhilippinesMillennium developing GoalsSimilar StudiesTheoretical FrameworkGross Domestic ProductIS-LM sit aroundOperational FrameworkVariable ListA-Priori ExpectationsMethodologyEmpirical interrogatory and Anal ysis of ResultsConclusion and RecommendationsReferencesIntroductionBackground of the StudyAccording to Jeffrey Sachs (2011), noncombatant discretional spending is spending on public goods and services that the mystical economy put upnot provide on its own1. In addition, one of the sectors he mentioned that argon involved in civilian discretionary spending is formulation. Education is delimitate as the knowledge and development resulting from an learningal process (Merriam entanglementster, 2014)2. In every state, teaching is one of the things that the government is in charge of and is one of the factors in the governments expenditures which contributes to a percentage in a countrys Gross Domestic Product (GDP) the government takes into consideration the compute allocation for teaching, how they are going to make the educational sector agonistic i.e. the note of the service that the citizens of the country are to get, and m some(prenominal) separate factors.The Phili ppines before dogged has a literacy rate of 95.4% and rank 108th out of 215 countries in terms of literacy rate3. In addition, the educational system of the Philippines is currently experiencing a shift, because our educational system is be exposed to different factors such as the implementation of the K to 12 and the ASEAN Integration which are to be imposed soon. In the previous education system of the Philippines, kindergarten was not compulsory for students but now it is. In addition, elementary Education (Elementary) and Secondary Education (Junior and Senior High School) both conduct 6 years making a total of 12 years. Because of these ad beneficialments and other factors, the budget and the expenditure for education subjoin every year. The Department of Education is one of the top departments that are given high budget allocations with their proposed 2014 budget being the highest at 293.3 billion pesos according to an phrase in Rappler (2013), the increase is center o n learning resources, as well as classrooms, chairs and schooling facilities4. But despite all of this, the overall quality in the education has declined and this was due to certain factors (insert them here). With this given, this proves to be a challenge not just for the government but for the other Filipinos as well that could not cope up with the Philippines current system of education. According to World Vision (2011)5, education has a relationship with growth of an economy i.e. lack of quality education is a threat to stinting growth. In addition, World Vision too stated that 92 percent of Filipino children are able to write in code in primary education but 20 percent of these students who enrolled are able to finish.Statement of the ProblemThe Philippines experienced a decline in the quality of education due to certain factors such as the quality of the education, affordability, budget, and mismatch between training and the jobs6. With this, the researcher has prepared the following questionsa) How shadower the Philippine government fix or alleviate these factors?b) Were there every measures taken in line with the previous question? What specific measures were do and were they effective?c) Are Filipino students (both current and incoming) ready for K to 12 given the decline in the quality prior to the implementation?d) Is K to 12 in reality a step further for the Philippines?The researcher would alike want to know if the budget that has been allocated to them is being used expeditiously and in the end if it contributed to the output of the country. In addition, the researcher would in addition want to shed light on if these expenditures in education really did make any changes.Objectives of the Study effrontery the background of the topic for this research, the researcher would like to accomplish the following objectivesa) pick up the relationship between certain factors of education i.e. number of enrolled students and education expenditure, a nd the Gross Domestic Product of the Philippinesb) Be able to find tracks to change the quality of the educational system of the Philippines so that we nookie be really ready for future changes.c) Construct an econometric model that throw out be used in analyzing how GDP and Education go hand in hand.Significance of the StudyA lack of quality education can hamper growth in the economy because the citizens are not equip with the basic knowledge in addition, a lot of Filipinos do not have access to even the basic education and because of this, the gentleman coach is not astir(p). In the compassionate Development Forum held last environ 2, 2011, U.S Secretary of Education Arne Duncan stated that Education can be the link up to factors such as eliminating gender inequality, poverty reduction, planet sustainability, preventing deaths and illnesses, and for peace.In addition, he stated that education is inseparable from the development of man capital, and that education is the new currency so that nations maintain economic competitiveness and global prosperity (Duncan, 2011)7.In line with the previous statement, this study is aiming to find a way to be able to improve the standard of education that the Philippines has and to make it competitive. In addition, this study aims to make a point that education plays a character reference in the growth of a country and is a step towards improving lives thus we should not take this lightly. The researcher believes that the government should look into the big picture and the root causes as to why our education is not affectionate or feasible to the citizens.Scope and LimitationThe data used in this study came from sources such as indexmundi, World Bank, NSCB, and UNData. The researcher took into consideration GDP, Education Expenditure (not including capital and equipment), and number of enrolled students per year level except the ordinal Level due to unavailability of data the research has 30 observations ( from 1982 to 2011) and is focused on a Philippine setting. The researcher is using the multiple retroflexion analysis to determine the influence of our separate variables to the dependent variable.Review of Related LiteratureCivilian Discretionary SpendingThe Huffington Post (2011), posted an article entitled De-Mystifying the Budget Debate this article was written by Jeffrey Sachs. adept of the things that Jeffrey Sachs pointed out was the issue on civilian discretionary spending. Civilian discretionary spending is spending on public goods and services that cannot be provided efficiently by the private economy alone (Sachs, 2011). In addition, the programs are called discretionary because the budget allocation is voted upon every year and contributes to about 4% of the GDP in the United States. He also mentioned the factors that make up civilian discretionary spending in the following quote8Discretionary spending includes theme security (homeland security, diplomacy, development assistance) education and job training science and engine room the justice system public administration environmental protection society development and housing assistance major infrastructure (highways, dams, levees, flood control, irrigate and sanitation).From the given definitions and statements, the aim of civilian discretionary spending is to make a country competitive and so that there would be more opportunities for economic growth.Human hood and EducationAccording to Investopedia, Human detonating device is be as a measure of the economic value of an employees skill set wherein it measures the restriction input and is persuasion to be equal9. The term was coined by economic expert Theodore Schultz this term mirrored human capacities and believed that human capital was like any other capital in general. Capital is defined as those long term assets used in the production of output by a firm. In the case of human capital, education, training and enhanced benefits are t he factors to be considered when investing in human capital in effect this ordain lead to an improvement in the quality and level of production. In addition, the education and the experience an employee has obtained merits economic value in the perspective of both employers and the mass economy.The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) published a study in 2001 entitled Development Planning in a Market Economy One segment of this study, The Role of Human Capital in Economic Development Some Myths and Realities, explains how important Human Capital is in Economic Development10. The author stated that for human capital to make up an impact on economic development, a nation needed to have at least a 70% literate people. In addition, it was also stated that if a large number of people in the population are literate, even if they are equipped with the basic education, the minds of the masses can be opened up (UNESCAP, 2001). It was also ment ioned that the government has a affair in this i.e. one of the factors as to why there are differences in human capital was because of the direction of the priorities and commitments of a nation towards the educations sector11 (UNESCAP, 2001).An entry in the Encyclopedia of Educational doctrine and Theory (EEPAT), entitled Human Capital Theory and Education, one concept introduced is the Human Capital theory wherein it states that the poser for nation state policy framework is by enhancing the flexibility of labor in the labor market, and also enhancing skills through investment in education, training and employment schemes, and immigration focused on attracting high-quality human capital (Fitzimons , 1999)12. In that same entry, Fitzimons (1999) referenced turn Smiths The Wealth of Nations (1776) wherein Adam smith was able to formulate a basis for the science of human capital. In addition, two schools of thought were formed the first school of thought distinguished acquired cap acities that were classified as either capital or the human being themselves, who were not counted as capital. The second school of thought, on the other hand, claimed that human beings are considered capital.Operational FrameworkVariable ListThe circumvent below presents the variables that have been used in the study. The model has four independent variables and one dependent variable. The regression to be performed will take into forecast the significance of the variables, both individual and overallReferenceseducation. 2014. In Merriam-Webster.com.Retrieved April 5, 2014, from http//www.merriam-webster.com/ vocabulary/educationSachs, J. (2011, April 18). De-Mystifying the Budget Debate. The Huffington Post.Retrieved April 5, 2014, from http//www.huffingtonpost.com/jeffrey-sachs/de-mystifying-the-budget_b_850332.htmlGeronimo, J. (2013, July 30). DepEds proposed 2014 budget biggest in history. Rappler. Retrieved April 5, 2014, from http//www.rappler.com/nation/35186-deped-propose d-budget-biggest-in-historyPhilippines. (n.d.). World Vision. Retrieved April 5, 2014, from http//www.worldvision.org/our-impact/country-pro accuses/philippinesPhilippines. (n.d.). Find the Data. Retrieved April 5, 2014, from http//country-facts.findthedata.org/l/111/PhilippinesMankiw, G. (2013). The Data of Macroeconomics. Macroeconomics (8th Edition ed., p. 18). New York Charles Linsmeier.Human Capital. (n.d.). Investopedia. Retrieved April 5, 2014, from http//www.investopedia.com/terms/h/humancapital.aspGary S. Becker. Human Capital.The Concise Encyclopedia of Economics.2008. Library of Economics and Liberty. Retrieved April 5, 2014 from the World Wide Web http//www.econlib.org/library/Enc/HumanCapital.htmlPatrick Fitzsimons. (1999). Human capital theory and education. InThe Encyclopaedia of Educational Philosophy and Theory, M. Peters, T. Besley, A. Gibbons, B. arni, P. Ghiraldelli (eds.). Retrieved 5 April, 2014 fromhttp//eepat.net/doku.php?id=human_capital_theory_and_education An Analysis on the Education and Gross Domestic Product of the Philippines 11 Civilian Discretionary Spending will be clear up in the Review of Related Literature.2 Definition of education taken from http//www.merriam-webster.com/dictionary/education3 Statistics taken from http//country-facts.findthedata.org/l/111/Philippines4 The full article can be seen at http//www.rappler.com/nation/35186-deped-proposed-budget-biggest-in-history5 Taken from http//www.worldvision.org/our-impact/country-profiles/philippines6 Retrieved from http//www.ph.net/htdocs/education/issue.htm7 The Full transcript can be viewed at http//web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTEDUCATION/0,,contentMDK22848251menuPK282425pagePK64020865piPK149114theSitePK282386,00.html8 This section explains the factors that make up civilian discretionary spending note that this is an excerpt from the article mentioned. The article can be found at http//www.huffingtonpost.com/jeffrey-sachs/de-mystifying-the-budget_b_850332. html9 Definition taken from http//www.investopedia.com/terms/h/humancapital.asp10 The file for the said part can be found at http//www.worldwewant2015.org/node/29625311 This quotation can be seen on the same file mentioned. Refer to footnote number 10.12 Retrieved from http//eepat.net/doku.php?id=human_capital_theory_and_education