John Emmanuel Marcaida Kevin Pica Joyce Tumakay Pearl Penticase Jaica Jacaba

1.

List of variables needed in the replication exercise and the data source for each variable.

The dependent variable is the GDP per unit of labor employed while the independent variables were real GDP from previous year GDP (t-1 ), annual employment growth, investment to GDP ratio and enrolment growth in tertiary education(EDUC).

Average annual employment growth from 1980 to 2005(NGR) Bureau of Labor and Employment Statistics (BLES). Yearbook of Labor Statistics (2006).Employed persons and employment rate, Philippines: 1980 2005. Retrieved February 22, 2014 at http://www.bles.dole.gov.ph/ARCHIVES/YLS/YLS2006/statistical%20tables/ Chap03/Tab3-1a.xls World Bank. World Development Indicators. Retrieved February 22, 2013 at http://api.worldbank.org/v2/en/country/phl?downloadformat=excel

Investment to GDP ratio (INR) World Bank. World Development Indicators. Retrieved February 22, 2013 at http://api.worldbank.org/v2/en/country/phl?downloadformat=excel

Enrolment in tertiary education (EDUC) World Bank. World Development Indicators. Retrieved February 22, 2013 at http://api.worldbank.org/v2/en/country/phl?downloadformat=excel

2) The enrollment in tertiary education was used as a target proxy variable for technological progress in the model. Education was conceived to be very effective tool for technological progress as stated by Dante Canlas (2003) on Economic Growth in the Philippines: Theory and Evidence. Education promotes investment in human capital which in turn increased their ability to acquire more physical and financial capital. According to Earle, D. (2010), stated that as people acquire higher educational attainment such as bachelor degrees in tertiary education, there economic output also increases which in turn benefit the economy as a whole. A study of found out that increase in the population of employees with tertiary education and increase in average gross domestic product were highly positively correlated.

David Earle(2010). Tertiary Education, Skills and Productivity. Retrieved February 22, 2014 at http://www.educationcounts.govt.nz/__data/assets/pdf_file/0018/70416/Tert iary-Education-Skills-and-Productivity.pdf

3) The alternative specification model is stated as lnGDP(t)= 0 + 1lnNGR + 2lnINR + 3lnEDUC + + ln4GDP (t-1)+

The primary purpose for testing the alternative model specification is to determine if the empirical evidence from earliest and latest data sources supports the predictions of the Solow growth model used by Dante Canlas (2003) on Economic Growth in the Philippines: Theory and Evidence. The researchers also wanted to determine if the enrolment rate in tertiary education had significant effect on Real GDP per unit of labor employed since the enrollment growth in secondary education used as a proxy for technological progress in the previous model was found to be insignificant.