Date of Publication
7-11-2022
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Statistics Major in Actuarial Science
Subject Categories
Mathematics
College
College of Science
Department/Unit
Mathematics and Statistics Department
Thesis Advisor
Regina M. Tresvalles
Defense Panel Chair
Karl Man S. Collado
Defense Panel Member
Angelo M. Alberto
Abstract/Summary
For years, many have been interested to know about the relationship of financial inclusion and economic growth. Since FI is recognized as a multidimensional concept, this study found it necessary to apply strategies to have a comprehensive measure of FI for its different dimensions and use these to examine its relationship with economic growth, specifically with GDP growth rate. The Euclidean distance method proposed by earlier researchers was used to estimate the index for the usage and access dimensions of FI which were used to investigate the relationship of FI and GDP growth rate. This study identified the long-run and short-run relationship between the dimensions of FI and GDP growth rate in the Philippines from 2010-2017. According to the results of the Johansen’s Cointegration test, a cointegrating relationship was found to exist in the dimensions of FI and GDP growth rate. Since this was found to exist, the vector error correction model was used to model the variables and the said relationship wherein a significant long-run relationship was found when GDP growth rate and usage dimension were the target variables. These findings suggest that financial inclusion dimensions affect economic growth in the long-run. Furthermore, the constructed models of the relationship were also considered to have accurate forecasting capability for GDP growth rate and the dimensions of FI.
Abstract Format
html
Language
English
Format
Electronic
Physical Description
58 leaves
Keywords
Economic development--Philippines; Financial services industry--Philippines; Multivariate analysis
Recommended Citation
Capili, R. G., & Mendoza, C. (2022). A multivariate time series analysis using vector error correction models in explaining the relationship of financial inclusion and economic growth in the Philippines. Retrieved from https://animorepository.dlsu.edu.ph/etdb_math/10
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Embargo Period
7-10-2022
