Decentralization, the Internal Revenue Allotment, and Shared Growth: An Examination of Correlations

Abstract

This is a macro study on the role of internal revenue allotments in decentralization to help the Philippines achieve shared growth. The research attempted to answer two interrelated development policy questions: 1) has the Philippines achieved shared growth; and does the Internal Revenue Allotment (IRA) have the potential of contributing to shared growth? Patterns of correlation were distilled from available provincial as well as national data on average income, poverty incidence, income distribution, and IRA. Correlation analysis for the second question was supplemented with an analysis of the IRA formula. Results showed that growth in the Philippines has been more of the inclusive than the shared growth type. Moreover, research article tendered arguments against two criticism of the IRA formula, thereby effectively revealing the potential of the IRA to contribute to shared growth. Recommendations were given for future research on crucial causalities, for example, among IRA, per capita income, population growth through internal migration, as well as the causalities underlying the dynamics among average income, poverty incidence, and income distribution.

Source or Periodical Title

Journal of Public Affairs and Development

ISSN

2244-3983

Page

109-142

Document Type

Article

Frequency

2017

Physical Description

tables

Language

English

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