Understanding economic contributions of MSMEs among Philippine Regions

Abstract

The researchers explored the conditioning effect of number of enterprises together with employment generation led by MSMEs towards Regional Gross Domestic Product (RGDP) of the Philippines through panel regression analysis from 2018 to 2021. Initially, it revealed that RGDP, number of MSMEs as well as its employment generated decreased from 2019 to 2020 and increased from 2020 to 2021. Metro Manila followed by Region IV-A and Region 3 where topping RGDP values, number of MSMEs and its employment generated. Moreover, corrected PLS revealed that the number of enterprises and the MSMEs’ employment generation conditions RGDP. Hence, the researchers recommend focusing on the least MSMEs growth in the region particularly in Mindanao Island to foster equitable MSME-induced growth in the country.