Impact of Foreign Direct Investment, Inflation, Labor Force, and Population on Improving Living Standards in the Philippines

Vast amount of literature has well-established FDI as an important determinant technology acquisition and modernization, economic development, capital accumulation, employment. Economists are too engrossed in how positively affects the growth both home host countries; only a few have been associated with investigating actually improved living standards people. This paper examined impact FDI, Inflation, Labor Force, Population on improving Philippines from 1985 to 2021 using different econometric tests which are: (1) Augmented Dickey-Fuller Test, (2) Jarque-Bera Normality (3) Variance Inflation Factor, (4) Breusch-Pagan Heteroskedasticity test, (5) Breusch-Pagan-Godfrey Autocorrelation (6) RAMSEY Reset (7) Correlation Matrix, (9) OLS Multiple Regression, (10) Johansen Cointegration (11) Granger Causality. The findings various revealed that Force Participation, cointegrating relationships Self-Rated Poverty Rate within time series. Moreover, regression model shown Participation significant while country’s insignificant. Causality also caused not. With all results tests, it is evident dependent variables affect Philippines, just varies little or extensive is. study supports loosened restrictions foreign ownership affirmed effects most Incidence; however, must still take precautionary measures some exhibit insignificance long run. recommends implementing policies moderately reliant Foreign Direct Investment, Population, rate because proven be related Incidence, variable used measure Philippines. However, Philippine government should focus meticulous policy clauses would benefit not corporate but its employees help attain prosperity for country countrymen alleviate poverty.