Analysis of the Impact of Importation on the Economic Development of the Davao Region

Abstract

The research explores the impact of importation on various economic factors, shedding light on its correlation with prices, employment, unemployment, investments, and agricultural production in the Davao region. By employing the descriptive quantitative method, the findings indicate a statistically significant relationship between importation and prices/inflation, suggesting that heightened importation costs can substantially contribute to increased overall prices and inflation within an economy. However, when examining employment, the study indicates that a surge in importation prices does not necessarily translate to a significant rise in employment due to various mitigating factors such as increased business expenses and misaligned consumer demand. Conversely, the analysis reveals a strong inverse correlation between importation and unemployment, indicating that higher import levels are linked to reduced unemployment rates. Moreover, despite importation not significantly correlating with increased investments, it shows positive associations with palay and corn production, highlighting the potential impact of importation on stimulating local agricultural investments, especially in essential crops. However, increased importation prices in the livestock and fish production sectors do not demonstrate significant correlations with enhanced output, potentially due to complex dynamics involving cost structures, market uncertainties, and demand-supply imbalances in these industries. The findings are expected to offer insights to guide policymakers, businesses, and stakeholders in optimizing import-related strategies for sustainable economic advancement in the Davao region.