Home⇛Psychology and Education: A Multidisciplinary Journal⇛vol. 50 no. 8 (2025)

A Systematic Literature Review on the Challenges and Drivers of Economic Transformation in the Philippines (2000-2025)

Allen Grace M. Sarmiento

Discipline: Education

 

Abstract:

Digital transformation and structural change are reshaping pathways to inclusive and sustainable growth in the Philippines, yet the country’s shift from a services-dominated economy to diversified, higher-productivity activities remains incomplete and spatially uneven. This systematic literature review synthesizes studies from 2000 to 2025 across economics, development studies, and policy analysis to map the drivers, mechanisms, and outcomes of economic transformation. The central finding is that while digitalization and institutional reforms have emerged as critical accelerators of productivity, resilience, and market access, their uneven adoption and weak manufacturing linkages continue to constrain inclusive transformation. By employing a systematic literature review, this study addresses the fragmentation of existing scholarship, integrating quantitative macro- and micro-evidence with qualitative case research to highlight common drivers, underexplored themes such as regional disparities and informality, and methodological gaps. The review recommends place-sensitive IPI (institutions, policy, investment) packages, strengthened digital infrastructure and skills programs, safety nets for transition losers, and greater data openness to support policy design that balances productivity, equity, and sustainability



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