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ABSTRACT
The economic impacts of a growth center and its surrounding rural areas are examined in this paper. Three types of economic impacts are identified, namely, direct, indirect and induced impacts. These impacts are evaluated by an income generation model using multiplier analysis.
Mariveles, in Bataan province, Philippines, which used to be a farming and fishing community, has just been made an export processing zone of Bataan (BEPZ) by Presidential Decree No. 66, is chosen as the growth center. Nine villages (barrios) around it have been selected as surrounding rural areas. In an effort to test the general hypothesis that favorable effects brought by the creation of propulsive industries in a given area tend to spread unevenly within the growth space, being greater in the zones nearer the center than further away from it, the nine villages are classified into three zones. Each is separated at a time-distance of 15 minutes from three barrios in Zone A, 30 minutes for three barrios in Zone B and 45 minutes for three barrios in Zone C.
The results show that some unfavorable effects rather than favorable effects have been identified in the surrounding rural areas. This finding substantiates the initial hypothesis regarding the predominance of backwash to spread in the peripheries of the growth center.