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Further Evidence on the Relationship between Population Density and Infrastructure: The Philippines and Electrification

Presents a study of the effect of the population density and per capita income on the infrastructure of the Philippines. The dimension of infrastructure used is electrification measured as the percentage of households served by electricity. The units of analysis were the provinces of the Philippines. It was expected that the relationship would be positive and significant. As population density increases the cost-benefit ratio will be such that public utilities find investment in electrical supply at least as attractive as investing the same resource elsewhere. With respect to per capita income since a major portion of electricity is sold the supply of electricity should be greater in provinces where the per capita income is relatively high. Multiple regression analysis was performed. Population density was found to be significant at the 99% level but per capita income was not significant at the 90% level suggesting the possible presence of other effects. Dummy variables were then constructed to account for remoteness of the province and urban pressure on central government to supply electrical power. The analysis was then redone with the new variables and all variables were then found to be significant at the 99% level. This new model accounted for 77% of the variance in electrification between the provinces. It is suggested that future research utilize similar types of analyses for other dimensions of intrastructure.