Analysis on the Impact of Transportation on Labor Productivity in Metropolitan Business Hubs in the Philippines.

Abstract

The transportation industry plays a significant role in society by facilitating the production of goods and services for firms and individuals. Furthermore, it enables communication, transactions, trade, connections, and the movement of people from one destination to another. In the Philippines, Metro Manila, Metro Cebu, and Metro Davao stand as megacities and the most bustling areas, making it undeniable that transportation significantly impacts the labor productivity of workers in these three Metropolitan Areas. This paper examines the relationship between exogenous variables-such as available mass transportation, wages, and congestionand the performance of workers. Through the application of Ordinary Least Squares (OLS) panel data regression analysis and diagnostic tests, this study aims to determine whether these exogenous variables positively or negatively affect labor productivity. Considering that millions of employees commute to and from the country's commercial districts, transportation unquestionably influences their daily lives and efficiency at work. Consequently, this study sought to uncover the inherent costs associated with each mode of transportation, constrained by congestion, and its impact on labor productivity.