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Philippines, like many other developing countries is heavily dependent on the rest of the world. Philippines economic development over the last two decades or so can be characterized as that of recurring ups and downs. This development path has been influenced greatly by the Philippine government policy. In the mid-1980s, the Philippine government's policy was characterized by economic liberalization with a focus on trade and investment, and with the associated privatization of government-controlled companies. The 1990s was characterized by sector-wise reforms in the financial and transportation sectors of the economy. Coupled with this was the private initiative in infrastructure projects in the areas of electricity power generation and railwayconstruction. These reforms attracted massive inflow of foreign direct investment into the Philippine economy. Following the Asian crisis there was massive outflow of FDI from the Philippine economy. The early part of the 2000s was characterized by the continuance of the basic policy of liberalizing the economy. Despite global uncertainties in the early part of the 2000s, the Philippine economy showed some resilience with the economy. Much of the growth experienced in the 2000s has come from increased private consumer spending, buoyed substantially by remittances by overseas workers. World Development Report (WDR), point out that it is argued that improvements in the investment climate in developing countries isthe key to attracting increased flow of foreign direct investment, and consequently a higher level of economic growth and development. The WDR identifies improvements in the investment climate such as those location-specific factors that shape the opportunities and incentives for firms to invest productively to create jobs and expand as the key driving forces for achieving sustained economic growth. In recent times, the Philippine government has pursued the policy of establishing international rules and standards relating to investment to reverse the declining trend in FDI inflow into the country. While these efforts can create a favorable climate for investment in terms of enhancing the credibility of government investment policies, reducing international transaction costs, and addressing international spillovers Recent developments in growth theory have been primarily theoretical, although significant progress has also been made in growth empirics. A growing number of studies have found that while the absorptive capacity of the recipient country affects the volume and type of FDI inflow, the institutional factors, such as the recipient economy's trade regime, legislation, political stability, and the scale factors, such as balance of payment constraints and the size of the domestic market for goods and services produced via FDI influences the impact of FDI on economic growth and development. For the Philippines, very little, if any, country-specific empirical study has been conducted to examine the determinants of economic growth. The focus of this paper is therefore to examine the impact of FDI on economic growth and development of the Philippine economy during a period of dramatic policy change and institutional reforms. According to Battung, M. A. P., & Magalong, L. T. (2025). Influence of budgetary control on the growth of MSME'S in Southern Manila District of NCR, Philippines. Journal of Business and Economics, 16(5-6), 101-107. According to the study by Battung and Magalong, budgetary control specifically through planning, monitoring, and participation exerts a significant transformative influence on the growth of MSMEs in the Southern Manila District. Based on a quantitative analysis of 354 business owners, the researchers established a moderate positive correlation (Spearman Rho = 0.383, p < 0.01) between budgetary control and firm growth. The findings highlight that while respondents largely agree that effective budgeting leads to increased profitability and operational efficiency, it does not significantly influence the physical expansion of operations. Ultimately, the study concludes that MSMEs benefit from tactical advantages in management through proper budgeting, though they must also consider variables like competitive positioning and operational efficiencies to sustain long-term financial performance. Because of the Foreign Direct Investments. For instance, Energy and oil consumption are essential inputs for industrialization, infrastructure development, and overall economic progress. This is consistent with the findings of Battung, M.A.P. (2022) The Impact of Electricity and Oil Consumption to Philippine Gross Domestic Variables: A Model Analysis from 2000-2020 who established that electricity and oil consumption have a significant long-run relationship with Philippine gross domestic variables using a model analysis from 2000 to 2020. The primary objective of this econometric modelling proposal is to determine if the provided socioeconomic factors really do affect the annual GNI per capita of the Philippines. Using the data from World Bank which dated from 2004 – 2023, study have provided 3 socioeconomic factors such as Personal Remittances, Foreign Direct Investment, and Inflation as the social factors that affect the GNI per capita annual growth. Foreign Direct Investments can also affect Agriculture Sector. According to Bisnar et al. (2025) explored the socio-economic dynamics of wealth accumulation and quality of life among farmers in Casiguran, Aurora, revealing that while motivations like financial security and family support are universally high, the specific challenges faced differ significantly depending on the type of crops cultivated. Their research, which sampled 194 farmers across five commodity groups, identified that rice farmers are particularly burdened by systemic issues such as limited market access, high machinery costs, and vulnerability to natural disasters. The study further indicates that lower educational attainment and a reliance on seasonal wages contribute to persistent financial instability, with the majority of households earning less than P120,000 annually. Ultimately, the authors argue that improving the quality of life for these agricultural communities requires a multi-faceted approach involving targeted financial literacy programs, strengthened land tenure security, and more responsive government disaster aid. Literature Review Nowadays the issue of foreign direct investments is being paid more attention, both at national and international level. There are many theoretical papers that examine foreign direct investments (FDI)’s issues, and main research on the motivations underlying FDI were developed by J. Dunning, S. Hymer or R.Vernon. Economists believe that FDI is an important element of economic development in all countries, especially in the developing ones. The conclusion reached after several empirical studies on the relationship between FDI and economic development is that the effects of FDI are complex. From a macro perspective, they are often regarded as generators of employment, high productivity, completeness, and technology spillovers. Especially for the least developed countries, FDI means higher exports, access to international markets and international currencies, being an important source of financing, substituting bank loans There is some evidence to support the idea that FDI promote the competitiveness of local firms. Blomstrom (1994) finds positive evidence in Mexico and Indonesia, while Smarzynska (2002) found that local suppliers in Lithuania benefited spill over from supplying foreign customers. Battung and Hudtohan (2017) highlight the strategic importance of spiritually-driven leadership in Metro Manila’s BPO sector, particularly as a mechanism for stabilizing the human capital that drives foreign investment. Their research indicates that leaders who balance traditional devotional practices with global ethical standards create a more meaningful workplace, directly addressing the high stress and attrition rates that often threaten the ROI of multinational firms. By fostering a sense of "membership" and "calling" among employees, this leadership style ensures that the Philippine BPO industry remains a competitive and sustainable destination for global outsourcing partners who prioritize long-term operational stability and ethical management. Caves (1996) considers that the efforts made by various countries in attracting foreign direct investments are due to the potential positive effects that this would have on economy. FDI would increase productivity, technology transfer, managerial skills, know- how, international production networks, reducing unemployment, and access to external markets. Hendriadi et al. (2024) establish that innovation-led distribution is the dominant growth strategy for MSMEs in Indonesia and the Philippines, a factor that significantly enhances these nations' appeal to Foreign Direct Investment (FDI). By fostering a culture of innovation, local MSMEs increase their "absorptive capacity," allowing them to effectively integrate the advanced technologies and global management practices that typically accompany foreign capital. Furthermore, the researchers suggest that this strategic alignment between local small businesses and international standards makes these Southeast Asian markets vital nodes in the Global Value Chain, as innovative local distribution networks provide the necessary infrastructure for foreign firms to scale their operations efficiently and reduce the logistical risks associated with international expansion. FDI may crowd out local enterprises and have a negative impact on economic development. Hanson (2001) considers that positive effects are very few, and Greenwood (2002) argues that most effects would be negative. Lipsey (2002) concludes that there are positiv