Determinants of Parallel Economic Activities in Cagayan de Oro City

The study identified the determinants of parallel economic activities in Cagayan de Oro City.The researchers focused on the profile of respondents, the four types of parallel economic activities, and the determinant which influences the existence of parallel economic activities in the area. In answering the problems, the study used the descriptive research design employing a researcher-made survey questionnaire for gathering the data, which were analyzed and interpreted using frequency count and percentage distribution. Among the 120 respondents, the majority were married young male adults, with an educational attainment of elementary level, who have children that go to school and earned the income of Php 500 and below. In terms of the types of parallel economic activities, majority of the respondents are into street vending or street trading. The respondents provided three various reasons why they engaged in parallel economic activities namely survival, education of their children, and earn extra income.  Majority of the respondents’ main reason for engaging in parallel economic activity was for survival. Furthermore, majority of the respondents cited that the profit they earned was enough to meet the basic needs of the family. They can only save depending on the income they earn. If given the opportunity, majority of the respondents wanted to have a stable job or to engage in a formal economic activity.

Keywords: determinant, parallel economy, parallel economic activities, survival