Policy Reversals, Lobby Groups and Economic Distortions
AbstractThis paper aims to review the impact of the various tariff legislations passed from 1998 to 2003 on the structure of protection in the Philippines. The paper finds that while the overall level of effective protection has declined, it has remained uneven as some selected sectors have continued to receive relatively high effective rates of protection. As such, the economic distortions that characterize our tariff structure have continued to prevail and have led to the inefficient use of resources. The tariff structure continues to favor the manufacture of highly protected import substitutes at the expense of exportables. Oftentimes, the favored sectors are intermediate goods like sugar, petrochemicals, float glass, and steel which are inputs to a lot of products. Since the tariffs on the inputs are higher than the outputs, the cost of production has remained high affecting the competitiveness of the user sectors. The large disparities in tariff protection has provided incentives for lobbying. Thus, sustaining the trade reforms and encouraging competition to promote efficiency and consumer welfare has been very difficult.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by East Asian Bureau of Economic Research in its series Trade Working Papers with number 22312.
Date of creation: Jan 2005
Date of revision:
Contact details of provider:
Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
Web page: http://www.eaber.org
More information through EDIRC
effective protection; tariff structure; trade policy;
Other versions of this item:
- Aldaba, Rafaelita M., 2005. "Policy Reversals, Lobby Groups and Economic Distortions," Discussion Papers DP 2005-04, Philippine Institute for Development Studies.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Rafaelita M. Aldaba, 2005.
"The Impact of Market Reforms on Competition, Structure and Performance of the Philippine Economy,"
Trade Working Papers
22306, East Asian Bureau of Economic Research.
- Aldaba, Rafaelita M., 2005. "The Impact of Market Reforms on Competition, Structure and Performance of the Philippine Economy," Discussion Papers DP 2005-24, Philippine Institute for Development Studies.
- Aldaba, Rafaelita M., 2012. "Surviving Trade Liberalization in Philippine Manufacturing," Discussion Papers DP 2012-10, Philippine Institute for Development Studies.
- Caesar B. Cororaton & Erwin L. Corong, 2006. "Agriculture-sector Policies and Poverty in the Philippines: a Computable General-Equilibrium (CGE) Analysis," Working Papers MPIA 2006-09, PEP-MPIA.
- Aldaba, Rafaelita M., 2012.
"Trade Reforms, Competition, and Innovation in the Philippines,"
DP 2012-06, Philippine Institute for Development Studies.
- Rafaelita M. ALDABA, 2012. "Trade Reforms, Competition, and Innovation in the Philippines," Working Papers DP-2012-05, Economic Research Institute for ASEAN and East Asia (ERIA).
- Erwin L. Corong, 2007. "Economic and Poverty Impacts of a Voluntary Carbon Reduction for a Small Liberalized Developing Economy: The Case of the Philippines," Working Papers 2007.9, Fondazione Eni Enrico Mattei.
- David, Cristina C. & Intal, Ponciano & Balisacan, Arsenio M., 2007. "Distortions to Agricultural Incentives in the Philippines," Agricultural Distortions Working Paper 48477, World Bank.
- Cororaton, Caesar B., 2008. "The Philippines: Shadow WTO Agricultural Domestic Support Notifications," IFPRI discussion papers 827, International Food Policy Research Institute (IFPRI).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shiro Armstrong).
If references are entirely missing, you can add them using this form.