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Micro Studies: The Philippine Car Assembly Sector

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Author Info

  • Aldaba, Rafaelita M.

Abstract

In the light of reforms on trade policy and the move towards the 5 percent uniform tariff rate by 2004, local car assemblers have expressed their apprehension over the government’s liberalization plans. Hence, they have persuaded the government to impose higher tariff protection in lieu of the removal of import restrictions. This study analyzes the probable impact of tariff reforms, the removal of import restrictions on CBU’s, the adoption of the 5 percent uniform tariff rate and the removal of the local content requirement on the car assembly sector. Analysis indicates that the trade and investment policy reforms have not granted most assembly firms marked improvement in their efficiency measures. Results also show that the Philippine passenger car assembly industry exhibit insipid performance compared to Thailand. In particular, Philippine car assemblers survive not because of the volume they produce but because of the high protection they enjoy.

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Bibliographic Info

Paper provided by Philippine Institute for Development Studies in its series Discussion Papers with number DP 1997-21.

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Length: 46
Date of creation: 1997
Date of revision:
Handle: RePEc:phd:dpaper:dp_1997-21

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Related research

Keywords: passenger car industry; Progressive Car Manufacturing Program; People’s Car Program; complete knock down; shadow exchange rate;

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Cited by:
  1. Quimba, Francis Mark A. & Rosellon, Maureen Ane D., 2011. "Innovation in the Automotive Sector of the Philippines," Discussion Papers DP 2011-17, Philippine Institute for Development Studies.

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