Impacts of the Southeast Asian Financial Crisis on the Philippine Manufacturing Sector
AbstractThis study examines the impacts of the Southeast Asian financial crisis that struck in July 1997 on the Philippine industries and their responses to such crisis using firm level data from a sample of 541 manufacturing establishments. The survey results clearly show that the capacity utilization rate of the Philippine manufacturing firms started to decline even before the crisis struck in July 1997, and that it continued to drop as the crisis deepened. Thus, the current capacity underutilization rate may be attributed to both cyclical and structural factors. The results of this study do not provide a clear evidence on the existence of a supply-side credit crunch during the crisis period. The significant drop in capacity utilization rate and output of firms during the crisis period would have required a large labor lay-off. However, to minimize the laying off of labor, firms resorted to other means, such as reducing workweek or days, applying forced vacation leave and freezing salary increases, to save some jobs. The study recommends that the government institute some measures to stimulate aggregate demand for 1999. Both monetary and fiscal policies are required to support such expansionary policy.
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 Philippine Institute for Development Studies in its series Discussion Papers with number DP 1999-09.
Date of creation: 1999
Date of revision:
Asian financial crisis; manufacturing sector;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Lamberte, Mario B., 1999. "A Second Look at Credit Crunch: The Philippine Case," Discussion Papers DP 1999-23, Philippine Institute for Development Studies.
- Mario B. Lamberte, 2001. "Comment on "How Japanese Subsidiaries in Asia Responded to the Regional Crisis: An Empirical Analysis Based on the MITI Survey"," NBER Chapters, in: Regional and Global Capital Flows: Macroeconomic Causes and Consequences, NBER-EASE Volume 10, pages 304-309 National Bureau of Economic Research, Inc.
- David, Cristina C., 1999. "Constraints to Food Security: The Philippine Case," Discussion Papers DP 1999-31, Philippine Institute for Development Studies.
- Orbeta, Aniceto Jr. C., 2000. "Human Resource Aspect in the Medium-Term National Action Agenda for Productivity (MNAAP)," Discussion Papers DP 2000-22, Philippine Institute for Development Studies.
- Beja, Jr., Edsel, 2009. "The Philippines on debt row," MPRA Paper 16553, University Library of Munich, Germany.
- Assaf Razin, 2001. "Comment on "How Japanese Subsidiaries in Asia Responded to the Regional Crisis: An Empirical Analysis Based on the MITI Survey"," NBER Chapters, in: Regional and Global Capital Flows: Macroeconomic Causes and Consequences, NBER-EASE Volume 10, pages 309-310 National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Aniceto Orbeta).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.