SMEs in the Philippine Manufacturing Industry and Globalization: Meeting the Development Challenges
AbstractIn recognition of their substantial contribution to the economy both in terms of number of enterprises and workers, the Philippine government has put in place a number of policies and programs designed specifically to boost SME productivity and competitiveness in the country. However, the performance of SMEs in the last decade has not been vigorous enough to boost the Philippine manufacturing industry. As such, the deepening of high technology industries in terms of the creation of backward linkages has remained weak. While the country’s exports of high technology products have grown rapidly, the value added of these exports is very low due to the limited links of large domestic and foreign companies to the domestic economy. Rapid changes in the international trade and the growing complexity of global production system, pose a significant challenge to Filipino SMEs. This paper reviews existing government SME policies as well as recent developments in the manufacturing sector, within the context of the emerging global production network. The paper draws on the findings of a survey interview of SMEs in the automotive, electronics, and garments sectors. The paper highlights the importance of creating a separate government office that would coordinate SME policies and programs to support the integration of SMEs in the global production chain.
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Bibliographic InfoPaper provided by Philippine Institute for Development Studies in its series Discussion Papers with number DP 2008-15.
Date of creation: 2008
Date of revision:
globalization; small and medium enterprises;
Other versions of this item:
- Rafaelita M. Aldaba, 2008. "SMEs in the Philippine Manufacturing Industry and Globalization : Meeting the Development Challenges," Development Economics Working Papers 21955, East Asian Bureau of Economic Research.
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-10-13 (All new papers)
- NEP-CSE-2008-10-13 (Economics of Strategic Management)
- NEP-DEV-2008-10-13 (Development)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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