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Assessing the Spillover Effects of FDI to the Philippines

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  • Aldaba, Rafaelita M.
  • Aldaba, Fernando T.

Abstract

The experience of the Philippines shows that FDI spillover effects are not automatically generated. Opening up the economy to FDI has contributed to the country`s exports of high-technology products and overall economic growth. However, the spillover effects of FDI to domestic firms have remained limited due to the domestic firms` weak competitiveness and inability to absorb the technology or knowledge being transferred. The government needs to adopt a more comprehensive approach that would combine industrial policy to improve and develop domestic parts and supplier firms with measures to create an environment conducive to the creation and expansion of FDI-related spillovers as well as increase participation in higher segments of industry value chain.

Suggested Citation

  • Aldaba, Rafaelita M. & Aldaba, Fernando T., 2010. "Assessing the Spillover Effects of FDI to the Philippines," Discussion Papers DP 2010-27, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_2010-27
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    File URL: https://www.pids.gov.ph/publication/discussion-papers/assessing-the-spillover-effects-of-fdi-to-the-philippines
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    References listed on IDEAS

    as
    1. Blomström, Magnus & Kokko, Ari, 2003. "The Economics of Foreign Direct Investment Incentives," EIJS Working Paper Series 168, Stockholm School of Economics, The European Institute of Japanese Studies.
    2. Mr. Ewe-Ghee Lim, 2001. "Determinants of, and the Relation Between, Foreign Direct Investment and Growth: A Summary of the Recent Literature," IMF Working Papers 2001/175, International Monetary Fund.
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    Cited by:

    1. Cassey Lee & Dionisius Narjoko, 2015. "Escaping the Middle-Income Trap in Southeast Asia: Micro Evidence on Innovation, Productivity, and Globalization," Asian Economic Policy Review, Japan Center for Economic Research, vol. 10(1), pages 124-147, January.
    2. Sisira Kumara Naradda Gamage & EMS Ekanayake & GAKNJ Abeyrathne & RPIR Prasanna & JMSB Jayasundara & PSK Rajapakshe, 2020. "A Review of Global Challenges and Survival Strategies of Small and Medium Enterprises (SMEs)," Economies, MDPI, vol. 8(4), pages 1-24, October.
    3. Tabuga, Aubrey D. & Mina, Christian D. & Reyes, Celia M. & Asis, Ronina D., 2013. "Regional Integration, Inclusive Growth, and Poverty: Enhancing Employment Opportunities for the Poor," Discussion Papers DP 2013-10, Philippine Institute for Development Studies.
    4. Naradda Gamage, Sisira Kumara & Ekanayake, EMS & Abeyrathne, GAKNJ & Prasanna, RPIR & Jayasundara, JMSB & Rajapakshe, PSK, 2019. "Global Challenges and Survival Strategies of the SMEs in the Era of Economic Globalization: A Systematic Review," MPRA Paper 98419, University Library of Munich, Germany.
    5. Ulep, Valerie Gilbert T. & Aldeon, Melanie P. & dela Cruz, Nina Ashley O., 2013. "Multisector Strategy in Addressing Noncommunicable Diseases in the Philippines," Discussion Papers DP 2013-40, Philippine Institute for Development Studies.

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