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Regional Integration, Inclusive Growth, and Poverty: Enhancing Employment Opportunities for the Poor

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Listed:
  • Tabuga, Aubrey D.
  • Mina, Christian D.
  • Reyes, Celia M.
  • Asis, Ronina D.

Abstract

Regional economic integration in East Asia is characterized initially as a market-driven process of increased trade and foreign direct investment inflows, and eventually by formal arrangements to liberalize trade and integrate economic activities through free trade agreements among East and Southeast Asian countries. This has led to more intensified regional production networks in which East and Southeast Asian countries, including the Philippines, participated. Set against the backdrop of continuing economic integration in the region, economic growth in the Philippines has not been as inclusive as in the other countries as manifested in the increase in the magnitude of poverty incidence.This paper examines how the Philippines can improve its record on poverty reduction by looking at how it can generate greater demand for the labor services of the poor. Specifically, this paper looks into the linkage between regional production networks and inclusive growth in the Philippines through employment generation for the poor. The manufacturing sector can provide employment opportunities for the poor and can offer relatively higher wages. However, expected high-productivity employment opportunities from the manufacturing sector were not fully realized due to some bottlenecks in the sector. This partly explains the persistence of poverty in the Philippines. To promote inclusive growth and reduce poverty, the manufacturing sector has to be made more competitive and, at the same time, productivity in the agriculture sector (the major employer of the poor) has to be increased.

Suggested Citation

  • Tabuga, Aubrey D. & Mina, Christian D. & Reyes, Celia M. & Asis, Ronina D., 2014. "Regional Integration, Inclusive Growth, and Poverty: Enhancing Employment Opportunities for the Poor," Research Paper Series RPS 2014-01, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:rpseri:rps_2014-01
    as

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    References listed on IDEAS

    as
    1. 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.
    2. Tabuga, Aubrey D. & Mina, Christian D. & Reyes, Celia M. & Asis, Ronina D. & Datu, Maria Blesila G., 2011. "Dynamics of Poverty in the Philippines: Distinguishing the Chronic from the Transient Poor," Discussion Papers DP 2011-31, Philippine Institute for Development Studies.
    3. Aldaba, Rafaelita M. & Aldaba, Fernando T., 2013. "Do FDI Inflows Have Positive Spillover Effects? The Case of the Philippine Manufacturing Industry," Philippine Journal of Development PJD 2010 Vol. 37 No. 2b, Philippine Institute for Development Studies.
    4. N/A, 2009. "On the Recession," Local Economy, London South Bank University, vol. 24(3), pages 253-253, May.
    5. Medalla, Erlinda M. & Balboa, Jenny D., 2011. "Regional Economic Integration in East Asia: Progress and Pathways," Discussion Papers DP 2011-23, Philippine Institute for Development Studies.
    6. World Bank, 2010. "World Development Report 2010," World Bank Publications - Books, The World Bank Group, number 4387, December.
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    Cited by:

    1. Mina, Christian D. & Reyes, Celia M. & Gloria, Reneli Ann B. & Mercado, Sarah Joy P., 2015. "Review of Design and Implementation of the Agricultural Insurance Programs of the Philippine Crop Insurance Corporation," Discussion Papers DP 2015-07, Philippine Institute for Development Studies.

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    Keywords

    poverty; Philippines; employment; regional economic integration; agriculture; inclusive growth;
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