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The Contribution of SMEs to the Local Power for Economic Reproduction in the Philippines

Author

Listed:
  • John X. LAMBINO

    (Graduate School of Economics at Kyoto University)

Abstract

The paper introduces and elucidates Okada's approach of the local power for economic reproduction. It uses the approach as a tool to analyze the role and contribution of SMEs in the local economy of the Philippines. Under the approach, the local power for economic reproduction is the power that determines the scale and quality of economic reproduction. It strengthens when the funds locally generated are used and circulated within the locality.The paper points out the country's propensity of using imported means of production that has led to chronic trade deficit. Due to the chronic trade deficit, the country has faced numerous balance of payments crises. The government has responded to the crises by actively using external debt and foreign direct investment. However, external debts and foreign direct investments are attendant with local funds outflow for debt servicing and for profit remittance. The paper argues that these weaken the local power for economic reproduction.

Suggested Citation

  • John X. LAMBINO, 2017. "The Contribution of SMEs to the Local Power for Economic Reproduction in the Philippines," Japan Social Innovation Journal, University of Hyogo Institute for Policy Analysis and Social Innovation, vol. 7(1), pages 1-1, March.
    • Handle: RePEc:hyo:journl:v:7:y:2017:i:1:p:1
    DOI: 10.12668/jsij.7.1
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    References listed on IDEAS

    as
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    2. Habito, Cielito F. & Tamangan, Ronald J. & Josef, Frances, 2004. "Small and Medium Enterprise Development Experience and Policy in Japan and the Philippines: Lessons and Policy Implications," Discussion Papers DP 2004-30, Philippine Institute for Development Studies.
    3. Aldaba, Rafaelita M., 2012. "Small and Medium Enterprises` (SMEs) Access to Finance: Philippines," Discussion Papers DP 2012-05, Philippine Institute for Development Studies.
    4. Gerardo P. Sicat & Adriano A. Arcelo & Helen C. Reantaso, 1968. "Transition to Decontrol and the Imports of New and Necessary Industries, 1959-1961," UP School of Economics Discussion Papers 196829, University of the Philippines School of Economics.
    5. John X. LAMBINO, 2015. "Political-Security, Economy, and Culture within the Dynamics of Geopolitics and Migration: On Philippine Territory and the Filipino People," Discussion papers e-15-004, Graduate School of Economics Project Center, Kyoto University.
    6. Gerardo P. Sicat & Adriano C. Arcelo & Helen C. Reantaso, 1968. "Transition to Decontrol and the Imports of the New and Necessary Industries," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 5(2), pages 1-29, December.
    7. Andy Pike & Andres Rodriguez-Pose & John Tomaney, 2007. "What Kind of Local and Regional Development and for Whom?," Regional Studies, Taylor & Francis Journals, vol. 41(9), pages 1253-1269.
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    Keywords

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    JEL classification:

    • O00 - Economic Development, Innovation, Technological Change, and Growth - - General - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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