IDEAS home Printed from https://ideas.repec.org/a/umk/journl/v5y2013i2p69-100.html
   My bibliography  Save this article

The Impact of the Global Financial Meltdown and New Growth Strategies for the Philippines

Author

Listed:
  • Joseph Lim

    (Department of Economics,Ateneo de Manila University)

Abstract

This paper discusses the impact of the global financial meltdown on the Philippines. To cushion future capital flow, exchange rate volatilities and export collapse, new growth strategies for the Philippines should include on the financial and capital account fronts: a) controls on short-term capital flows; b) a BBC (basket, band, crawl) system to replace the free floating exchange rate regime; and c) a bigger reliance on domestic debt financing and a shift away from external debt financing of growth to avoid external debt crises due to external shocks. In developing a vibrant domestic internal demand in order to reduce over-dependence on exports, the following will be vital: a) a strong move to correct income and regional inequalities and disparities, including strong anti-poverty policies; b) an industrial policy to make stronger linkages and productive capacity in the economy; c) fiscal reforms (especially tax) in order to generate sufficient funds to finance much needed infrastructure and human capital, and to address the grave problems of poverty across the country; d) enlightened and independent governance by a pro-poor and democratic state; and e) an end to pro-cyclical fiscal and monetary policies and a strong adoption of counter-cyclical policies

Suggested Citation

  • Joseph Lim, 2013. "The Impact of the Global Financial Meltdown and New Growth Strategies for the Philippines," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 5(2), pages 69-100, July.
    • Handle: RePEc:umk:journl:v:5:y:2013:i:2:p:69-100
    as

    Download full text from publisher

    File URL: http://ijie.um.edu.my/filebank/published_article/4921/Fulltext%204.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alan V. Deardorff, 2007. "Some Reflections on Nurkse's "Patterns of Trade and Development"," Working Papers 574, Research Seminar in International Economics, University of Michigan.
    2. Mark Setterfield (ed.), 2010. "Handbook of Alternative Theories of Economic Growth," Books, Edward Elgar Publishing, number 12814.
    3. Indermit Gill & Homi Kharas, 2007. "An East Asian Renaissance : Ideas for Economic Growth," World Bank Publications - Books, The World Bank Group, number 6798, December.
    4. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1989. "Industrialization and the Big Push," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1003-1026, October.
    5. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
    6. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Durlauf, Steven N. & Quah, Danny T., 1999. "The new empirics of economic growth," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 4, pages 235-308, Elsevier.
    2. Nowak-Lehmann D., Felicitas, 2000. "Was there endogenous growth in Chile (1960 - 1998)? A test of the AK-model," University of Göttingen Working Papers in Economics 7, University of Goettingen, Department of Economics.
    3. Long, N.V. & Wong, K.Y., 1996. "Endogenous Growth and International Trade: A Survey," Working Papers 96-07, University of Washington, Department of Economics.
    4. Magrini, Stefano, 2004. "Regional (di)convergence," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 62, pages 2741-2796, Elsevier.
    5. Ruttan, Vernon W., 1998. "Growth Economics And Development Economics: What Should Development Economists Learn (If Anything) From The New Growth Theory?," Bulletins 12972, University of Minnesota, Economic Development Center.
    6. Mark Rogers, 2003. "A Survey of Economic Growth," The Economic Record, The Economic Society of Australia, vol. 79(244), pages 112-135, March.
    7. Alhassan Abdul-Wakeel Karakara & Evans Osabuohien, 2020. "ICT adoption, competition and innovation of informal firms in West Africa: a comparative study of Ghana and Nigeria," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 14(3), pages 397-414, June.
    8. Carine Nourry, 2012. "Dasgupta, D.: Modern growth theory," Journal of Economics, Springer, vol. 105(1), pages 97-100, January.
    9. Catherine Baumont, 1995. "Urban economics and endogenous dynamics in regional growth [Economies d'agglomération et dynamique endogène de croissance des régions]," Working Papers hal-01527237, HAL.
    10. Chen, Xi & Funke, Michael, 2013. "The dynamics of catch-up and skill and technology upgrading in China," Journal of Macroeconomics, Elsevier, vol. 38(PB), pages 465-480.
    11. Richard E. Baldwin & Philippe Martin & Gianmarco I. P. Ottaviano, 2021. "Global Income Divergence, Trade, and Industrialization: The Geography of Growth Take-Offs," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 2, pages 25-57, World Scientific Publishing Co. Pte. Ltd..
    12. Shelby D. Hunt, 2012. "Understanding the Drivers of Economic Growth: Grounding Endogenous Economic Growth Models in Resource-Advantage Theory," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 6(4), December.
    13. Asongu, Simplice & Boateng, Agyenim & Akamavi, Raphael, 2016. "Mobile Phone Innovation and Inclusive Human Development: Evidence from Sub-Saharan Africa," MPRA Paper 75046, University Library of Munich, Germany.
    14. Białek-Jaworska Anna & Dobroszek Justyna, 2019. "R&D Expenditure and the Role of Scientists," Financial Sciences. Nauki o Finansach, Sciendo, vol. 24(2), pages 1-16, June.
    15. Anupam Jena & Casey Mulligan & Tomas J. Philipson & Eric Sun, 2008. "The Value of Life in General Equilibrium," NBER Working Papers 14157, National Bureau of Economic Research, Inc.
    16. Danny Quah, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEP Discussion Papers dp0280, Centre for Economic Performance, LSE.
    17. Agosin, Manuel & Retamal, Yerko, 2021. "A model of diversification and growth in open developing economies," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 455-470.
    18. Ferrucci, Edoardo, 2020. "Migration, innovation and technological diversion: German patenting after the collapse of the Soviet Union," Research Policy, Elsevier, vol. 49(9).
    19. Steve Dowrick, 1994. "Openness and Growth," RBA Annual Conference Volume (Discontinued), in: Philip Lowe & Jacqueline Dwyer (ed.),International Intergration of the Australian Economy, Reserve Bank of Australia.
    20. Stavins, Robert & Jaffe, Adam & Newell, Richard, 2000. "Technological Change and the Environment," Working Paper Series rwp00-002, Harvard University, John F. Kennedy School of Government.

    More about this item

    Keywords

    - growth strategy; Philippines; global financial crash;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:umk:journl:v:5:y:2013:i:2:p:69-100. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Teoh Wern Jun (email available below). General contact details of provider: https://edirc.repec.org/data/feaummy.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.