Packaging Industry: Impact of Trade Policy Reforms on Performance, Competitiveness and Structure
This paper evaluates the impact of the country’s recent trade liberalization experience on the performance, structure and competitiveness of the Philippine Packaging industry. It examines the changes in the industry’s protection level and its consequence, if any, on the levels of allocative and technical efficiency. It also investigates the factors related to industrial structure such as barriers to entry, market power and concentration. Results indicate a good performance of the Trade Liberalization Program in terms of reducing allocative inefficiency and in improving the comparative advantage and technical efficiency in the packaging industry. However, it should be recognized that improvements in efficiency and productivity could not be completely attributed to the trade reform alone. Hence, this paper recommends a follow-up reform program that would further reduce the rates down to minimal levels.
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