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Packaging Industry: Impact of Trade Policy Reforms on Performance, Competitiveness and Structure

  • Medilo, Maria Cristina
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    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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    This book is provided by Philippine Institute for Development Studies in its series Research Paper Series with number RPS 1994-01 and published in .
    Handle: RePEc:phd:rpseri:rps_1994-01
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    1. Page, John Jr., 1984. "Firm size and technical efficiency : Applications of production frontiers to Indian survey data," Journal of Development Economics, Elsevier, vol. 16(1-2), pages 129-152.
    2. Havrylyshyn, Oli, 1990. "Trade Policy and Productivity Gains in Developing Countries: A Survey of the Literature," World Bank Research Observer, World Bank Group, vol. 5(1), pages 1-24, January.
    3. Nishimizu, Mieko & Robinson, Sherman, 1984. "Trade policies and productivity change in semi-industrialized countries," Journal of Development Economics, Elsevier, vol. 16(1-2), pages 177-206.
    4. Tecson, Gwendolyn R., 1992. "Performance, Competitiveness and Structure of Philippine Manufacturing Industries: A Research Design," Working Papers WP 1992-02, Philippine Institute for Development Studies.
    5. Krueger, Anne O, 1972. "Evaluating Restrictionist Trade Regimes: Theory and Measurement," Journal of Political Economy, University of Chicago Press, vol. 80(1), pages 48-62, Jan.-Feb..
    6. Bruno, Michael, 1972. "Domestic Resource Costs and Effective Protection: Clarification and Synthesis," Journal of Political Economy, University of Chicago Press, vol. 80(1), pages 16-33, Jan.-Feb..
    7. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    8. Bergsman, Joel, 1974. "Commercial Policy, Allocative Efficiency, and "X-Efficiency."," The Quarterly Journal of Economics, MIT Press, vol. 88(3), pages 409-33, August.
    9. Dani Rodrik, 1988. "Closing the Technology Gap: Does Trade Liberalization Really Help?," NBER Working Papers 2654, National Bureau of Economic Research, Inc.
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