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SMEs in the Philippine Manufacturing Industry and Globalization : Meeting the Development Challenges


  • Rafaelita M. Aldaba

    (Philippine Institute for Development Studies)


Marked disparities in income across regions have persisted in the Philippines. In the last five years 2002-2006, the mean real per capita regional income for the countrys seventeen regions is around P14,000 (based on 1985 level). The highest is National Capital Region (NCR) with a real per capita income of P34,000 which is about 2.5 times the mean value and ten times the lowest value of P3,300 registered in the Autonomous Region in Muslim Mindanao (ARMM) Region. Far second from NCR is Cordillera Administrative Region (CAR) with mean income of P18,000. Northern Mindanao and CALABARZON (Cavite, Laguna, Batangas, Rizal and Quezon) Region have around P14,000; DAVAO and CENTRAL VISAYAS with P13,000 while MIMAROPA (Mindoro, Marinduque, Romblon, and Palawan) Region follows with mean income of P12,000. Given the wide imbalances in regional incomes, gaps between regions increased from 0.06 in 2002 to 0.07 in 2006.

Suggested Citation

  • Rafaelita M. Aldaba, 2008. "SMEs in the Philippine Manufacturing Industry and Globalization : Meeting the Development Challenges," Development Economics Working Papers 21955, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:develo:21955

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    References listed on IDEAS

    1. Aldaba, Rafaelita M., 2007. "Assessing the Competitiveness of the Philippine Auto Parts Industry," Discussion Papers DP 2007-14, Philippine Institute for Development Studies.
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    Cited by:

    1. Medalla, Erlinda M. & Mantaring, Melalyn C., 2017. "Mainstreaming SMEs: Promoting Inclusive Growth in APEC," Discussion Papers DP 2017-49, Philippine Institute for Development Studies.
    2. Aldaba, Rafaelita M., 2008. "Globalization and the Need for Strategic Government-Industry Cooperation in the Philippine Automotive Industry," Discussion Papers DP 2008-21, Philippine Institute for Development Studies.
    3. Leonardo Lanzona, 2015. "Mainstreaming SMEs through Social Enterprises," Working Papers id:7061, eSocialSciences.
    4. del Prado, Fatima & Macasaquit, Mari-Len R. & Cabalfin, Michael R. & Mantaring, Melalyn C., 2010. "Development of Regional Production and Logistic Networks in East Asia: the Case of the Philippines," Discussion Papers DP 2010-17, Philippine Institute for Development Studies.
    5. Ahmed, Vaqar & Wahab, Mohammad Abdul & Mahmood, Hamid, 2011. "Effectiveness of HRD for developing SMEs in South Asia," MPRA Paper 30780, University Library of Munich, Germany.
    6. Lazaro, Dorothea C. & Wignaraja, Ganeshan & De Guzman, Genevieve, 2011. "Factors Affecting Use or Nonuse of Free Trade Agreements in the Philippines," Philippine Journal of Development PJD 2009 Vol. XXXVI No. 2, Philippine Institute for Development Studies.
    7. Castillo-Sam, Eva Marie & Tormis, Jeaneth & Murcia, John Vianne, 2016. "A Model of Business Innovation in the Context of Micro, Small and Medium Enterprises in Davao Del Sur," MPRA Paper 72644, University Library of Munich, Germany, revised Jun 2016.

    More about this item


    small and medium enterprises (SMEs); globalization;

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy


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