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Enhancement and Deepening of the Competitiveness of the Philippine Electronics Industry Under a Bilateral Setting

Author

Listed:
  • Myrna S. Austria

    (PIDS)

Abstract

The participation of the Philippines in the global production network of multinational electronic companies has undoubtedly shaped the pattern and structure of the countrys international trade since the early 1990s. While the industry has remained the largest foreign exchange earner for the country, the countrys participation in the global production network industry is confronted, for the longest time, with one major issue. That is, the country hardly progressed beyond the lowest level of the production chain - labor intensive and import dependent assembly and testing; and hence, the value added of the industry has remained small. The industry is competitive in 18 electronic products that accounted for about 86 percent of the industrys total exports. The government, however, needs to address the weaknesses and inadequacies of the local support structures that have constrained the ability of the country to move towards higher levels of the value chain in order to ensure that the global players currently operating in the country will remain and expand operations. Since the global production network is market-driven, negotiations under an RP-US Free Trade Area should be focused on trade and investment liberalization and facilitation in order to improve the functioning of the markets of both economies.

Suggested Citation

  • Myrna S. Austria, 2006. "Enhancement and Deepening of the Competitiveness of the Philippine Electronics Industry Under a Bilateral Setting," Trade Working Papers 22610, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:tradew:22610
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    File URL: http://www.eaber.org/node/22610
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    References listed on IDEAS

    as
    1. Theodore H. Moran, 1998. "Foreign Direct Investment and Development: The New Policy Agenda for Developing Countries and Economies in Transition," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 53.
    2. Austria, Myrna S., 2000. "Competitiveness of the Philippine IT Industry: What Lies Ahead," Philippine Journal of Development JPD 2000 Vol. XXVII No. 2, Philippine Institute for Development Studies.
    3. Shahid Yusuf & M. Anjum Altaf & Kaoru Nabeshima, 2004. "Global Production Networking and Technological Change in East Asia," World Bank Publications, The World Bank, number 14918.
    4. Ng, Francis & Yeats, Alexander, 1999. "Production sharing in East Asia : who does what for whom, and why?," Policy Research Working Paper Series 2197, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Aldaba, Rafaelita M. & Aldaba, Fernando T., 2013. "Do FDI Inflows Have Positive Spillover Effects? The Case of the Philippine Manufacturing Industry," Philippine Journal of Development PJD 2010 Vol. 37 No. 2b, Philippine Institute for Development Studies.
    2. Ganeshan Wignaraja & Dorothea Lazaro & Genevieve DeGuzman, 2010. "FTAs and Philippine Business : Evidence from Transport, Food, and Electronics Firms," Trade Working Papers 22880, East Asian Bureau of Economic Research.

    More about this item

    Keywords

    international trade; global production networks; competitiveness; free trade agreements; local support structures; harmonization of standards; mutual recognition of procedures;

    JEL classification:

    • P33 - Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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