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TNCs in Perplexity over How to Meet Local Suppliers: The Case of Philippine Export Processing Zone


  • Oikawa, Hiroshi


Transnational Corporations (TNCs) have played a vital role in fostering rapidindustrialisation in many developing countries. The Philippines is the case. However, the country has been far lagging behind other ASEAN members in economic performance. The present study examines this issue, mainly focusing on the linkage formation between TNCs affiliates and Philippine local suppliers. Three factors are proposed to determine the overall performance of linkage formation; i.e., outsourcing strategies of TNCs’ localaffiliates, local entrepreneurial response, and host government policies. An economicenclave structure is clearly identified in the Philippines, in which only a fewlocally-owned suppliers have emerged. Extremely weak local entrepreneurship in thePhilippines is identified to explain the poor performance of linkage formation.

Suggested Citation

  • Oikawa, Hiroshi, 2008. "TNCs in Perplexity over How to Meet Local Suppliers: The Case of Philippine Export Processing Zone," IDE Discussion Papers 167, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  • Handle: RePEc:jet:dpaper:dpaper167

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    Cited by:

    1. Patalinghug, Epictetus E., 2015. "Supply Chain Connectivity: Enhancing Participation in the Global Supply Chain," Discussion Papers DP 2015-14, Philippine Institute for Development Studies.

    More about this item


    Transnational Corporations (TNCs); Local Suppliers; Linkages; Outsourcing Strategies; Entrepreneurship; Philippines; 多国籍企業; 現地サプライヤー; アウトソーシング戦略; 企業家精神; フィリピン;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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