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

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  • Austria, Myrna S.

Abstract

The participation of the Philippines in the global production network of multinational electronic companies has undoubtedly shaped the pattern and structure of the country’s international trade since the early 1990s. While the industry has remained the largest foreign exchange earner for the country, the country’s 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 industry’s 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

  • Austria, Myrna S., 2006. "Enhancement and Deepening of the Competitiveness of the Philippine Electronics Industry Under a Bilateral Setting," Discussion Papers DP 2006-09, Philippine Institute for Development Studies.
  • Handle: RePEc:phd:dpaper:dp_2006-09
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    References listed on IDEAS

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    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. 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, April.
    3. 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.
    4. Hanna, N. & Boyson, S. & Gunaratne, S., 1996. "The East Asian Miracle and Information Technology," World Bank - Discussion Papers 326, World Bank.
    5. 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.
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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. Wignaraja, Ganeshan & Lazaro, Dorothea & DeGuzman, Genevieve, 2010. "FTAs and Philippine Business: Evidence from Transport, Food, and Electronics Firms," ADBI Working Papers 185, Asian Development Bank Institute.

    More about this item

    Keywords

    competitiveness; electronics; international trade; local support structures; harmonization of standards; mutual recognition of procedures; global production networks (GPNs); free trade agreements (FTAs);

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