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Assessing the Competitiveness of the Philippine Auto Parts Industry

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  • Aldaba, Rafaelita M.

Abstract

The development of the Philippine automotive parts and components sector is critical to the automotive assembly industry. The availability of competitive parts and components that are locally manufactured can significantly contribute to boost the competitiveness of the assembly sector. Given the current state of small and medium manufacturers, making them internationally competitive and linking them with regional production networks are major challenges. Less competitive firms will have to contend with reduced market shares and eventually bankruptcy. The few remaining competitive ones need to define their strategies and the market position that they want to pursue. The government has an important role to play in the firms’ adjustment process. While increasing economic integration represent market opportunities, penetrating the export market is not easy and does not come automatically. As the firms search for internal ways and exert effort to improve their competitiveness, this must be complemented with active government support.

Suggested Citation

  • Aldaba, Rafaelita M., 2007. "Assessing the Competitiveness of the Philippine Auto Parts Industry," Discussion Papers DP 2007-14, Philippine Institute for Development Studies.
  • Handle: RePEc:phd:dpaper:dp_2007-14
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    Cited by:

    1. 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.
    2. Quimba, Francis Mark A. & Rosellon, Maureen Ane D., 2011. "Innovation in the Automotive Sector of the Philippines," Discussion Papers DP 2011-17, Philippine Institute for Development Studies.
    3. Medalla, Erlinda M. & Rosellon, Maureen Ane D., 2012. "ASEAN+1 FTAs and the Global Supply Chain in East Asia: the Case of the Philippine Automotive and Electronics Sectors," Discussion Papers DP 2012-38, Philippine Institute for Development Studies.
    4. Aldaba, Rafaelita M., 2008. "SMEs in the Philippine Manufacturing Industry and Globalization: Meeting the Development Challenges," Discussion Papers DP 2008-15, Philippine Institute for Development Studies.
    5. Rene E. OFRENEO, 2015. "Auto and Car Parts Production: Can the Philippines Catch Up with Asia?," Working Papers DP-2015-09, Economic Research Institute for ASEAN and East Asia (ERIA).

    More about this item

    Keywords

    competitiveness; automotive industry;

    JEL classification:

    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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