Globalization and the Need for Strategic Government-Industry Cooperation in the Philippine Automotive Industry
The industry’s lack of competitiveness, absence of economies of scale and a weak supply base are the fundamental issues that must be addressed in order to strengthen the industry and integrate it with regional production networks of foreign automakers. The entry of cheap, smuggled second-hand vehicles has put tremendous pressure on the industry. Immediate government action to address smuggling and design a coherent set of policies and a comprehensive strategy to improve industry competitiveness is urgently needed. A temporary adjustment program is necessary to help both assemblers and parts makers face competition in the future and more importantly, in preparation for the implementation of zero tariffs under the AFTA in 2010. If smuggling continues and our competitiveness remains weak, the auto industry may just be a thing of the past as auto companies shift from CKD to CBU operations. This is the reality of doing business under the globalization age.
|Date of creation:||2008|
|Date of revision:|
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- Rafaelita M. Aldaba, 2007.
"Assessing the Competitiveness of the Philippine Auto Parts Industry,"
Microeconomics Working Papers
22163, East Asian Bureau of Economic Research.
- Aldaba, Rafaelita M., 2007. "Assessing the Competitiveness of the Philippine Auto Parts Industry," Discussion Papers DP 2007-14, Philippine Institute for Development Studies.
- Aldaba, Rafaelita M., 2008.
"SMEs in the Philippine Manufacturing Industry and Globalization: Meeting the Development Challenges,"
DP 2008-15, Philippine Institute for Development Studies.
- 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.
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