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Assessing the Spillover Effects of FDI to the Philippines

Author

Listed:
  • Aldaba, Rafaelita M.
  • Aldaba, Fernando T.

Abstract

The experience of the Philippines shows that FDI spillover effects are not automatically generated. Opening up the economy to FDI has contributed to the country`s exports of high-technology products and overall economic growth. However, the spillover effects of FDI to domestic firms have remained limited due to the domestic firms` weak competitiveness and inability to absorb the technology or knowledge being transferred. The government needs to adopt a more comprehensive approach that would combine industrial policy to improve and develop domestic parts and supplier firms with measures to create an environment conducive to the creation and expansion of FDI-related spillovers as well as increase participation in higher segments of industry value chain.

Suggested Citation

  • Aldaba, Rafaelita M. & Aldaba, Fernando T., 2010. "Assessing the Spillover Effects of FDI to the Philippines," Discussion Papers DP 2010-27, Philippine Institute for Development Studies.
  • Handle: RePEc:phd:dpaper:dp_2010-27
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    Cited by:

    1. Cassey Lee & Dionisius Narjoko, 2015. "Escaping the Middle-Income Trap in Southeast Asia: Micro Evidence on Innovation, Productivity, and Globalization," Asian Economic Policy Review, Japan Center for Economic Research, vol. 10(1), pages 124-147, January.
    2. Tabuga, Aubrey D. & Mina, Christian D. & Reyes, Celia M. & Asis, Ronina D., 2013. "Regional Integration, Inclusive Growth, and Poverty: Enhancing Employment Opportunities for the Poor," Discussion Papers DP 2013-10, Philippine Institute for Development Studies.
    3. Ulep, Valerie Gilbert T. & Aldeon, Melanie P. & dela Cruz, Nina Ashley O., 2013. "Multisector Strategy in Addressing Noncommunicable Diseases in the Philippines," Discussion Papers DP 2013-40, Philippine Institute for Development Studies.

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