Twenty Years after Philippine Trade Liberalization and Industrialization: What Has Happened and Where Do We Go from Here
The paper aims to review our trade liberalization policy and its contribution to the country`s industrial growth and performance. After more than twenty years of liberalization, the overall performance of the manufacturing industry has been weak, growth has been slow, and contribution to value added and employment has been limited. Total factor productivity growth declined from 1996 to 2006. The industrial structure has remained "hollow" or "missing" in the middle and medium enterprises have never seriously challenged the large entrenched incumbents. The linkages between SMEs and large enterprises have also remained limited. SMEs have continued to face competitiveness problems along with difficulties in finance and market access. Trade indicators show the heavy concentration of Philippine exports on three major products groups: electronics, garments and textiles, and auto parts. Within these major product groups, exports are highly concentrated in low value-added and labor-intensive products sectors. Our experience has shown that trade liberalization does not automatically lead to a competitive domestic market economy. Imports are effective in disciplining domestic manufacturing firms. However, to sustain the competitive gains derived from the presence of imports, the government has an important role to play particularly in creating and maintaining a competitive environment. The government needs to coordinate policies to implement continued liberalization in tandem with necessary support measures that will address the obstacles to the entry, exit, and growth of domestic firms, particularly small and medium enterprises.
|Date of creation:||2013|
|Contact details of provider:|| Postal: NEDA sa Makati Building, 106 Amorsolo St., Legaspi Village, Makati City,|
Web page: https://www.pids.gov.ph/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Yap, Josef T. & Medalla, Erlinda M. & Aldaba, Rafaelita M. & Llanto, Gilberto M. & Lazaro, Dorothea C. & Zafe, Larraine C. & Mantaring, Melalyn C. & Quimba, Francis Mark A., 2010.
"ERIA Study to Further Improve the ASEAN Economic Community Scorecard: the Philippines,"
DP 2010-24, Philippine Institute for Development Studies.
- Rafaelita M. Aldaba, 2010. "ERIA Study to Further Improve the ASEAN Economic Community Scorecard : the Philippines," Governance Working Papers 23102, East Asian Bureau of Economic Research.
- Hoekman, Bernard, 2006. "Liberalizing trade in services : a survey," Policy Research Working Paper Series 4030, The World Bank. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:phd:dpaper:dp_2013-21. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Aniceto Orbeta)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.