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Do FDI Inflows Have Positive Spillover Effects? The Case of the Philippine Manufacturing Industry

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

Abstract

The experience of the Philippines shows that foreign direct investment (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., 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.
    • Handle: RePEc:phd:pjdevt:pjd_2010_vol__37_no__2b
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    References listed on IDEAS

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    1. 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.
    2. Myrna S. Austria, 2006. "Enhancement and Deepening of the Competitiveness of the Philippine Electronics Industry Under a Bilateral Setting," Trade Working Papers 22610, East Asian Bureau of Economic Research.
    3. Costa, Ionara & de Queiroz, Sergio Robles Reis, 2002. "Foreign direct investment and technological capabilities in Brazilian industry," Research Policy, Elsevier, vol. 31(8-9), pages 1431-1443, December.
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    Cited by:

    1. Binyam A. Demena & Peter A. G. van Bergeijk, 2017. "A Meta-Analysis Of Fdi And Productivity Spillovers In Developing Countries," Journal of Economic Surveys, Wiley Blackwell, vol. 31(2), pages 546-571, April.
    2. Sjöholm, Fredrik, 2013. "Foreign Direct Investments in Southeast Asia," Working Papers 2013:37, Lund University, Department of Economics.
    3. 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.

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