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A Review of the Remaining Import Restrictions

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  • de Dios, Loreli C.

Abstract

An accounting of the commodities ever subjected to import regulations shows that a significant number have been either restricted after being liberalized, liberalized after being restricted a second time, liberalized twice in a row, liberalized but not in Circular 1029, double-counted, mentioned as liberalized but having no specific PSCCs or could not be traced to previous regulations. Taking all these into account yields 250 remaining regulated commodities that exceeds the official count of 174 by 76 items or the number that has been left out of the Lists by Circular 1389. Regression results show that foreign equity is significantly positively correlated with the likelihood that an industry is protected by import restrictions. In addition, industrial concentration is significantly positively correlated with the presence of import restrictions and negatively correlated with tariffs. As an illustration of welfare effects of protection, the automotive assembly industry is used to demonstrate huge consumer/efficiency losses and large transfers to assemblers and components manufacturers. Controls are difficult to remove once instituted and the indecisiveness of government has made popular the lobbying of interest groups.

Suggested Citation

  • de Dios, Loreli C., 1994. "A Review of the Remaining Import Restrictions," Research Paper Series RPS 1994-08, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:rpseri:rps_1994-08
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    File URL: https://www.pids.gov.ph/publication/research-paper-series/a-review-of-the-remaining-import-restrictions
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    References listed on IDEAS

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    1. Takacs, Wendy E., 1991. "The high cost of protecting Uruguay's automotive industry," Policy Research Working Paper Series 639, The World Bank.
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    Cited by:

    1. Rafaelita M. Aldaba, 2008. "Can Imports Discipline Collusive Firms? Case of the Philippine Cement Industry," Microeconomics Working Papers 22608, East Asian Bureau of Economic Research.
    2. Rafaelita M. Aldaba, 2005. "The Impact of Market Reforms on Competition, Structure and Performance of the Philippine Economy," Trade Working Papers 22306, East Asian Bureau of Economic Research.
    3. Medalla, Erlinda M., 2012. "Managing the ASEAN Economic Integration Process in the Philippines: An Assessment of Progress in Trade Liberalization and Facilitation," Discussion Papers DP 2012-41, Philippine Institute for Development Studies.
    4. Austria, Myrna S., 1994. "Textile and Garment Industries," Research Paper Series RPS 1994-06, Philippine Institute for Development Studies.
    5. Tan, Elizabeth S., 1994. "Trade Policy Reforms in the 1990s: Effects of EO 470 and the Import Liberalization Program," Research Paper Series RPS 1994-11, Philippine Institute for Development Studies.

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