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Ex-post Effects of Trade Liberalization in the Philippines

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  • Ramon L. Clarete

    (School of Economics, University of the Philippines Diliman)

Abstract

This paper examines the Philippine experience with trade liberalization policies and their impact on the economy. Although the relationship between trade liberalization and poverty is not straightforward, empirical evidence suggests that there are beneficial effects of freer trade on the poor in the long run. Since the 1980s the Philippines has considerably lowered import restrictions and expanded trade. An ex-post assessment of the effects of trade liberalization produces results that fall short of the net positive expectations produced by ex-ante studies. An ex-ante assessment of the impact of freer trade in the Philippines using models of the Philippine economy indicates net positive gains for the economy and for representative Filipino households. However, per capita income changed very little over the period 1980-2002. This study seeks to explain the divergence as being due to transaction costs.

Suggested Citation

  • Ramon L. Clarete, 2005. "Ex-post Effects of Trade Liberalization in the Philippines," UP School of Economics Discussion Papers 200504, University of the Philippines School of Economics.
  • Handle: RePEc:phs:dpaper:200504
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    File URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/23/18
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    Cited by:

    1. Bernadette Andreosso-O’Callaghan, 2009. "How is the EU-ASEAN FTA viewed by ASEAN stakeholders?," Asia Europe Journal, Springer, vol. 7(1), pages 63-78, February.
    2. Jenny D. Balboa & Erlinda M. Medalla & Josef T. Yap, 2007. "Closer Trade and Financial Cooperation in ASEAN : Issues at the Regional and National Level with Focus on the Philippines," Trade Working Papers 21907, East Asian Bureau of Economic Research.

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