Export Performance and Competitiveness in the Philippines
After decades of weak growth, Philippine manufactured exports have performed impressively in recent years, better than those of most other South East Asian economies. This paper examines the sources of Philippine export dynamism and asks whether the current pace of growth is sustainable. It finds that the competitive base is very narrow, dominated by one product group and, within that, one product (semiconductors). This is a fast growing, high technology product, with great potential for future growth and spillovers; however, Philippines specialises in low-end final assembly and testing, where it is vulnerable to competitive entry and technological change. The paper ends with policy implications.
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