EC 1992: Its Impact on Trade and Investment in the Philippines

One of the recent European developments is the plan of creating a single market implying the removal of obstacles to trade in goods, services, capital and labor. Hence, it is worthwhile to examine the impact of such move to a small country like the Philippines, the growth of which depends largely on foreign trade and investment. Analysis indicates the intensification of trade and market competition, which in turn, have positive impact on electronic component of Philippine exports. This move also represents a huge market for the country’s products. To benefit from EC 1992, the Philippines has to take the initiative to diversify and start looking for fresh markets.trade sector, liberalization, investment, European market

EC 1992: Its Impact on Trade and Investment in the Philippines

One of the recent European developments is the plan of creating a single market implying the removal of obstacles to trade in goods, services, capital and labor. Hence, it is worthwhile to examine the impact of such move to a small country like the Philippines, the growth of which depends largely on foreign trade and investment. Analysis indicates the intensification of trade and market competition, which in turn, have positive impact on electronic component of Philippine exports. This move also represents a huge market for the country’s products. To benefit from EC 1992, the Philippines has to take the initiative to diversify and start looking for fresh markets.trade sector, liberalization, investment, European market

The Development Impact of Information Technology in Trade Facilitation

The main purpose of this chapter is to provide an overview and context of the country studies on Information Technology (IT) for Trade Facilitation (TF) in Small and Medium Enterprises (SMEs).Impact of Information Techonology, Trade Facilitation, SMEs

Climate Change Assessment and Agriculture in General Equilibrium Models: Alternative Modeling Strategies

Agricultural sectors play a key role in the economics of climate change. Land as an input to agricultural production is one of the most important links between economy and the biosphere, representing a direct projection of human action on the natural environment. Agricultural management practices and cropping patterns have a vast effect on biogeochemical cycles, freshwater availability and soil quality. Agriculture also plays an important role in emitting and storing greenhouse gases. Thus, to consistently investigate climate policy and future pathways for the economic and natural environment, a realistic representation of agricultural land-use is essential. Computable General Equilibrium (CGE) models have increasingly been used to this purpose. CGE models simulate the simultaneous equilibrium in a set of interdependent markets, and are especially suited to analyze agricultural markets from a global perspective. However, modeling agricultural sectors in CGE models is not a trivial task, mainly because of differences in temporal and geographical aggregation scales. The aim of this study is to overview some proposed modeling strategies, by reviewing the available literature and highlighting the different trade-offs involved in the various approaches.Computable General Equilibrium (CGE), Partial Equilibrium (PE), Agriculture, Land Use, Climate Change

Why Is China So Competitive? Measuring and Explaining China’s Competitiveness

This paper evaluates factors responsible for the competitiveness of China in the world economy and relative to its East Asian rivals. China has been highly successful in capturing world export markets. Chinese competitiveness is not just a matter of an undervalued exchange and extremely low labor costs. It reflects primarily the coincidence of favorable cost conditions with improvements in China’s ability to produce products that meet world market specifications. These improvements are closely related to foreign participation in China’s economy through foreign direct investment and joint venture enterprises.China exports, comparative advantage, competitiveness, purchasing power parity, exchange rate, undervaluation, international comparisons, foreign direct investment, joint ventures

Why Is China So Competitive? Measuring and Explaining China’s Competitiveness

This paper evaluates factors responsible for the competitiveness of China in the world economy and relative to its East Asian rivals. China has been highly successful in capturing world export markets. Chinese competitiveness is not just a matter of an undervalued exchange and extremely low labor costs. It reflects primarily the coincidence of favorable cost conditions with improvements in China’s ability to produce products that meet world market specifications. These improvements are closely related to foreign participation in China’s economy through foreign direct investment and joint venture enterprises.China exports, comparative advantage, competitiveness, purchasing power parity, exchange rate, undervaluation, international comparisons, foreign direct investment, joint ventures.

THE DEVASTATING CRISIS, SINGAPORE’S EXTRA-ASEAN FREE TRADE AGREEMENTS AND THEIR IMPLICATIONS FOR ASEAN

This paper aims to assess the implications of the Asian economic crisis of 1997/98 and Singapore’s current initiatives to forge extra-ASEAN free trade agreements for the future of ASEAN economic integration. Have the recent crisis and the resulting economic difficulties undermined ASEAN’s resolve to deepen their level of economic integration? Would Singapore’s current initiatives at forging free trade deals with countries outside the region undermine the region’s economic integration? The perception by some members in ASEAN that these bilateral free trade deals can be used as a “backdoor” entry into the ASEAN markets is particularly a matter of serious concern, which could threaten the very existence of ASEAN as a regional economic grouping. It is argued that the recent crisis has instead galvanised ASEAN countries’ determination to move forward in economic integration and on the basis of the most recent trends, there is strong indication that the political resolve is likely to be translated into concrete measures. However, there remain other more challenging tasks before the vision of a regional free trade can be realised. Further, the fear that Singapore’s FTAs with other countries will undermine AFTA has not been based on concrete grounds. However, Singapore needs to assure other ASEAN members that Singapore is not abandoning ASEAN but remains committed to the success of AFTA with greater awareness of the political sensitivities of the other members.AFTA; bilateral free trade agreements; ASEAN; Asian crisis; implications

How the Dragon Captured the World Export Markets: Outsourcing and Foreign Investment Lead the Way

This paper explores several theories regarding how China has become highly successful in capturing world export markets. The paper concludes that increased competitiveness is dependant on, but not limited to several factors discussed in detail including, exchange rate undervaluation, low wage rates and excess labor resources. Direct foreign investment which enabled China to produce products that meet world market specifications, brought new technology and foreign management, played a key factor. Reasons for China’s advantage over other East Asian countries are explored. The merits and methods of various measures of China’s competitiveness and comparative competitiveness are also discussed.China exports, comparative advantage, competitiveness, purchasing power parity, exchange rate, undervaluation, devaluation, international comparisons, foreign direct investment, technology

Liberalization and Regional Integration: The Philippines’ Strategy for Global Competitiveness

The paper examines the policies pursued by the Philippines in response to the increasing economic integration and interdependence of nations and regions around the world, focusing in particular on the country’s multitrack approach to trade and investment liberalization. The country’s experience points to the importance of domestic policies that foster domestic efficiency and competitiveness before one can participate in regional integration and face global competition. The country first pursued trade and liberalization policies in the 1980s and 1990s to eliminate the inefficiency of domestic industries arising from its past protectionist policies. The unilateral liberation efforts resulted in a better allocation of resources and improvement in the overall competitiveness of domestic industries. The improved competitiveness enabled the country to participate in the 1990s in regional trading arrangements--AFTA and APEC--and in the much bigger WTO. The challenge facing the country now is how to deepen and expand its participation in regional integration as the proliferation of regional trading agreements has brought forth many new competitors for the country, both for its export markets and its sources of foreign direct investment. Areas requiring further reforms are identified to enable the country to realize the full gains from economic integration.competition, competition policy, liberalization, competitiveness