Competitiveness of the Philippine IT Industry: What Lies Ahead

This paper examines the competitiveness of the Philippine information technology (IT) industry vis-à-vis its emerging competitors and neighboring countries in the region. While the industry boasts of being the largest foreign exchange earner for the country, it suffers from structural weaknesses that, unless addressed, render its long-term competitiveness at risk, especially as the competitors are increasing their stake in the world IT market faster than the Philippines. This paper discusses what constraints the industry’s long-term growth and identifies some crosscutting strategies to lessen or overcome such difficulties and keep the industry’s present edge.globalization, information technology (IT)

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

Competitiveness of the Philippine IT Industry: What Lies Ahead

This paper examines the competitiveness of the Philippine information technology (IT) industry vis-à-vis its emerging competitors and neighboring countries in the region. While the industry boasts of being the largest foreign exchange earner for the country, it suffers from structural weaknesses that, unless addressed, render its long-term competitiveness at risk, especially as the competitors are increasing their stake in the world IT market faster than the Philippines. This paper discusses what constraints the industry’s long-term growth and identifies some crosscutting strategies to lessen or overcome such difficulties and keep the industry’s present edge.globalization, information technology (IT)

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

Liberalization and Deregulation in the Domestic Shipping Industry: Effects on Competition and Market Structure

The author, at the outset of her study on shipping transport, rightly states the importance of this industry in an archipelagic country. However, the industry remains inefficient, despite policy reforms enacted in the 1990s which aimed at liberalizing and deregulating the industry. Though these reforms did improve services through increased competition and the entry of new service providers, this occurs on only a fraction of routes and the largest handful of companies effectively dominate the bigger part of the market, and, in the process, show indications of cartel behavior. The author stresses that the next steps for reform include preparing local shipping firms for the global competition that full liberalization will bring, and which stands to yield hoped-for efficiencies and improvements.competition, liberalization, shipping industry, deregulation, interisland liner shipping industry

Liberalization and Deregulation in the Domestic Shipping Industry: Effects on Competition and Market Structure

The author, at the outset of her study on shipping transport, rightly states the importance of this industry in an archipelagic country. However, the industry remains inefficient, despite policy reforms enacted in the 1990s which aimed at liberalizing and deregulating the industry. Though these reforms did improve services through increased competition and the entry of new service providers, this occurs on only a fraction of routes and the largest handful of companies effectively dominate the bigger part of the market, and, in the process, show indications of cartel behavior. The author stresses that the next steps for reform include preparing local shipping firms for the global competition that full liberalization will bring, and which stands to yield hoped-for efficiencies and improvements.competition, liberalization, shipping industry, deregulation, interisland liner shipping industry

Non-Tariff Measures and Their Impacts on ASEAN Economic Integration

Using a gravity model that accounts for the asymmetric effects of non-tariff measures (NTMs), the study examined the impact of the five most prevalent NTMs in the region on intra-ASEAN imports. The study found that all five NTMs are significant factors affecting intra-ASEAN imports. However, their effects vary at the sectoral level, by pairs of trading partners, and whether the products are covered by mutual recognition and harmonization agreements (MRA) or not. For example, sanitary and phytosanitary (SPS) measures, in general, negatively affect imports and are trade-reducing. Exceptions are prepared foodstuff and medicinal products, both of which are covered by MRAs and harmonization agreements among the ASEAN. The positive effects of SPS measures on these two sectors provide evidence that NTMs that assure consumer safety and protection, while they could increase costs and price, increase consumer trust, and hence, promotes trade. Technical barriers to trade (TBT) measures are also deterrents to imports, in general. However, they are found to promote imports and are trade-enhancing for products covered by MRAs and harmonization agreements such as electrical machinery and equipment, prepared foodstuff, telecommunications equipment, and medical devices. The study also found that regulatory distance between ASEAN Member States (AMS) contributes positively to the effects of SPS and TBT. This means that in instances when an SPS or TBT measure is a deterrent to imports, regulatory distance lessens the negative effects

Textile and Garment Industries

It has been argued that high protection rate retards productivity and efficiency. In view of the widespread belief, the government has instituted trade policy reforms aimed to increase efficiency and competitiveness of industries through elimination of distortions in resource allocation. While textile industries is sheltered by heavy protection and is thus inefficient, garment industry is relatively efficient despite less protection bestowed to it. This study analyzes the performance, efficiency competitiveness and structure of both industries. In particular, it examines the response of individual firms to trade reforms and the extent to which the reforms have fostered greater competition and efficiency in resource utilization.productivity, trade liberalization, trade reforms, garments and textile industries, trade sector, competitiveness, efficiency issues, trade policies

Philippine Domestic Shipping Transport Industry: State of Competition and Market Structure

The shipping transport industry plays a very important role in the country's development. An efficient shipping industry that facilitates the movement of commodities, products and people is therefore vital to the growth of the country. The country's domestic shipping industry, however, has been regarded as inefficient. Past studies suggest that government regulations and policies affecting the industry have been the cause of such inefficiency. This study examines the inefficiency of the industry in terms of the complex interaction between regulation and competition; and then analyzes the effects of the policy reforms on competition and market structure.competition, liberalization, shipping industry, deregulation, interisland liner shipping industry

The Emerging Philippine Investment Environment

The change in the country’s investment policies has been a crucial factor in building up confidence in the country’s economic prospects. Despite the reforms undertaken, the country’s performance in attracting foreign direct investment is still lower than its neighboring countries. This paper examines the factors that determine the foreign direct investment (FDI) and its behavior over time. It also analyzes the effectiveness of the Philippine incentive system particularly in the firms from the export processing and special economic zones.investment opportunities, investment incentive system