The structure and causes of manufacturing sector protection in the Philippines

After summarizing the major features of the ASEAN labor market and patterns of labor migration in Asia, the article describes the origins and current status of the ASEAN Free Trade Area (AFTA) and its main mechanism, the Common Effective Preferential Tariff (CEPT) Scheme. Projections are offered on the effects on regional trade after AFTA. Though the volume of intra-regional trade may be less significant than in the cases of Europe or North America, AFTA is likely to have a significant effect on promoting a regional division of labor. Although AFTA is limited to the manufacturing sector, in the future the Philippines may find a niche in services requiring “knowledge workers” such as accountants and computer analysts.

Download Full-text

The Evolution of the Key Sectors in the Philippine Economy Using an AHP-Based Sector Prioritization Index

Economies ◽

10.3390/economies7030078 ◽

2019 ◽

Vol 7 (3) ◽

pp. 78

Author(s):

Daryn Joy Go ◽

Michael Angelo Promentilla ◽

Kathleen Aviso ◽

Krista Danielle Yu

Keyword(s):

Structural Changes ◽

Manufacturing Sector ◽

The Philippines ◽

Vital Role ◽

Economic Sectors ◽

Output Analysis ◽

Analytic Hierarchy ◽

Agriculture Sector ◽

Time Period ◽

Key Sectors

Economic sectors play a vital role in ensuring that government’s goals are achieved. This study analyzes the evolution of the structure and key sectors of an economy through the use of a sector prioritization index. This methodology integrates input-output analysis and analytic hierarchy process to determine the structural changes experienced by the economy, while accounting for the changes in the government’s priorities and concerns over time. Using the case of the Philippines from 1969 to 2012, this study shows a time-series analysis of the transformation that the economy underwent alongside with the government’s prioritization mechanism. We found that the manufacturing sector had consistently received high-priority rankings, while the agriculture sector had recently moved from a high- to mid-priority ranking, indicating the country’s shift towards a more industry-driven economy. These findings were supported by the private services and trade sectors’ high-priority rankings towards the latter half of the time period. Overall, our methodology was able to identify key sectors that reflect the country’s economic and political situation across different eras.

Download Full-text