International Journal of Business Marketing and Management (IJBMM) Volume 3 Issue 5 May 2018, P.P. 11-23 ISSN: 2456-4559 www.ijbmm.com
Trade, liberalization, and foreign investment in the Philippines 1
Monique Paeta and Henry Youb
a e
Graduate School of International Economics & Trade, Nanjing University of Science & Technology, China Professor, School of International Economics & Trade, Nanjing University of Science & Technology, China
Abstract: The Philippines is currently in 35 Bilateral Investment Treatises, wherein most of those are either unutilized to the fullest or unutilized at all. This is due mainly to the lack of resources and researcher on trade and investment in the Philippines to help policy makers in deciding and forging sounds strategies. Another is because of the country characteristics (infrastructure, laws, etc.) that are unable to aid the country in achieving the full benefit of international agreements and regional memberships. This research recounts some notable trade agreements of the Philippines, explain the determinants of trade and foreign direct investments (FDI), try to pinpoint the impacts of these FDI in the country, and comment on some patches current studies have that should be furthered.
Key words: Philippines, trade, liberalization, FDI, foreign investment
I.
INTRODUCTION
This study investigates a sample of studies on trade and investment in setting as the Philippines. The first part reviews the related literature on trade in the Philippines, putting importance to how the country‟s trade policy has evolved in the long run. Consequently, it discusses the relevance that blossomed on particular sectors and different aspects of the economy. The second part extrapolates past studies done on policies of FDI in the Philippines, alongside with it, the determinants of FDI and consequently, the effects of FDI on the economy. The third part examines literature on economic integration due to liberalization in the Philippines through trade. The fourth part determines what the literature lacks and other suggestions for future research endeavors.
II.
EVOLUTION OF THE PHILIPPINE TRADE POLICY
Although a bit outdated, there is sufficient literature covering the developments in the Philippines‟ policies on trade. Appendix 1 further summarizes the researches that reported the Philippines‟ outlook on trade in different times. There were a lot of modifications in the trade policy in the Philippines throughout the years. Starting in the 1950s up until the 1970s, the Philippine government has already taken measures on improving the trade and import-substitution in the Philippines. There were high protective tariffs as the government grew strict on foreign exchange control measures. There were also capital market interventions undertaken. After the
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monique.paet@obf.ateneo.edu
International Journal of Business Marketing and Management (IJBMM)
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