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Assessing the Spillover Effects of FDI to the Philippines

DP 2010-27
2010

The experience of the Philippines shows that FDI spillover effects are not automatically generated. Opening up the economy to FDI has contributed to the country`s exports of high-technology products and overall economic growth. However, the spillover effects of FDI to domestic firms have remained limited due to the domestic firms` weak competitiveness and inability to absorb the technology or knowledge being transferred. The government needs to adopt a more comprehensive approach that would combine industrial policy to improve and develop domestic parts and supplier firms with measures to create an environment conducive to the creation and expansion of FDI-related spillovers as well as increase participation in higher segments of industry value chain.

Citations

This publication has been cited time(s).

  1. Tabuga, Aubrey D., et.al, 2013 "Regional integration, inclusive growth, and poverty: Enhancing employment opportunities for the poor" , Philippine Institute for Development Studies

  2. Tabuga, Aubrey D., et.al, 2013 "Regional integration, inclusive growth, and poverty: Enhancing employment opportunities for the poor" , Philippine Institute for Development Studies

  3. Lee, Cassey and Dionisius Narjoko, 2015 "Escaping the middle-income trap in Southeast Asia: Micro evidence on innovation, productivity, and globalization" , Japan Center for Economic Research

  4. Gamage, Sisira Kumara Naradda , 2020 "A review of global challenges and survival strategies of Small and Medium Enterprises (SMEs)" , MDPI

  5. Lee, Cassey and Dionisius Narjoko, 2015 "Escaping the middle-income trap in Southeast Asia: Micro evidence on innovation, productivity, and globalization" , Japan Center for Economic Research

  6. Gamage, Naradda et.al, 2019 "Global challenges and survival strategies of the SMEs in the era of economic globalization: A systematic review" , University Library of Munich, Germany.

  7. Prasanna, RPIR, 2019 "Sustainability of SMEs in the competition: A systemic review on technological challenges and SME performance" , MDPI

  8. Ulep, Valerie Gilbert T., Melanie P. Aldeon, and Nina Ashley O. dela Cruz, 2013 "Multisector strategy in addressing noncommunicable diseases in the Philippines" , Philippine Institute for Development Studies


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Contributor
Philippine Institute for Development Studies
Authors
Aldaba, Rafaelita M. Aldaba, Fernando T.
Keywords
regional production networks (RPNs); horizontal; forward; and backward linkages; Philippine foreign direct investment; FDI spillover effects; Philippines
Cite
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