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The Employment Impact of Business-to-Consumer E-Commerce on the Philippine Workers


Public policy--and private decision--makers who are promoting e-commerce need a study that measures the economic effects of e-commerce in the Philippines, particularly on employment growth and changes in the nature of jobs in the future. It is in this context that this study seeks to estimate the impact of e-commerce-specifically business-to-consumer or B-to-C e-commerce—on Philippine workers. Total e-commerce related revenues as of the year 2005 is projected to account for about 1% of (nominal) GDP, contributing up to 8% of GDP growth. Among the 11 industries studied, tour and travel agencies; electrical communication equipment; and forwarding, packing and crating are estimated to grow the most in terms of employment in the next five years, under the three formulated scenarios. However, employment attributed to e-commerce is greatest for tour and travel agencies. The effect on employment of individual industries can be considered insignificant. From 2000-2005, approximately 5,900 additional jobs will be generated for the 11 industries considering the changes in inter-industry relationships (of wholesale and retail trade) as a result of e-commerce. However, in terms of employment generated for the whole economy, there may be significant changes, given an increase in final demand of wholesale and retail trade, as there may be almost 29% additional jobs generated for the whole economy.

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Jul 03, 2013