Browsing by Author "Aguinaldo, Ma. Estrellita Sarmiento"
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Item Restricted The sunshine industry: Philippine contract centers as a trade phenomenon(2003-04) Aguinaldo, Ma. Estrellita SarmientoThis paper explains the Philippines' participation in the global outsourcing trade for contact center services using the Heckscher-Ohlin framework. In tests of factor-endowment, the country consistently emerged as strongly labor-abundant. Its cheap labor costs produced a competitive export price for the service, driving the country into the trade. Although factor-price equalization was not found forthcoming, tendency towards it produced the higher-than- average returns for Philippine labor employed in the trade. The country stands to gain significantly from the contact center trade, as it opens up several opportunities. Its comparative advantage by labor endowment, however, may be vulnerable to shifting comparative advantages and unpredictably changing market conditions. Development of key competencies, strengthened linkages, and dynamic government focus are recommended.