Browsing by Author "Mercado, Rafaelita A."
Now showing 1 - 2 of 2
Results Per Page
Sort Options
Item Restricted An evaluation of the impact of the tariff reform program and import liberalization on the textile industry(1987-03) Mercado, Rafaelita A.; Alonzo, Ruperto P.The Philippine textile industry has developed under a complex system of tariffs, import restrictions, and investment incentives. Throughout most of the years of its existence, the industry has been heavily protected. Characterized by a generally low profitability level, it has remained inefficient in the use of domestic resources. Following the tariff reform program, however, the textile industry has shown notable improvements by increasing its efficiency amidst lower effective protection. Although the industry may not yet be competitive internationally, its performance has substantially improved. Between 1980 and 1984, the industry's average effective protection rate (or EPR), which we have used as a measure of protection, declined from around 80% to 32%. Similarly, the average domestic resource cost (or DRC), which has been our measure of comparative advantage, fell from 5.0 to almost 1. 5. These EPR and DRC figures were derived using legal tariffs and taxes. These figures must be judged in relation to the presence of smuggling, import restrictions, and the balance of payments crisis in 1984. Smuggling, which is quite rampant in the textile industry, somewhat, reduces the protection being received by the industry. Import restrictions increase protection and with a BOP crisis, import restrictions become more binding, giving rise to an increase in protection. These rationalize the inclusion of EPR and DRC calculation using direct price comparison. Except for synthetic fiber manufacturing, the EPR and DRC estimates based on direct price comparisons, were lower than those obtained using legal tariffs and tax rates. This is to be expected since most of the raw materials used by the industry are receiving greater protection than textile output. Moreover, smuggled textile goods account for a large portion of the domestic market. These may explain the lower effective protection afforded to the industry. In the case of synthetic fiber manufacturing, aside from being a monopoly, tariff protection and import restrictions shelter the firm from competition. These may explain the higher EPRs received by the firm. Removing the monopoly on the input side as well as liberalizing the importation of major textile raw materials will be most widely welcomed by the whole industry. The textile industry cannot be rationalized unless these reforms are carried out.Item Restricted The impact of the Philippine family planning program on fertility(1982-01) Mercado, Rafaelita A.; Fabella, Raul V.