Characterization of the Philippine food manufacturing industry: a comparison of exporting and non-exporting firms
Date
2005-10
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Abstract
This paper deals with the characterization of Philippine food manufacturers. It tests for significant differences between exporting and non-exporting firms in the industry. The data utilized were financial statements from the period 200 l through 2003, of such companies registered at the Bureau of Investments. The study used a dichotomous model (Probit model) to test for the attributes that differentiate the domestic-oriented firms from the firms catering the foreign markets. Results show that companies, which serve the local market, are more profitable, and tend to spend more on non-direct labor (managerial and technical personnel). Moreover, exporting firms were found to have relatively more direct labor costs and were less capital-intensive than their domestic-oriented counterparts.
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Keywords
Food industry, Manufacturing industry, Exporting firms, Non-exporting firms, Food production, Trade