U.S. direct investments in Philippine manufacturing industry
Date
1965-08
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Abstract
This study, in particular, is an inquiry into the trends and role of U.S. direct investments in Philippine manufacturing industry, their nature and effects on the course of Philippine industrial development from 1954 to 1963. It is an analysis of a complex problem as regards the role of American investments in Philippine economic development.
Until recently, the issue related to economic relations between the Philippines and the United States has been given increasing attention. Several economic aspects have been brought under close examination and re-examination. Much has been discussed with regard to the pros and cons of foreign investment in general and American investment for that matter in particular, such that this issue has virtually become, more often than not, a controversial and often misunderstood subject.
This is some sort of misgivings despite the fact that the Philippines, having vigorously pursued on the socio-economic development program as such, needs imperatively the assistance from foreign capital for the high attainment of her economic development. And yet, it seems that little effort has been done towards that direction as regards such urgent need. American capital, on the other hand, does not flow into the Philippines in such a substantial amount as it might be expected notwithstanding the high profitability of investment, privileges and several advantageous positions it already enjoyed over the Philippine atmosphere, due to the changing local attitude towards foreign capital.
The emergence of the local entrepreneurial class and its consequential effects with which it brings about, in connection with the economic nationalism sentiment that prevails, have rendered, to some extent, unfavorable climate and undesirable consequence. It is important therefore that the significant aspect of this controversial subject be clarified and a better mutual understanding be brought about to give an assurance that there is definitely a more appropriate and logical way to achieve the better partners for economic progress.
Foreign capital in the Philippines is essentially American. And U.S. direct investments in Philippine manufacturing industry in particular have been fast becoming the most prominent sector; accordingly, several aspects of American investment in this sector are deliberately scrutinized and evaluated in this study. A number of hitherto untapped economic and statistical sources have been utilized to support the analysis. The net result of the study provides grounds for valid arguments as regards the praises and defects of U.S. direct investments in Philippine manufacturing industry, such that some but most appropriate measures and policies governing them can be expected to materialize with the end in view to utilize such investments to the fullest extent for ultimate benefits of the Philippine economic development.
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Keywords
Investments, Manufacturing