The impact of trade liberalization on the performance, competitiveness, and structure of the Philippine packaging industry
Date
1994-04
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Conventional wisdom typically favors an outward-looking trade policy to enhance industrial growth and competitiveness. However, past studies on trade policy and industrial performance and competitiveness have not provided conclusive results. New approaches have been suggested focusing on factors related to the industrial structure and other domestic market conditions.
This study aims to evaluate the impact of the country's recent trade liberalization experience on the performance, competitiveness, and structure of the Philippine packaging industry. It examines changes in the level of protection and the corresponding changes in allocative and technical efficiency, competitiveness, and productivity. It also looks at factors related to the industrial structure-concentration, barriers to entry, and market power-and their relationship to the variables cited above.
The packaging industry under study is taken to comprise four major subsectors: (a) glass-based; (b) metal-based; (c) paper-based; and (d) plastic-based. Establishment-level data from the National Statistics Office (NSO) Census of Manufacturing Establishments (CME) for 1983 and 1988 are utilized to determine movements at the level of the industry, the subsector, and the plant. These are supplemented by data gathered from a survey of firms in the industry covering the years 1986 and 1991.