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Item Restricted The role of foreign direct investment in the growth and development of the Philippine manufacturing industry(2000-03) Lucas, Jesse Jose G.; Reyes, Ana Victoria P.This paper analyzes the role of Foreign Direct Investment (FDI) in the growth and development of the Philippine manufacturing industry. Historically, the manufacturing industry receives the largest amount of FDI in the country. Given the arguments that FDI brings about capital accumulation, labor generation and technology transfer to its host country, this paper analyzes whether such positive externalities resulted in the said industry. This paper employs the Solow Neoclassical Growth Model, using the 1980-1995 output of the manufacturing industry as the dependent variable and labor productivity, direct investment and FDI as the independent variables, in its analysis. Likewise, bivariate regressions are undertaken to measure FDI's effect on the economic indicators of employment, compensation, domestic and export sales and capital expenditure in the industry. The paper's findings are especially useful given the recent clamor for greater investment liberalization in the country.