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Subject: Trade liberalization ×

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Now showing 1 - 10 of 10
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    On shadow pricing and trade liberalization: the role of the re-estimation of the shadow exchange rate for effective project evaluation and public investment in the Philippines
    (2003-03) Alvarado, Audrey R.; Pascual, Criselda Patricia B.; Alburo, Florian
    The Shadow Exchange Rate (SER) is a tool used in project evaluation to take into consideration the real economic costs and benefits of a project to society. This reflects the real cost of foreign exchange after adjusting for distortions caused by tariffs and subsidies. The current SER estimate of 20% being used in project evaluation still dates back to the early 1990's. This estimate fails to account for recent changes in the economy specifically changes in the tariff structures of the Philippines. It also fails to consider empirical estimates for import demand and export supply elasticities used in the SER equation. This study re-estimates the SER to correct for these changes. This study is patterned after the National Economic and Development Authority's (NEDA) SER framework. Multiple regression analysis on Schwalbenberg's model for Philippine import demand and studies made by Romeo Bautista for an estimate of the Philippine export supply function are conducted to obtain import demand and export supply elasticities. Based from the results, the SER is stabilizing around 14% to 15% for the forecasted periods of 2002 to 2005 using the obtained import demand and export supply elasticies of -1.197359 and 0.5739347 respectively. Hence, the appropriate SER value that the government should use in project evaluation is 15%. Continuing to use the overvalued SER estimate of 20% tends to favor projects producing non-tradable outputs using tradable inputs over projects producing tradable outputs using non-tradable inputs. This results in a misallocation of resources. Recent SER estimates obtained in this study are also found to possess higher values as compared to those of the post-war period. This shows that despite the decline of the SER since the implementation of the first Tariff Reform Program (TRP) changes in the economy specifically the shift from external trade tariffs to internal indirect taxes appears to be more distortionary. Therefore, although the government should to continue its efforts in reducing protection polices to improve the competitiveness of the Philippines in the global trade market, a more efficient collection system for internal indirect taxes is needed rather than further increases in Value-Added tax to offset revenue losses from the decrease in tariff revenues. Furthermore, the government should also exploit the full potential of direct taxation through income taxes. Direct taxes if properly collected have the advantage of being able to reach high concentrations of income and wealth as opposed to indirect taxes.
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    Trade liberalization effects on the manufacturing sector of the Philippines
    (2004-10) Moulic, Irene M.; Valonda, Bernadette P.; Danao, Rolando
    This research, using cross-section data of 31 sub-industries, explores the link between trade liberalization and labor productivity of the manufacturing sector of the Philippines. A model is constructed accounting all the factors that affect labor productivity including Effective Protection Rates (EPR), which is used to quantify the effects of trade liberalization. Three-Stage Least Squares is the estimation method used in this study due to the simultaneity of wage and export performance on labor productivity. Results show that trade liberalization has significant negative effect on labor productivity of the Philippine manufacturing sector.
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    Trade liberalization and its impact on the testile industry
    (1998-03) Espino, Ma. Theresa V.; Manalo, Wondielyn Q.; Miranda, Casimiro V.
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    The desirability of a free trade area between Japan and the Philippines: a quantitative analysis
    (2002-01) De Guzman, Ethylene Irene A.; Ventura, Nicolas T.
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    Trade liberalization and environment quality: evidence from the Philippines
    (2007-03) Espino, Leslie Beth B.; Gadiano, Dave P.
    This paper rums at investigating the impact of trade liberalization on environmental quality in the Philippines. Environmental quality is measured in terms of carbon dioxide emissions. Time-series variation reveals that trade openness is positively related to higher C02 emissions. This paper further decomposes the impact of trade liberalization on three effects- scale, composition and technique effects. Results indicate that scalar increases in economic activity raise C02 emissions. Increasing capital to labor ratio increases C02 emissions. Also rising income per capita raises C02 emissions. Freer trade appears to be bad for the environment.
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    Effects of trade liberalization on employment rate of men and women in the Philippines
    (2008-03) Co, Judie Anne L.; Sun, Ma. Paula V.
    Globalization has increased the need for greater coordination amongst countries, especially when it comes to trade. The trend has been to open up trade and make it easier to deal with different people and companies across different countries. But trade policies, while good for the economy, can have varied effects on the people living in those countries. This study aims to find how trade liberalization, through increased exports and imports, has affected the employment and well being of workers in the Philippines. It also aims to determine if the effects of trade policies are different for males and females. The study concludes that the rise in exports and imports in the last ten years does affect employment of the Filipino workers, with males and females affected similarly. It also finds that while trade liberalization improves the economy, there is a need to calibrate tariff rates to cushion the impact on domestic industries and local employment.
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    Philippine comparative advantage and the effects of trade liberalization in its semiconductor industry: an evaluation
    (1997-03) Paracuelles, Euben C.; Reyes, Emerson C.; Ferrer, Ricardo D.
    This paper will try to determine the competitiveness of the Philippine Semiconductor Industry against other semiconductor exporting countries by measuring its Revealed Comparative Advantage (RCA) and linking the findings to Trade Liberalization. With the knowledge of how competitive we are on the semiconductor industry, the possible effects of a trade liberalization on the said industry can be determined and the policy implications can, likewise, be formulated through a more qualitative analysis.
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    Income effects of trade liberalization on the Philippine primary crop production
    (1995-03) Canilang, Jennifer J.; Seno, Maureen P.; Miranda, Casimiro V. Jr.
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    Trade liberalization and parameter instability of the inflation function
    (2004-10) Mangubat, Loruie Lynn R.; Namingit, Sheryll P.
    This paper investigates whether there is empirical evidence of parameter instability associated with shifts in the inflation process from year 1981 to 2001. With the transition from relatively high inflation to low inflation in the country, there is a risk that this is accompanied by parameter instability in the inflation function due to the changing economic structure. Particularly, trade liberalization narrowly defined as the reduction of tariffs is hypothesized to be the source of the suspected parameter instability in the function. The application of both the Chow Breakpoint Test and the Dummy Variable Test shows that there is parameter change stemming out from the Tariff Reform Program particularly TRP II. Trade Liberalization has made possible the efficient reallocation of resources, which is then translated through lower prices.