Kraft, Aleli D.Benavidez, Von CamilleNieva, Josefa Mina2024-11-082024-11-082013-04https://selib.upd.edu.ph/etdir/handle/123456789/889This paper attempts to analyze the relations between trade and technology diffusion in the manufacturing sector in the Philippines. Since the 1980s, the Philippines has adapted market transformations which reared open-market activities with foreign entities in the international stage. The existing literature pertaining to trade liberalization suggests that the trade reforms the Philippines has acclimatized to, in general, incubated economic growth. However, this targets to extend the study on the matter and highlight other potential benefits from trade integration aside from increase in competition and improvement in productive capacity. With the reduction in import taxes and abolition of trade barriers, mobility of factors of production becomes more and more fluid between and across countries. Aside from the usual exchange of products and other tangibles through market transactions, the easing of permeability also allowed for externalities such as knowledge spillovers to cross the threshold. This paper focuses particularly in the manufacturing sector of the Philippines since it accounts for a substantial portion of the technical and scientific information collection of our country. Technology gap in this paper is contrasted with Singapore. Through OLS and Instrumental Variable Estimation, this paper intend to measure the effects of trade liberalization to international technology diffusion-- to what extent does an increase or decrease in trade barriers (import tariffs, for instance) affect the transfer of technological knowledge from a foreign country to a local country? Results of the regression analysis reveal evidences which support the narrowing effect of trade integration to technology gap though the channels of technology diffusion.enTechnology DiffusionTrade LiberalizationTechnology GapInnovationImitation ImportsExportsFDIThesis