Skip to main content Accessibility help
×
Hostname: page-component-7479d7b7d-qlrfm Total loading time: 0 Render date: 2024-07-12T14:41:58.030Z Has data issue: false hasContentIssue false

5 - Trade, Investments, and Domestic Production

from Part B - Background Studies

Published online by Cambridge University Press:  05 March 2012

Joseph Anthony Y. Lim
Affiliation:
Ateneo de Manila University
Get access

Summary

Introduction

The economic collapse in 1983–1985 and periodic slowdowns and recessions thereafter led to the sharp decline in Philippine industry's share of gross domestic product (GDP) as well as that of investment from the early 1980s. The premature halt in the growth of the industrial and capital formation sector reduced the country's capacity to improve its technology and to scale up production, which would have brought the economy to much higher growth and development. As industry's share declined, services took over as the lead growth sector. This is unlike the experience of more developed countries such as Taipei, China, where the service sector and consumption share of GDP rose only after the highly industrialized stage and where industrial and manufacturing activities have reached maturity. Figure 5.1 shows the Philippines' drop and stagnation in the share of industry compared with that of its more successful East Asian neighbors.

Except for Taipei, China and the Philippines, all East Asian high-growth performers had increased their investment–GDP ratio until the 1997 Asian financial crisis (Figure 5.2). In fact, other Asian countries' investment–GDP ratios continued to exceed that of the Philippines by 2006 notwithstanding the decline in their investment–GDP ratios during the 1997 Asian financial crisis and thereafter. Investments in all countries in the figure, except Malaysia and the Philippines, had a mild recovery during 2000–2006.

While Philippine export and import shares in GDP rose sharply since the 1990s, the same was true for all countries due to globalization and the institution of World Trade Organization (WTO) and regional and bilateral trade agreements in the 1990s and 2000s.

Type
Chapter
Information
Diagnosing the Philippine Economy
Toward Inclusive Growth
, pp. 125 - 160
Publisher: Anthem Press
Print publication year: 2009

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×