The possible implications of the EU enlargement to Eastern Europe on the Philippine exporting industry.

• Main Authors: Estolano, Elaine M., Pardo, Divina Aurea T., Tan, Florina P.
• Format: text
• Language: English
• Published: Animo Repository 2000
• Subjects: Philippines > Commerce > Europe; Europe > Commerce > Philippines; European Languages and Societies
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/10333
• Institution: De La Salle University

The objective of this study is to determine the possible effects of the accession of the five Eastern European countries (i.e. Czech Republic, Estonia, Hungary, Poland and Slovenia) to the European Union, on the Philippines' top 3 exports to the European Union. This accession may result to two different effects: trade creation or trade diversion. To accomplish this task, the researchers employed an explanatory research approach by using statistical data as the basis for identifying the possible effects, as well as mathematical formula for measuring the extent of such effects. Data and figures were taken from different financial and statistical yearbooks of different governmental and non-governmental international organizations, whereas other various publications and books came from private, as well as public libraries. Based on the findings, the researchers conclude that the Philippines' top 3 exports to the European Union (i.e. Commodities, Machine and Transport Equipment and Miscellaneous Manufactured Goods) are likely to suffer from trade diversion at different levels. This conclusion was based on a series of calculations done, using the TSP computer software, and through a comparison of the value of imports of the European Union from the rest of the world before and after the accession of the five Eastern European countries. Due to the loss that the Philippine exporting industries would experience upon the diversion of their exports, the researchers recommend the Philippine exporters to find ways of strengthening and maintaining strong ties with the Euopean Union and other countries, avoiding a large extent of diversion in any occasion of accession.