FDI and economic development: The case of the Philippines

• Main Author: Austria, Myrna S.
• Format: text
• Published: Animo Repository 2006
• Subjects: Investments, Foreign > Philippines; Economic development > Philippines; Philippines > Economic conditions; Economics; Growth and Development
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/608
• Institution: De La Salle University

Industrialization has always been a major development goal for the Philippines since its independence. This goal was carried out through trade and investment policies. The country has, in fact, undergone several trade and investment policy regimes in its pursuit of industrialization. Over the years, the government has gradually opened up the economy by removing barriers to trade and investment. The more liberalized environment increased the country’s participation in international trade and in the activities of multinational companies through increased foreign investment flows to the country. Because of the high degree of linkage between trade and foreign direct investment (FDI), the trade structure of the Philippines has also significantly changed over the years. An exporter of primary commodities until the 1980s, the country during the 1990s became an exporter of manufactures.