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Auto and Car Parts Production: Can the Philippines Catch Up with Asia?

Author

Listed:
  • Rene E. OFRENEO

    (School of Labor and Industrial Relations, University of the Philippines, Diliman)

Abstract

The Philippines pioneered the establishment of automotive assembly in Southeast Asia in the 1950s. But Thailand, Indonesia and Malaysia lead the region since the 1990s. The foremost reasons for the decline are policy incoherence and unchecked inflows of smuggled cars, which is reflected in the erosion of the domestic automotive components supply base. Japanese assemblers are increasingly sourcing them from abroad through global production networks (GPNs, which has also made the Philippines a global producer of selected auto parts. Institutional support is necessary for the Philippines to take advantage of GPNs to catching up with the leading countries.

Suggested Citation

  • Rene E. OFRENEO, 2015. "Auto and Car Parts Production: Can the Philippines Catch Up with Asia?," Working Papers DP-2015-09, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2015-09
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    automotive; global production networks; comparative advantage; supply chain;
    All these keywords.

    JEL classification:

    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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