This article talks about two top Philippine export industries and their use of a "common" factor input--unskilled labor--as they work to occupy the top slot in the list of the country's exporters. For them to maintain their positions and survive in the world of competitiveness, especially the current leader, the electronic industry--some rethinking is called for in the type of structure and the kind of outputs that they wish to produce. Are they to remain as exporters of "assembly" type of products? What will happen to the large expanse of unskilled laborers? Difficult challenges to face. But then, the promise of greater rewards beyond the present structure is something that is worth the change.
Export Leadership: Does Success in One Breed Failure in Another?
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