Date Published:
Jun 01, 2008
Focus Area(s):
Code:
DP 2008-15

In recognition of their substantial contribution to the economy both in terms of number of enterprises and workers, the Philippine government has put in place a number of policies and programs designed specifically to boost SME productivity and competitiveness in the country. However, the performance of SMEs in the last decade has not been vigorous enough to boost the Philippine manufacturing industry. As such, the deepening of high technology industries in terms of the creation of backward linkages has remained weak. While the country’s exports of high technology products have grown rapidly, the value added of these exports is very low due to the limited links of large domestic and foreign companies to the domestic economy. Rapid changes in the international trade and the growing complexity of global production system, pose a significant challenge to Filipino SMEs. This paper reviews existing government SME policies as well as recent developments in the manufacturing sector, within the context of the emerging global production network. The paper draws on the findings of a survey interview of SMEs in the automotive, electronics, and garments sectors. The paper highlights the importance of creating a separate government office that would coordinate SME policies and programs to support the integration of SMEs in the global production chain.

Citations

This publication has been cited 10 times

In other Publications
  1. Ahmed, Vaqar, Mohammad Abdul Wahab, and Hamid Mahmood. 2011. Effectiveness of HRD for developing SMEs in South Asia. MPRA Paper 30780. University Library of Munich, Germany.
  2. Aldaba, Rafaelita M.. 2008. Globalization and the need for strategic government-industry cooperation in the Philippine automotive industry. Discussion Papers DP 2008-21. Philippine Institute for Development Studies.
  3. Aldaba, Rafaelita M.. 2008. Globalization and the need for strategic government-industry cooperation in the Philippine automotive industry. Microeconomics Working Papers 22050. East Asian Bureau of Economic Research.
  4. Castillo-Sam, Eva Marie, Jeaneth Tormis, and John Vianne Murcia. 2016. A model of business innovation in the context of micro, small and medium enterprises in Davao del Sur. MPRA Paper 72644. University Library of Munich, Germany.
  5. del Prado, Fatima et. al. 2007. Development of regional production and logistic networks in East Asia: The case of the Philippines. Discussion Papers DP 2010-17. Philippine Institute for Development Studies.
  6. Lanzona, Leonardo. 2015. Mainstreaming SMEs through social enterprises. Working Papers id:7061. eSocialSciences.
  7. Lazaro, Dorothea C., Ganeshan Wignaraja, and Genevieve De Guzman. 2011. Factors affecting use or nonuse of Free Trade Agreements in the Philippines. Philippine Journal of Development PJD 2009, 36, no. 2. Philippine Institute for Development Studies.
  8. Mari-Len R. Macasaquit et. al. 2010. Development of regional production and logistic networks in East Asia : The case of the Philippines. Trade Working Papers 23099. East Asian Bureau of Economic Research.
  9. Medalla, Erlinda M. and Melalyn C. Mantaring. 2017. Mainstreaming SMEs: promoting inclusive growth in APEC. Discussion Papers DP 2017-49. Philippine Institute for Development Studies.
  10. Medalla, Erlinda M. and Melalyn C. Mantaring. 2018. Mainstreaming SMEs: Promoting inclusive growth in APEC. Working Papers id:12867. eSocialSciences.


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