Date

4-2009

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Niño Alejandro Q. Manalo

Abstract

The study aimed to determine the effects of the liberalization that will be brought about by the regional integration on the economies of scale of the different economic activities and also to describe the trading behavior of the Philippines with the ASEAN and non-ASEAN regions before the AEC formation specifically for the years 1981-2007. Trend analysis was used to determine the performance of the different economic sectors of the country. Time series data of national accounts covering the years 1981 – 2007 of five ASEAN countries (Singapore, Thailand, Malaysia, Indonesia, and Philippines) were used. Gross value of output, real exchange rate, employment, wage or earnings, and value added for each country were also employed. Data on the total value of imports and exports during 1991-1996 and 2003-2007 periods were used as indicators of the performance of the whole economy in terms of trade with ASEAN and non-ASEAN member countries. Results showed an increasing trend in the share of ASEAN in the overall trade, imports, and exports of the Philippines. On the other hand, in non-ASEAN countries, there have been fluctuations though in general, shares of these countries have been decreasing except for China. The study also tested for economies of scale working at different levels: (a) at the level of the economic sectors, (b) at the level of the national cluster of sectors, and (c) at the transnational level of economic sectors. Results showed that at the level of economic sectors, no signs of internal economies of scale were in all economic sectors in all ASEAN countries while the economies of scale generated at the level of national cluster sectors showed more varied results, having positive and negative estimates across the sectors. Looking at the level of cross countries externalities, the regression results show that Singapore would be giving the highest positive effect on Philippines on all sectors except for the Construction sector, and among the economic sectors, it is the Agriculture, Fishery, Hunting, and Forestry sector that would be most influenced by the integration. However, due to the data constraints and other limitations, the author is not confident that these results may properly reflect the true effect of the integration thus further investigation is recommended.

Language

English

Call Number

LG 993.5 2009 E2 L66

Document Type

Thesis

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