Date

4-2009

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jaimie Kim E. Bayani

Abstract

The increasing density of air traffic brought about by economic integration pressured the air transportation industry to adopt reforms such as deregulation and liberalization. For the Philippines, Executive Order (EO) 219, the domestic and international civil aviation liberalization policy of the Philippines, was established in 1995 through the Ramos Administration’s strategy for global competitiveness. This study focused on the international air transportation of the Philippines, with particular emphasis on the ASEAN region. A Herfindahl-Hirschman Index (HHI) was constructed in order to determine the market concentration of the industry prior to and after the air transport liberalization. To be able to assess the progress of the policy in terms of achieving the national objectives as stated in one of the provisions of EO 219, a pair-wise Granger Causality Test was employed. Included in the test were inward flows of foreign investments and visitor arrivals as well as total trade flows of Indonesia, Malaysia, Singapore, and Thailand with the Philippines. The Philippine international air transport industry is said to be at the infant stages of its liberalization. Further, market concentration remained at a high level after air transport liberalization although the industry reached moderate market concentration in 2007. On the national level, EO 219, although not totally successful in achieving national objectives, may provide avenues to increase foreign direct investments and tourism arrivals that contribute to the growth of the economy.

Language

English

Call Number

LG 993.5 2009 E2 C84

Document Type

Thesis

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