Structural Transformation and International Trade in the Philippines: Factors and Technological Limitations

Abstract

The structure of international trade, is becoming increasingly complex and to understand it, it is necessary to analyze the strategies used by countries and companies, in order to remain competitive. Each country, region or company, to achieve and to sustain in a competitive position, generate all kind of strategies to maximize their comparative advantages, whether relating, revealed or dynamic. The above, regardless of the economic development level that each country registers, as is the case of the Republic of the Philippines (Philippines), considered as a late industrializing country, given that until this century managed to consolidate their economic transformation and encourage their international trade. After consolidating their economic transformation and record a rapid economic growth in the 21st century, the Philippines faces the challenge of solving the technological restriction that deprives in some of its major industrial products and generate revealed comparative advantage, in order to maintain its dynamism exporter in recent years. This article examines the recent economic transformation of the Philippines as well as the evolution of its foreign trade, by measuring the technological components and the restrictions that this component places on their specialist trade. It offers evidence about such restriction and concludes on the urgent need to generate strategies to save such a restriction technology, which could prevent from moving forward in their goals of economic growth led by the foreign trade.

Keywords

• Transformación sectorial
• PIB
• crecimiento económico
• restricción tecnológica