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Auto and Car Parts Production: Can the Philippines Catch Up with Asia?

Auto and Car Parts Production: Can the Philippines Catch Up with Asia?
Date:
18 February 2015
Authors:
Rene E. Ofreneo
Tags:
industry and manufacturing, Regulation and Governance

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Abstract

The Philippines pioneered the establishment of automotive assembly in Southeast Asia in the 1950s. But Thailand, Indonesia and Malaysia lead the region since the 1990s. The foremost reasons for the decline are policy incoherence and unchecked inflows of smuggled cars, which is reflected in the erosion of the domestic automotive components supply base. Japanese assemblers are increasingly sourcing them from abroad through global production networks (GPNs, which has also made the Philippines a global producer of selected auto parts. Institutional support is necessary for the Philippines to take advantage of GPNs to catching up with the leading countries.

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