 Domestic Content and Compensatory Export Requirements: Protection of the Motor Vehicle Industry in the PhilippinesThe World Bank Economic Review, 1994, vol. 8, issue 1, 127-49 Abstract: The motor vehicle industry in the Philippines is protected by a virtual embargo on the importation of new vehicles but operates under the burden of domestic content and compensatory export requirements that protect Philippine producers of automotive components. This article develops a model to assess the net impact of this complicated protective regime. Estimates indicate substantial benefits to the assembly and components industries and losses to vehicle purchasers. Reform of the system to eliminate the embargo as well as the domestic content and compensatory export restraints at current tariff rates would benefit vehicle purchasers but would increase the effective rate of protection to assembly operations by decreasing prices of components. Reform measures to eliminate the domestic content and compensatory export requirements should be accompanied by simultaneous reductions in tariffs on assembled vehicles. Copyright 1994 by Oxford University Press. Date: 1994 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:oup:wbecrv:v:8:y:1994:i:1:p:127-49 Ordering information: This journal article can be ordered from Access Statistics for this article The World Bank Economic Review is currently edited by Eric Edmonds and Nina Pavcnik More articles in The World Bank Economic Review from World Bank Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC. |
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