Protection, Concentration, and the Direction of Foreign Investments

Emmanuel de Dios ()

Philippine Review of Economics, 1986, vol. 23, issue 1&2, 57-82

Abstract: This paper attempts mainly to substantiate the hypothesis that the pattern of tariff protection in the past contributed to the oligopolistic structure of Philippine manufacturing, and that such concentration included a distinct foreign element. Firstly, the paper presents a theory to illustrate the effects of foreign capital in?ows on the country's resource allocation assuming their tendency to be monopolistic, It then tested the following relationships: 1) between value-added concentration ratios and effective rate ofprotection as well as other standard variables explaining industrial concentration, 2 ) between levels of concentration and levels of industrial or ?rm pro?tability, and 3) between foreign capital and seller concentration. The findings imply that, for the periods covered, effective tariff protection did exert an in?uence in promoting seller concentration. Results also suggested that it influenced the degree of international investments as well; as significant degree of association emerged between those sectors which were characterized by heavy seller concentration, and those in which foreign capital found a hospitable niche. The study interprets these findings for their significance to policy making and development theory.

Date: 1986
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://pre.econ.upd.edu.ph/index.php/pre/article/download/310/370 (application/pdf)

Related works:
Working Paper: Protection, Concentration and the Direction of Foreign Investments (1985)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:phs:prejrn:v:23:y:1986:i:1&2:p:57-82

Access Statistics for this article

More articles in Philippine Review of Economics from University of the Philippines School of Economics and Philippine Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by HR Rabe ().