Systems analysis of the characteristics of industries in the Philippines with a case study of the textile and garments industries

AuthorChu, Baby L.
Call NumberAIT Thesis no. 1139
Subject(s)Textile industry--Philippines
System analysis

NoteA thesis submitted in partial fulfillment of the requirements for the degree of Master of Science of the Asian Institute of Technology, Bangkok, Thailand.
PublisherAsian Institute of Technology
AbstractThis research aims to provide a framework for understanding the characteristics of the Philippine manufacturing industries. Specifically , industrial data have been collected and synthesized in order to evaluate in a quantitative sense the dynamic transformation of the characteristics of the different manufacturing industries during the time span of 1958071. It has been found that there had been no significant structural change in the manufacturing sector as a whole, as reflected in the constancy of· the percentage shares of gross value added, employment and capital expenditures relative to the national totals . It has been observed that the concentration of the manufactures was in the final-stage goods which was brought about as a result of the governmental industrialization program of import substitution of consumption goods . It has been deduced that in general, the capital and labor in the manufacturing industries were not efficiently utilized. Subsequently, the impact of industrial policies upon the manufacturing growth is examined for its implications. It has been found that the tariff rates , tax incentives, the wage rate , interest rate, and the exchange rate of peso, in some ways, artificially and inadvertently caused and/or aggravated the constraints acute foreign exchange shortage ,economic inefficiency of firms, and limited market opportunities, confronting the manufacturing industries. A quantitative model has been developed to study the implications of savings and trade gaps upon manufacturing growth. The projection results reveals the extent of trade gap as the investment constraint of the country. The model incorporating two extreme types of policy options also shows the upper and lower bounds of investment resource flows and its effects upon specified growth rates. It has been suggested that curbing the trade gap thru export expansion and import substitution is t he key towards the attainment of higher manufacturing growth rates. The research concludes with a detailed evaluation of the characteristics of the apparel textile group on a disaggregative basis, for the time span of 1958- 72. It has been found t hat the performance of the apparel textile group was marked by rapid expansion in production capacity spurred mainly by governmental policy support. It has also been suggested that low profitability and capacity utilization rates were caused primarily by foreign exchange shortage , unfair foreign competition, and poor management performance. However, a trend projection of the domestic demand reveals shortfalls in local production in the immediate future even if there were 100% capacity utilization.
Year1975
TypeThesis
SchoolStudent Research Before 1980
DepartmentOther Field of Studies (No Department)
Academic Program/FoSThesis (Year <=1979)
Chairperson(s)Pakorn Adulbhan;
Examination Committee(s)Sharif, M. N. ;Woo, Wai-Ling;
Scholarship Donor(s)Asian Institute of Technology;
DegreeThesis (M.Sc.) - Asian Institute of Technology, 1975


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