Nontraditional Markets for Philippine Exports

Abstract

The study analyzes the pattern of diversification of Philippine export flows over the last two decades as a clue to the problem of export expansion. Coefficients of concentration show a marked diversification in both geographic and commodity structures of Philippine export trade. In particular there is found a ‘healthy’ shift away from traditional markets and towards non-traditional ones, including those of developing countries. Moreover, the commodity structure of the country’s manufactured exports is seen to follow the general pattern of labor-intensity suggested by factor proportions theory, a pattern that is found to be reinforced over time. The findings are then interpreted in terms of their implications on policymaking for export expansion, particularly of Philippine manufactured products.