(DP 2000-11) The Philippine Electronics Industry and Local Suppliers: Developing Supporting Industries through Foreign Captial-led Industrialization

Abstract

The Philippine electronics industry is typical of foreign capital-led industrialization. The Philippines wants to develop the supporting industries for electronics in order to localize the electronics industry. The Philippines wishes to foster the development of local suppliers and wishes to strengthen the backwards linkage to promote further industrial development in the Philippines.

In this paper, I will describe how supporting industries for electronics themselves are getting involved in global competition and explain that local suppliers do not have the capability to compete at present, based on our field research of the sourcing methods used by Japanse electronics TNCs in the Philippines. Then I will consider the potential development path for supporting industries and local suppliers through foreign capital-led industrialization. Finally I will reflect upon the role of local capitalists and nationalism in the advancement of the global economy.