Philippine E-Journals

Trade Performance of the Philippines

Grace Edmar Elizar-del Prado

 

Abstract:

This paper investigates the revealed comparative advantage of the Philippines by using the net exports formula, as a ratio to total trade volume per year. It also identifies countries that are termed as ‘pure buyers’ of Philippine goods and ‘pure sellers’ to Philippine markets. Results show that the country has been a heavy importer of goods from 1990 to 2014 except in years 1999 and 2000. Germany and Netherlands emerged as pure buyers of Philippine products with Hong Kong joining in recent years. On the other hand, Malaysia, Indonesia and the Kingdom of Saudi Arabia served as pure sellers to Philippine markets. Although Malaysia has stopped preferring Philippine products in the later years, Taipeh, China replaced its position. The study is conducted in September 2016 and data were accessed from the Key Indicators of Asia and the Pacific of the Asian Development Bank.