Department     College of International Management
   Position   Professor
Language English
Publication Date 2019/04
Type Research paper
Peer Review Peer reviewed
Title How to Conduct Effective Industrial Policy: a Comparison of Automotive Development in the Philippines and Indonesia
Contribution Type Joint Work
Journal Journal of the Asia Pacific Economy (Routledge)
Journal TypeAnother Country
Publisher Routledge (London)
Volume, Issue, Page 23(4),pp.657-682
Author and coauthor Thoburn John
Details Compared to the recent successes of Indonesia, Philippines vehicle production has faced severe problems of lack of economies of scale and a weak domestic supply base, as well as strong import competition, including from illegally imported used cars. Although at first sight there have been many similarities in industrial policies towards the automotive industry in the two countries, we identify various inconsistences and problems of implementation in the Philippines, which, unlike Indonesia since the late 1990s –at the time considered a failure - has not succeeded in developing vehicle exports. Although now the Philippines is starting to see the sort of growth in vehicle ownership that is currently well underway in Indonesia, it will have to struggle under its new CARS policy to stop the growth in the market simply being met by more imports.
DOI 10.1080/13547860.2018.1503768