Aims to provide a descriptive–analytic overview of the record of Philippine industrialization, with special reference to the period since 1980. It also identifies some of the factors that have retarded efficient industrial growth and examines various key industrial policy debates and challenges. It first presents the basic trends in output, employment, and productivity, followed by an examination of broad structural changes within industry, and of export performance. It further investigates aspects of industrial structure and intervention including ownership and concentration, the size distribution of small‐ and medium‐sized enterprises, spatial patterns, and import protection. The chapter notes that, according to almost all the above criteria and with just a few exceptions, manufacturing has performed poorly for most of the past two decades. It concludes with a forward‐looking assessment of major policy challenges regarding the incentive regime, innovation and diffusion issues, and constraints to industrial growth.
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