ABSTRACT
Since the 1970s, the Philippines government has implemented policies aimed at shifting the export sector away from reliance on agricultural and natural resources towards labour-intensive manufacturing. As a result, the composition of exports was significantly altered and non-traditional goods replaced the traditional exports. This shift produced further changes in the Philippine economy. These include the adoption of outsourcing (i.e. subcontracting) to smaller production units and/or homeworkers, as a means of increasing cost-effectiveness. This practice became very popular among main export industries including textile, footwear and handicraft production.
