ABSTRACT
This chapter examines the participation of the Philippines in the electronics global value chain (GVC). It focuses on the extent of its GVC participation and the policies it has pursued in response to the changing international trade landscape. The chapter reviews the trade, investment, and industrial policies implemented by the government to develop and upgrade the industry. It provides recommendations on how to upgrade the industry and move up the value chain, underscoring the need for well-functioning and competitive markets to attract more investment and build an agglomeration of activities in the electronics industry. The chapter discusses the GVC framework and examines the position of the industry in the GVC along with the challenges that it confronts using revealed comparative advantage as a measure of export competitiveness. To assess the extent and depth of Philippine participation in the GVC, extensive margin and trade-in-value-added indicators are examined along with a value chain analysis to identify the gaps.
