Professional Documents
Culture Documents
Nationalization v
Liberalization
Retail Trade Laws of the Philippines
RA 1180: Retail Trade Nationalization Law
RA 8762: Retail Trade Liberalization Law
2000
RA 8762
Retail Trade
Liberalization Law
NOW
Allowed foreign equity
participation [4
categories]
FILIPINIZATION IN 1954
History: 1954
Retail Trade Nationalization Law was one of the
strictest pieces of legislation engendered by
economic nationalism in Southeast Asia and went
considerably further than earlier legislation which
provided for nationalization of public utilities,
banks, shipping, civil aviation, and mining and
usually required an indigenous ownership of 60%
[Frans Husken Huskin, Dick van der Meij].
It is the Retail Trade Nationalization law which hit
the Chinese the hardest, since retail trade was
their classical domain in Southeast Asia.
Paid up capital
Foreign Equity
Participation
US 2.5M
US 7.5M
Enterprise
May be 100% foreign owned
specializing in
high-end or luxury
Qualifications
a. Minimum net worth of parent corporation
a. CB and CC: US$200M
b. CD: US$50M
Statistics:
Analysis
In the literature, there are three main channels
through which trade liberalization affects a
countrys economic performance.
First, there are static gains arising from trade
liberalization as resource allocation improves within
and across industries.
Second, there are dynamic gains through technical
change, learning, and growth that leads to improved
productivity growth.
Third, there are competitive effects arising from
domestic competition.
FDI
FDI
The Philippines has lagged behind its neighbors in
terms of FDI performance. FDI data show huge
differences in FDI inflows to the ASEAN countries
with the Philippines receiving the lowest level of
FDI inflows particularly in the 1990s and the
2000s.
SMEs
SMEs
The industrial structure has remained hollow or
missing in the middle and medium enterprises
have never seriously challenged the large
entrenched incumbents.
The linkages between SMEs and large enterprises
have also remained weak. SMEs have continued
to face competitiveness problems along with
difficulties in finance and market access.