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Liberalization and small industry – have manufacturing SMEs in the Philippines benefited?
01.12.1998
SMEs have been the object of economic and political support from donors and national governments. The Philippines are no exception. This article reveals, however, that import protection measures, such as quotas and tariffs, designed to stimulate home-grown industries, have had the effect of promoting large industries over small. Comparing a number of Asian countries with different levels of open trade policies, as well as the effect of different policies as they were applied over 30 years in the Philippines, the authors argue that import restrictions often prevent the growth and employment generation of the SME sector.