The Impact of Globalization on Philippine Economy

Globalization in commerce and migration has been more pronounced in the Philippines
than in financial globalization. Even though empirical estimations indicate that globalization has
had a good influence on the nation's economic development and employment, but sufficient
proof of how it has affected inequality and poverty has yet to be discovered, since early
estimates yield contradictory conclusions. The Philippines has benefited much from
globalization. Since the Philippines participated in the signing of treaties with the World Trade
Organization in 1995, there have been significant changes in the economy. There have been
changes in the nation, including an increase in employment and the number of businesses that
have sprouted up to support the economy. The Philippines produces a wide variety of crops that
are exported and traded worldwide. Another effect of globalization in the Philippines is
something like this. Rice, corn, and sweet potatoes are three of the most popular crops
marketed. The expansion of local businesses abroad is another aspect of globalization that
occurs in the Philippines. These businesses include contact center outsourcing and tech
assistance for major multinational corporations. These businesses offer products and services
like AT&T and Expedia.

Department of Trade and Industry (DTI) Secretary Ramon M. Lopez pushed for inclusive
globalization at the recently finished Asia-Pacific Economic Cooperation (APEC) Ministerial
Meeting held last 8–9 November 2021 in order to hasten the economic recovery and maintain
resilience and sustainability. During the APEC ministers' discussion on a regional response to
the health and economic crisis, Sec. In order to help recovery efforts, Lopez urged his
colleagues Ministers to step up regional and global collaboration, notably in the fields of
commerce, investments, and health.

The Philippines' trade openness increased from 88.1% to 101.0% of its gross domestic
product between the 1990s and 2000s. The nation's moves toward a more open trade policy
beginning in the 1980s contributed to this growth. The Philippines has the most history of
globalization among all Southeast Asian countries, whether it may be in the past colorizations,
or in the present influences. This is possibly one of the reasons why the country has been stable
when it comes to economy other than neighboring countries. The possibility that poverty
reduction has continued since 2015 rises with sustained economic development. The poverty
rate in the Philippines is thought to have decreased from 27.0 percent in 2015 to 24.2 percent in
2017, by using World Bank's worldwide poverty standard of US$3.20 per day for lower middle
income countries. Since 2015, roughly 1 million Filipinos have been lifted out of poverty
annually. Recent poverty alleviation was mostly driven by higher wage income, especially for
those in the lowest 40% of the income distribution.

The Philippines can gain a lot from the continuing, significant shift in international
commerce, with the services sector perhaps benefiting the most. While the lockdowns and
coronavirus epidemic affected the global economy and commerce, Asia should step up its
efforts to facilitate and liberalize trade so that it may gain from other economies realigning their
supply chain networks.
 With expanding internet usage, digital connectivity in Asia has improved, yet significant
sub regional gaps still exist. According to the research, improved internet connection enables
consumers, companies, and governments to have wider and better access to goods and
services outside of their immediate geographical area.

https://www.bworldonline.com/editors-picks/2021/02/11/344047/philippines-may-benefit-from-new-
globalization/

https://www.bis.org/publ/bppdf/bispap100_q.pdf

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3332089

https://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/---ilo-manila/documents/
publication/wcms_541519.pdf

https://www.worldbank.org/en/country/philippines/publication/philippines-economic-update-october-
2017

https://www.dti.gov.ph/advisories/ph-inclusive-globalization-and-trade-supported-economic-recovery/