Unleashing the Country's Full Potential to Attract FDI

25 Pages Posted: 25 Nov 2018

See all articles by Ronald U. Mendoza

Ronald U. Mendoza

Ateneo De Manila University - Ateneo School of Government

Miann Banaag

Ateneo de Manila University - Ateneo School of Government

Irwin Kendrick Uy

Ateneo School of Government

Date Written: October 31, 2018

Abstract

With the existing trajectory path of the Philippines’ advancement aspirations, there is challenge that lies in sustaining and dramatically elevating the growth in foreign direct investments (FDI), which are critical for the country’s economic development. In light of the impending reforms that aim to fast track economic growth in the country, this paper provides an overview of the current economic landscape in view of foreign direct investments. We examined the prevailing political noises that dictate investment prospects and analyzed foreign direct investments across administrations and against its competition among neighbor countries. Tracking down foreign direct investments in the past 6 years from 2012 to 2017 shows that FDI since 2010 has exhibited an upward trend, but the “long game” in FDI is not built on quick spurts—it is more amply compared to a marathon underpinned by strong institutions and fundamentals. If we were to use a health analogy, the evidence presented suggests that ours is a generally healthy economy, posting impressive growth, but carrying some structural flaws. A successful cure will likely come at the hands of skilled and respected surgeons wielding scalpels, rather than those who would wield axes, doing more harm than good.

Keywords: Foreign Direct Investment, Reform

JEL Classification: M10

Suggested Citation

Mendoza, Ronald U. and Banaag, Miann and Uy, Irwin Kendrick, Unleashing the Country's Full Potential to Attract FDI (October 31, 2018). Available at SSRN: https://ssrn.com/abstract=3245678 or http://dx.doi.org/10.2139/ssrn.3245678

Ronald U. Mendoza (Contact Author)

Ateneo De Manila University - Ateneo School of Government ( email )

Katipunan Road
Loyola Heights
Quezon City, 1108
Philippines

Miann Banaag

Ateneo de Manila University - Ateneo School of Government ( email )

Pacifico Ortiz Hall, Fr. Arrupe Road
Social Development Complex, Loyola Heights
Quezon City, Manila 1108
Philippines

Irwin Kendrick Uy

Ateneo School of Government ( email )

Pacifico Ortiz Hall, Fr. Arrupe Road
Social Development Complex, Loyola Heights
Quezon City, Manila 1108
Philippines
09178451522 (Phone)

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