Template-Type: ReDIF-Article 1.0 Author-Name: Erlinda M. Medalla Author-Workplace-Name: Philippine Institute for Development Studies Title: Understanding competition policy : a suggested framework Abstract: This paper defines the elements that comprise a competitive setting and clarifies the objectives of competition policy. The role and primary task of competition policy are emphasized. A framework for competition policy and the basic elements to implement it are spelled out. The major areas of competition policy are also identified and current competition policies in selected countries are briefly surveyed. The concluding section addresses some of the issues that confront competition policy. Classification-JEL: L50, L43 Keywords: Competition policy, deregulation, anti-trust policy Journal: Philippine Review of Economics Pages: 1-26 Volume: 40 Issue: 1 Year: 2003 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/13/577 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:40:y:2003:i:1:p:1-26 Template-Type: ReDIF-Article 1.0 Author-Name: Rafaelita M. Aldaba Author-Email: afita@mail.pids.gov.ph Author-Workplace-Name: Philippine Institute for Development Studies Title: Concentration and market power in the Philippine manufacturing industry Abstract: This paper looks at the presence of barriers to competition that prevent domestic and international prices from converging. These barriers may dampen, even reverse the gains from trade liberalization. Three decades of protectionism and import substitution in the Philippines have led to high levels of industrial concentration in a few wealthy families and small groups. Most of all, the experience has led to the deterioration of the culture of competition in the country. While liberalization may be a precondition for the growth of a free market, it does not, by itself, guarantee effective competition. For effective competition to emerge, trade reforms must be accompanied by the creation of competitive market and industry structures. The transition from import substitution to a more open economy requires not only the rule of law, but efficient institutions to support growth and institutional change. Classification-JEL: L11, L60 Keywords: Competition, concentration, market power Journal: Philippine Review of Economics Pages: 27-57 Volume: 40 Issue: 1 Year: 2003 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/14/578 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:40:y:2003:i:1:p:27-57 Template-Type: ReDIF-Article 1.0 Author-Name: Roberto S. Mariano Author-Email: jonna@grips.ac.jp Author-Workplace-Name: School of Economics and Social Sciences, Singapore Management University Author-Name: Francisco G. Dakila Jr. Author-Workplace-Name: Department of Economic Research, Bangko Sentral ng Pilipinas Author-Name:  Racquel A. Claveria Author-Workplace-Name: Department of Economic Research, Bangko Sentral ng Pilipinas Title: The Bangko Sentral’s structural long-term inflation forecasting model for the Philippines Abstract: Because of the forward-looking nature of inflation targeting, successful implementation of the framework entails good forecasting ability for the monetary authorities. Toward this end, the BSP has exerted considerable efforts at developing its econometric models. In order to provide monetary authorities with a clearer indication of the outlook on inflation over the policy horizon of two years, the BSP has been developing an annual macroeconomic model for inflation forecasting and policy analysis. The objective of the project is to provide the BSP a quantitative tool to forecast headline and core inflation rates one to two years into the future; to analyze the impact on headline and core inflation of key factors such as the exchange rate, world oil price, interest rates, wages, government borrowing and other relevant variables; to determine the effectiveness of different channels and instruments of monetary policy, with special attention to the impact of changes in the BSP’s short-term borrowing and lending rates, which are the BSP’s policy levers; and to guide the monetary authorities in their decision making process pertaining to the appropriate policies for the attainment of the BSP’s primary mandate of promoting price stability conducive to balanced and sustainable economic growth. Classification-JEL: E52, E31 Keywords: Inflation targeting, monetary policy, macroeconometric model Journal: Philippine Review of Economics Pages: 58-72 Volume: 40 Issue: 1 Year: 2003 File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/15/574 File-Format: Application/pdf Month: June Handle: RePEc:phs:prejrn:v:40:y:2003:i:1:p:58-72 Template-Type: ReDIF-Article 1.0 Author-Name: Ernando S. de Leon Author-Workplace-Name: Department of Economic Research, Bangko Sentral ng Pilipinas Author-Name: Teodora I. San Pedro Author-Workplace-Name: Supervisory Reports and Studies Office, Bangko Sentral ng Pilipinas Title: Trade in banking services and the role of GATS Abstract: The General Agreement on Trade in Services (GATS), which was concluded by participating countries in the Uruguay Round of negotiations, is the first multilateral effort to establish rules governing the conduct of international trade in services, including financial services. The GATS also provides the framework for multilateral negotiations on improved market access for foreign services and service suppliers. This article aims to clarify the issues regarding the consequences of liberalizing trade in banking services and the obligations assumed by member countries in the context of negotiations under the GATS. It argues that the benefits of liberalizing trade in banking services arise primarily from greater competition and better financial intermediation. It also points out the interdependence between sound macroeconomic management, appropriate financial regulation and supervision and a liberal trade regime in banking services. Classification-JEL: G20, F13, O19 Keywords: Trade in services, WTO, Philippine financial sector Journal: Philippine Review of Economics Pages: 73-94 Volume: 40 Issue: 1 Year: 2003 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/16/576 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:40:y:2003:i:1:p:73-94 Template-Type: ReDIF-Article 1.0 Author-Name: Antonio B. Cintura Author-Name: Ludivinia D. Gador Author-Workplace-Name: Department of Economic Research, Bangko Sentral ng Pilipinas Title: The Bangko Sentral’s Business Expectations Survey Abstract: The BSP’s Business Expectations Survey (BES) was launched in 1986 but it was only in 2001 that it was harmonized with international business tendency survey practices. Based on survey results for the first six quarters, the harmonized BES appears to be a promising source of coincident and leading indicators of short-term business and economic performance in the Philippines. Classification-JEL: E60 Keywords: Business outlook, leading economic indicators Journal: Philippine Review of Economics Pages: 95-108 Volume: 40 Issue: 1 Year: 2003 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/17/575 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:40:y:2003:i:1:p:95-108 Template-Type: ReDIF-Article 1.0 Author-Name: Raul V. Fabella Author-Email: rvfabella@upd.edu.ph Author-Workplace-Name: University of the Philippines School of Economics Title: The comprehensive agrarian reform program and Coase theorem Abstract: The prohibition of the sale or usufruct of land under the Comprehensive Agrarian Reform Law has, in effect, destroyed the legal rural land market and, in its wake, the legal rural credit market. These markets have gone underground resulting in very high transactions cost and threatened bankruptcy to farmers. Section 27 of CARL contravenes an efficiency result in economics called the Coase theorem. Reforms suggested are analyzed in light of this theorem. Classification-JEL: O12, P48, D23 Keywords: Agrarian reform, Coase theorem, land markets Journal: Philippine Review of Economics Pages: 109-200 Volume: 40 Issue: 1 Year: 2003 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/18/573 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:40:y:2003:i:1:p:109-200