Article Review
Role of Trade Promotion Organizations and Their Contribution in Creating Linkages:
The Philippine Case
Citation: Sabuga, I. G., & Moral, G. L. (2014, June). Role of Trade Promotion Organizations
and Their Contribution in Creating Linkages: The Philippine Case. Retrieved March 12, 2021,
from https://www.bsp.gov.ph/Media_And_Research/Publications/EN14-03.pdf
, Introduction
The Philippine trade over the years have been struggling with the information asymmetry in
international trades. This major constraint creates a gap for the development of the export trade of
the Philippines. “Role of Trade Promotion Organizations and Their Contribution in Creating
Linkages: The Philippine Case,” by Ivy G. Sabuga and Gabrielle Roanne L. Moral. The need of
establishing external monitoring to improve the performance of Philippine trade on a global scale
was addressed. According to the results of this study, it was proven that the product diversification
to integrate domestic exports into the global supply chain networks affects the strength of the
Philippine trade when marketing to the Asian trade. Moreover, the Department of Trade Industries
(DTI) have been capitalizing on complementary trade opportunities by creating partnerships for
more innovative products and more progressive competency. In addition to this, the government
also was directed to the importance of the development of information exchange and policy
dialogue, specifically in the areas that are rich in market opportunities, market access, and
investment. Furthermore, the externalities that the TPOs created have are being proven in studies.
According to Lederman et al., the researcher found that in every increase of 10% in the TPO’s
budget, a 1% of the export will increase. Additionally, TPOs with a large private sector executive
board but a substantial public sector funding share are expected to have higher national exports.
Finally, providing a high-quality agency unit rather than many small agencies in the chosen country
is much more productive. The conclusion taken from this article implies that the Philippine trade
is still in the process of maximizing their capability to operate in the market and with the identified
opportunities, the Philippine trade will now continue to expand as it develops to its full potential.
The main driver of the decision to establish an organization for trade promotion is the major
constraint of having information asymmetry. This disadvantage limits the firm level information
Role of Trade Promotion Organizations and Their Contribution in Creating Linkages:
The Philippine Case
Citation: Sabuga, I. G., & Moral, G. L. (2014, June). Role of Trade Promotion Organizations
and Their Contribution in Creating Linkages: The Philippine Case. Retrieved March 12, 2021,
from https://www.bsp.gov.ph/Media_And_Research/Publications/EN14-03.pdf
, Introduction
The Philippine trade over the years have been struggling with the information asymmetry in
international trades. This major constraint creates a gap for the development of the export trade of
the Philippines. “Role of Trade Promotion Organizations and Their Contribution in Creating
Linkages: The Philippine Case,” by Ivy G. Sabuga and Gabrielle Roanne L. Moral. The need of
establishing external monitoring to improve the performance of Philippine trade on a global scale
was addressed. According to the results of this study, it was proven that the product diversification
to integrate domestic exports into the global supply chain networks affects the strength of the
Philippine trade when marketing to the Asian trade. Moreover, the Department of Trade Industries
(DTI) have been capitalizing on complementary trade opportunities by creating partnerships for
more innovative products and more progressive competency. In addition to this, the government
also was directed to the importance of the development of information exchange and policy
dialogue, specifically in the areas that are rich in market opportunities, market access, and
investment. Furthermore, the externalities that the TPOs created have are being proven in studies.
According to Lederman et al., the researcher found that in every increase of 10% in the TPO’s
budget, a 1% of the export will increase. Additionally, TPOs with a large private sector executive
board but a substantial public sector funding share are expected to have higher national exports.
Finally, providing a high-quality agency unit rather than many small agencies in the chosen country
is much more productive. The conclusion taken from this article implies that the Philippine trade
is still in the process of maximizing their capability to operate in the market and with the identified
opportunities, the Philippine trade will now continue to expand as it develops to its full potential.
The main driver of the decision to establish an organization for trade promotion is the major
constraint of having information asymmetry. This disadvantage limits the firm level information
