THE PHILIPPINES’ hosting of Asia-Pacific Economic Cooperation (APEC) events could be used to highlight the growing importance of business and information services in global value chains, thereby advancing the country’s position in these areas, a government think tank said in a policy note.'
The Philippine Institute for Development Studies (PIDS) in its policy note entitled "Why global value chains and services matter: Implication for APEC 2015”, the think tank said the country could play to its strengths at APEC.
"Given the Philippines’ comparative advantage in ‘other business services’ and in ‘computer and information services’, advancing regional cooperation in services value chains can further strengthen our export position in these activities,” PIDS said.
PIDS likewise suggested undertaking analytical work "to deepen the understanding of services of value chains”.
"This can involve case studies of existing services value chains in the region.”
"The results from the analytical work will complement measures of GVC (global value chains) participation at the aggregate level and provide insights and lessons for individual companies in creating or joining GVCs in services.”
Global value chains, PIDS said, "are the sequence of activities around the world involved in the conception, production, distribution, usage, and other activities that add value to a product.”
"GVCs contribute to gross domestic product (GDP) growth, provide employment, and create opportunities for technology dissemination, skills building and industrial upgrading,” PIDS said.
Risks, however, could include a limited GDP contribution of GVCs "if countries capture only a small share of the value added created in the chain and/or if they remain locked in relatively low-value added activities.” --
APEC hosting an opportunity for PHL outsourced services -- PIDS
