The Analysis Of The Philippines FDI Policy

As the fifth-largest economy of ASEAN, Philippines was once one of the favorite foreign direct investment destinations, because of its abundant natural resources and great market potential. After the Southeast Asian financial crisis, the international environment for the foreign direct investment had undergone profound changes, so it is very important for Philippines to enforce the right policies to attract foreign investors. This paper makes a certain analysis of the Philippines FDI policy from the aspect of the politic economics.The paper includes 5 parts. Chapter 1 is the prelude. Chapter 2 introduces the overview of the Philippines FDI policy. Chapter 3 analyzes the incentive and protective measures of the FDI policy. Chapter 4 analyzes the regulatory measures of the FDI policy. Chapter 5 is the conclusion.The conclusions of the paper are as follow:The government gives some favorable policies to the multinational companies, which is not only because of the historical and cultural characters of the Philippines itself, but also because of the government's goal to maximize the positive effects from the foreign investor.However, many factors offset the effect of the incentive and protective measures, and the Philippines government should focus on the improvement of the investment environment.There are some contradictions between the government and the foreign direct investors, so the government also enforces some regulatory measures.The regulatory measures of the FDI policy reflect the trend of over-regulating which will make a negative effect to the investment environment and offset the positive effect of the incentive and protective measures. So the government should speed up the reform of the regulatory measures.