The Study On The Industry Clusters In Philippine

With the development of global economy integration, the multinational corporations shifted production chain into developing countries. It brings great challenge and opportunities for developing countries. The trend of Global production system of multinational business functions is regional specialization, localization and global integration arrangements. Although mergers and acquisitions is still the main form of FDI flows, in recent years the form of outsourcing, the operation of transnational corporations was the rapid growth trend, suggesting that the multinational companies extending the value chain. In this context, developing countries have to adjust their economic policy hoping to attract more foreign investment so as to develop their national economy. In response to intense competition, promoting industry clusters in the majority developing countries become the main development strategy. Philippines repeatedly missed opportunities to attract foreign investment, is looking into the industry cluster as the primary task of attracting foreign investment into the development.On the basic of summarizing the theories of industry clusters, this paper conduct in-depth research of industrial clusters in Philippine. First of all, this paper discusses the background of the developing of industry cluster in Philippine, Which is analyzing the impact of both global economy and the situation of Philippine. Then introducing the strategic of Philippine government to promote the industry clusters. Secondly, this paper analyses the development of industry clusters in Philippine, which include the analyzing of the geographical distribution, the characteristics of industry clusters etc. In the following part, it focuses on the role of Philippine government to promote the industry clusters. Finally, there is a summary of the development of the industry clusters in Philippine.