TNCs and Structural Change in the Philippines

The paper examines the changing role of Transnational Corporations (TNCs) in the Philippines government's structural reforms. The structural change that is now in the Philippines' development strategy implies a different role for direct foreign investment (DFI) and TNC than in the past. In particular, DFI flows are seen to absorb the slack in the use of multilateral, bilateral and commercial loan sources. Given the changing picture of global DFI towards international production, the realignment and revaluation of currencies among home countries, and inctreasing competitive structure of global markets, TNCs will be seen to play not only a larger but a different role from the past which has been inward-looking into domestic markets.