The Global Value Chain Effects of RCEP: Estimating the Impact on the Philippines

Authors

Caesar B. Cororaton, De La Salle University, Manila, PhilippinesFollow

JEL Classification System

C68, C67, F13, F15, F17

Abstract

This paper extends the global CGE model results of Cororaton (2022) by disaggregating further the RCEP trade creation effects on the Philippines into global value chain (GVC) impacts. The GVC analysis indicates that the trade agreement in RCEP results in higher Philippine exports of US$ 2.8 billion in 2031, of which the increase in Philippine domestic value added is US$ 2.4 billion, significantly higher than the foreign value added of US$ 403 million. Electronic products contribute 67% of the value added generated within the Philippines. The increase in the import contents of Philippine exports is only US$ 413 million. Furthermore, the Philippine value added to produce Philippine final goods consumed in other ASEAN, other RCEP members, as well as in countries/regions outside of the partnership area also improves.

Recommended Citation

Cororaton, Caesar B. (2025) "The Global Value Chain Effects of RCEP: Estimating the Impact on the Philippines," DLSU Business & Economics Review: Vol. 34: No. 2, Article 4.
DOI: https://doi.org/10.59588/2243-786X.1145
Available at: https://animorepository.dlsu.edu.ph/ber/vol34/iss2/4