PCC Policy Note no.1 | Anti-Competitive Effects of Regulatory Restrictions: The Case of the Construction Sector
October 9, 2017 at 17:00
Anti-Competitive Effects of Regulatory Restrictions: The Case of the Construction Sector
Policy Note no. 01 Series of 2017
The licensing rules implemented by the Philippine Contractors Accreditation Board (PCAB) contain a nationality distinction in its classification of licenses that has deleterious effects on competition in the construction sector. Simulations of license applications in a typical year suggest that to engage in the same level of activity, foreign firms have to pay as much as 12 times more in application fees compared to local firms. This nationality distinction hinders potential economic growth by constraining effective competition in the sector.
