Group 1 - Final Paper

The Economic Impact of COVID-19 Pandemic on Philippine Globalization
DR. YANGA’S COLLEGES, INC.

COLLEGE OF BUSINESS ADMINISTRATION
In fulfilment of the subject requirements in

CBAEco113: Fundamentals of Microeconomic
1st Semester A.Y. 2023-2024
Submitted to
MR. AURELIO C. JUSON, JR.
Submitted by:
CASTRO, ARIELLE ROSE M.
COLCOL, DONNA MAE D.C.
DELA CRUZ, JULIAN PAUL YEOJ M.
DELA CRUZ, SOPHIA MARIE N.
GARCIA, PRINCESS JANEZ C.
PASCUAL, MARK WILLIAM L.
SIPCON, ANGEL GODWILL ANNE C.
TANDIAMA, ROCELLE S.
ZAFRA, ALYSSA CASANDRA D.L.
BSBA 1A – P.A.C.E.D.
Bachelor of Science in Business Administration

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I. PURPOSE AND RATIONALE
Globalization lays the foundations for enhanced trade, new markets, cross-border
technology, and knowledge transfers. These developments have contributed to substantial
economic growth, employment, and increased productivity worldwide (Takefman, 2023).
Globalization brought opportunities in the Philippine market for trade, increased capital inflows,
and promoted greater labor migration and vigor. It influenced employment, tourism, agriculture,
education, and global trade in the Philippines. Globalization also increases the
interconnectedness and interdependence of countries, economies, cultures, and societies on a
global scale.
According to Westcott (2021), globalization has made advances in transportation which
enabled global mobility. It has allowed people to move quickly and relatively cheaply. In the
Philippines, the ease of travel has motivated Filipino travelers to demand more places to visit
and aspire to work worldwide resulting in enhanced economic growth.
However, in 2020, the World Health Organization declared the COVID-19 outbreak a
global health emergency. It has brought about unfavorable effects on all sectors of the
Philippine economy, with the Philippine Statistics Authority’s latest Labor Force Survey reporting
that there are currently 3.5 million unemployed Filipinos, estimating the unemployment rate at
7.4% (Velasco, n.d.). This pandemic has disrupted global supply chains, affecting the
manufacturing and export sectors in the Philippines. It has disconnected the Philippines from
the global world affecting the overall economy of the country, especially in terms of employment,
tourism, agriculture, education, and global trade. It decreased mobility and economic activity.
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Because of lockdowns, logistic challenges, and travel restrictions caused by the COVID-
19 pandemic, there were delays in the production and shipment of goods, decreasing economic
activity and impacting businesses and industries dependent on global trade. Among all the
sectors, the tourism industry has been greatly affected by the pandemic. It adversely affected
the tourist industry by lowering the Global Domestic Product and other key macroeconomic and
microeconomic indicators (Kalonda, 2023). This industry alone already increased the
unemployment rate, poverty, food supply, accommodation, and many more. Because of the
COVID-19 pandemic, Simeon (2021) reported that the livelihood of 80% of those in the informal
sector were adversely affected. These workers are the most vulnerable.
Hence, even though globalization has paved the way for Philippine trade and increased
international migration, the COVID-19 pandemic caused a global economic downturn and
repercussions on the Philippine economy. Contraction in global demand, reduced trade, and
decreased economic activities in major economies affected the overall economic performance
of the country. These negative impacts of the COVID-19 pandemic on the globalization of the
Philippine economy in terms of employment, tourism, agriculture, and global trends mean that
there is a need for recommendations and actions to solve these problems to maintain and foster
the economic growth of the Philippines.
Certainly, globalization has a beneficial impact on the Philippine economy particularly on
tourism, employment, agriculture, and global trends, but not having enough knowledge and
intervention amid uncertainties like the COVID-19 pandemic might put the Philippine economy
at risk. The researchers would like to know the impact of globalization on the Philippine
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economy particularly on the aspects of employment, tourism, agriculture, education, and global
trends, the discrepancies caused by the COVID-19 pandemic, how it affects the community, and
recommend economic policies based on it. The pandemic has accelerated shifts in global
dynamics, emphasizing the need for adaptability. Understanding the specific repercussions on
international trade, supply chains, and economic partnerships enables various stakeholders to
craft adaptive policies that foster resilience and recovery. By examining how the pandemic has
affected global trade, agriculture, tourism, education, and employment, the researchers can
contribute to the development of strategies that secure the Philippine economy against future
concussions and these are what motivated them to pursue this study.
II. CONTEXT
Background
The COVID-19 Pandemic had a great impact on the Philippines in its different industries
and sectors especially when it comes with employment, tourism, agriculture, education, and
global trade. The Philippine economy has been greatly impacted by the rise of the pandemic
resulting in uncertain and weak recovery. Having a sufficient understanding of this could enable
everyone to recognize the elements that need to be taken into account when making decisions.
COVID–19 Pandemic is an infectious disease that is caused by the severe acute
respiratory syndrome coronavirus 2 (SARS-CoV-2), this novel coronavirus (nCoV) was
originated in Wuhan City in China, the World Health Organization declared Public Health
Emergency of International Concern on 30th of January in 2020 and to characterize the
outbreak as a pandemic on 11 March 2020 (Mohan & Vinod, 2020). Conversely, on the 5th of
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May in 2023, more than three (3) years into the pandemic, the World Health Organization
Emergency Committee on COVID-19 suggested to the Director-General, which has also
accepted the suggestion, that the infectious disease was by now well-established and in
progress, and no longer fit the definition of Public Health Emergency of International Concern or
PHEIC. However, this does not mean that the pandemic is over, but the global emergency it
caused is - for now (Coronavirus Disease (COVID-19) Pandemic, 2023).
According to Lozano, Bird, and Mendoza (2021), when the pandemic hit the country, it
resulted in a reverse impact with the Philippine economy, wiping out 1.7 million wage and salary
jobs in the 12 months to January 2021 from its growth of an average 4.6% annually and
destructing the already-shrinked total informal employment from then. This large shock to the
economy might put continual lower employment rate even after the economy has started to
grow again.
Nevertheless, in the present, the quality of jobs for Filipinos continues to improve as the
country’s underemployment rate decreased to 10.7 percent in September 2023, the lowest
figure recorded since earliest available starting in April 2005 (Lo, 2023). The most recent
underemployment rate, which stands at 14.8%, is substantially lower than both the pre-
pandemic rate of 15.4% in September 2022 and the 11.7 percent in August 2023.
Before the pandemic, the tourism industry was one of the key contributors to the
sustained growth of the Philippine economy. Over the past decade, the country’s tourism direct
gross value added in current prices grew by almost five-fold. However, the sudden hiatus in the
demand for travel and tourism-related activities because of the imposed strict quarantine
measures caused by the pandemic resulted in severe loss of revenues and surge in
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unemployment across all tourism enterprises. Based on the economic newsletter by Caynila,
Luna, and Milla (2022), the tight lockdown in the Philippines called Enhanced Community
Quarantine or ECQ resulted in a sharp decline in domestic demand and production,
international trade, and high unemployment. The country’s tourism sector felt the negative
impact of the pandemic much earlier in 2020, as countries started to impose travel restrictions
and measures as early as January 2020. Both the country’s international tourist arrivals and
tourism receipts fell by about 80 percent in 2020 and by about 90 percent in 2021.
Now, the tourism sector in the Philippines is gradually regaining its footing and is seen
with a promising potential for further development and growth. A recent data from the
Department of Tourism (DOT) reveals that the Philippines recorded over four million
international arrivals in the first nine months of this year. DOT said that this positive
development positions the country well on track to meet and even exceed its full-year target of
4.8 million foreign arrivals, especially with the upcoming holiday season. The sector has already
contributed P344 billion in revenues to the economy, underlining its significant contribution to
the national output (Zaldarriaga, 2023).
Even before the pandemic, the Philippines had among the world’s largest education
gaps, with more than 90 percent of students unable to read and comprehend simple texts by
age 10, according to the World Bank. Hence, education is also one of the sector that is greatly
affected by the COVID-19 pandemic. Students, schools, colleges, and universities have been
deeply affected. Philippines is one of the countries has ordered nationwide school closure to
contain the covid-19 pandemic and reduce the number of infected in the country. Students did
no’t have formal classes from March 2020 to October 2020 and did not have face-face class for
almost 2 years in the Philippines (ABConservation, 2022). Students from public schools were
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enrolled under the modular learning system of where students will be provided with the sets of
self-learning materials that distributed to parents and guardians of the student while universities
and some private schools practiced blended learning system through online classes.
Luckily, in August 2022, schools in the Philippines like Pedro Guevara Elementary
School in Manila, which had shut classrooms since March 2020, has adopted a hybrid system of
in-person and remote learning as it transitions its nearly 6,000 students back to face-to-face
classes (Agence France-Presse, 2022). Now, despite of the struggles it has faced and still
facing, the Philippine Education, through the government, is exploring ways to improve the
quality of education and the state of the learning environment for the Filipino students.
Aside from these, when the pandemic hit the globe, especially the Philippines, it has
highlighted the urgent need to redefine agricultural systems as food systems, the connection
between supply chains and consumption patterns, as well as the role of the government in
cultivating stakeholders. According to the Department of Agriculture (2022), the Covid-19
pandemic decreased the volume of agricultural production by 3.11 percent or 17.03 million tons
because of a decline in agricultural farm labor affecting about 100.77 million people. Because of
this, innovation is crucial for efficient production and to increase productivity.
Then, after two years of contraction due to the COVID-19 pandemic, the agriculture
industry in the Philippines finally showed signs of recovery in 2022, although it remains to reflect
a slower growth in comparison to the pre-pandemic periods. Preliminary figures for 2022
reported about a quarter of employed Filipinos work in the agricultural sector which is made up
of four sub-sectors: farming, fisheries, livestock, and forestry. In the same year, the sector
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generated a gross value added (GVA) of about 1.78 trillion Philippine pesos, equivalent to about
8.9 percent of the gross domestic product of the country (Statista, 2023).
Lastly, the COVID-19 pandemic has impacted the globalization of the Philippines in
terms of international trade. In consonance with Arenas, et. al. (2022), a new world banking
paper showed that domestic lockdown measures did not significantly affect international trade
but external lockdowns affected both imports and exports. In a study about the impacts of
lockdown policies on International trade in the Philippines, using a monthly series of product-by-
country data for the period from January 2019 to December 2020 and an event-study design, it
showed that introduction of lockdown measures by trading partners led to a 7% and 57%
monthly average drop in export and import values respectively. This was largely influenced by
the fall in trade at the extensive number of products or margin.
The Philippines' economy recovered well from the pandemic, but it has subsequently
had to deal with a number of major international shocks. Growth fell from 7.6 percent in 2022 to
4.3 percent in the second quarter of 2023, mostly as a result of tighter policies and a collapsing
global economy. Growth is expected to pick up steam by year's end, reaching 6.0 percent in
2024 after bottoming out at the end of the second quarter. This will be aided by an increase in
public spending and better foreign demand for Philippine exports (IMF Staff Completes 2023
Article IV Mission to the Philippines, 2023).
In this study, the researchers provide information about the economic impact of the
COVID-19 pandemic on the globalization of the Philippine economy in terms of employment,
tourism, education, agriculture, and global trade. Despite the improvement and recovery of the
economy after the pandemic, it is necessary for policymakers and other stakeholders to be
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aware of the gaps and problems the country experienced amidst the pandemic to create
solutions for future occurrences.
Key Statistics
Unemployment Rate
According to the Labor Force Survey, in 2019, the Philippines recorded an
unemployment rate of 5.1%, marking a modest 0.2% decrease from the preceding year.
However, the onset of the COVID-19 pandemic in 2020 led to a sharp rise in unemployment,
with the rate climbing to 10.3%, representing a significant 5.2% increase from 2019 as
presented in “Table 1”. This surge in unemployment reflected the widespread economic
disruptions caused by the pandemic, including lockdowns, business closures, and disruptions to
global trade.
Labor Force
Employment Underemployment Unemployment
Participation
Philippines Rate Rate Rate
Rate
(%) (%) (%)
(%)
2019 61.3 94.9 13.8 5.1
2020 59.5 89.7 16.2 10.3
2021 63.3 92.2 15.9 7.8
2022 64.7 94.6 14.2 5.4
2023 64.7 95.4 12.5 4.6
Table 1. Key Labor and Employment Indicators
Note: The data is from “Labor Force Survey” by Philippine Statistics Authority, Republic of the
Philippines. (2023, December 7). https://psa.gov.ph/statistics/labor-force-survey

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Encouragingly, as showed in “Table 1” as well, 2021 saw a positive turn of events, with
the unemployment rate decreasing to 7.8%, a 2.5% improvement from the previous year. This
reduction could be attributed to the gradual economic recovery and the implementation of
measures to mitigate the impact of the pandemic on businesses and employment. The year
2022 witnessed a further decline in the unemployment rate, reaching 5.4%, indicating a 2.4%
decrease from 2021. This decline aligns with the global trend of recovery as countries adapted
to the challenges posed by the pandemic and worked towards restoring economic stability. As
we look ahead to 2023, there is a cautiously optimistic estimate of the unemployment rate
dropping to 4.6%. This projection suggests a continued recovery and stabilization of the
Philippine job market, signifying resilience and adaptability in the face of global challenges
(Labor Force Survey | Philippine Statistics Authority | Republic of the Philippines, 2023).
Changes in the unemployment rate have a direct connection to the Philippine economy's
globalization. Because of the global interconnectedness of economies, global events such as
the COVID-19 pandemic have an impact on local labor markets. The initial increase in
unemployment in 2020 mirrored problems in global trade and supply chains, highlighting the
Philippines' vulnerability to external shocks.
Inflation Rate
Inflation, as influenced by the repercussions of the COVID-19 pandemic, serves as a
barometer for the economic challenges faced by the Philippines on the global stage. The trends
observed underscore the need for strategic economic policies and measures that balance the
forces of globalization with the imperative of maintaining stability and resilience in the face of
uncertainty. As the nation progresses, fostering a nuanced approach to economic dynamics will
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be pivotal in navigating the complexities of a rapidly evolving global landscape (Philippines
1963-2023, n.d).
Table 2. Year-on-Year Inflation Rates in the Philippines
Year
Month
2018 2019 2020 2021 2022 2023
January 3.4 4.4 3 3.7 3 8.7
February 3.7 3.8 2.5 4.2 3 8.6
March 4.3 3.4 2.2 4.1 4/0 7.6
April 4.3 3.2 1.8 4.1 4.9 6.6
May 4.6 3.2 1.6 4.1 5.4 6.1
June 5 2.7 2.3 3.7 6.1 5.4
July 5.8 2.2 2.4 3.7 6.4 4.7
August 6.6 1.4 2.2 4.4 6.3 5.3
September 6.9 0.5 2.2 4.2 6.9 6.1
October 6.9 0.6 2.3 4 7.7 4.9
November 6.1 1.2 3 3.7 8 4.1
December 5.2 2.4 3.3 3.1 8.1
Average 5.2 2.4 2.4 3.9 5.8 6.2
Note: The data is from Philippine Statistics Authority, Retail Price Survey of Commodities for the
Generation of Consumer Price Index. Republic of the Philippines. (2023, November 7).
https://psa.gov.ph/content/summary-inflation-report-consumer-price-index-2018100-october
2023
As shown in the “Table 2”, the year 2019 presented a favorable economic landscape,
marked by an inflation rate of 2.4%, reflecting a notable 2.8% decline from the preceding year.
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The Philippine economy maintained stability in 2020, with the inflation rate holding steady at
2.4%, showcasing resilience despite the global challenges posed by the pandemic. However, as
the world grappled with the ongoing effects of COVID-19, 2021 witnessed a shift, with the
inflation rate rising to 3.9%. This represented a 1.5% increase from the previous year, signaling
the beginning of inflationary pressures linked to the pandemic's impact on supply chains and
global economic dynamics. The year 2022 recorded a further increase in the inflation rate,
reaching 5.8%. This 1.9% uptick from 2021 highlighted the persistent challenges posed by the
global landscape and the need for economic adaptability in the face of evolving circumstances.
Looking ahead to 2023, there is an estimated inflation rate of 6.2%. This projection suggests a
continuation of inflationary pressures, underlining the ongoing challenges posed by the lingering
effects of the COVID-19 pandemic on the global and Philippine economy.
Demographics
The COVID-19 pandemic has significantly influenced the globalization of the Philippine
economy, particularly in the realm of demographics. The impacts are diverse, affecting
migration patterns, labor dynamics, and the use of digital technologies and skills.
Migration Patterns
The pandemic has altered the traditional migration patterns of Filipinos, both within the
country and abroad. The enforced lockdowns, travel restrictions, and economic uncertainties
prompted many Overseas Filipino Workers (OFWs) to return home. According to data from the
Philippine Statistics Authority (PSA), Around April to September 2020, approximately 1.77
million Filipinos were working in other countries. Most of them, about 1.71 million, had contracts
for their jobs, about 96.4% of all those working abroad during that time.
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Figure 1. Number of Overseas Filipino Workers and Overseas Contract Workers
in 2019 and 2020
Note: Reference period is April to September 2019 and April to September 2020
Estimates were based on the 2015-based Population Projections. Reprinted from
Philippine Statistics Authority, 2019 and 2020. Survey on Overseas Filipino.
https://psa.gov.ph/sites/default/files/iesd/202212/2020
The number of Filipino workers overseas decreased by about 18.6% from 2019 to 2020,
which is like 405.62 thousand fewer workers. Just before the COVID-19 pandemic in 2019,
there were 2.18 million OFWs. Out of these, 2.11 million had work contracts, and around 69
thousand were other Filipino workers with the right visas and permits (2020 Overseas Filipino
Workers (Final Results) | Philippine Statistics Authority | Republic of the Philippines, 2022).
Figure 2. Number of Overseas Filipino Workers and Overseas Contract Workers
in 2021 and 2022

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Note: The estimates cover overseas Filipinos whose departure occurred within the last five (5) years and
who are working or had worked abroad during the past six months (April to September) of the survey
period. Reprinted from Philippine Statistics Authority, 2021 and 2022. Survey on Overseas Filipino.
https://psa.gov.ph/statistics/survey/labor-and-employment/survey-overseas-filipinos
Now, fast forward to April to September 2022, and the number of OFWs increased to
1.96 million. That's 7.6% more than the 1.83 million OFWs during the same months in 2021
(Survey on Overseas Filipinos | Philippine Statistics Authority | Republic of the Philippines,
2023). Out of all these workers, 1.94 million had work contracts. So, it seems like more Filipinos
are now getting opportunities to work abroad.
Labor Dynamics and Digital Transformation
According to Secretary Bonoan (2023). the COVID-19 pandemic was an eye-opener as
we realized the significance and benefits of harnessing digital technology to continue business
operations without disrupting important government services that the general public depends on
(Press Releases, 2023).

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The global economic slowdown made the Philippines think hard about how people do
their jobs. It messed with how jobs and businesses connect. Because everyone started working
from home and using more tech stuff, businesses had to switch things up. Even big shots like
the Business Process Outsourcing (BPO) industry in the Philippines had to start doing remote
work. This shook up the usual way people did their jobs in offices.
Around the same time, due to the pandemic, people started using technology more.
Businesses began doing more things on the internet, like selling stuff and talking to each other.
This meant everyone had to get better at using digital tools, and suddenly, there was a big need
for these skills. Jobs started asking for more tech smarts too.
Skills
The pandemic highlighted the importance of learning new skills in times of economic
uncertainties. The Philippine government launched programs to enhance the skills of the
workforce, aligning them with the demands of a changing global economy. It's about getting the
right skills to do our jobs well in this big, ever-changing world.
Gross Domestic Product (GDP)
In 2019, the Philippine GDP stood at $376.82 billion, showcasing an impressive 8.64%
increase from the previous year. This upward trajectory was a testament to the country's
economic vigor. However, the onset of the pandemic in 2020 brought about a challenging
scenario, resulting in a 4% decline in GDP to $361.75 billion. Despite the setbacks in 2020, the
Philippine economy exhibited resilience. In 2021, the GDP rebounded with a remarkable 8.94%
increase, reaching $394.09 billion. This recovery, driven by strategic interventions and
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adaptability, showcased the nation's ability to navigate adversity. The momentum continued into
2022, with a 2.59% increase in GDP, reaching $404.28 billion. This growth signaled a sustained
recovery, bolstered by efforts to adapt to the 'new normal.' Looking ahead, a positive outlook is
anticipated, with an expected GDP of $427.73 billion by the end of 2023.
Figure 3. Gross Domestic Product from 2014 to 2022
Note: From World Bank, by Trading Economics (n.d). https://tradingeconomics.com/philippines/gdp
The unprecedented disruptions caused by the pandemic, including lockdowns and
supply chain disruptions, significantly impacted the global economy. The Philippines was not
immune to these challenges, and the 2020 GDP contraction mirrored the global economic
downturn.
Gross National Product (GNP)
Figure 4. Gross National Product from 2014 to 2023

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Note: From CEIC Data (1981-2023). https://tradingeconomics.com/philippines/gdp
The year 2019 saw the Philippines flourishing with a GNP of $416.22 billion, marking a
heartening 5.3% increase from the previous year. This robust growth reflected the nation's
increasing prosperity. However, the onset of the pandemic in 2020 introduced unforeseen
challenges, resulting in a significant dip to $375.81 billion with a 9.71% decline echoing the
global economic downturn. The resilience of the Filipino spirit shone through in 2021, with a
7.55% increase in GNP, reaching $404.20 billion. This rebound was a testament to the
collective determination to overcome adversity and rebuild lives and communities. The year
2022 witnessed a remarkable recovery, with a 13.07% increase in GNP, reaching $457.02
billion. This resurgence reflected the nation's adaptability, innovation, and collaborative efforts to
reposition itself in the global landscape. As of September 2023, the GNP stands at $116.257
billion, signaling a continued trajectory of recovery. The ongoing efforts of individuals,
communities, and the nation as a whole contribute to this ongoing narrative of resilience and
renewal.
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Public Healthcare System
One of the most immediate and tangible effects of the pandemic has been the strain on
the Philippine healthcare system. The surge in COVID-19 cases necessitated a rapid and
comprehensive response, exposing both strengths and weaknesses in the existing
infrastructure. According to the Department of Health (DOH) Philippines in 2020, the pandemic
led to an increased demand for healthcare services, testing the resilience of public hospitals and
healthcare facilities across the nation.
The interconnectedness of the global community became glaringly evident as the
Philippines sought assistance and cooperation from international organizations and partners.
The World Health Organization (WHO) played a crucial role in providing technical support,
expertise, and access to vital resources. This collaborative effort highlighted the importance of
global solidarity in addressing public health crises.
Moreover, the pandemic acted as a catalyst for advancements in telemedicine and
digital health solutions in the Philippines. The government, in collaboration with private entities,
worked towards enhancing the accessibility of healthcare services through virtual platforms.
This shift towards digital healthcare not only addressed immediate challenges posed by the
pandemic but also paved the way for a more inclusive and technologically-driven healthcare
system (Others, 2022).
In terms of policy changes, the Philippine government implemented measures to
strengthen the public health system's capacity and resilience. Increased budget allocations for
health, as reflected in the national budget, signaled a commitment to fortify the country's
healthcare infrastructure. The integration of lessons learned from the pandemic into future
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healthcare policies underscored the need for adaptive governance in the face of global health
threats (Management, n.d.).
The impact of the COVID-19 pandemic on the globalization of the Philippine economy in
the realm of public healthcare has been profound and multifaceted. It has prompted a
reassessment of healthcare infrastructure, global collaborations, digital solutions, and policy
frameworks. As the Philippines navigates the ongoing challenges posed by the pandemic, the
lessons learned and the collaborative efforts undertaken will undoubtedly shape the future of the
nation's public healthcare system.
Budget
The COVID-19 pandemic has left an indelible mark on the globalization of the Philippine
economy, particularly when examining its impact on the national budget. At the outset of the
pandemic, the Philippine government faced the daunting task of addressing both the immediate
health crisis and its economic ramifications. The need for extensive healthcare measures, social
assistance programs, and economic stimulus packages compelled the government to reassess
its budgetary allocations.
According to data from the Department of Budget and Management (n.d.), there was a
notable shift in spending priorities to accommodate the exigencies brought about by the
pandemic. The DBM has released a total of P64.169 billion since 2021 to cover the payment of
COVID-19 allowances and the compensation of eligible healthcare and non-healthcare workers.
This amount is estimated to cover a total of P4,359,140 health emergency allowances and
compensation claims (DBM: Almost P20-billion Allocated for Healthcare Workers’ Allowances,
COVID-19 Compensation in 2024; P64.17-billion for Claims Released Since 2021, n.d.).
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The pandemic-induced economic slowdown had a tangible impact on government
revenues, with decreased economic activity leading to reduced tax collections. This compelled
the government to adopt innovative strategies to generate funds. The issuance of bonds and
securing financial assistance from international organizations became crucial components of the
government's fiscal toolkit. The Asian Development Bank (ADB) played a pivotal role in
providing financial support to help the Philippines weather the economic storm.
The human dimension of the budgetary adjustments is most evident in the
implementation of social assistance programs aimed at mitigating the impact of the pandemic
on vulnerable populations. The Department of Social Welfare and Development (DSWD)
spearheaded initiatives such as the Social Amelioration Program (SAP), which provided
financial aid to affected families. This not only demonstrated a commitment to social equity but
also highlighted the interconnectedness of economic policies and the well-being of Filipino
citizens.
The education sector also witnessed budgetary shifts, reflecting the challenges posed by
the pandemic. The Department of Education (DepEd) had to adapt its budget to support
distance learning initiatives, invest in technology, and provide support to teachers and students.
The education budget became a critical tool in ensuring continuity in learning amid the
disruptions caused by the pandemic.
The impact of the COVID-19 pandemic on the globalization of the Philippine economy,
as seen through the lens of the national budget, is a narrative of adaptability, innovation, and a
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commitment to human welfare. The budgetary response to the pandemic underscored the
importance of adaptability and resilience in the face of unprecedented challenges.
Infrastructure
One of the immediate effects of the pandemic on the Philippines' infrastructure was the
disruption of ongoing projects due to lockdowns and restrictions. Construction activities, a vital
component of the nation's infrastructure development, faced setbacks, leading to delays and
cost overruns. The National Economic and Development Authority (NEDA) reported a decline in
infrastructure spending in 2020, reflecting the hurdles encountered by the construction sector.
The human face of these disruptions was felt keenly by the labor force engaged in
construction. Workers faced uncertainties as projects were put on hold, leading to financial
strains for many families. The construction sector, which had been a significant source of
employment, witnessed a decline in job opportunities. The impact on the livelihoods of these
workers underscored the interconnectedness between infrastructure development and the well-
being of individuals and communities.
As the pandemic unfolded, the resilience of the Philippines' infrastructure was put to the
test. The Department of Public Works and Highways (DPWH) played a pivotal role in adapting
to the challenges. Embracing a "new normal," the department intensified efforts to incorporate
technology into infrastructure projects. The use of digital tools and virtual collaboration became
essential in ensuring the continuity of planning and implementation. In April 2023, the DPWH
signed an MOU with the DICT to ensure faster, more streamlined, and convenient service
delivery to its stakeholders nationwide.

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Furthermore, the pandemic prompted a reevaluation of infrastructure priorities, with a
heightened focus on digital infrastructure. The DICT created the National Broadband Plan
(NBP) intending to accelerate the deployment of fiber optic cables and wireless technologies
throughout the country, particularly in outlying or remote areas, in order to improve the country's
overall internet speed (Department of Information and Communications Technology, 2017).
In the global context, the pandemic emphasized the need for resilient and
interconnected infrastructure. The Asian Development Bank (ADB) provided support to the
Philippines, acknowledging the importance of infrastructure investments in economic recovery.
This collaboration highlighted the interconnectedness of global financial institutions and the
Philippines' efforts to strengthen its infrastructure backbone.
Global Economic Prospect
According to information found in the book "Southeast Asia: Rising from the Pandemic,"
2020 witnessed a severe contraction in Southeast Asia due to border restrictions and lockdowns
imposed to curb the spread of the coronavirus disease (COVID-19). Some economies in the
region suffered more severe damage than others. However, Southeast Asia is only now, two
years after the pandemic began, starting to recover slowly. The pace of recovery, however,
remains uneven and is susceptible to changes in the pandemic's trajectory. In addition to
providing a closer look at a few key drivers of economic growth for Cambodia, Indonesia, the
Lao People's Democratic Republic (Lao PDR), Malaysia, the Philippines, Thailand, Timor-Leste,
and Viet Nam, this research also outlines recovery possibilities and long-term challenges for the
area. These growth drivers include bolstering existing ones and encouraging the development
of new ones, especially those that help diversify growth sources for nations heavily reliant on
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natural resources. The report's policy suggestions aim to assist governments in implementing
their post-COVID-19 recovery strategies and ensuring robust, equitable growth for everyone.
The tourism industry plays a crucial role in output growth and job creation in the area.
However, the recovery of the tourism sector from the COVID-19 pandemic depends on the
extent of disruption caused. Due to travel restrictions and social distancing measures, the
current state of tourism-related goods and services, such as lodging and entertainment, is
unlikely to improve. In July to September 2021, foreign visitor numbers increased by 58%
compared to the same period in 2020, but it remained 64% lower than the levels in 2019.
Domestic travel and summer travelers from the northern region contributed to this improvement.
However, travel to Asia and the Pacific remained 95% below 2019 levels due to restrictions on
unnecessary travel. This will continue to negatively impact economic growth expectations in
Southeast Asia, particularly in countries like Thailand and Cambodia, which heavily rely on
foreign travel.
Additionally, according to the same book, policymakers should consider more expansive
and extensive structural changes to increase productivity in the area. Currently, a reform
movement is gaining momentum in the region, aiming to improve and be more environmentally
friendly. Much of Southeast Asia harbors a sincere desire to enhance the health of the country's
mechanisms, simplify national laws to encourage competition, make wise investments in
hygienic infrastructure to promote development, and embrace innovation and technology to
foster a sustainable economy. In light of these objectives, implementing top priority reforms can
contribute to a stronger and more resilient financial and social structure in the area: (i)
Promoting the health and well-being of people in the region. (ii) Accelerating market reopening,
24
creating jobs, and supporting MSMEs. (iii) Building competitiveness and human capital. (iv)
Governments in the region need to lead efforts to take care of our planet.
Indonesia: Boosting Post-Pandemic Productivity Prospects
There is a chance that the COVID-19 epidemic will leave economies with long-term
damage. Although forecasting these consequences is difficult, preliminary data suggest that
scarring is not expected to be significant in Indonesia. The economy experienced a slight
downturn, but it recovered quickly. There's a fair likelihood that some of the advances in labor
productivity can be maintained. Indonesia is implementing changes to increase productivity and
investment. However, a great deal of uncertainty still exists, and in 2022, the likelihood of
negative outcomes has grown. Continued macroeconomic policy flexibility will be necessary to
maintain the recovery, including social safety nets and stimulus plans if necessary. To mitigate
the risk of damage and foster sustainable development, structural adjustments are essential to
boost public infrastructure, employment opportunities, education and training, and private capital
(Southeast Asia Rising From the Pandemic, 2023).
Cambodia: Identifying Drivers for a Stronger Recovery
The government of Cambodia has been able to relax restrictions and reopen its borders
due to the country's exceptional vaccination record, which considerably outperforms that of
other nations with comparable populations and income levels. Acting from a strong position,
Cambodia has effectively contained the pandemic and reported comparatively few deaths.
Despite this encouraging outcome, the pandemic has severely damaged Cambodia's economy.
The travel and hospitality industry has collapsed, the building and textile industry have survived
significant shocks, while the real estate sector has significantly slowed. Fortunately, there have
25
also been some positive aspects, such as a sharp rise in exports of goods other than clothing
and a significant increase in exports of agricultural products. Maintaining these patterns will
assist the government in realizing its goal of a more diverse and resilient economy.
Thailand: Recharging the Future of Tourism
Thailand's exports of goods and investments in export-oriented industries have returned
to pre-pandemic levels, but the services sector—particularly tourism, which accounted for over a
fifth of the nation's GDP and employment before the pandemic—is likely to recover more slowly.
However, the government views the pandemic as an opportunity to restructure the travel and
tourist sector, shifting from low-density, mass tourism to high-value, low-density tourism. This
strategic shift aims to improve economic resilience and align development strategies with
climate goals. The government is also making significant efforts to boost local travel, especially
given the expected gradual recovery of foreign travel. The utilization of digital platforms as a
vital tool to revitalize the tourism sector and infrastructure investments to modernize national
transportation links are two more areas undergoing significant transformation.
Vietnam: Leveraging Digital Transformation to Power Post-Pandemic Economic
Recovery
A fourth wave of COVID-19 infections has severely impacted Vietnam's economy,
resulting in a steep decline in investments, consumption, and industrial production, with an even
worse impact on people's lives and enterprises. Consequently, Vietnam's GDP grew by a mere
2.6% in 2021. Nevertheless, the economy is anticipated to return to its pre-pandemic growth
26
rate of 6.5% to 7.0% in 2022 and beyond due to the rapid digitization of the economy, persistent
global economic recovery, and other important growth-promoting factors.
In the recent five years, the nation has made significant strides in establishing a digital
economy, evident in advancements in cybersecurity, digital platforms, the information and
communication technology (ICT) industry, digital infrastructure, and the legal framework. A
young and tech-savvy population, along with a surge in smartphone usage and increased
reliance on digital payments during the pandemic, has collectively propelled noteworthy
progress in digital finance. Banks, securities, and insurance, the three financial sub-sectors,
have all achieved success in embracing new digital technologies within the past five years. Viet
Nam's digital finance sector is poised for unprecedented growth in 2021–2025 and beyond,
driven by its focus on promoting non-cash payments, financial inclusion, and green finance. This
growth is attributed to the government's strong commitment to the sector and the
implementation of policies, incentives, and regulations for startups and emerging financial
services, including a "sandbox regime" for testing new products (Southeast Asia Rising From
the Pandemic, 2023).
THEORETICAL FRAMEWORK
General Theory of Employment, Interest, and Money
The General Theory of Employment, Interest, and Money, or the Keynesian Theory was
written by economist John Maynard Keynes in 1936. This theory states that employment
revolves around the idea that the level of employment in an economy is primarily influenced by
the level of aggregate demand. Keynesian theory declares that fluctuations in aggregate
27
demand significantly influence employment levels. It avers that managing and stabilizing
aggregate demand through government policies is crucial to preventing involuntary
unemployment and maintaining a healthy level of employment in the economy.
This Keynesian Theory supports the study of discovering the economic impact of the
COVID-19 pandemic on Philippine Globalization in terms of employment because the pandemic
has caused a significant global demand shock, disrupting international trade and leading to
reduced demand for Philippine exports. This decline in aggregate demand resulted in increased
unemployment as businesses cut production and lay off workers. The theory highlights the
concept of involuntary unemployment, suggesting that individuals may lose their jobs not by
choice but due to economic circumstances. The pandemic-induced economic downturn has
likely resulted in involuntary unemployment for many individuals in various sectors.
Tourism Area Life Cycle Model
This study is anchored on the theory “Tourism Area Life Cycle Model" by Butler (1980),
with sustainability principles to provide a comprehensive understanding of the evolution and
management of tourist attractions. Beginning with the Exploration stage, characterized by
limited visitors and minimal local economic benefits, the framework emphasizes the importance
of preserving cultural and natural integrity and involving the community in decision-making. As
attractions progress through the Involvement, Development, and Consolidation stages, the
focus shifts to sustainable infrastructure development, responsible tourism practices, and
addressing socio-cultural concerns. The Stagnation stage underscores the need for
environmental conservation and diversification. Post-Stagnation, two possibilities emerge: the
Decline stage prompts evaluation for alternative uses and community involvement in
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repurposing, while Rejuvenation requires innovation in attractions, public-private partnerships,
and sustainable development strategies.
The COVID-19 pandemic has significantly impacted the global tourism industry, affecting
various stages of the Tourism Area Life Cycle (TALC) model. Initially, travel restrictions led to a
decline in tourism during the Exploration stage. This economic model supports this study as the
Involvement, Development, and Consolidation stages saw efforts to adapt to health and safety
protocols and address socio-economic challenges. The Stagnation stage highlighted the need
to balance economic recovery with environmental conservation. Post-stagnation, some
destinations faced a Decline, prompting evaluations for alternative uses, while others focused
on Rejuvenation through innovation and sustainable strategies.
Production Theory
According to the Production Theory, disruptions in the availability of crucial resources
like labor, supply chains, and capital can have profound effects on the agricultural production
process. This theory draws on concepts from different economic perspectives. Economists in
the neoclassical tradition, such as Alfred Marshall and later economists, emphasize the
importance of resource allocation and efficiency in production (Colman & Young, 1989).
The Production Theory states that disruptions in crucial resources can impact
productivity and output. This theory is applicable in assessing the impact of supply chain
disruptions on agricultural activities, considering interruptions in the flow of inputs and outputs. It
supports this study as the pandemic-induced constraints may have led to shifts in production
functions, altering the mix of crops, cultivation practices, and technology adoption. The Law of
Diminishing Marginal Returns is particularly relevant, suggesting that increased use of certain
29
inputs may not have resulted in proportional output increases due to pandemic-induced
limitations.
Heckscher-Ohlin Model
The Heckscher-Ohlin Model is an economic theory that proposes that countries export
when they can most efficiently and plentifully produce. It explains how a nation should operate
and trade when resources are imbalanced throughout the world. This theory was written by Eli
Heckscher, Bertil Ohlin, and Paul Samuelson who expanded this model. The model emphasizes
the benefits of global trade and benefits to everyone when each country puts the most effort into
exporting resources that are locally and naturally abundant (Kopp, 2022).
The theory is rooted in the concept of comparative advantage suggesting that countries
should play to their strengths and specialize in producing goods where they have a relative
abundance of factors of production. This supports this study particularly in the impact of the
pandemic in terms of global trade because the COVID-19 pandemic affected industries, causing
changes to resource availability and production efficiency. Countries engage in global trade
based on their comparative advantage, and this model suggests that disruptions caused by the
pandemic may have influenced the types of goods that the Philippines can efficiently export,
affecting global trade. Because of disruptions, there may be changes in production patterns
leading to changes in exports and imports.
Mastery Learning Theory
The Mastery Learning Theory prioritizes clear learning objectives, allowing personalized
student progression. Continuous assessment, timely feedback, and targeted remediation

30
address diverse learning needs, ensuring mastery through criterion-referenced testing.
Introducing three learning domains: Cognitive, Affective, and Psychomotor this underscores the
theory's acknowledgment of multifaceted learning. In essence, Bloom's theory emphasizes
personalized and in-depth learning, contrasting with traditional uniform teaching methods
(Bloom, 1968).
The key principles of the Mastery Learning Theory, such as flexibility, tailored
methodologies, and ongoing assessment, resonate strongly with the challenges posed by the
global impact of COVID-19 in the Philippines. This theory supports this study as both
phenomena underscore the necessity for tailored strategies in addressing diverse challenges,
highlighting the significance of specific aid and a comprehensive understanding of evolving
circumstances.
III. Review of Related Literature and Studies
Economic Impact of COVID-19 Pandemic in terms of Global Trade
Local
The relationship between globalization and the economy of the Philippines has been the
subject of continuous discussion and investigation. Migrants and international trade have been
more significant than financial globalization in the Philippines. Globalization may have boosted
the economy and the number of jobs available, but research on its effects on poverty and
inequality is still initiated, and conclusions have been mixed. Because of globalization, several
sectors in the job market have benefited and suffered. To lessen the negative effects of
31
globalization and pave the way for changes to narrow the gap between the well-off and the
poor, more inclusive policies may be required.
The Bangko Sentral ng Pilipinas has played a key role in achieving this objective through its
mandated efforts to keep inflation low and stable, increase access to financial services, and
strengthen rule-based global transactions (Guinigundo, 2018). Recognizing that reversing
globalization through protectionist measures is not the answer to the problems caused by
globalization is crucial. Less economic growth, increased inflation, and disruptions to global
value chains leading to job losses are all possible outcomes of such a strategy. On the contrary,
lessening the impact of globalization's negative side effects and helping people adjust is
essential if we want to see the gap between the well-off and the poor reduced. That could mean
making producers more productive and competitive on a global scale, or it could mean
retraining workers so they can get better-paid employment.
The Philippines is a perfect example of a country where the federal government,
businesses, and nonprofits must work together to help underprivileged people in urban and rural
barangays gain access to technology and training. Equally critical is ensuring that Filipino
migrants can participate in the development of their country and that their rights are protected,
especially when they reintegrate. The Bangko Sentral ng Pilipinas, like other central banks,
needs to learn more about the effects of globalization on inflation, financial stability, and the
economy if it wants to solve these problems.

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Foreign
Before the emergence of the COVID-19 pandemic, the Philippines stood out as one of the
most vibrant economies in East Asia. The country's economic vitality hinged on several key
factors, including robust consumer demand, a flourishing labor market, and the crucial inflow of
remittances from overseas Filipinos. Moreover, the Philippines benefited from a wave of
urbanization, the growth of a burgeoning middle class, and the presence of a youthful
demographic, all of which acted as driving forces behind its economic prosperity. However, the
onset of the Coronavirus Disease2019 (COVID-19) pandemic in 2020 has brought about
significant disruptions to both daily lives and livelihoods. Governments worldwide, in a bid to
curb the spread of the virus, implemented restrictions on mobility and economic activities within
their respective territories. Regrettably, this global response resulted in a substantial decline of
3.36% in the global economy in 2020. (WorldBank,2020)
In the majority of pandemic situations, the implementation of social distancing measures and
various types of lockdowns enforced by nations globally resulted in significant disturbances on
the supply side of the economy, necessitating compulsory closures of businesses. Strong
consumer demand served as a backbone for the Philippine economy, with Filipinos actively
participating in domestic consumption, including retail, services, and real estate. This demand
fueled various industries, contributing to the nation's robust economic growth (deLara-
Tuprioetal.,2022). The thriving labor market was another crucial driver of economic progress.
The Philippines had been experiencing a demographic dividend with a large and youthful
workforce. This demographic advantage resulted in a substantial labor force, often sought after
by international companies for outsourcing and other industries, which further boosted the
economy.
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Economic Impact of COVID-19 Pandemic in terms of Education
Local
In the Philippines, the government decided to close Luzon's airports on March 20 as part
of the Enhanced Community Quarantine (ECQ) that commenced on March 16 within the island.
The tourism sector had already been feeling the adverse effects of the pandemic on its
performance much earlier. In various other countries, travel restrictions and preventive
measures were implemented as early as January of the same year, which subsequently
impacted the number of international tourists arriving in the Philippines. Simultaneously,
domestic tourists also curtailed their travel due to concerns about contracting COVID-19.
According to the Department of Tourism, international tourist receipts in the first quarter of the
year plummeted to PHP 85 billion, marking a 36% decrease compared to the revenues
Recorded during the same period the previous year (PricewaterhouseCoopers,2020).
The tourism industry in the Philippines, alongside overseas Filipino remittances and
business process outsourcing, significantly contributes to the country's positive external
payments balance and overall economic growth. It stands as one of the primary sources of
employment in the nation, benefiting a wide spectrum of enterprises and individuals while also
sustaining consistent foreign exchange (FX) inflows. However, due to the large number of
people employed in the tourism sector and the close interactions inherent in the industry, it bore
a substantial brunt of the COVID-19 pandemic. Encouragingly, the industry's outlook is
becoming more optimistic as mass vaccination efforts expand, and travel restrictions diminish
(Kalonda,2023).
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As discussed, the tourism industry emerged as one of the hardest-hit sectors during the
COVID-19 pandemic, leading to a cascade of macroeconomic and microeconomic implications.
The repercussions included a surge in the unemployment rate to 10.4%, an increase in the
poverty rate, diminished household income, and a reduction in job opportunities across various
sectors linked to the tourism industry, such as transportation, travel agencies, tour guides,
hospitality, and food supply, among others.
Foreign
The global spread of COVID-19 has posed a formidable challenge to the field of
education, particularly in the Philippines. Predictably, the closure of schools has brought about a
myriad of consequences that could potentially undermine both the social and economic
development of communities in the country. Furthermore, it has imposed severe hardships on
Filipino learners. According to UNESCO (n.d.), the adverse effects of school closures
encompass disrupted learning, perplexity, and stress for educators, unprepared parents for
remote and homeschooling, challenges in establishing, maintaining, and enhancing distance
learning, and an alarming rise in dropout rates. Given these repercussions, there is a growing
yearning for the reopening of schools, as mounting evidence suggests that distance learning
falls short in comparison to in-person instruction.
In response to the COVID-19 pandemic, the Philippines resorted to school closures as a
containment measure, prompting a shift towards distance learning mandated by the Department
of Education. Government data reveals that merely around 18 percent of Filipino households
possess internet access at home, with notably lower penetration rates in rural areas (Santos, A.
35
P., 2021). The adoption of this learning modality may not be inclusive, particularly for students
residing in rural areas who lack the necessary technology to engage effectively with digital tools.
This situation poses a significant challenge for underprivileged students, perpetuating
educational disparities and encroaching on their right to education. Moreover, as reported by
UNICEF (n.d., as cited in Santos, 2021), over 80 percent of parents have reported slower
learning progress among their children studying from home, further underscoring the inefficiency
and ineffectiveness of the distance learning approach in educating Filipino students.
Economic Impact of COVID-19 Pandemic in terms of Agriculture
Local
The global health crisis, COVID-19, has had a significant effect on economies across the
globe, including the Philippines. In addition to affecting people's lives, it also has an impact on
business, the economy, education, and most importantly agriculture, where the majority of
people earn a living. Thus, the purpose of this review is to examine the body of research on how
the pandemic affected the Philippines economy's globalization, with an emphasis on the
country's agricultural industry and international trade.
The global supply chains have been disrupted by the COVID-19 pandemic, posing
serious challenges to the Philippines' agriculture industry. According to a study by Santos et al.
(2020), the pandemic has affected the production and distribution of agricultural products by
causing labor shortages, limiting access to inputs, and disrupting logistics and transportation.
Food prices have gone up as a result, and the nation's food security has declined. In addition,
36
because of supply disruptions, travel restrictions, and the collapse of both domestic and foreign
demand, imports and exports have decreased since the lockdown. This challenging business
agricultural sector.
The COVID-19 pandemic, however, has both positive and negative effects on the nation,
such as digital transformation. The agricultural industry has embraced digital technologies more
quickly as a result of the COVID-19 pandemic. In this instance, it's clear how the rapid
advancement of technology created a substitute for people to carry on with their agricultural
business operations. According to a study by Cruz et al. (2021), e-commerce and digital
platforms have been essential in facilitating trade and establishing connections between farmers
and consumers during the pandemic. Platforms such as TikTok, where numerous businesses
have set up accounts and engaged in live selling, serve as an illustration of this.
Foreign
The COVID-19 pandemic is not just affecting the Philippines; it is also affecting other
parts of the world. The pandemic caused significant disruptions to global supply chains, which in
turn led to a decline in demand for certain agricultural products, according to a study conducted
by Lin &Yu (2020). Measures like the travel ban and lockdowns also made it hard to move
goods, which had an additional negative effect on exports. Due to these constraints and
limitations, the agriculture industry finds it difficult to stay in business. Similar to Cruz et al.'s
study from 2021, China acknowledges the introduction and application of technology. According
to the authors, the pandemic has brought attention to the necessity of diversifying export
markets and making investments in technological solutions to lessen trade disruptions in the
future. In conclusion, the COVID-19 pandemic has significantly impacted the Philippines
37
economy's globalization as well as that of other nations, especially in the agriculture sector. The
pandemic has created opportunities for digital transformation in addition to its challenges.
Economic Impact of COVID-19 Pandemic in terms of Employment
Local
According to the study of Gonzales, Epetia, and Corpus (2023) The COVID-19
pandemic significantly impacted the Philippines' labor market, affecting employment and wages.
Across industries, skill levels, and work classes, the probability of employment declined,
accompanied by reduced daily working hours. While real daily wages moderately decreased
overall at the pandemic's onset, the agriculture sector experienced simultaneous increases in
employment and wages, reflecting robust demand. The pandemic's impact on the labor market,
especially in contact-intensive sectors, was more pronounced in terms of employment than real
wages. One year into the pandemic, the recovery varied among sectors, with some witnessing a
significant increase in employment probability. However, real wage recovery was less favorable
for women, particularly young females with middle-skill and high-skill jobs, facing wage cuts.
Male workers, notably in the rural sector, saw a recovery in real daily pay a year after
lockdowns.
Agriculture in the Philippines had a unique experience during the crisis, with its
employment share temporarily increasing, countering a 15-year declining trend. The sector
helped mitigate employment losses in non-agriculture sectors during the initial pandemic phase,
absorbing workers from construction and services. Although the probability of wage employment
in agriculture declined, indicating a shift from urban to rural areas and non-wage employment,
there was a simultaneous recovery in wage employment and real daily wages in the later
38
pandemic phase, revealing increased demand. The Philippine government responded to the
COVID-19 crisis with labor market policies, including social protection programs for displaced
workers, initiatives to boost private-sector-led economic recovery, and the National Employment
Recovery Strategy (NERS). NERS targets specific sectors and individuals facing harsh labor
market conditions, aiming to revive employment and wages.
Based on Anri Ichimura study (2020) The far-reaching economic repercussions of
COVID-19 are evident across all sectors, with the travel industry bearing a particularly heavy
blow. Disrupted supply chains, slowed trade linkages, and a virtual standstill in business travel
characterize the global landscape, with the Asian Development Bank's analysis projecting a
potential global impact ranging from $77 billion to $347 billion, contingent on the evolving
outbreak. In the Philippines, the best-case scenario foresees a 0.2 percent loss in total GDP,
amounting to $668.93 million (P33.89 billion) and approximately 87,330 job losses, while the
worst-case scenario predicts a 0.59 percent decline, translating to about $1.94 billion (P98.29
billion) and 252,130 job losses. The broader impact of COVID-19 extends to various industries,
with anticipated losses in agriculture, construction, business, and trade. Notably, the travel
sector, encompassing transport services and hospitality, faces severe setbacks, with the hotel
and restaurant industry expecting a $205.71 million loss and the transport industry projecting a
$149.95 million downturn.
Foreign
According to NEDA, the COVID-19 pandemic, officially declared a global crisis by the
World Health Organization on March 11, has left an indelible mark on the global economy. As
Europe became the new epicenter, by March 19, there were 218,823 confirmed cases and
8,810 deaths globally, with the Philippines reporting 217 cases, 17 deaths, and 8 recoveries. To
39
curb the virus, nations implemented measures like mass testing, travel restrictions, and
lockdowns, prompting adjustments in monetary and fiscal policies. This health crisis has
precipitated an economic downturn, potentially leading to a global recession. Notably, the
tourism sector, dependent on Chinese visitors, and exports, particularly with China as a key
trading partner, have suffered.
Overseas remittances, household consumption, and the Luzon-wide enhanced
community quarantine have further exacerbated economic challenges. The estimated
cumulative economic impact of COVID-19 is projected to range from 2.1 to 6.6 percent of
nominal GDP in 2020, with implications for the country's real GDP growth. With variations in
impact across economic classes, responsive measures should be fine-tuned to balance health
and economic objectives. Urgent efforts are required to bolster health systems for future
pandemics, emphasizing the need for a strategic transition to a new normal state of economic
activity. The estimated impact assumes adverse effects until June, underscoring the importance
of mitigating COVID-19's impact on the broader economy.
Economic Impact of COVID-19 Pandemic in terms of Tourism
Local
According to the study of Caynila, Luna, and Milla (2022) The Philippines' tourism sector,
vital for external payments and economic growth, faces COVID-19 challenges. Despite a
significant pandemic impact, recovery prospects arise with accelerated inoculation and eased
travel restrictions. Travel services contribute 20% to total service exports but dropped from
US$9.8 billion in 2019 to US$600 million in 2021 due to the pandemic. Pre-pandemic, tourism
drove economic growth, contributing 16.1% to GDP in 2019. However, the pandemic led to a
40
decline in domestic tourism expenditure and industry contraction, causing severe revenue loss
and unemployment. International tourist arrivals plummeted by 74% in 2020, showing a slight
recovery in 2021 but still below pre-pandemic levels. The Department of Tourism targets
domestic travel recovery by 2022, emphasizing promotion amid closed overseas markets.
Projecting robust travel receipt recovery in 2022, the DOT focuses on easing travel restrictions
for fully vaccinated international tourists. Tourism and travel export recovery hinge on global
vaccination progress, traveler confidence, and lifted restrictions. The DOT implements
measures like the Tourism Response and Recovery Plan (TRRP) and prioritized vaccination for
tourism frontliners. While Ukraine's war poses risks, the World Bank expects economic
reopening and vaccination progress to boost market confidence, especially in transportation,
domestic tourism, and retail trade.
According to PWC, the COVID-19 pandemic has severely impacted the global tourism
industry, with border closures, airport shutdowns, and mass gathering restrictions jeopardizing
around 100 to 120 million jobs, according to estimates from the World Tourism Organization. In
the first quarter of 2020, international tourist arrivals witnessed a 22% decline, resulting in an
estimated global tourism receipt loss of US$80 billion. The Philippine tourism sector felt the
brunt early on, with closures and restrictions causing a 36% drop in international tourist receipts
to PHP85 billion in the first quarter. A joint survey by PwC Philippines and the Department of
Tourism in May 2020 revealed that 97% of decision-makers across various subsectors
anticipated a significant impact from COVID-19, with 88% expecting losses exceeding 50% of
their 2020 revenues. Recovery efforts, including a proposed PHP1.3 trillion economic stimulus
package and PHP58 billion for tourism enterprises, aim to alleviate the financial strain.
Foreign
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Based on Science Direct (2020), the global tourism industry has undergone significant
disruption due to the COVID-19 pandemic, leading to a study that employed text mining
techniques to analyze traveler responses. Focusing on approximately 75,000 comments from
TripAdvisor forums between December 30, 2019, and March 15, 2020, the research honed in
on 23,515 cases from US, Europe, and Asia forums. Findings revealed that global crises
notably affect the tourism sector, prompting swift traveler decisions to cancel or delay plans
upon pandemic awareness. The study underscored a surge in discussions about travel
insurance as a means of financial protection against trip cancellations. Moreover, it highlighted
the pandemic's substantial impact on global mobility, surpassing previous epidemics like SARS,
primarily due to China's enhanced global role. The rapid dissemination of pandemic-related
information on social media was found to unsettle consumers and dampen economic activity.
Additionally, the study emphasized the heightened risk of epidemic or pandemic spread as a
major concern for the tourism industry, particularly as travelers explore distant destinations with
unfamiliar health risks. Analyzing TripAdvisor comments underscored travelers' rapid responses
to pandemic developments, with discussions predominantly revolving around canceling plans,
securing travel insurance, and navigating refund policies. The detailed analysis suggested the
imperative inclusion of travel insurance in future tourism packages, necessitating policy updates
for enhanced reliability and flexibility in refunds and plan changes.
IV. Conclusion
The impact of globalization on the Philippine economy across employment, tourism,
agriculture, education, and global trade has been a mixed tapestry of challenges and
opportunities, accentuated by the disruptive force of the COVID-19 pandemic.

42
Globalization, while creating job opportunities across various sectors, has showcased
disparities in employment patterns during the pandemic. The crisis triggered declines in
employment across industries, notably affecting women and rural workers. However, the
agriculture sector presented a unique narrative, experiencing a temporary rise in employment
share, albeit accompanied by fluctuations in wage employment.
The tourism industry, a significant contributor to economic growth, faced severe
setbacks due to pandemic-induced restrictions. Globalization's interconnectedness facilitated
international travel, yet the pandemic led to unprecedented declines in tourist arrivals, revenue
loss, and elevated unemployment within the sector. Recovery efforts centered on vaccination
progress and the gradual easing of travel restrictions for both domestic and international
tourism.
Globalization in agriculture accelerated technological adoption, offering solutions amid
supply chain disruptions. While challenges such as labor shortages, logistics disruptions, and
decreased food security emerged, the crisis expedited digital transformation in the sector.
Platforms facilitating trade between farmers and consumers emerged, highlighting a twirl toward
digital solutions in agriculture.
Globalization, intertwined with technological advancement, revealed educational
disparities during the pandemic. School closures and the shift to distance learning exposed the
digital divide, impacting underprivileged students disproportionately. Access to technology
became a critical determinant of educational continuity, accentuating the need for inclusive
educational policies.
43
The globalization of trade, a cornerstone of economic growth, faced disruptions that
reverberated across sectors. Global value chains were severely affected, causing declines in
exports and imports, impacting various industries. Efforts to stabilize aggregate demand and
mitigate the negative impacts of disruptions were crucial in navigating the challenges posed by
the pandemic.
In conclusion, while globalization has significantly contributed to the Philippine
economy's growth and interconnectedness with the global landscape, the pandemic exposed
vulnerabilities across sectors. Mitigating the adverse effects of globalization-related disruptions,
particularly in employment, tourism, agriculture, education, and global trade, entails strategic
policies aimed at strengthening resilience, bridging disparities, and fostering inclusive growth in
a post-pandemic era. The pandemic's impact underscores the imperative for a comprehensive
and adaptive approach to global integration, emphasizing the need for resilience-building
measures to navigate unforeseen challenges in the future.
V. Recommendations
Employment
The employment sector can benefit significantly from Skills Development and Reskilling
Initiatives. By investing in programs that enhance skills and retrain workers, the employment
landscape can adapt to emerging needs. This strategy aligns the workforce with industries
experiencing growth post-pandemic, while also aiding those affected by job losses in sectors hit
44
hardest by the pandemic. The execution plan involves identifying growth sectors, mapping
existing skills against future demands, developing targeted training programs, and offering
accessible training modules through online platforms and community centers. Incentives such
as stipends or scholarships can motivate individuals undergoing training, while regular
monitoring and evaluation ensure program effectiveness. To execute this plan effectively,
communicating with public-private partnerships for funding, collaborating with industry experts
for manpower, and utilizing existing educational or community spaces for training must be in
considerations.
Tourism
Encouraging domestic tourism growth is crucial for industry resurgence, reducing
reliance on international travel. Targeted promotional campaigns spotlighting local treasures
and cultural richness are important, paralleled by investments in tourism infrastructure like roads
and accommodations, especially in high-traffic zones. Collaboration with local stakeholders and
governments drives sustainable enhancements. Implementing strict safety standards aligns with
global practices, reinstating traveler trust post-pandemic. Crafting affordable tourism packages,
in tandem with local businesses, widens accessibility, while user-friendly digital platforms
enhance traveler experiences. Prioritizing infrastructure development in key tourist hubs,
supporting local labor, and simplifying logistics via partnerships sustainably rejuvenates
domestic tourism within budget limitations, using available resources effectively.
Agriculture
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Integrating digital solutions into agriculture through Digital Integration and Market Access
initiatives holds immense potential for enhancing market connections for farmers. By creating
user-friendly platforms that link farmers directly to consumers, this strategy strengthens food
supply chains while increasing farmers' incomes by removing intermediaries. The execution
plan involves developing digital platforms, providing training on e-commerce and quality control,
establishing partnerships with marketplaces, ensuring quality standards, and facilitating financial
access for technology investment. To execute this plan effectively despite budget constraints,
starting with pilot programs in select regions before nationwide expansion is prudent. Using
existing community centers or agricultural hubs for training and employing a blend of agricultural
experts and tech professionals for manpower would optimize resources.
Education
Ensuring equal access to education through Bridging the Digital Divide and Teacher
Training initiatives is crucial. Providing devices and internet access to underprivileged students
while developing interactive digital learning materials aligned with the curriculum can bridge the
gap. Enhancing teacher training in online teaching methods further elevates the quality of
remote education. The execution plan involves technology distribution, curriculum development,
teacher training workshops, support systems, and community engagement. To navigate budget
constraints, focusing on high-need regions, utilizing volunteer educators or NGOs for training,
and partnering with telecom companies for discounted internet packages would optimize
resources.
Global Trade
46
Diversification of Export Markets and Streamlining Trade Processes. This strategic
approach aims to mitigate overdependence on specific regions and boost the economy against
global disruptions by diversifying export markets. Simultaneously, it seeks to optimize trade
procedures to enhance efficiency and diminish transaction costs for businesses. The execution
plan involves a multi-pronged strategy: First, conducting thorough market analysis to identify
untapped markets and emerging economies for export diversification. Second, fostering trade
agreements or partnerships to facilitate smoother exports to these new markets. Third,
improving trade facilitation processes by simplifying procedures, reducing paperwork, and
expediting customs clearance. Fourth, initiating export promotion campaigns that spotlight
Philippine products in these fresh markets. Finally, providing vigorous support services to
businesses navigating complex international trade regulations and documentation. In
implementing these initiatives, it's crucial to consider several factors, including managing within
budget constraints by prioritizing select key markets or industries for export diversification,
utilizing existing trade offices or digital platforms for promotional activities due to facility
constraints, and training government trade officials to efficiently assist businesses in navigating
trade procedures, acknowledging manpower limitations. This comprehensive approach aims to
fortify the Philippine economy's global trade resilience, offering a pathway for sustained growth
and adaptability in an ever-evolving global market landscape.
Crafted with sector-specific needs in mind, these recommendations promote a strategic
path for policy implementation, thoughtfully accounting for budget constraints, existing facilities,
manpower availability, logistical considerations, and collaboration with diverse stakeholders. By
customizing these strategies to local contexts and maximizing the utilization of available
47
resources, the Philippines can skillfully steer towards post-pandemic resilience and sustainable
growth.
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The Economic Impact of COVID-19 Pandemic on Philippine Globalization

DR. YANGA’S COLLEGES, INC.

The Economic Impact of COVID-19 Pandemic on Philippine Globalization

In fulfilment of the subject requirements in

Bachelor of Science in Business Administration

I. PURPOSE AND RATIONALE

technology, and knowledge transfers. These developments have contributed to substantial

economic growth, employment, and increased productivity worldwide (Takefman, 2023).

interconnectedness and interdependence of countries, economies, cultures, and societies on a

According to Westcott (2021), globalization has made advances in transportation which

and aspire to work worldwide resulting in enhanced economic growth.

the economic growth of the Philippines.

Certainly, globalization has a beneficial impact on the Philippine economy particularly on

COVID–19 Pandemic is an infectious disease that is caused by the severe acute

respiratory syndrome coronavirus 2 (SARS-CoV-2), this novel coronavirus (nCoV) was

Emergency of International Concern on 30th of January in 2020 and to characterize the

Emergency Committee on COVID-19 suggested to the Director-General, which has also

caused is - for now (Coronavirus Disease (COVID-19) Pandemic, 2023).

Quarantine or ECQ resulted in a sharp decline in domestic demand and production,

the national output (Zaldarriaga, 2023).

cultivating stakeholders. According to the Department of Agriculture (2022), the Covid-19

this, innovation is crucial for efficient production and to increase productivity.

the fall in trade at the extensive number of products or margin.

Article IV Mission to the Philippines, 2023).

COVID-19 pandemic on the globalization of the Philippine economy in terms of employment,

solutions for future occurrences.

According to the Labor Force Survey, in 2019, the Philippines recorded an

2019 61.3 94.9 13.8 5.1

2020 59.5 89.7 16.2 10.3

2021 63.3 92.2 15.9 7.8

2022 64.7 94.6 14.2 5.4

2023 64.7 95.4 12.5 4.6

Table 1. Key Labor and Employment Indicators

Philippines. (2023, December 7). https://psa.gov.ph/statistics/labor-force-survey

globalization. Because of the global interconnectedness of economies, global events such as

Philippines' vulnerability to external shocks.

Inflation, as influenced by the repercussions of the COVID-19 pandemic, serves as a

be pivotal in navigating the complexities of a rapidly evolving global landscape (Philippines

Table 2. Year-on-Year Inflation Rates in the Philippines

January 3.4 4.4 3 3.7 3 8.7

February 3.7 3.8 2.5 4.2 3 8.6

March 4.3 3.4 2.2 4.1 4/0 7.6

April 4.3 3.2 1.8 4.1 4.9 6.6

May 4.6 3.2 1.6 4.1 5.4 6.1

June 5 2.7 2.3 3.7 6.1 5.4

July 5.8 2.2 2.4 3.7 6.4 4.7

August 6.6 1.4 2.2 4.4 6.3 5.3

September 6.9 0.5 2.2 4.2 6.9 6.1

October 6.9 0.6 2.3 4 7.7 4.9

November 6.1 1.2 3 3.7 8 4.1

December 5.2 2.4 3.3 3.1 8.1

Average 5.2 2.4 2.4 3.9 5.8 6.2

effects of the COVID-19 pandemic on the global and Philippine economy.

Figure 1. Number of Overseas Filipino Workers and Overseas Contract Workers

in 2019 and 2020

Estimates were based on the 2015-based Population Projections. Reprinted from

Philippine Statistics Authority, 2019 and 2020. Survey on Overseas Filipino.

Figure 2. Number of Overseas Filipino Workers and Overseas Contract Workers

in 2021 and 2022

(Survey on Overseas Filipinos | Philippine Statistics Authority | Republic of the Philippines,

are now getting opportunities to work abroad.

Labor Dynamics and Digital Transformation

According to Secretary Bonoan (2023). the COVID-19 pandemic was an eye-opener as

(Press Releases, 2023).