Backward Linkages in Thailand’s Industrial Sector: Measurement and Implication for Economics Development
Abstract
This paper investigates the relationship among backward linkages, export income and labor creation in Thailand’s industrial sector during the years 1985-2005. It found that export-led growth policy led to a steady decrease in backward linkages, except only 1997. However Thailand’s export income and labor creation had been increasing in this period. This showed that backward linkages are perhaps not significantly important factors for encouraging export income and labor creation. Moreover, a downward trend in Thailand’s backward linkages was caused by a structural change in Thai industrial sector and a reduction in shares of local content usages. These circumstances possibly infer that in fact this downward trend in Thailand’s backward linkages maybe lower than its measure.
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