Foreign Direct Investment, Linkage Formation and Supplier Development in Thailand during the 1990s: The Role of State Governance

Lauridsen, Laurids Sandager

doi:10.1080/0957881042000266624

Cited by 29 publications

(18 citation statements)

References 6 publications

(2 reference statements)

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“…However, when more Japanese suppliers entered Thailand as assemblers expanded exports, Thai first-tier suppliers had been pushed down to lower tiers or out of business. Lauridsen (2004) in an instructive study of Thai policy towards supplier development argues that attempts directly to increase local sourcing by foreign investors in the 1990s and early 2000s -and, in practice, to promote the development of Thai small and medium enterprises -were ineffective because of problems of implementation and lack of political support. They also changed somewhat with changes of government; successive governments each wanting their own new policies (such as Thaksin on clusters).…”

Section: Upgrading Within the Automotive Gvc?mentioning

confidence: 98%

Industrial policy and the development of the automotive industry in Thailand

Natsuda

Thoburn

2013

Journal of the Asia Pacific Economy

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It has been argued that restrictions on industrial policy implemented under World Trade Organization rules in the 2000s have greatly reduced the 'policy space' in which developing countries can promote industrialisation. This paper examines the case of Thailand's policies in developing one of the most successful automotive industries in the Southeast Asian region. We show that Thailand's use of local content requirements, later abolished under WTO rules, helped promote local suppliers and did not deter foreign investors. Substantial tariff protection of vehicles and components production did not deter exports, and has continued to the present, even under liberalisation policies. Supplementing tariff protection by various fiscal means to promote product champions in the automotive industry, Thailand has succeeded in retaining substantial policy freedom.

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Section: Upgrading Within the Automotive Gvc?mentioning

confidence: 98%

Industrial policy and the development of the automotive industry in Thailand

Natsuda

Thoburn

2013

Journal of the Asia Pacific Economy

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“…Roberto Calvo from Costa Rica Provee kindly provided the data regarding CRP.6 For details on Ireland, seePaus (2005), on Singapore,Huff (1995), and on Thailand,Lauridsen (2004).…”

mentioning

confidence: 99%

Missing Links: Foreign Investment and Industrial Development in Costa Rica and Mexico

Paus

Gallagher

2007

St Comp Int Dev

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This article offers an analytical framework for understanding the missing links between FDI and development, and applies it to the high technology sectors of Costa Rica and Mexico, the two countries in Latin America that have attracted the highest percentage of FDI in manufacturing. Since the advancement of knowledgebased assets in this sector is at the heart of structural change and development, we focus specifically on the conditions that enable or prevent positive knowledge spillovers from FDI. We identify two main reasons for the missing links between high-tech FDI and the development of indigenous knowledge-based assets in Costa Rica and Mexico. First, their governments did not have a coherent strategy, which would have spelled out the needed government policies to advance national capabilities, overcome market failures, and support the integration of national producers into TNCs' global production networks. Second, there were limitations on the spillover potential from FDI. In Costa Rica and Mexico, technology or scale requirements for inputs made it difficult for large TNCs to source domestically beyond simple inputs like packaging materials. In Mexico, fundamental changes in the organization of global production chains in the computer industry led TNCs to rely on their global contract manufacturers rather than work with potential Mexican input suppliers.

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“…State-initiated social relations set the conditions for the expansion of commercial linkages, both within and out of the district. From Thailand, Lauridsen (2004) reported that linkage and supplier development strategies were evolved in the early 1990s to stimulate the development of backward linkages between transnational corporations and local suppliers through 'soft' policy instruments like dissemination of information in seminars and databases. Government policies were not very effective, but it was found that mutual self-interest and commitment of business partners may lead to the formation of development linkages without specific government interventions.…”

Section: Linkages As Continuous Economic Relationsmentioning

confidence: 99%

Transaction Costs and Linkage Creation: Experiences from Indonesia

Kristiansen

2006

Eur J Dev Res

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High transaction costs are created by the lack of interaction, trust, and information flows between sectors and regions in poor countries. This paper assesses impacts of Indonesian linkage strategies on transaction cost reduction in rural businesses. We also discuss the general relevance of the linkage term and policy alternatives for employment creation and business development in poor areas today. The research is mainly based on extensive literature reviews, and also on sessions of fieldwork in Indonesia. Conclusions on effects of public linkage strategies are generally negative. Good intentions have been spoiled by elite interests and corruption. Alternatively, we argue that programmes for transaction cost reduction in rural areas should focus on problems of information asymmetry, be more politically conscious, and based on community interests and initiatives. Cooperatives may have better chances to succeed in linkage creation after the breakdown of traditional power structures.

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Foreign Direct Investment, Linkage Formation and Supplier Development in Thailand during the 1990s: The Role of State Governance

Cited by 29 publications

References 6 publications

Industrial policy and the development of the automotive industry in Thailand

Industrial policy and the development of the automotive industry in Thailand

Missing Links: Foreign Investment and Industrial Development in Costa Rica and Mexico

Transaction Costs and Linkage Creation: Experiences from Indonesia

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