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Industrial Upgrading and Global Recession: Evidence of Hard Disk Drive and Automotive Industries in Thailand

Author

Listed:
  • Archanun Kohpaiboon

    (Asian Development Bank Institute)

  • Nipon Poapongsakorn

    (Asian Development Bank Institute)

Abstract

This paper illustrates the upgrading experiences of the automotive and hard disk drive (HDD) industries in Thailand, chosen because of their outstanding export performance in the developing world. An understanding of their upgrading experiences can shed some light on the ongoing debate regarding the relative importance of international production networks (IPNs) and industrial clusters (ICs) and their implications for prudential industrial policy. The impact of the recent global recession is also discussed in this paper. There is evidence of industrial upgrading in both the automotive and HDD industries. Yet one primary policy challenge still remains, that is, the limited role of indigenous suppliers in the multinational enterprise (MNE) production networks. This limited role is, to a certain extent, related to the overall incentive structure. Where these two industries differ is in their mode of networking, that is, whether they are part of an IPN or an IC. In the case of the automotive industry, industrial clustering has been observed and has reached a level where the local content of a locally manufactured vehicle is approaching 100%. In the case of the HDD industry, industrial clustering has naturally occurred and reached a certain level.

Suggested Citation

  • Archanun Kohpaiboon & Nipon Poapongsakorn, 2011. "Industrial Upgrading and Global Recession: Evidence of Hard Disk Drive and Automotive Industries in Thailand," ADBI Working Papers 283, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0283
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    References listed on IDEAS

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    1. repec:wbk:wbpubs:14918 is not listed on IDEAS
    2. Visser, Evert-jan, 1999. "A Comparison of Clustered and Dispersed Firms in the Small-Scale Clothing Industry of Lima," World Development, Elsevier, vol. 27(9), pages 1553-1570, September.
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    Keywords

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    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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