thailand in global automobile networks - International Trade Centre

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THAILAND IN GLOBAL AUTOMOBILE NETWORKS Acknowledgement Mr. Prema-Chandra Athukorala, Australian National University and Mr. Archanun Kohpaiboon, Thamassat University, Thailand, wrote this paper. They are entirely responsible for the views expressed in the paper. ii
Preface iii THAILAND IN GLOBAL AUTOMOBILE NETWORKS The International Trade Centre (ITC) is the joint technical cooperation agency of the United Nations and the World Trade Organisation (WTO). ITC supports policy makers in developing and transition economies to integrate the business sector into the global economy for export success. To achieve this, ITC promotes business advocacy to ensure that business priorities are integrated into national trade policies, and that the needs of business, especially small and medium sized enterprises (SMEs) are taken into consideration in the negotiation of international trade agreements. Linking the business sector, through their representative trade support institutions, to policy makers is a key factor for the promotion of a conducive business environment. The purpose of this study is to examine the growth trajectory and the current state of Thai automotive industry 1 , paying particular attention to factors that underpinned the successful transition from the import-substitution phase to global integration through export expansion. To gain perspectives, the study also compares the Thai experience with that of Malaysia. The two countries are excellent candidates for a paired case study as they represent two distinct experiences of automobile industry development. The Malaysian policy may be characterized as state-led, while the Thai policy is representative of a private-sector led, market-conforming strategy. The study aims to broaden our understanding of the causes of development or otherwise of the internationally competitive automotive industry. It will help the businesses to make the case for framing policies for better outcomes in an era of rapidly evolving international trading environment. 1 The term ‘automotive industry’ refers here to the assembly and production of parts and components of passenger cars and commercial vehicles. Motor bicycles are excluded from the product coverage.
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