Decomposition analysis of global value chain's impact on Thai economy

Name: Punyawich Sessomboon

keyword: Decomposition analysis

; Global value chain

; Comparative advantage

; Export-led growth

; Panel regression

; International economic relations

; Government

Abstract: A review of literatures concerning the measurement of a country’s export ability shows that more comprehensive frameworks are required to accurately account for gross export value. One of such frameworks is the decomposition of value into 3 main categories, namely domestic value-added, foreign value-added and pure double counted exports. Economic data of thirty-two Thai industries during 2000 and 2011 demonstrates that even though computers, electronics and optical equipment were among industry sectors that generated the highest gross export value; such figures did not derive from domestic value-added component. As a result, a process of deducing export ability from gross term of export would generate misleading consequences. To correctly measure the export ability of Thai industries in global value chain, this study presents the comparative examination of Reveal Comparative Advantage (RCA) indices and constructs panel regressions including fixed-effects and Two Stage Least Squares (2SLS) fixed-effect based on the export-led growth strategy. The results show that re-computing RCA is a more accurate indicator to measure comparative advantage of Thai industries in the global value chain compared to the conventional RCA. In addition, constructed panel regressions demonstrate that among three categories of gross export, domestic value-added has the most significant impact on a country’s economic growth. Hence, this study suggests that policy-makers should encourage wholesale and retail trade and repairs, since they are among industries that have the highest degree of competitiveness and could generate the highest domestic value-added exports, as indicated by re-computing RCA and panel regressions respectively

Thammasat University. Thammasat University Library

Address: BANGKOK

Email: preserv@tu.ac.th

Name: Nattapong Puttanapong

Role: advisor

Created: 2015

Modified: 2021-10-06

Issued: 2021-10-06

วิทยานิพนธ์/Thesis

application/pdf

DOI: 10.14457/TU.the.2015.406

eng

DegreeName: Master of Economics

Level: Master's Degree

Descipline: Economics

Grantor: Thammasat University

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