Location and Key Success Factors of Special Economic Zone in Thailand

Abstract

This paper proposes a selection of different types of Special Economic Zone (SEZ) in Thailand. Following this, the locations and key success factors of SEZs in Thailand are also provided. The first part of the paper presents all factors that are analytical or essential to the success of all types of SEZ in the world by re-examining all literature which can be found in most of the academic databases. All of those factors from the review then underwent the correlation test. The regression model with Ordinary Least Square method is created in this step. The result of the test indicated that there are eight factors which were found to be correlated to the success or survival of SEZs around the world. These eight factors are location advantage and macroeconomic of the country, industrial investment support, investment cost and value of trade, skill levels and availability of human resource, management and service, government policies, law and regulation, and stability and consistency of the government. Twenty-eight provinces from seventy-seven provinces across the country in Thailand were then selected because of two reasons, namely the government policy in promoting special economic area in Thailand and the consensus of experts from Delphi Technique. Lastly, all selected provinces are tested using the model provided in the mentioned steps. The results reveal that the most appropriate types of SEZ in Thailand are the Export Processing Zone, Specialized Zone, and Freeport Zone. The research indicates that Bangkok, Trat, Pathumthani, Chonburi, Phuket, Suratthani, Udonthani, and Srakaew are the eight provinces which have such perfect environments and factors that contribute to the success of SEZ in Thailand.