Economic Linkage in the Thai Rubber Industry and Cluster Identification: Input-Output Approach

Asian Administration & Management Review, Vol. 2, No. 2, 2019

PSAKU International Journal of Interdisciplinary Research, Forthcoming

13 Pages Posted: 18 Aug 2020

See all articles by Parichat Tengsuwan

Parichat Tengsuwan

Faculty of Economics, Kasetsart University, Thailand

Akaranant Kidsom

Faculty of Economics, Kasetsart University, Thailand

Siwapong Dheera‐Aumpon

Kasetsart University

Date Written: July 1, 2019

Abstract

This research aims to analyse the linkage effect of the Thai rubber industry to other sectors in the Thai economy, identify the Thai rubber cluster, and create a rubber cluster map. The research utilises input-output analysis to ascertain the economic linkage of the Thai rubber industry, employing the cluster mapping concept to identify relative industries and institutions in the cluster. Input-output data from the Office of the National Economic and Social Development Council input-output table 2010 (matrix 180x180) is used to analyse the linkage effect of related industry sectors. The four core sectors are rubber, rubber sheets and block rubber, tyres and tubes, and other rubber products. The results show that overall, the rubber sectors have a 42.27 per cent direct backward linkage and a 36.60 per cent direct forward linkage. Overall, the four rubber sectors have a higher total backward index (0.99) than total forward index (0.93). The rubber sectors have a backward linkage to 27 sectors and forward linkage to 21 sectors. There are four groups of backward linkage: raw materials, machinery and equipment, business supporter, and infrastructure. In the same way, there are five groups of forward linkage: automotive, houseware, services, transport, and others. In conclusion, the Thai rubber industry buys input factors from other industries rather than distributing output to other industries. Hence, the government should be utilising a cluster map to promote the Thai rubber cluster for creating knowledge, innovation, and new business in the country.

Keywords: Backward linkage, Forward linkage, Input-output analysis, Rubber industry, Industrial cluster

Suggested Citation

Tengsuwan, Parichat and Kidsom, Akaranant and Dheera‐Aumpon, Siwapong, Economic Linkage in the Thai Rubber Industry and Cluster Identification: Input-Output Approach (July 1, 2019). Asian Administration & Management Review, Vol. 2, No. 2, 2019, PSAKU International Journal of Interdisciplinary Research, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3654999

Parichat Tengsuwan (Contact Author)

Faculty of Economics, Kasetsart University, Thailand ( email )

50 Ngam Wong Wan Rd, Lat Yao Chatuchak
Bangkok 10900
Thailand

Akaranant Kidsom

Faculty of Economics, Kasetsart University, Thailand ( email )

50 Ngam Wong Wan Rd, Lat Yao Chatuchak
Bangkok 10900
Thailand

Siwapong Dheera‐Aumpon

Kasetsart University ( email )

Thailand

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