Abstract
Thailand is one of the major investment destinations of Japanese automotive industry. In addition to the major automobile companies, Japanese investors have also invested in small and medium enterprises in automobile parts and components in Thailand. Since the 1980s, the automotive industry has been a driving force of the Thai economy. Currently, Thailand is one of the world largest automobile producers. In this study, we analyze the global input-output table. Backward and forward multiplier analysis is used to conduct interindustry linkage analysis of Japanese automotive industry. Unlike a conventional trade statistical analysis, this global input-output table allows for the analysis of interconnection between economic sectors around the world. From our multiplier analysis, Japanese automotive industry has high backward linkages domestically. Internationally, its forward multiplier is among the top five after metal, chemicals and rubber, electrical and optical equipment, and wholesale and retail. In addition, structural path analysis is performed to illustrate the paths of global value chain of Japanese automotive industry. The analysis reveals the interconnection of automotive and other industries in Japan, Thailand, and the rest of the world.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Ahmad N, Escaith H, Miroudot S, Webb C, Yamamo N (2011) Trade in value-added: concepts, methodologies, and challenges. Joint OECD/WTO Note. Retrieved from http://www.oecd.org/sti/ind/49894138.pdf
Anantsuksomsri S, Tontisirin N (2014) Distributional impact of university-led revitalization on the neighborhood economy: a computable general equilibrium model of a small urban area. Int J Build Urban Inter Landsc Technol 4:5–22
Azis IJ, Mansury Y (2003) Measuring economy-wide impacts of a financial shock. J Southeast Asian Econ 20(2):112–127
Cornell University Center for Advanced Computing (2008) Modeling Cornell’s economic impact on New York. Retrieved from https://www.cac.cornell.edu/about/studies/Azis.pdf
Corong E (2007a) Input_Output_2.gms: the accompanying GAMS code for the note— aggregating input-output table in GAMS: accounting for changes in sectoral aggregation. Poverty and Economic Policy (PEP) Research Network. Available at www.pep-net.org
Corong E (2007b) Aggregating input-output table in GAMS. Poverty and Economic Policy (PEP) Research Network. Available at www.pep-net.org
Daudin G, Rifflart C, Schweisguth D (2009) Who produces for whom in the world economy? Can J Econ 44(4):1403–1437
Defourny J, Thorbecke E (1984) Structural path analysis and multiplier decomposition within a social accounting matrix framework. Econ J 94(373):111–136
Dietzenbacher E, Los B, Stehrer R, Timmer M, de Vries G (2013) The construction of world input-output table in the WIOD project. Econ Syst Res 25(1):71–98
Escaith H, Lindenberg N, Miroudot S (2010) International supply chains and trade elasticity in times of global crisis. World Trade Organization Economic Research and Statistics Division. Staff Working Paper ERSD-2010-08. Retrieved from https://www.wto.org/english/res_e/reser_e/ersd201008_e.pdf
Feenstra RC (1984) Voluntary export restraint in U.S. Autos, 1980–81: quality, employment, and welfare effects. In: National Bureau of Economic Research Chapters (ed) The structure and evolution of recent U.S. Trade Policy, Inc., University of Chicago Press, Chicago, pp 35–66
Hayakawa K (2007) Growth of intermediate goods trade in East Asia. Pac Econ Rev 12(4):511–523
Hummels D, Ishii J, Yi K (2001) The nature and growth of vertical specialization in world trade. J Int Econ 54(1):75–96
International Organization of Motor Vehicle Manufacturers (OICA) (2015) World motor vehicle production by Country and Type. Retrieved from http://www.oica.net/category/production-statistics/
Jensen J (2005) Lecture on: aggregating input-output tables using GDX. Introduction to CGE modeling using GAMS and MPS/GE. Essen, Germany. Jesper Jensen’s website: www.tecatraining.dk
Johnson RC, Noguera G (2012) Accounting for intermediates: production sharing and trade in value added. J Int Econ 86(2):224–236
Kohpaiboon A, Athukorala P (2010) Detroit of the East: Thailand in global automobile networks. Paper submitted to Study for the International Trade Centre, Geneva
Koopman R, Wang Z, Wei S J (2008) How much Chinese exports is really made in China –assessing foreign and domestic value-added in gross exports. NBER Working Paper No. 14109
Koopman R, Powers W, Wang Z, Wei S J (2011) Give credit to where credit is due: tracing value added in global production chains. NBER Working Papers No. 16426
Lenzen M (2007) Structural path analysis of ecosystem networks. Ecol Model 200(3–4):334–342
Leontief W, Strout A (1963) Multiregional input-output analysis. In: Barna T (ed) Structural interdependence and economic development. St-Martin’s Press, New York, pp 119–150
Nakamura T (1995) The postwar Japanese economy: its development and structure, 1937–1994, 2nd edn. University of Tokyo Press, Tokyo
Ottaviano G, Pessoa JP, Sampson T, van Reenen J (2014) The costs and benefits of leaving the EU, No 472, CFS Working Paper Series, Center for Financial Studies (CFS). http://EconPapers.repec.org/RePEc:zbw:cfswop:472
Puttanapong N (2015) Tracing and quantifying Thailand’s linkages to international supply chains: the modification of world input-output database and the application of multiplier and structural path analysis. Proceedings, Singapore Economic Review Conference 2015
Rasiah R (1999) Liberalization and the car industry in South East Asia. Occasional Paper No. 99, Department of Intercultural Communication and Management, Copenhagen Business School
Rutherford T (2003) A GAMS program which maps social accounting data into labeled submatrices. University of Colorado, Boulder. Available at www.mpsge.org
Sanyal K, Jones R (1982) The theory of trade in middle products. Am Econ Rev 72(1):16–31
Techakanont K (2011) Thailand automotive parts industry. In: Kagami M (ed) Intermediate goods trade in east Asia: economic deepening through FTAs/EPAs. BRC research report no. 5. Bangkok Research Center, IDE-JETRO, Bangkok, pp 192–229
Thailand Automotive Institute (2012) Master plan for automotive industry 2012–2016. Ministry of Industry, Bangkok
Thailand Board of Investment (2012) Opportunities in Thailand’s automotive industry. Retrieved from http://www.boi.go.th/index.php?page=opp_automotive
Thailand Development Research Institute (1993) TNC involvement in the Thai auto industry. TDRI Quarterly Review (in Thai)
Thailand Development Research Institute (1997) Master plan for industrial development (in Thai)
Timmer M, Los B, Stehrer R, de Vries G (2013) Fragmentation, incomes, and jobs: an analysis of European competitiveness. Econ Policy 11(4):613–661
Acknowledgments
This research is partially supported by Waseda University FY 2015 Grant Program for the Promotion of International Joint Research.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2017 Springer Science+Business Media Singapore
About this chapter
Cite this chapter
Anantsuksomsri, S., Puttanapong, N., Tontisirin, N. (2017). Global Backward and Forward Multiplier Analysis: The Case Study of Japanese Automotive Industry. In: Shibusawa, H., Sakurai, K., Mizunoya, T., Uchida, S. (eds) Socioeconomic Environmental Policies and Evaluations in Regional Science. New Frontiers in Regional Science: Asian Perspectives, vol 24. Springer, Singapore. https://doi.org/10.1007/978-981-10-0099-7_17
Download citation
DOI: https://doi.org/10.1007/978-981-10-0099-7_17
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-10-0097-3
Online ISBN: 978-981-10-0099-7
eBook Packages: Economics and FinanceEconomics and Finance (R0)