Thailand and the Middle-Income Trap: An Analysis from the Global Value Chain Perspective
Article Sidebar
Main Article Content
Abstract
The study provides a critical analysis through the lens of the global value
chain (GVC) framework with empirical data on value-added trade to explain Thailand's
middle-income trap (MIT) by matching GVC data at the firm, industry, and country
levels with the economic development trajectory. The results show that participation in
GVCs contributes to initial industrialisation and economic development. However, it
does not guarantee subsequent technological upgrading, as there is a risk of falling into
the middle-income technology trap (MITT). Thailand is highly dependent on passive
technology and specialisation imposed by headquartered countries, trapping the country
in the middle of value chains with limited knowledge and technology transfer. As a result,
Thailand has fallen into the MITT, where it cannot sustain growth and catch up with
the more innovative advanced economies, leading to it falling into the MIT. To escape
both traps, the government can consider policies that address inadequate knowledge and
technology transfer and the lack of capacity of local firms.
Downloads
Article Details
Submission of a manuscript implies: that the work described is original, has not been published before (except in the form of an abstract or as part of a published lecture, review, or thesis); that is not under consideration for publication elsewhere; that its publication has been approved by all co-authors, if any, as well as tacitly or explicitly by the responsible authorities at the institution where the work was carried out. Transfer of copyright to the University of Malaya becomes effective if and when the article is accepted for publication. The copyright covers the exclusive right to reproduce and distribute the article, including reprints, translations, photographic reproductions, microform, electronic form (offline and online) or other reproductions of similar nature.
An author may self-archive the English language version of his/her article on his/her own website and his/her institutions repository; however he/she may not use the publishers PDF version which is posted on www.ijie.um.edu.my. Furthermore, the author may only post his/her version, provided acknowledgement is given to the original source of publication and a link must be accompanied by the following text: The original publication is available at www.ijie.um.edu.my.
All articles published in this journal are protected by copyright, which covers the exclusive rights to reproduce and redistribute the article (e.g. as offprint), as well as all translation rights. No material published in this journal may be reproduced photographically or stored on microfilm, in electronic database, video disks, etc., without first obtaining written permission from the publishers. The use of general descriptive names, trade names, trademarks, etc., in this publication, even if not specifically identified, does not imply that these names are not protected by the relevant laws and regulations.
The copyright owners consent does not include copying for general distribution, promotion, new works, or resale. In these cases, specific written permission must first be obtained from the publishers.