Thailand’s automotive manufacturing corridor

Crawford School of Public Policy | Arndt-Corden Department of Economics

Event details

ACDE Seminar

Date & time

Tuesday 16 August 2016
2.00pm–3.30pm

Venue

Seminar Room E, Coombs Building 9, Fellows Road, ANU

Speaker

Peter Warr, Emeritus Professor, ANU.

Automotive manufacturing has moved away from Japan, Europe and the US towards lower-cost locations. Several Southeast Asian countries have benefited from this relocation, but Thailand stands out. Did public policy contribute to this outcome, and if so, how? Was it wise industry policy, liberalised trade policy, prudent investment in public infrastructure, peaceful labour relations, or a combination of several factors? This seminar reports the results of interviews with major industry participants within Thailand and analysis of industrial census data. It is argued that three policy initiatives largely explain Thailand’s success. First was the development since the early 1990s of greatly improved port and road facilities linking industrial estates to the international market. Second was the relaxation of local content requirements for automobile production, permitting a more efficient use of international sources for parts and components. Third was the relaxation of restrictions on foreign participation in final assembly and, especially, parts manufacturing.

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