Department     College of International Management
   Position   Professor
Language English
Publication Date 2020/11
Type Research paper
Peer Review Peer reviewed
Title Industrial Policy and Automotive Development: A Comparative Study of Thailand and Czechia
Contribution Type First author
Journal Eurasian Geography and Economics (Routledge)
Journal TypeAnother Country
Publisher Routledge
Volume, Issue, Page forthcoming
Author and coauthor Natsuda, Kaoru, Thoburn, John, Blazek Jiri and Otsuka, Kozo
Details This paper investigates the effectiveness of industrial policy, and the role of state capacity to implement it, by making a comparison of automotive development in Thailand and Czechia, the largest vehicle producers in Southeast Asia and Central Eastern Europe, respectively. Although the development of the industry in both countries primarily relied on foreign investment, the countries have used very different types of industrial policy. Thailand introduced a series of vertical industrial policies, pursuing a proactive industrial development strategy with state intervention. In contrast, Czechia has employed mostly horizontal industrial policies with less state intervention, influenced by the restrictions of the European Union. Although both countries achieved considerable output and export growth, Thailand has a deeper and more locally owned supply chain. Thailand’s imaginative use of de facto local content requirements in connection with its product champion policy is instructive.
DOI 10.1080/15387216.2020.1836983.