Premium
‘Thailand‐plus‐one’: a GVC‐led development strategy for Cambodia
Author(s) -
Kuroiwa Ikuo
Publication year - 2016
Publication title -
asian‐pacific economic literature
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.232
H-Index - 21
eISSN - 1467-8411
pISSN - 0818-9935
DOI - 10.1111/apel.12134
Subject(s) - metropolitan area , business , context (archaeology) , pooling , global value chain , government (linguistics) , value (mathematics) , value chain , industrial organization , economic growth , supply chain , marketing , economics , international trade , comparative advantage , geography , linguistics , philosophy , archaeology , artificial intelligence , machine learning , computer science
This paper discusses the location choices of export‐oriented firms in the context of a global value chain‐led development strategy. The results of a firm survey are used to examine, for the case of Cambodia, how less developed countries can participate in global value chains by specialising in a niche segment of the value chain. The survey results, which focus on the location choices of Cambodian firms that have mother factories in Thailand, show that the border region has advantages for access to suppliers and markets, while there are disadvantages for recruiting and retaining workers. Metropolitan areas, on the other hand, have advantages in the pooling of human resources, expatriates' living conditions, and access to government services, while inland transport costs are a burden for firms located in metropolitan areas. Policy implications are developed.