The Structure of Thailand’s Hard Disk Drive Sector and International Production Networks: An Input-Output Analysis
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Abstract
This article aimed to study the structure of production and distribution, including the international production networks in the hard disk drive (HDD) industry in Thailand, and the estimated impacts on the economy of a reduction in Thai HDD exports. The research type is quantitative research that uses the input-output table models of Thailand, which have been updated to reflect the structure of the Thai economy in 2021. The research results were found as follows:
1. In 2021, Thailand's HDD will have a value-added ratio of 1.48% of GDP and 0.26% of total employment. Furthermore, there is high connection to domestic upstream industry, with a backward multiplier of 1.70. However, it has a low relationship to domestic downstream sectors, with a multiplier of only 1.00. This is attributed to the industry's predominantly export-oriented output distribution structure. In terms of the international production network, it was discovered that Thailand significantly gives precedence to the production step of HDDs, which is relevant to the midstream and downstream industries.
2. Since analyzing the impact of the export of HDD products in Thailand, which contracted by 1% compared to the base case (equivalent to 1,048.02 million baht), the impact shows that the overall value of domestic output decreased by 0.0054 percent (equivalent to 1,782.23 million baht).
In order to support future changes in technology and consumer behavior, the government sector, HDD manufacturers, and assemblies should continue to develop the technology to produce innovations and concentrate on preparing the supply side in terms of personnel, audit standards, expanding the production network, and raising the number of Thai entrepreneurs who participate. The research findings will contribute to the HDD industry's development in Thailand in the future.
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References
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