Economic Linkage in the Thai Rubber Industry and Cluster Identification: Input-Output Approach

Abstract

This research aims to analyse the linkage effect of the Thai rubber industry to other sectors in the Thai economy, identify the Thai rubber cluster, and create a rubber cluster map. The research utilises input-output analysis to ascertain the economic linkage of the Thai rubber industry, employing the cluster mapping concept to identify relative industries and institutions in the cluster. Input-output data from the Office of the National Economic and Social Development Council input-output table 2010 (matrix 180x180) is used to analyse the linkage effect of related industry sectors. The four core sectors are rubber, rubber sheets and block rubber, tyres and tubes, and other rubber products. The results show that overall, the rubber sectors have a 42.27 per cent direct backward linkage and a 36.60 per cent direct forward linkage. Overall, the four rubber sectors have a higher total backward index (0.99) than total forward index (0.93). The rubber sectors have a backward linkage to 27 sectors and forward linkage to 21 sectors. There are four groups of backward linkage: raw materials, machinery and equipment, business supporter, and infrastructure. In the same way, there are five groups of forward linkage: automotive, houseware, services, transport, and others. In conclusion, the Thai rubber industry buys input factors from other industries rather than distributing output to other industries. Hence, the government should be utilising a cluster map to promote the Thai rubber cluster for creating knowledge, innovation, and new business in the country.