Spatial Policy and Infrastructure Constraints on Industrial Growth in Thailand*

Abstract

Using the factory registration data of the Ministry of Industry, the paper documents the location patterns of manufacturing establishments in the Bangkok Metropolitan Region and evaluates spatial policies in light of the observed decentralization trends of manufacturing activity. The paper also shows the location patterns of new firms and by firm size and analyzes infrastructure and site constraints for their growth. The paper discusses the need for spatial policies to be consistent with market forces and the need for infrastructure investment to respond to the location dynamics of service demand.

Bibliography

“…Another aspect which the study revealed was that many small firms and enterprises which could not afford the cost of providing their own basic infrastructure became marginalized, with very low productivity. This situation is consistent with the 'incubator hypothesis' which shows that the location of small firms (employing less than 20 people) is influenced by the availability of utilities and other essential services (see Linn, 1982 ;Lee, 1989 ;Verma et al, 1991). This means that a country such as Nigeria, with its poor infrastructure, does not offer a conducive environment for smallscale enterprises which are important to the development of the economy.…”

“…Lack of infrastructure is one of the most pressing problems in Nigerian cities (see Lee, 1989b ;Lee and Anas, 1989 ;Linn, 1982 ;Mschelia, 1986 ;Verma et al, 1991). Significant proportions of the houses in major towns and cities have no access to electricity, pipe-borne water or hygienic toilet facilities.…”

Cluster analysis for studying industrial sustainability: an empirical study in Shanghai

“…In fact, the trend for movement of manufacturing sectors from the central areas of a city to the surrounding regions was witnessed in other developing world metropolises, such as Witwatersrand [35], Bangkok [36], Seoul [37], Bogota and Cali [38,39]. Likewise, the transfer of manufacturing activity in the Witwatersrand during 1980e1994 is explained as a product of market force and the decisions on relocation by individual enterprises in response to the changing metropolitan land and industrial property markets.…”