‘Thailand-plus-one’: a GVC-led development strategy for Cambodia

Ikuo Kuroiwa

Asian-Pacific Economic Literature, 2016, vol. 30, issue 1, 30-41

Abstract: type="main">

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.

Date: 2016
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