Analysis of the linkage and economic impact of Rubber industry in Thailand

Abstract

The objectives of this research were to analyze the linkage of how the rubber industry is affecting the economy and analyze the economic impact of the rubber industry by including the main economic factors, and by using input-output tables, economic multipliers, and analysis network degree centrality. The industry was divided into 180 sectors for the years 2000, 2005, and 2010 considering the rubber sector, rubber sheet and block rubber sector, tires and tubes sector, and other rubber products sector representing the rubber industry. According to the research, it was found that, based on the analysis of forward linkage, the rubber industry mostly distributes output to the rubber sheet and block rubber sector, repair of motor vehicles sector, and motor vehicle sector, respectively. Based on the backward linkage analysis, the rubber industry used the input factor most from rubber sheet and block rubber sector, rubber sector, and wholesale trade sector, respectively. In terms of the import leakage multiplier and the indirect tax leakage multiplier, it was discovered that the rubber industry made less income than the mean of the input leakage and indirect tax leakage of other sectors. Regarding the analysis network degree centrality, in 2010, the centrality increased from 2000, which meant the use of input factors and output distribution among rubber sectors and other economic sectors increased in every economic sector. The top sector of the rubber industry was the other rubber products sector. As a consequence of the results, the government should support and promote the development of the rubber sector correctly and improve it to increase the output and income similar to the other linkage sectors.