1 AIT Asian Institute of Technology

The role of technology in international trade : conceptual model and application to automobile industry in developing countries

AuthorThanaphol Virasa
Call NumberAIT Diss. no.SM-98-2
Subject(s)Automobile industry and trade--Developing countries
Technology--Developing countries

NoteA dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy, School of Management
PublisherAsian Institute of Technology
AbstractThe purpose of this study is to develop an analytical approach which will provide dynamic and multi-dimensional means to examine the relationship between international trade and teclmology. The relationship between trade performance and teclrnology factors can be extracted by using trade characteristics, production characteristics, and technological capability characteristics in each stage of the development of a particular industry. On the one hand, technological capability and production characteristics can be incorporated in what we call the technology contribution factor (TCF), which comprises both micro and macro indicators. On the other hand, trade performance can be measured by using net trade as a proportion of total production and a country's export share in the world market. A conceptual model was developed to explain the nature of an industry's progress indicated by different combinations of TCF and trade performance indexes over different periods in time. The TCF and trade performance indexes were constructed by using weighted scores and the S-score method. The automobile industries in Korea, Malaysia and Thailand are selected as illustrative examples. Results indicate a positive relationship between TCF and trade performance in Korea. In Malaysia, the relationship between TCF and trade performance is not clearly apparent. While in the case of Thailand, the relationship, expected to be temporary in nature, is found to be negative. It can be concluded that higher teclrnology level in Korea produces better trade performance. Automobile industries in Malaysia and Thailand are different due to their orientation to the domestic market. Automobile industry in Malaysia is strongly controlled by the government, while that of Thailand is dominated by MN Cs. However, in the near future, a positive relationship between TCF and trade performance for Thailand will be realized as US MNCs' Thai production base starts production. Korea needs to formulate a policy to encourage generative capability with more strategic alliances. Thailand and Malaysia need to emphasize adaptive capability with development of qualified manpower, and a technical collaboration between local companies and MNCs. In addition, Malaysia needs to reduce government controls and create more competitive environment.
Year1998
TypeDissertation
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Tang, John C.S. ;
Examination Committee(s)Gupta, Jyoti P. ;Sharif, Nawaz M. ;Tabucanon, Mario T. ;Mohanty, R. P.;
Scholarship Donor(s)Royal Thai Government;
DegreeThesis (Ph.D.) - Asian Institute of Technology, 1998


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