Title

The export participation of Thai manufacturing small and medium sized enterprises (SMEs)

RIS ID

44114

Publication Details

Amornkitvikai, Y., Harvie, C. & Charoenrat, T. (2011). The export participation of Thai manufacturing small and medium sized enterprises (SMEs). 8th SMEs in a Global Economy Conference (pp. 506-530). Thailand: Khon Kaen University.

Abstract

This paper employed the 1997 Thai Industrial Census to empirically examine the determinants of export participation for 65,111 Thai manufacturing SMEs. Three limited dependent variable models such as the probit model, the logit model, and the linear probability model were used to check the sensitivity of the results for this study. Focusing on the factors which affect a firm¿s export decision, firm size, productivity, government assistance, foreign investment (ownership), municipal location, research and development, firm age, and skilled labour were found to be significantly and positively related to the export participation of Thai manufacturing SMEs. A significant and positive non-linear relationship between firm size and its export decision was also found for the case of Thai manufacturing SMEs. A significant and negative association between firm age and its export decision, however, was found for Thai manufacturing SMEs in aggregate. In addition, 23 sub-manufacturing sectors were classified into 8 sub-manufacturing SME groups. Each sub-manufacturing SME group was also investigated for this study. Finally, empirically evidence-based policies were provided to help constitute positively towards the international competitiveness of Thai manufacturing SMEs' export performance

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