Developing an Interregional Input–Output Table for Cross-Border Economies: An Application to Lao People's Democratic Republic and Thailand
Sim, Benson; Secretario, Francisco; Suan, Eric | July 2007
Abstract
This paper constructs a modified interregional input–output (IRIO) table to link the economies of the province of Mukdahan in Thailand and the neighboring Lao People's Democratic Republic province of Savannakhet using the CheneryMoses model in conjunction with popular data reduction methods such as the simple location quotient method in the input–output (IO) tables literature. A hybrid approach was used to construct the IRIO table. This involved using primary data collected from a specially conducted survey to develop the Savannakhet portion of the table and indirect methods to construct the Mukdahan portion of the table as well as the trade flows. Results showed that the value of trade of these provinces with the rest of the world was much higher than the trade between them. The results also showed that in both provinces, industries in the services sector were found to have generally higher value-added multipliers than industries in the manufacturing sector. The agriculture and forestry industry in Savannakhet and the manufacturing industries in both provinces had high backward and forward linkages. Exports to the rest of the world and consumption were found to have the highest employment multipliers in Mukdahan and Savannakhet, respectively. Mukdahan was also found to have higher net foreign exchange earnings, implying that the Thai province may be able to add greater value to its exports than the Lao PDR province. Finally, the study outlines some key data and methodological issues that could bias the quality of the findings, and suggests solutions to enhance the accuracy and reliability of the results.
Citation
Sim, Benson; Secretario, Francisco; Suan, Eric. 2007. Developing an Interregional Input–Output Table for Cross-Border Economies: An Application to Lao People's Democratic Republic and Thailand. © Asian Development Bank. http://hdl.handle.net/11540/1859. License: CC BY 3.0 IGO.Keywords
Economics
Public Sector
Free Trade
Health
Trade
Development
Economic integration
Regional integration
Industry
Cooperation
Free Trade
Poverty
Economics
Show allCollapse
Citable URI
http://hdl.handle.net/11540/1859Metadata
Show full item recordUsers also downloaded
-
Air Connectivity in Archipelagic Southeast Asia: An Overview
Trace, Keith; Frielink, Barend; Hew, Denis (Asian Development Bank, 2009-09-01)The archipelagic region of Southeast Asia consists of 24,000 islands, spread across 5,200 kilometers (kms) from east to west and 3,400 kms from north to south, with a population of about 350 million. Many of the islands are poor, remote from main centers of economic activity, and not well connected. Improving air connectivity can be instrumental in reducing development gaps. The paper examines ...The archipelagic region of Southeast Asia consists of 24,000 islands, spread across 5,200 kilometers (kms) from east to west and 3,400 kms from north to south, with a population of about 350 million. Many of the islands are poor, remote from main ... -
Republic of the Philippines National Urban Assessment
Asian Development Bank (Asian Development Bank, 2014-08-01)The Urban Operational Plan (UOP) 2012-2020 of the Asian Development Bank(ADB) supports ADB developing member countries in expanding their urban economies, improving environmental sustainability, and making pro-poor investments through a 3E approach (Economy, Environment, and Equity). This case study on the Philippines is based on thematic areas of the National Urban Sustainability Assessment framework ...The Urban Operational Plan (UOP) 2012-2020 of the Asian Development Bank(ADB) supports ADB developing member countries in expanding their urban economies, improving environmental sustainability, and making pro-poor investments through a 3E approach ... -
Philippines: Private Sector Development Challenges and Possible Ways to Go
Haydarov, Aziz (Asian Development Bank, 2011-08-01)In the last decade, employment gains from economic growth in the Philippines have been limited, largely due to the underperformance of the private sector. Success of the services sector in general, and that of the business process outsourcing industry in particular, shows that reforms fostering private sector development can be effective. This working paper’s objective is to inform preparation ...In the last decade, employment gains from economic growth in the Philippines have been limited, largely due to the underperformance of the private sector. Success of the services sector in general, and that of the business process outsourcing industry ...