Inter-Industry Linkage in Thailand by Nonlinear Relationship in Input-Output Table and Entropy Econometrics
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Abstract
This paper aims to evaluate the inter-industry linkage in Thailand based on the 16 sectors input-output table (1975-2010). By employed the entropy econometric, the nonlinear relationship between input and output for Thai economy were explored. Then, the role of returns to scale of each intermediate goods can be found. The results indicated that the relationships between input and output in Thailand were not in linear form with statistically significance. Both increasing returns to scale and decreasing returns has been found in production process in Thai economy. The conclusion is that most of sectors in Thailand are middle- and down-stream. In order to promote economic expansion, the policy to enhance the linkage among domestic sectors should be focused.
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References
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