Role of the Logistics Industry in Thailand’s Economy

Abstract

This paper aims to investigate the important role of the logistics industry in Thailand’s economy. Input-output (I-O) analysis is applied to examine the role of the logistics sector and its economic impact on the national economy for the period 1975 to 2010. The results indicate that the logistics sector has difficulty in supporting and boosting other sectors, thereby hindering further national economic development. Moreover, this study considers the logistics sector exogenously in order to examine its economic impact on other sectors in terms of production-inducing effects, logistics supply shortages and sectoral prices. Furthermore, the logistics sector’s contribution to Thailand’s GDP is also evaluated. These key findings will provide guidelines for policymakers to plan and make decisions in formulating industrial policies to improve the logistics industry.