Economic Research Institute for ASEAN and East Asia
Spatial Patterns of Manufacturing Agglomeration in Cambodia, Lao People's Democratic Republic, and Thailand
Due to lowering trade and transport costs, participation in the global value chains (GVCs) is becoming one of the most effective development strategies for many developing countries. Participation in the GVCs, however, is not sufficient; the formation of industrial linkages and clusters is critical for sustained economic growth. This paper identifies the manufacturing clusters in Cambodia, the Lao People's Democratic Republic, and Thailand, using the method proposed by Mori and Smith (2013). The paper provides a map of industrial clusters by industry, which is tested against the hypothesis of spurious clusters. Moreover, the paper indicates the spatial structure of industrial agglomerations using the global extent and local density indices.
