After the 1990s, the automotive industrial area in Thailand (AIAT) expanded from the Bangkok metropolitan region (BMR) to surrounding areas. Although Japanese automotive parts firms are located in several industrial estates, the Amata Nakorn Industrial Estate (ANIE) is home to the most numerous. The ANIE did not host an assembly plant until 2004, however. Moreover, the plant does not assemble mass production-type models, but medium- to large-sized trucks and buses in small-quantity production lots. Generally, the location of one automotive assembly plant leads to the agglomeration of automotive parts firms. Therefore, it is important to clarify the reason for and process of the formation of the automotive parts firm agglomeration in the ANIE. In addition, previous studies related to industrial agglomerations in Asian developing countries mainly examined the linkages between assembly firms and their first-tier suppliers. However, it is necessary to analyze the linkages of interparts firms to clarify the dynamism in the automotive industry. Therefore, this paper examines the process by which the agglomeration of Japanese automotive parts firms occurred and the linkages in the ANIE to describe the dynamism in the AIAT. The process of firm agglomeration occurred as follows.
1) Japanese automotive parts firms evaluated ANIE strategies to ensure the feasibility of commuting from the central district of Bangkok to the estate. Furthermore, they determined that firms located in the ANIE could receive more privileges from the Board of Investment than those in the BMR.
2) As a result of the expansion of the AIAT, the ANIE was located in the center of the AIAT. Therefore, Japanese automotive parts firms with numerous local customers relocated to the ANIE because they were able to reduce physical distribution costs.
3) Engine parts firms that hoped to supply engine assembly firms in the ANIE relocated to the estate.
4) The participation in the development and management of the ANIE by Japanese business firms and Japanese staff provided firms in the estate with a sense of security and trust. Large-scale development made the ANIE a well-known industrial estate. That subsequently resulted in an increase in the labor force and the number of automotive parts firms.
Linkages mainly formed between the Japanese firms located in the industrial estate. Some engine parts firms also have strong ties with intra-ANIE linkages as another form of linkage. In addition, horizontal linkages occur between the same hierarchies, i.e., semi-lattice structure linkages have resulted.
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