The Industrial Sector Participation in Global Value Chains for Sustainable Development of the Greater Mekong Subregion (GMS)

Abstract

This study analyzes and investigates factors influencing the export of industrial sectors of the Greater Mekong Subregion (GMS) countries. These factors can clarify whether the industrial sector of GMS countries that are involved in international trade can reach or be linked to the sustainable development goals (SDGs) under the United Nations (UN). The data used in this study is the firm-level data from the World Bank Enterprise Survey. Results from a Tobit model indicate that firm size, access to finance, license from foreign firm, research and development, website availability and skilled labour are important factors contributing to the export participation of the industrial sector of GMS countries. Policies are warranted to help support the industrial sector of GMS countries to achieve SDGs. These policy measures are easier access to financial services, access to skilled workforce, training of entrepreneurs, applying research and development, encouraging foreign investment for operational synergies and export incentives for penetration in the global market.