Employment effects of joining global production networks: Does domestic value-added matter?

Is the emphasis placed in trade and industry policy-making developing countries on share of domestic value-added (‘value-added ratio’) exports consistent with objective achieving economic development through an export-oriented strategy? This paper examines rationale behind this policy emphasis, first by revisiting conventional case for using ratio as a guide, then undertaking input-output (I-O) analysis manufacturing Thailand employment generation equity. The is based balanced panel data set covering 74 sectors from 1990 to 2015. findings do not support widely shared view among makers that industries high ratios have more potential create export-induced employment. implication results era globalization, national industrial needs be guided market products rather than ratios.