Automobile Industry Development Model In Southeast Asia Countries In The Context Of The Global Production Network

Southeast Asia is an important part of global production networks, the countries of Southeast Asia in global production networks are basically at the same position that they can not form a complete industrial chain with each other but only depend on the investment and technology support of the developed countries outside the area. Thus, due to their different level of development, they have different attitude and policy facing the foreign multinational capitan and production alone.The development of the automobile industry will not only drive a manufacturing boom, but also to promote the development of the service industry, transportation and other related fields of a country. This has crucial effect on promoting a country’s economic development, and it is highly representative. Therefore this paper takes the Southeast Asia automobile industry as an example, analyzing the model of industry development in Southeast Asia countries.This paper analyses the different policies on automobile production network in Southeast Asia countries through analysing the existence of the global production networks in Southeast Asia and taking example of automobile production network in Southeast Asia, and focus on analysis of automotive industrial policy in Malaysia and Thailand. Then, this paper contrasts different automobile industry development model chosen by the Southeast Asia under the influence of the global automotive production network, analysis the positive and limitations of the two models and makes comments combined with the industry target of Southeast Asia countries. This paper introduces some core concepts and related theories:the global production network theory and the industrial development model theory, and propose two new concepts:"protection of industrial development mode" and "open industrial development mode". It introduces specific automobile policy in Southeast Asia countries, explains the protection industrial development mode by taking the automobile industry in Malaysia for example, and explains the open industrial development mode by taking the automobile industry in Thailand. The fourth chapter is the concluding part of this article. It contrasts the strengths and limitations of the two modes, evaluates the two industrial development modes by the effects of policies of automobile industry in Thailand and Malaysia. Generally, the open industrial development mode is better than the protection industrial development mode. Finally summarizes the similarities and differences of the two modes. In the last part of chapter four, the researcher proposes several thoughts and considers that the main method coping with the global production network of the Southeast Asia countries is to accelerate the integration process.