Somkiat Tangkitvanich: The paper examines two questions. The first question is related to the determinants of a country's participation in the global production network of auto parts and components. The second question aims to understand why Indonesia has been left behind in this global production network.
The author uses regression analysis to answer both questions. She then concludes that, for developing countries, infrastructure is the most important determinant, followed by labor quality (proxied by labor cost) and FDI openness. For developed countries, trade cost is the most important determinant, followed by infrastructure. It appears to me that the author arrived at these conclusions by comparing the coefficients of the explanatory variables that were significant in the regression.
It is fine to conclude that the participation in the production network of auto parts and components is influenced by the quality of infrastructure, trade and investment openness, and trade costs. It is...