Fukunari Kimura asked for the paper to be updated to capture more recent developments. He also suggested that a variable to correct for country size is needed for the author's equation. Potential market size is also important. He pointed out that some variables like infrastructure are time invariant. Siew Yean Tham agreed that a variable to capture country size was important. Indonesia was attractive to Toyota because of its large domestic market.

Maria Socorro Gochoco-Bautista explained that in Korea, the automotive industry did not rely on foreign direct investment (FDI); rather the government played the key role. Now, the availability of suppliers has made it attractive for FDI.

Somkiat Tangkitvanich shared insights from the Thai experience. Thailand's automotive sector succeeded because Toyota (a big presence in Thailand) succeeded. The Thai government gave special incentives to Toyota. Thailand also enjoyed the “first-mover” advantage. In contrast, Indonesia has not had a consistent...

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