The Impact of Inflation, Investment, Population and FDI on Economic Growth through Supply Chain Performance in Pharmaceutical sector of Thailand

Abstract

Many people worry that population growth will eventually cause an environmental catastrophe. However, the problem is bigger and more complex. The need to include environmental criteria in the analysis of supply chains is increasingly recognized as a result both of limitations that are posed by legislation and regulations as well as of various motivations that a company may have. Extensive literature is available on supply chain performance (SCP). Most of the studies examined the relationship between SCP and firm performance in both developed as well as developing countries. However, researchers did not consider the effect of SCP on economic growth, particularly in Thailand prospective. Therefore, the objective of this study is to examine the role of supply chain performance in the economic growth of Thailand. To address the objective, data are collected through questionnaires send by e-mail. 131 questionnaires are returned from 200 at response rate of 65.5%. Economic growth (EG) is used as dependent variable while SCP is used as mediating variable. Inflation rate (IR) investment growth rate (IGR) population growth rate (PGR) and foreign direct investment (FDI) are used as independent variables. The findings show that SCP mediates the relationship between IR and EG, IGR and EG and PGR and EG. The study suggests that the Thai government must boost supply chain to enhance economic growth.