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Thailand
has emerged from the 80s as one of the most promising developing
nations in the world. The two digit growth rates of 13 percent, 11
percent and 19 percent, it achieved in 1988, 1989 and 1990 were
the highest rates of growth. the initial main engines of growth
have been external-led factors including export, ,
and foreign investment, but lately, the domestic demand played
more role in stimulating growth. This is due to several factors
including high growth rate of the construction sector, increasing
spendings by individuals benefiting from the current economic boom,
and rising investment from both private and public sectors.
However, the growth rates in 1991, 1992 and 1993 were lower at
8.2, 7.4 and 7.5 percent respectively, consistent with the long-term
sustainable expansion. Increasing rate has been around 3 percent
during recent year.
This
fast-growth pattern is accompanied by rapid structural changes in
three dimensions. First, there is a clear internationalization of
the Thai economy. the share of exports to the Gross Domestic
Product rose from 19.2 percent in 1982 to as high as 29.5 percent
in 1993. This internationalization of the Thai economy represented
both challenges and opportunities since the increasing openness of
the economy allows Thailand for wider access to the world market
but, even though it opens the country to more unstable forces in
the world arena.
Second,
there is an increasing interdependency among countries in the Asia
Pacific region (including Japan, NICs, U.S., Canada, Australia,
New Zealand, China, and ASEAN). Massive relocation of export
industries from the surplus economies, particularly Japan and the
newly Industrialized Economies (NIEs), in Asia led to the
increasing integration of Thailand into the Asia-Pacific
industrial structure. During 1987 as much as 64 percent of the
foreign investment seeking promotional priviledges in Thailand
were fro the Asia Pacific region and the share was still high at
62 percent in 1993.
Finally,
there has been a new structural change as a result of the economic
boom. Wage rate is rising and shortages are being felt in some
critical technical man-power areas. Thus, the Thai economy is
rapidly moving from a labour abundancy situation to one of more
full employment. This allows for better income distribution as
development impacts are being more dispersed in the kingdom. With
adequate training and technical facilities, Thailand is ready to
move up to a higher level of production structure with more value
added to the economy, thus allowing other nations with cheaper
unskilled labour to move into its place for an orderly development
transition process in the region.
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