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 Home > About Thailand > Economy > Conclusion


CONCLUSION

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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, tourism, 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.

If you want to read some interesting topics, select the following information :

                        Bounty of the Land and 
                        Sea | Sector Performance 
                        | The Agriculture and 
                        Mining Sectors | Major 
                        Crops | Livestock 
                        | Forestry | Fisheries 
                        | Mining | The 
                        Manufacturing Sector | Tourism 
                        | The Organized Financial 
                        Market | The Bank 
                        of Thailand | Other Sources 
                        of Finance | The Capital 
                        Market | The Role of the 
                        Public Sector | Infrastructural 
                        Support | Public Utilities 
                        | Government Incentives 
                        and Financial Assistance | Foreign 
                        Trade and Balance of Payments | Conclusion 
                      


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