Competitiveness, Income Distribution, and Growth in Thailand : What Does the Long-run Evidence Show?

The paper addresses three fundamental issues under a long-run perspective : (1) growth and productivity, (2) competitiveness, and (3) income distribution. Unit labor costs (ulcs) and unit capital cost (ukcs) are calculated as the indicators of competitiveness in Thailand. Both series explain that Thailand did not gain in competitiveness during its boom period. However, during the 1997 financial crisis, when the Baht currency depreciated, both series dropped significantly. The paper also discusses the dynamics of labor share and capital share in national income as well as the functional distribution of income. Some major features of Thailands long-run economy are the following : (i) increasing average wage rates, (ii) stabilizing profit rates (slightly increasing during the boom decade after having dropped sharply during the 1997 crisis), (iii) substantially increasing capital-labor ratio, (iv) decreasing capital productivity and increasing capital-output ratio, (v) increasing labor productivity, and (vi) increasing mark-up.Functional income distribution can be determined during the periods studied. The gains in labor were greater than that of capital in the Thai economy, especially during the period of crisis when profit rates dropped substantially. The paper also documents the growth in income per capita decomposed by ranges of labor market indicators. Labor productivity is observed as the only factor contributing to per capita output. Overall, to achieve the medium to long-term growth potential projected by the National Economic and Social Development Board (NESDB), Thailand needs to improve capital productivity and increase its capital stock. This paper is organized as follows : after the Introduction, Sections II-III construct labors shares, capital share, and ulc series, and observe the long-run pattern of the variables. Section IV analyzes the determinants of long-run competitiveness and growth. The determinants include wage rate, profit rate, capital-output ratio, capital-labor ratio, labor productivity, and capital productivity. Section V observes the degree of functional income distribution including its longterm evolution during the last 20 years. Section VI computes the degree of markup, which also implies the dynamism of the monopoly power of business in the Thai economy. Section VII analyzes the sources of growth in per capita income categorized by different labor compositions. Section IX estimates the medium-term growth potential as projected by the NESDB. Section X concludes the report.Growth and productivity, competitiveness, Income Distribution, Equity, competition policy, Infrastructure and Regulations

Integrating Entrepreneurship into the Design Classroom: Case Studies from the Developing World

© 2017, Springer Science+Business Media, LLC. Developing countries are more and more committed to building a knowledge-based economy as a means to diversify from their current resource-based economy. The current focus of many governments is on technology with real insights on creative economy and arts. In this context, universities are seen as a key partner of the government. This article presents the results of two innovative case studies of professors working in the College of Art and Design collaborating with a professor in the College of Business to integrate the concepts of entrepreneurship into their interior design courses. This was done through designing space for entrepreneurial projects and by the students acting as entrepreneurs themselves with an external client. This dual model of training combines (1) learning processes about the habits and the needs of entrepreneurs and (2) learning by acting as an entrepreneur. Such methods demonstrate the role of universities to provide a proper theoretical background for students and to foster entrepreneurial behaviors through arts entrepreneurship education. Furthermore, the central role of professors to introduce innovative teaching methods to combine entrepreneurship and the creative economy into non-business courses is an important finding in these case studies

Does AFTA create more trade for Thailand? An investigation of some key trade indicators

This paper examines whether the ASEAN Free Trade Agreement (AFTA) creates trade for Thailand or actually diverts it away from the country. It does this by analyzing various trade indicators: the Export Similarity Index, the Intra-Industry Trade Index, and Revealed Comparative Advantage (RCA) rank correlation. By examining the patterns of trade between Thailand and other members of ASEAN, it reveals a high degree of similarity regarding the trade structure between Thailand and AFTA, which indicates that there will be fewer trade-creation benefits from AFTA and a greater likelihood of trade diversion once the AFTA scheme has been fully implemented. This similarity pattern explains the reasons for future collaboration among member countries and supportive arguments for the future extension of ASEAN ("ASEAN+"). Market-penetration and development strategies should be employed by Thai exporters when accessing the ASEAN market

Labour Migration and the Economic Sustainability in Thailand

Migration is one of the top debate topics in terms of the national policy agendas of middle-income countries, and Thailand is no exception. The segmentation of its labour market explains why Thailand is experiencing large-scale immigration and a simultaneous emigration of low-skilled workers. Immigration inflows from its less-developed neighbour countries – namely, Laos, Cambodia and Myanmar – pose a challenge for Thailand. Wage differentials between Thailand and other migrant-receiving countries, which are mostly more economically developed than Thailand, also stimu-late emigration from there. Due to regional disparities within the country and to a lack of employment and educational opportunities in rural areas, internal migration is also common and encouraged. In this paper I first analyse the economic pros and cons of migration both to and within Thailand before formulating labour migration policies that aim to maximize beneficial outcomes while minimizing economic costs. The cost–benefit analysis of labour migration is key to addressing relevant gaps in formulating and implementing effective policies

เศรษฐศาสตร์การศึกษาปฐมวัย: การเข้าถึงการศึกษาปฐมวัยและผลสัมฤทธิ์ของการศึกษาต่อในอนาคต

Several research papers have assessed the long-term benefits of pre-primary education interms of academic performance and labor market outcomes. This study analyzes data obtained fromthe Program for International Student Assessment (PISA) to estimate the effects of preschool enrollment of Thai students on producing long-term benefits in their academic performance. Results show that a mother’s educational attainment has a significant impact on the decision to enroll her child in preschool. Regarding the long-term benefits, our findings show that pre-primaryeducation bears a significant and positive association with cognitive skills in all three areas of literacy tested under PISA, namely, reading, mathematics, and the sciences. Regarding the economicstatus of students’ families, results indicate that the benefits of pre-primary education in cognitive skill improvement tend to be greatest in the case of students from low- to middle-income families.Evidence supports the promotion of long-term benefits of pre-primary education and, thus, the universal early childhood education policy. In particular, support should be given to childhood educationprograms that specifically target children from disadvantaged groups and low-income household

Labour Migration and the Economic Sustainability in Thailand

Migration is one of the top debate topics in terms of the national policy agendas of middle-income countries, and Thailand is no exception. The segmentation of its labour market explains why Thailand is experiencing large-scale immigration and a simultaneous emigration of low-skilled workers. Immigration inflows from its less-developed neighbour countries – namely, Laos, Cambodia and Myanmar – pose a challenge for Thailand. Wage differentials between Thailand and other migrant-receiving countries, which are mostly more economically developed than Thailand, also stimu-late emigration from there. Due to regional disparities within the country and to a lack of employment and educational opportunities in rural areas, internal migration is also common and encouraged. In this paper I first analyse the economic pros and cons of migration both to and within Thailand before formulating labour migration policies that aim to maximize beneficial outcomes while minimizing economic costs. The cost–benefit analysis of labour migration is key to addressing relevant gaps in formulating and implementing effective policies

Does AFTA Create More Trade for Thailand? An Investigation of Some Key Trade Indicators

This paper examines whether the ASEAN Free Trade Agreement (AFTA) creates trade for Thailand or actually diverts it away from the country. It does this by analyzing various trade indicators: the Export Similarity Index, the Intra-Industry Trade Index, and Revealed Comparative Advantage (RCA) rank correlation. By examining the patterns of trade between Thailand and other members of ASEAN, it reveals a high degree of similarity regarding the trade structure between Thailand and AFTA, which indicates that there will be fewer trade-creation benefits from AFTA and a greater likelihood of trade diversion once the AFTA scheme has been fully implemented. This similarity pattern explains the reasons for future collaboration among member countries and supportive arguments for the future extension of ASEAN ("ASEAN+"). Market-penetration and development strategies should be employed by Thai exporters when accessing the ASEAN market

Does immigration promote innovation in developing countries? : evidence from Thai manufacturers (part of annex 18 of final technical report)

Contrary to developed countries where immigrants are found to boost innovation and promote sustainable growth, in Thailand unskilled immigrant workers help firms maintain their cost competitiveness in the short run, but negative impacts on R&D investment tend to hamper improvements in productivity, and in the long run diminish global competitiveness. On the other hand, employing skilled or educated migrants complements technological progress and encourages firms to innovate more quickly. Providing government incentives and promoting access to financing have become effective tools in facilitating Thai firms’ investment in innovation

Labour migration and the economic sustainability in Thailand

"Migration is one of the top debate topics in terms of the national policy agendas of middle-income countries, and Thailand is no exception. The segmentation of its labour market explains why Thailand is experiencing large-scale immigration and a simultaneous emigration of low-skilled workers. Immigration inflows from its less-developed neighbour countries – namely, Laos, Cambodia and Myanmar – pose a challenge for Thailand. Wage differentials between Thailand and other migrant-receiving countries, which are mostly more economically developed than Thailand, also stimu-late emigration from there. Due to regional disparities within the country and to a lack of employment and educational opportunities in rural areas, internal migration is also common and encouraged. In this paper I first analyse the economic pros and cons of migration both to and within Thailand before formulating labour migration policies that aim to maximize beneficial outcomes while minimizing economic costs. The cost–benefit analysis of labour migration is key to addressing relevant gaps in formulating and implementing effective policies." (author's abstract