Thailand's growth path: from recovery to prosperity

Type Journal Article - World Bank Policy Research Working Paper
Title Thailand's growth path: from recovery to prosperity
Issue 3912
Publication (Day/Month/Year) 2006
Thailand is one of the most successful developing countries. After decades of rapid
growth, the economy rebounded quickly from the 1997–98 Asian crisis and is set to
continue its expansion into the future. Nevertheless, there are doubts about the resilience
of the Thai economy. The country appears to be on a lower growth projectory now than
before the crisis. What growth can Thailand realistically expect? And what can the
government do to sustain such growth into the future? Using a new methodology for
identifying binding constraints to growth (Rodrik 2004 and Hausmann et al 2005), this
paper argues that Thailand’s challenge is to maintain growth levels of 4 to 5 percent over
the medium term. To achieve this goal, Thailand needs to continue its efforts of
improving business infrastructure, trade integration, and skills, as well as intensifying its
governance reforms.

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