Free ebook "TCDC OUTLOOK: Creative Economy Prospects” (July-December 2017)
Published Date : 6 Dec 2017
Resource : TCDC
In recent decades, a combination of public sector investment promotion plans and low labor costs made Thailand one of the most desirable locations in the world for offshore manufacturing. The influx of foreign capital led to a dramatic restructuring of the national economy as workers moved away from the historically dominant agricultural sector for new opportunities in the industrial sector. Although this resulted in rapid and continuous economic development has come as a result of this transition, it has also posed new challenges. Economic growth and development has driven up wages and the overall cost of labor. Meanwhile, dependence on foreign investment in manufacturing capacity in Thailand has caused the industrial sector to import technologies from abroad and engage in very little technological innovation of its own.
Thailand has thus fallen into the so-called “Middle Income Trap”, wherein a country becomes uncompetitive in terms of labor cost but is also unable to raise the level of its industrial development needed to compete with the high technology-driven advanced industrialized economies. The Dynamic Computable General Equilibrium Model (CGE Model) is a tool that can be used to help Thailand get out of the Middle Income Trap. Specifically, the CGE Model is used to evaluate the results of government policy implementation and changes in the creative industries, which provide policy recommendations that will help to increase per capita gross national income and drive economic growth.
This book was produced by TCDC for the interested public to download for free. TCDC seeks not to make profit from this download, but aims to disseminate knowledge to the Thai society.