ABSTRACT
Thailand’s gross domestic product in real terms in 1989 is estimated to grow at 10.4 per cent. The Thai economy has been registering this high growth rate since 1986, and is expected to continue to do so in the foreseeable future as more foreign direct investment and induced local investment are directed into the economy. This chapter looks at the structural changes in the Thai economy and how these changes contributed to the economic dynamism of Thailand. The 1980s will be recorded in Thai economic history as a decade of drastic economic change. World economic recovery and favourable exchange rates are two factors that have commonly been cited as accounting for the rapid expansion of Thailand’s external sector. A constant market share analysis of Thai export performance reveals that on the average the good export performance of 1982–87 could be attributed to Thailand’s competitiveness.
