ABSTRACT
As the ASEAN Economic Community (AEC) is now fully in effect, the Thai government is obliged to help increase the region’s competitiveness. The AEC Blueprint has attracted attention from academics and researchers with specific attention paid to its impact on individual countries. For Thailand, economic growth is one clear positive result from economic integration. Empirical studies also suggest that poverty reduction is related to economic growth. However, what has been questionable is the relationship between economic growth and income disparity, especially between Bangkok and other regions. More importantly, what has been understudied is the impact of the industrial policy of particular countries on the growth and development of ASEAN as a whole. Taking into account the existing literature, this chapter looks at two levels of Thailand’s industrial policies. First, it aims to analyze whether the policies that the Thai government adopted have helped to close the poverty gap or have instead created a wider gap and worsened Thailand’s regional disparities. Second, it aims to examine whether the policies initiated by the Thai government have promoted regional growth and development for the AEC.
