ABSTRACT
Like most East Asian economies Thailand’s labour force has undergone rapid transforma-
tion with an increasing rise in wage labour. While increased modernization had started a
decline in farm labour, export-oriented industrialization became an important impetus for
this development since the 1970s. Although Thailand did not introduce the usual instru-
ments of industrial policy in a strict sense, industrial promotion through incentives was
important in attracting foreign direct investment (FDI) and stimulating manufactured
exports. However, while manufacturing has grown with Thailand becoming the leading
exporter of automobiles from Southeast Asia, the latter has not evolved significantly to
become Thailand’s main employer. In fact, export-oriented industrialization in Thailand
is still very much dependent on FDI with employment contracts largely renewable
between one and three years.
