Thailand: Industrialization and Economic Catch-Up
This report identifies some of Thailand’s critical development constraints and discusses policy measures and economic reforms needed to accelerate economic transformation toward a more modern and service-oriented economy.
Thailand’s economic and social transformation of the last 50 years has placed it in the ranks of upper middle-income countries and made it an integral part of global value chains. It has also established itself as a regional hub for key transport and logistics, with a world-class airport.
To continue its rise, Thailand needs to move into the higher-value segments of economic activity and create high-quality jobs that are regionally broader based. This report identifies the major constraints to accomplishing these goals and analyzes the main challenges. Among them, the country must:
- enhance research and development and international technology transfers;
- elevate worker skills and their industrial relevance;
- address structural impediments to competition, notably in services;
- provide advanced transport and logistics infrastructure; and
- improve access to finance and technology for micro, small, and medium-sized enterprises.
- Thailand Fast Facts
- Overview: Economic Transformation and Industrial Upgrade
- Technological Progress: Limited International Technology Transfer
- Challenges in the Transition to High-Income Status
- Policy Recommendations: Addressing the Challenges