Export-Led Industrialization

Abstract

Thailand has experienced a high rate of growth since 1960, and the country has since become more industrialized. At the early stage of development agriculture played an important role in the country’s economic growth with agricultural exports leading the way. Since 1980 the manufacturing sector has become important both in terms of its contribution to GDP and as an earner of foreign exchange. During the past decade there has been a dramatic increase in exports of labour-intensive manufactured products. The objective of this chapter is to investigate industrial performance and policies that have contributed to strong economic performance. The chapter begins with a brief background to industrialization in Thailand, and then it goes on to assess the role of export development and industrialization policy; tariffs, industrial protection and investment promotion; and finally the future prospects for Thai manufactured exports in a global economy.