We use cookies on this website to give you a better user experience. By continuing to browse the site, you are agreeing to our use of cookies. Learn more

Changes in Trade and Investment Policies in Thailand and the Implications for Medium-term Growth

Changes in Trade and Investment Policies in Thailand and the Implications for Medium-term Growth
Date:
5 August 2022
Category:
Thailand, Investment, Trade
Authors:
Archanun Kohpaiboon, Juthathip Jongwanich
Tags:
Thailand, FTAs, EEC, Investment Promotion, Investment, Trade

Print Article:

This paper addresses the noticeable changes in trade and investment policies in Thailand in the new millennium and assesses their impact. These changes began with trade policy changes from the World Trade Organization to free trade agreement (FTA)-induced liberalisation, followed by changes in investment policies, all of which are to boost firms’ productivity and medium-term growth. Our results suggest that the policy changes are yet to produce the output the government expects. The signed FTAs’ impact on trade has been limited so far and has occurred selectively on certain product lines, as did the FTA-induced direct investment. Similarly, changes in investment policies had the impact of enticing direct investment but this varied across investors’ nationalities. The impact on firm productivity is also limited and found only for investment promotion policies. Our analysis highlights the role of traditional tools, i.e. trade openness, research and development, and skills upgrading, in fostering firm productivity. Whilst FTAs and investment promotion could be used as a catalyst for firms to enhance productivity, other supporting factors are also needed.

Changes in Trade and Investment Policies in Thailand and the Implications for Medium-term Growth 

Search ERIA.org

Latest Multimedia

Indonesia's ASEAN Chairmanship 2023 High-Level Policy Dialogue: ASEAN Digital Community 2045

ERIA Knowledge Lab Discusses Scaling Up Innovation and Digital Technology Ecosystem

Is ASEAN Ready for Electric Vehicles? | ASEAN Insights Podcast

Related Articles

Indonesia, tariff, trade policy, computable general equilibrium model
11 November 2019
Editor(s)/Author(s): Masahiko Tsutsumi, Masahito Ambashi, Asuna Okubo
This paper aims at evaluating the economic impacts of the various Indonesian free trade agreement (FTA) strategies in enhancing export-led growth.[...]
25 March 2015
Editor(s)/Author(s): Sothea Oum, Patarapong Intarakumnerd, George Abonyi, Shigeo Kagami, Patarapong Intarakumnerd, George Abonyi, Shigeo Kagami,
AbstractThe ASEAN Policy Index study revealed that a lot is to be done to towards adopting best practices in each policy area of[...]