Richter, Kaspar2012-06-212012-06-212006-05https://hdl.handle.net/10986/8671Thailand is one of the most successful developing countries. After decades of rapid growth, the economy rebounded quickly from the 1997-98 Asian crisis and is set to continue its expansion into the future. Nevertheless, there are doubts about the resilience of the Thai economy. The country appears to be on a lower growth projectory now than before the crisis. What growth can Thailand realistically expect? And what can the government do to sustain such growth into the future? Using a new methodology for identifying binding constraints to growth (Rodrik 2004 and Hausmann and others 2005), the author argues that Thailand's challenge is to maintain growth levels of 4 to 5 percent over the medium term. To achieve this goal, Thailand needs to continue its efforts of improving business infrastructure, trade integration, and skills, as well as intensifying its governance reforms.CC BY 3.0 IGOAGRICULTURAL GROWTHAGRICULTURAL SECTORAGRICULTUREAVERAGE ANNUALCAPACITY UTILIZATIONCAPITAL ACCUMULATIONCAPITAL FLOWSCAPITAL INFLOWSCAPITAL INVESTMENTCAPITAL MARKETCAPITAL STOCKCAPITAL-LABORCAPITAL-LABOR RATIOSCENTRAL BANKCOMMODITIESCOMPARATIVE ADVANTAGECOMPETITIVENESSCONSTANT PRICESDEBTDECISION TREEDEVALUATIONDEVELOPING COUNTRIESECONOMIC ACTIVITYECONOMIC EXPANSIONECONOMIC GROWTHECONOMIC PRIORITIESEXCHANGE RATEEXCHANGE RATE POLICYEXCHANGE RATESEXPENDITURESEXPORT GROWTHEXPORT TAXESEXPORTSFACTOR ACCUMULATIONFOREIGN CAPITALFOREIGN OWNERSHIPFOREIGN SAVINGSFREE TRADEGDPGLOBAL ECONOMYGROSS DOMESTIC PRODUCTGROWTH ACCOUNTINGGROWTH DIAGNOSTICSGROWTH EPISODEGROWTH EPISODESGROWTH PATHGROWTH PERFORMANCEGROWTH PERIODGROWTH RATEGROWTH RATESHEAVY INVESTMENTHIGH GROWTHHUMAN CAPITALINCOME LEVELSINCOME PER CAPITAINDUSTRIALIZATIONINTENSIVE GROWTHINTEREST RATESINVESTMENT BEHAVIORINVESTMENT CLIMATEINVESTMENT INCENTIVESINVESTMENT RATESLABOR DEMANDLABOR FORCELABOR MARKETLABOR PRODUCTIVITYLABOR SUPPLYLOW INCOMELOW INFLATIONMACROECONOMIC POLICYMEDIUM TERMMONETARY POLICIESNATIONAL INCOMENATURAL RESOURCESNEGATIVE GROWTHNOMINAL INTEREST RATESOUTPUT GROWTHOUTPUT RATIOPER CAPITA GROWTHPER CAPITA GROWTH RATEPER CAPITA INCOMEPER CAPITA INCOME LEVELPOINT ESTIMATESPOLICY RESEARCHPORTFOLIOPORTFOLIO INVESTMENTSPOVERTY REDUCTIONPOWER PARITYPRIVATE CAPITALPRIVATE CONSUMPTIONPRIVATE INVESTMENTPRIVATE INVESTMENTSPRIVATE SECTORPRODUCTIVITYPROFITABILITYPUBLIC CONSUMPTIONPUBLIC INVESTMENTPURCHASING POWERRAPID GROWTHREAL EXCHANGE RATEREAL GROWTHREAL OUTPUTRELATIVE LABORRELATIVE LABOR DEMANDRELATIVE WAGESSECTORAL COMPOSITIONSHADOW PRICESSHARP FALLSOCIAL OUTCOMESSOCIAL SECURITYSOCIAL SPENDINGSTRUCTURAL CHANGETARIFF BARRIERSTECHNOLOGICAL PROGRESSTFPTOTAL FACTOR PRODUCTIVITYTOTAL FACTOR PRODUCTIVITY GROWTHTRADABLE SECTORSTRADE BALANCETRADE COMPETITIVENESSTRADE LIBERALIZATIONURBAN AREASVALUE ADDEDWAGESWORLD TRADE ORGANIZATIONWorld Bank10.1596/1813-9450-3912