Does trade benefit growth trade led growth – Evidence from ThaiLand includes Thailand brief, real per capita GDP of Thailand, exchange rate of Thai currency, Trade effect on per capita GDP. | DOES TRADE BENEFIT GROWTH? Trade-led growth – EVIDENCE FROM THAILAND • Vohra (2001): exports have a positive impact on economic growth when a country pursues export expansion strategies. • Lee and Pan (2000): little evidence of causal relations from exports to GDP on eight East Asian developing countries (Hong Kong, Indonesia, South Korea, Malaysia, the Philippines, Singapore, Taiwan, and Thailand). Duc Minh Nguyen Dept. of Economics, Auburn University, USA prepared by Nguyen Minh Duc 2006 1 Introduction • Any nation hopes to get benefits from globalization. • The easiest part of global integration to observe is increasing trade • Nations that have learned to export manufactured goods/services seem to develop much faster than those produce mainly for their own home markets • The effect of trade on economic growth is a recurring issue in economics prepared by Nguyen Minh Duc 2006 TS Nguyễn Minh Đức 2006 prepared by Nguyen Minh Duc 2006 3 Or not? • Ekanayake (1999): no strong evidence for causality from export growth to economic growth in eight Asian countries India, Indonesia, Korea, Malaysia, Pakistan, Philippines, Sri Lanka and Thailand) • Siddique and Selvanathan (2002): – refute a positive relationship between exports and economic growth – economic growth leads to exports increase – export growth causes import growth – import growth causes economic growth BAIYOKE HOTEL (Bangkok, Thailand) 2 prepared by Nguyen Minh Duc 2006 4 1 Introduction Thailand brief • In the 1970s, its industrial sector was started based on import substitution • in the 1980s the export-oriented manufacturing sector, based on labor-intensive output such as textiles and garments • after 1990 the fastest growth was in higher-technology goods as computer accessories and motor vehicle parts • import capital goods, intermediate goods and raw materials, consumer goods and fuels • This study examines the example of Thailand, a developing country with the time span of .
