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4 (1) 2014

Contribution of International Trade and Capital Accumulation to Economic Growth of Thailand during the last half of the 20th century


Author - Affiliation:
Nguyen Minh Duc - Nong Lam University , Vietnam
Corresponding author: Nguyen Minh Duc - nguyenminhducts@gmail.com

Abstract
The present paper examines the links between international trade, capital and economic growth in Thailand from 1950 to 2000 in an applied growth model including exchange rate as a control variable. Prior to 1980 the elasticity of per capita income with respect to trade was -0.2% switching to 0.07% in 1980 in line with the change from resource exports and import substitution to manufactured exports. The exchange rate elasticity of per capita income prior to 1980 was 0.4% switching to -0.2% consistent with the move to a floating exchange rate. Results confirm the overriding theoretical importance of investment to economic growth


Keywords
international trade; neo-classical growth; time series analysis; ThailandJEL code: F43; O53

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DOI: https://doi.org/10.46223/HCMCOUJS.econ.en.4.1.80.2014
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