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Rethinking Thailand¡¯S Growth Policies

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  • AEGGARCHAT SIRISANKANAN

    (Mahasarakham University, Thailand)

Abstract

This paper applies Johansen¡¯s cointegration and error-correction model to examine the relationships among a set of economic reform policies, the contribution of external factors, and Thailand¡¯s economic growth. The Johansen¡¯s cointegration results reveal that fiscal reform, openness, and deregulation have a positive effect on economic growth, while financial development has no significant effect on economic growth. Meanwhile, we also find that some external shocks have a highly significant effect, with a large magnitude, on Thailand¡¯s economic growth. Additionally, the estimation of the VECM indicates that the variables in the model may be in disequilibrium in the short run since the short-run adjustment coefficient is significantly negative.

Suggested Citation

  • Aeggarchat Sirisankanan, 2014. "Rethinking Thailand¡¯S Growth Policies," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(2), pages 51-73, June.
    • Handle: RePEc:jed:journl:v:39:y:2014:i:2:p:51-73
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    More about this item

    Keywords

    Economic Growth; Economic Policy Reform; External Shocks; Thailand;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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