national competitiveness of thailand...
TRANSCRIPT
POSTAL POSTAL NETWORKNETWORK
& &
MILLENIUM DEVELOPMENT GOALSMILLENIUM DEVELOPMENT GOALS
By
Dr. Piyachart Phiromswad
Dr. Sabin Srivannaboon
Dr. Taka Fujioka
Dr. Pongsak Hoontrakul
By
Dr. Piyachart Phiromswad
Dr. Sabin Srivannaboon
Dr. Taka Fujioka
Dr. Pongsak Hoontrakul
National Competitiveness of Thailand 2008
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What is national competitiveness?: General misunderstanding
National competitiveness is not about gaining global market shares alone
National competitiveness is not about exchange rate alone
National competitiveness is not about the degree of perfect competition in markets
National competitiveness is much broader!
See e.g. P., Krugman, (1996), “Making Sense of The Competitiveness Debate.”
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Inst
ituti
ons
Infr
astr
uct
ure
Mac
roec
onom
ic s
tabil
ity
Hea
lth &
Pri
mar
y E
du
cati
on
Hig
her
Edu
cati
on &
Tra
inin
g
Good M
arket
Eff
icie
ncy
Lab
or
Mar
ket
Eff
icie
ncy
Fin
anci
al M
arket
Sop
his
tica
tion
Tec
hnolo
gic
al R
eadin
ess
Mar
ket
Siz
e
Busi
nes
s S
ophis
tica
tion
Innovat
ion
PRODUCTIVITY
WELL-BEING OF PEOPLE
What is national competitiveness?
12 Pillars from The World Economic Forum (WEF)
Factors, institutions, and environment
that enhance the productivity of
enterprises that lead to better well-
being of people
(The Global Competitiveness Report 2008-2009, p. 3)
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Performance of Thailand at 2008World ranking (out of 134 countries) based on the
Global Competitiveness Index of WEF 2008
Among broad groups of
countries, Thailand national
competitiveness is in the
top-tier
1093.531,701Cambodia
714.093,219Philippines
704.12,454Vietnam
554.253,519Indonesia
504.332,599India
344.67,682Thailand
304.75,046China
215.0412,631Malaysia
135.2823,363S. Korea
115.3339,953Hong Kong
95.3831,607Japan
55.5347,488Singapore
15.7443,227USA
World RankingScores
WEF 2008GDP per capita in
2007
(PPP $)
Countries
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Important strengths and weaknesses
How to improve national competitiveness of Thailand?
Improving
National
Competitiveness
Maintaining
Important
Strengths
Overcoming
Important
Weaknesses
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Performance of Thailand at 2008Important strengths of Thailand: World ranking (out of 134 countries)
based on the Global Competitiveness Index of WEF 2008
Infrastructure, labor market
efficiency, and market size
are important strengths of
Thailand.
97
92
93
86
72
29
47
23
15
5
11
4
7
Infrastructure
33
101
47
43
89
13
51
19
41
4
11
2
1
Labor market
efficiency
95Cambodia
34Philippines
40Vietnam
17Indonesia
5India
21Thailand
2China
28Malaysia
13S. Korea
26Hong Kong
3Japan
41Singapore
1USA
Market sizeCountries
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Important strengths and weaknesses
Important strengths
Labor market efficiency (13th)• Cooperation in labor-employer relations (17th)
• Low non-wage labor costs (20th)
• Low Rigidity of employment (21st)
Market size (21st)• Large domestic market size (23rd)
• Foreign market size (18th)
(Physical) infrastructure (29th)• Ground transportation (32nd)
• Air transportation (28th)
We show factors that are strengths of pillars (from 134 countries)
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Performance of Thailand at 2008Important weaknesses of Thailand: World ranking (out of 134 countries)
based on the Global Competitiveness Index of WEF 2008
Institutions, health, and
technological readiness are
important weaknesses of
Thailand.
103
105
71
68
53
57
56
30
28
9
26
1
29
Institutions
111
90
84
87
100
58
50
23
26
43
22
16
34
Health and
primary
education
123Cambodia
70Philippines
79Vietnam
88Indonesia
69India
66Thailand
77China
34Malaysia
13S. Korea
10Hong Kong
21Japan
7Singapore
11USA
Technological
readinessCountries
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Important strengths and weaknesses
Important weaknesses
Institutions (57th)• cost of terrorism (107th), reliability of police services (71st), ethical behavior of
firms (69th), property right (61st), public trust in politicians (64th), transparency in government policy making (60th), organized crime (63rd) and efficacy of corporate boards (66th): in sum, many weaknesses in institutions
Health (58st)• HIV (108th)• Malaria (93rd)• Tuberculosis (96th)
Technological readiness (66th)• Broadband internet subscribers (94th)• Internet users (78th)• Personal computers (72nd)• Mobile phone subscribers (72nd)
We show factors that are weaknesses of pillars (from 134 countries)
Should be viewed as “general
purpose technology”
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Stages of development
Factor driven
stage
Thailand
Efficiency driven
stage
Innovation driven
stageTransition Transition
According to The World Economic Forum
(see The Global Competitiveness Index 2008-2009, p. 7-9
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Recommendations Maintain our strengths
• Maintain the quality and reliability of Thai’s export products (we do not want to repeat the mistake of China!)
• Maintain labor market efficiency and existing physical infrastructure
Overcome our weaknesses
• Address the unrest in the southern provinces
• Put more resource toward health-related issues
• Address the fundamental problem of Thailand’s institutions appropriately
• Improve Thailand readiness in technology adoption
Factor driven
stageTransition
Factor driven
stage
Factor driven
stage
Transition
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FutureTalents • Promote skill development in organizations• Promote education
– Mindset: Enhance entrepreneurship (basic education)– Technical: Math, science, and engineering (higher education)
• Raise awareness of the collaboration in universities and business• Immigration policy
– Attract international talents
Infrastructure• Construct science parks• Raise awareness of the collaboration in universities and business• Enhance information communication technology
Investment • Tax reduction • Increase research grants for universities and research institutes• Increase R&D investment
Factor driven
stageTransition
Factor driven
stage
Factor driven
stage
Transition
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ENDAny questions or comments, please kindly contact:
All rights reserved @ 2008
Piyachart Phiromswad, Ph.D.
Education
Doctor of Philosophy, Economics: UNIVERSITY OF
CALIFORNIA Davis, CA, USA (December 2007)
Master of Arts, Economics: UNIVERSITY OF MISSOURI
St. Louis, MO, USA
Bachelor of Economics (International Program),
THAMMASAT UNIVERSITY, Bangkok, Thailand
Piyachart Phiromswad, Ph.D.
Research/Expertise
Macroeconomist with experience in the areas of Economic Growth, and Monetary Economics.
A member in WEF executive opinion survey working group for Thailand (a joint collaboration between Sasin and TDRI) in 2007.
Research: Econometrics and causal search algorithms with application in the areas of Economic Growth and Monetary Economics.
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Extra: Most Problematic Factors (from the perspective of CEO)
Source: World Economic Forum (Oct 08)
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Extra: Ranking and raw score for 12 pillars
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GDP (PPP $US) Per capita 1980-2007
Source: World Economic Forum (Oct 08)