UNDERSTANDING ECONOMIC COMPLEXITY AND CONSEQUENCE ON GROWTH OF THAILAND
DOI:
https://doi.org/10.60101/rmuttgber.2024.274799Keywords:
Economic Structure, Economic Complexity Index, Economic GrowthAbstract
This study aims to investigate the transformation of Thailand's economic structure and the influence of economic complexity on economic growth. The study utilizes input-output tables from 2007 and 2022 to examine structural changes and employs network analysis to compare the shifts in sectoral weights within the economy. Furthermore, the study employs regression analysis to assess the impact of economic complexity on economic growth using economic structure weights from 2007 to 2022 as an indicator of economic complexity.
The results found that 1) The Thai economy has experienced a significant increase in complexity and interconnectedness over the past 15 years, with a statistically significant rise of approximately 20%. The fundamental industries driving manufacturing activities remain the basic metal and machinery subsector and the machinery and equipment rental subsector. However, other sectors, particularly those related to the service sector, such as finance, hotels, retail, and postal services, have shown a growing tendency to connect with other economic activities, while linkages in manufacturing-related sectors have exhibited a declining trend. 2) Economic complexity exerts a statistically significant positive influence on economic growth, amounting to approximately 2.1%
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