Abstract / Excerpt:

This paper used a sample of 20 cases in finding the relationships between economic factors and economic growth, and developed empirical model for economy growth in Thailand using economic variables like gross domestic product and gross domestic product from capita, used to explain the determinants for sustained economic growth in developing countries. This paper also presented a wide-ranging examination of both theoretical and empirical evidences on the many ways that macroeconomic policies affects growth. Most studies have shown that a macroeconomic policy framework conducive to growth faster than those without them, though there are many independent variables and dependent variables, of both developing and developed countries, that suggests that satisfying only some of these conditions does not result in faster growth. However, it is important to recognize that the direction of causation is somewhat ambiguous: whether good macroeconomic policies are conducive to growth or whether strong growth is conducive to good macroeconomic policies. The results suggest that apart from the growth in the labor force, investment in both physical and human capital, as well as low inflation and open trade policies (less trade barriers), are necessary for economic growth. Furthermore, the ability to adopt technological changes in order to increase efficiency is also important. Since many developing countries have a large agricultural sector, adverse supply shocks in this sector was found to have a negative impact on growth.

Info

Source Institution	Ateneo de Davao University
Unit	Business and Accounting
Authors	Kaeopinyo, Somsak
Page Count	142
Place of Publication	Davao City
Original Publication Date	March 1, 2005
Tags	Dissertations, Economic Development, Economic Policy, Thailand

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