Thailand: The Making of a Miracle?

Over the last half century, Thailand has been one of the fastest growing developing countries. This article reviews the causes of that growth. It deals both with the immediate factors, in a growth accounting framework, and with the underlying social and political factors. The author reaches the conclusion that a dynamic entrepreneurial class together with a supportive state were the key elements in Thailand’s rapid and efficient accumulation of production factors. Although in this respect Thailand is similar to a small number of other East Asian countries, the Thai case also has a number of unique characteristics.