Authors: Wuthiya Saraithong; Kanokwan Chancharoenchai
Addresses: Department of Economics, Faculty of Economics, Kasetsart University, Bangkok, 10900, Thailand ' Department of Economics, Faculty of Economics, Kasetsart University, Bangkok, 10900, Thailand
Abstract: This empirical investigation seeks to detect the behaviour of the Thai economy and its production input efficiency. After conducting various statistical tests, AR(|2|) model incorporating input factors seems to be the most appropriate specification. The state space model suggests that the estimated parameters statistically illustrate the transitional productivity. The technological transfer via direct channels shows its negative productivity. The labour productivity sheds some light of positive signal to human capital improvement. The monetary credibility points to insignificant inflation uncertainty, while the foreign exchange uncertainty provides some benefit to Thai businesses. Finally, the international integration discourages the growth of Thailand.
Keywords: productivity; state space model; Thai economy; economic growth.
International Journal of Economic Policy in Emerging Economies, 2020 Vol.13 No.4, pp.393 - 402
Received: 23 Oct 2019
Accepted: 18 Dec 2019
Published online: 09 Sep 2020 *