Title: Economic innovation challenges: lessons learnt from the major financial crises in Asia

Authors: Jarunee Wonglimpiyarat; Rachanee Tripipatkul

Addresses: College of Innovation, Thammasat University, Anekprasong 3 Bldg., Prachan Rd., Bangkok 10200, Thailand ' P. Overseas Steel Public Company Ltd., 99/1 Paholyothin 40, Paholyothin, Bangkok 10900, Thailand

Abstract: This paper discusses the lessons learnt from the two major financial crises with regard to their impacts on the economy of Thailand. In particular, the study compares the two major financial crises which have far-reaching impacts on the global financial system - the Tom Yam Kung crisis (the Asian financial crisis in 1997) and the hamburger crisis (the US financial crisis in 2008). The discussions on their impacts on the Thai economy are based on the Schumpeterian model of economic development. The results have shown that Thailand has brought the lessons from the Tom Yam Kung crisis to effectively protect its financial system in the midst of the global financial downturn caused by the hamburger crisis. The case of Thailand represents a paradigmatic case with valuable insights and experiences that can be applied to other economies.

Keywords: Schumpeterian analysis; Tom Yam Kung crisis; hamburger crisis; Basel III; Bank of Thailand; economic innovation; Asian financial crisis; US financial crisis; economic development.

DOI: 10.1504/IJBIR.2017.081402

International Journal of Business Innovation and Research, 2017 Vol.12 No.2, pp.189 - 205

Received: 01 Nov 2014
Accepted: 07 Dec 2014

Published online: 11 Dec 2016 *

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