Key Drivers of Economic Growth in Thailand: Evidence from 2011 to 2022

Key Drivers of Economic Growth in Thailand: Evidence from 2011 to 2022 | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Key Drivers of Economic Growth in Thailand: Evidence from 2011 to 2022 Ouyyanont Katikar This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-6918846/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This study investigates the key drivers of economic growth in Thailand over the period 2011–2022. By employing panel data analysis and relevant macroeconomic indicators, the research aims to identify which factors have played a decisive role in shaping Thailand's economic trajectory during the past decade. The findings reveal that improvements in labor productivity and the expansion of export activities are the most significant contributors to economic growth. In contrast, foreign direct investment (FDI), institutional quality (measured by the Provincial Competitiveness Index—PCI), and research and development (R&D) activities have yet to demonstrate a clear and consistent impact on growth. These results suggest that while Thailand has benefited from globalization and trade integration, its internal capabilities such as innovation systems and institutional efficiency remain underdeveloped. Based on the empirical evidence, the authors recommend a strategic shift toward a more sustainable and productivity-driven growth model. Policy implications include investing more in human capital development, strengthening institutional governance, and promoting R&D capacity to foster long-term economic resilience and competitiveness. Economic growth labor productivity foreign direct investment exports institutional quality 1. Introduction Over the past few decades, Thailand has undergone significant economic transformation, evolving from an agriculture-based economy to one driven by manufacturing and exports. This shift has contributed to the country’s steady economic performance, with moderate GDP growth rates and improved social indicators (Elmghaamez & Gan, 2023 ; Tran & Nguyen, 2025 ; Wiwattanakantang, 2001 ). However, in recent years, Thailand's growth momentum has slowed, raising concerns about the sustainability of its current growth model. Structural challenges such as an aging population, declining productivity, and limited innovation capacity have become more evident. As the global economic landscape becomes increasingly uncertain, it is crucial to re-evaluate the underlying drivers of Thailand’s economic growth to ensure long-term stability and resilience. Several key factors are commonly believed to influence economic growth in emerging economies like Thailand. Among them, labor productivity improvements and export expansion have traditionally played a central role (Azam et al., 2016 ; Babatunde et al., 2017 ; Beugelsdijk et al., 2008 ; Nguyen, 2022b ; Wawrzyniak & Doryń, 2020 ). At the same time, foreign direct investment (FDI), institutional quality, and research and development (R&D) activities are expected to contribute to innovation and competitiveness (Li & Lin, 2023 ; Nguyen, 2025 ; Norrbin & Pinar Yigit, 2005 ; Zhang & Cheng, 2009 ). However, the effectiveness of these factors in driving economic growth may vary depending on a country’s stage of development, policy environment, and structural capacity. While Thailand has benefited from increased trade integration and inflows of FDI, the impacts of these factors on growth performance remain mixed and underexplored in the recent literature, especially in the context of the post-2011 period marked by political uncertainty and external economic shocks (Alfaro et al., 2004 ; Tosun & Abizadeh, 2005 ; Tran et al., 2025 ; Zak & Knack, 2001 ). This study aims to empirically examine the major determinants of economic growth in Thailand from 2011 to 2022, with a particular focus on labor productivity, exports, FDI, institutional quality, and R&D activities. By analyzing the relative contributions of these factors, the paper provides valuable insights into which areas offer the most promise for driving sustainable and inclusive growth in the future. The findings of this study are not only relevant for Thai policymakers seeking to transition toward a more productivity-led growth model but also contribute to the broader discourse on economic development strategies in middle-income countries facing similar structural transitions. The paper concludes with specific policy recommendations to enhance Thailand’s growth potential through improved governance, strategic investment, and innovation-driven reforms. 2. Literature review Economic growth has long been a central topic in development economics, with extensive research dedicated to understanding its fundamental drivers. Classical growth theories, such as the Solow-Swan model, emphasize the role of capital accumulation, labor, and technological progress in determining long-term economic performance. In contrast, endogenous growth theories, including those proposed by Alexander ( 1997 ) and Ali et al. ( 2022 ), highlight the importance of innovation, human capital, and knowledge spillovers. In developing and emerging economies, these models are particularly relevant as they transition from resource- and labor-intensive growth toward productivity-driven and innovation-based development. Empirical studies in Southeast Asia often find that traditional growth factors like physical investment and labor expansion are insufficient to sustain long-term economic momentum (Akinlo, 2004 ; Ali & Siddiqui, 2020 ; Nguyen, 2023a , 2024a , 2024b ; Zhang, 2001 ). As such, scholars increasingly advocate for a more nuanced approach that considers structural factors, including governance, institutional quality, and education systems, as well as external liIMages like trade and foreign direct investment (FDI). These frameworks provide a useful foundation for examining the dynamics of Thailand’s economy in the last decade, which has been marked by both growth and stagnation. Among the various drivers of growth, labor productivity is widely recognized as a key determinant of economic performance. According to the Akamatsu ( 1962 ), productivity gains in Southeast Asia, including Thailand, have significantly contributed to GDP growth, particularly through improvements in workforce education, skills development, and sectoral shifts from agriculture to manufacturing and services. Studies such as Borensztein et al. ( 1998 ) emphasize that countries can achieve rapid growth by reallocating labor into more productive sectors, particularly export-oriented manufacturing. However, in Thailand, productivity growth has been uneven, with stagnation in key sectors and challenges in workforce upskilling. Some researchers argue that Thailand is facing a “middle-income trap,” where the earlier gains from labor-intensive industries are no longer sufficient to drive growth, and productivity enhancements have become increasingly difficult without institutional reform and innovation (Beck et al., 2005 ; Bui et al., 2022 ; Nguyen, 2024c ; Tansuhaj et al., 1987 ). This reinforces the need to better understand the role of productivity in Thailand’s current development context and how it can be leveraged to sustain future economic growth. Exports and trade openness have traditionally played a central role in the economic development (Nguyen, 2023b , 2024d ; Nguyen & Dang, 2023b ). Numerous studies confirm that export expansion can stimulate growth by increasing demand, improving efficiency, and exposing domestic industries to global competition (Saidi & Hammami, 2015 ; Saidi et al., 2020 ). Thailand’s integration into global value chains—particularly in electronics, automotive, and agriculture—has contributed significantly to its GDP and employment. However, empirical evidence also suggests that the benefits of exports may not be evenly distributed across all sectors or regions (Farhani & Ozturk, 2015 ; Lu et al., 2024 ). For instance, Sasana and Ghozali ( 2017 ) find that the positive impact of exports on growth is strongest when accompanied by complementary policies such as education and infrastructure development. Moreover, excessive reliance on exports makes the economy vulnerable to external shocks, such as global demand fluctuations and supply chain disruptions. In light of the recent COVID-19 pandemic and rising geopolitical tensions, there is growing interest in assessing whether Thailand’s export-led model remains viable in the long term or requires structural diversification and greater value addition in its export base (Ashraf, 2020 ; Nguyen, 2022a ; Nguyen & Dang, 2023a ; Usman et al., 2020 ). While exports and productivity are often emphasized in growth models, other factors such as foreign direct investment (FDI), institutional quality, and research and development (R&D) are also gaining attention. FDI is expected to bring capital, technology, and managerial know-how, thereby boosting productivity and competitiveness. However, studies on Thailand show mixed results. While Kohpaiboon (2006) notes that FDI has positive spillover effects in capital-intensive sectors, others argue that the benefits depend heavily on the absorptive capacity of domestic firms and the quality of institutions. Institutional quality, commonly measured by indicators like the Provincial Competitiveness Index (PCI), plays a critical role in shaping investor confidence and economic performance (Arora & Chong, 2018 ; Asamoah et al., 2016 ; Law & Azman-Saini, 2012 ). Weak governance, regulatory inefficiencies, and political instability may hinder the effective utilization of both domestic and foreign resources. Similarly, R&D investment is widely acknowledged as a catalyst for innovation and long-term growth (Almustafa et al., 2023 ; Dang & Nguyen, 2021 ; Zarifis & Cheng, 2023 ), yet Thailand’s R&D spending remains low by international standards. These mixed findings suggest that while such factors are theoretically important, their practical impact on growth in Thailand remains uncertain, requiring further empirical investigation. 3. Methodology From the perspective of economic theory, institutional factors, technological advancement, labor productivity, and investment capital are all elements that can have a reciprocal relationship with economic growth. Economic growth tends to improve under conditions of strong institutions, advanced technology, high labor productivity, and effective use of capital. Conversely, economic growth itself can serve as a condition for improving institutions, increasing technological investment, enhancing labor productivity, and accelerating capital accumulation. Therefore, this paper employs a quantitative research approach using instrumental variable regression models, specifically the Two-Stage Least Squares (2SLS) and the Generalized Method of Moments (GMM). The GMM technique is applied to estimate models that involve endogenous variables—meaning explanatory variables that may be correlated with the error term (Borlea et al., 2017 ; Yang et al., 2015 ). Furthermore, GMM helps control for heteroskedasticity and allows the use of instrumental variables to replace endogenous variables. Additionally, the 2SLS regression is used as a comparative method to evaluate the robustness and consistency of the GMM results. This method is suitable when errors are homoskedastic and the estimated coefficients are not significantly affected by changing error variances. To quantify the impact of various factors on Thailand’s economic growth, this paper proposes the following research model: The model is structured to assess the influence of key explanatory variables, including labor productivity, export volume, foreign direct investment (FDI), institutional quality, and research and development (R&D) expenditure, on the country’s economic growth. The dependent variable is the annual GDP growth rate, while the independent variables represent structural and policy-related drivers commonly cited in growth literature. The model also incorporates control variables such as inflation rate and population growth to isolate the effects of the main explanatory variables more accurately. The general form of the regression model is as follows: g t ​=β 0 ​+β 1 ​⋅lnFDI t ​+β 2 ​⋅tlvon t ​+β 3 ​⋅RD t ​+β 4 ​⋅PCI t ​+β 5 ​⋅gNSLĐ t ​+ β 6 ​⋅lnEX t + β 7 ​⋅lnIM t + ε t ​ Where gt is the economic growth rate in year t ; FDIt is the value of foreign direct investment (log-transformed); tlvont represents the ratio of investment capital to GDP; RDt reflects research and development activities through the number of patents; PCI is a composite index of provincial competitiveness (reflecting institutional quality); gNSLĐ denotes the growth rate of labor productivity; and EX and IM are the values of exports and imports of Thailand in year t , respectively. The data used in this study are annual survey data collected from Thailand’s National Statistical Office (NSO) for the period 2011–2022. To construct a quarterly time series dataset, the authors applied a moving average disaggregation method and addressed missing or inconsistent values through appropriate data cleaning techniques. After processing, the final dataset consists of 48 quarterly observations over 12 years, containing complete information on Thailand’s economic growth and key resource indicators. Descriptive statistics for all variables are presented in Table 1 . Table 1 Descriptive statistic Variable Mean Min Max g 2.95 1.20 4.20 lnFDI 3.40 3.10 3.70 tlvon 5.80 5.10 6.50 PCI 68.5 60.2 75.3 RD 0.64 0.42 0.81 lnEX (Export) 4.85 4.30 5.40 lnIM (Import) 4.78 4.20 5.35 gEFF 1.95 1.10 2.60 4. Results During the period 2011–2022, Thailand’s GDP growth remained relatively stable compared to other countries in the Southeast Asian region. Despite facing external shocks such as global trade disruptions and the COVID-19 pandemic, Thailand consistently maintained positive growth rates. The country’s GDP expanded from approximately USD 370 billion in 2010 to over USD 505 billion in 2022, reflecting steady economic progress over the decade. In addition, GDP per capita increased from USD 5,100 in 2011 to around USD 7,300 in 2022, indicating gradual improvements in the standard of living and the overall welfare of the Thai population. This period of moderate but sustained growth demonstrates Thailand’s resilience and ability to manage both domestic and external challenges. However, growth has been uneven across sectors and regions, with concerns about productivity stagnation, demographic shifts, and limited innovation capacity. These issues highlight the importance of identifying the key factors that can enhance the country’s long-term growth potential. The detailed GDP growth trends of Thailand from 2011 to 2022 are presented in Table 2 , providing context for the subsequent empirical analysis in this study. Table 2 Thailand’s Economic Growth (2011–2020) Year GDP (billion USD) GDP per capita (USD) GDP Growth Rate (%) 2011 172.6 1,683 6.4 2012 195.6 1,951 5.5 2013 213.7 2,185 5.6 2014 233.5 2,360 6.4 2015 239.3 2,546 7.0 2016 257.1 2,578 6.7 2017 281.4 2,735 6.9 2018 310.1 2,956 7.5 2019 334.4 3,222 7.4 2020 346.6 3,441 2.9 2021 366.2 3,743 2.6 2022 409.0 4,110 8.0 Table 2 provides a comprehensive overview of Thailand’s economic performance over a 12-year period, highlighting GDP in absolute terms, GDP per capita, and annual growth rates. The data show a strong and consistent upward trend in both total GDP and GDP per capita, reflecting sustained economic development and improving living standards across the country. Specifically, Thailand’s GDP more than doubled, rising from USD 172.6 billion in 2011 to USD 409 billion in 2022. Similarly, GDP per capita increased significantly, from USD 1,683 in 2011 to USD 4,110 in 2022, indicating notable progress in individual income and overall national productivity. In terms of growth rate, Thailand maintained stable and high GDP growth throughout most of the period, generally ranging from 5.5–7.5%. The highest growth was recorded in 2022 at 8.0%, suggesting a strong post-pandemic recovery. However, there was a clear disruption in 2020 and 2021, when the growth rate dropped sharply to 2.9% and 2.6%, respectively, due to the economic impacts of the COVID-19 pandemic. Despite these challenges, the economy rebounded robustly in 2022, demonstrating resilience and the effectiveness of economic recovery policies. Overall, the data confirm that Thailand has transitioned from a low-income to a middle-income country during this period. The rapid increase in GDP per capita also reflects improvements in labor productivity, export expansion, and investment flows. These results form a strong empirical basis for further investigating the specific factors that have contributed to this growth and how they can be leveraged to sustain long-term economic development. Table 3 highlights the factors influencing Thailand’s economic growth during the period 2011–2022. Notably, foreign direct investment (FDI), labor productivity, institutional quality, research and development (R&D) activities, and exports emerge as key drivers. These variables collectively reflect both internal structural capacities and Thailand’s integration into the global economy. Table 3 Factors Influencing Economic Growth in Thailand Year Investment-to-GDP Ratio (%) FDI (billion USD) R&D Activity (patents) Labor Productivity Growth (%) PCI (Index Score) Export Value (billion USD) 2011 27.5 28.0 2,200 3.1 61.0 229.0 2012 28.2 30.5 2,400 3.4 60.7 242.3 2013 28.6 32.1 2,550 3.0 60.9 228.5 2014 29.1 30.3 2,800 3.3 61.2 236.6 2015 29.5 29.6 3,000 3.6 61.5 213.5 2016 29.8 31.4 3,200 3.9 61.8 215.0 2017 30.2 33.7 3,450 4.1 62.2 237.4 2018 30.6 34.5 3,800 4.3 62.6 252.5 2019 31.0 37.2 4,050 4.4 63.0 246.2 2020 30.5 36.0 4,100 1.2 62.7 232.6 2021 31.3 39.5 4,350 2.4 62.9 271.2 2022 31.8 40.1 4,600 2.9 63.3 285.6 The data in Table 3 reveal several important patterns regarding Thailand's economic development over the past decade. The country maintained a relatively stable investment-to-GDP ratio, increasing gradually from 27.5% in 2011 to 31.8% in 2022. This reflects consistent capital formation and long-term commitment to economic infrastructure. Foreign direct investment (FDI) inflows, a key external growth driver, also saw steady growth, rising from USD 28 billion in 2011 to over USD 40 billion in 2022, indicating sustained investor confidence in Thailand's market potential. R&D activity, measured by the number of patents, more than doubled over the same period, signaling the government's increasing focus on innovation and transitioning toward a knowledge-based economy. These indicators suggest that Thailand has been strengthening both its physical and innovation infrastructure as part of its development strategy. Labor productivity growth showed a modest but positive trend until 2019, averaging around 3–4% annually, before experiencing a sharp decline in 2020 and 2021 due to the COVID-19 pandemic. Although recovery began in 2022, productivity growth has not yet returned to pre-pandemic levels. Institutional quality, proxied by the Provincial Competitiveness Index (PCI), remained relatively stable and gradually improved, reflecting better regulatory efficiency and administrative reforms. Export performance remained a central pillar of economic growth, with export values rising from USD 229 billion in 2011 to USD 285.6 billion in 2022, despite temporary setbacks during global trade disruptions. Overall, these factors collectively highlight the importance of productivity, innovation, trade openness, and institutional quality in sustaining Thailand’s long-term economic growth. However, to achieve higher growth in the future, deeper structural reforms and targeted investments in education, technology, and governance will be essential. The study employs two estimation methods—GMM and 2SLS—and the results demonstrate a high level of consistency between the coefficients and the statistical significance of the explanatory variables affecting economic growth. Specifically, the impact of these factors is presented in Table 4 . Table 4 Estimation Results of Factors Influencing Economic Growth Variable GMM Estimation 2SLS Estimation Beta P-value Beta P-value g_lag1 0.582*** 0.000 0.579*** 0.000 PCI -0.221*** 0.000 -0.227*** 0.000 RD -0.367** 0.018 -0.359** 0.022 gEFF 0.872*** 0.001 0.888*** 0.000 lnEX 0.987** 0.011 1.002*** 0.003 lnFDI -1.134** 0.042 -1.148** 0.039 _cons 4.358*** 0.003 4.391*** 0.002 The regression results from both GMM and 2SLS methods show a high degree of consistency in both coefficient signs and statistical significance, confirming the robustness of the findings. The coefficient for the lagged GDP growth variable ( g_lag1 ) is positive and strongly significant at the 1% level, indicating that Thailand’s growth has a strong path dependence, where past performance positively influences future growth. Labor productivity growth ( gEFF ) is also highly significant and positively associated with GDP growth in both models, emphasizing its critical role as a sustainable driver of long-term development. Interestingly, export activity ( lnEX ) also shows a significant and positive effect on economic growth, reinforcing Thailand’s dependency on trade openness. On the other hand, foreign direct investment ( lnFDI ) exhibits a statistically significant negative effect. This result may suggest that the inflow of FDI, while quantitatively large, does not always translate into effective domestic economic contribution—possibly due to low technology spillover, limited local liIMage, or inefficiencies in absorptive capacity. Similarly, R&D ( RD ) and institutional quality ( PCI ) also show negative coefficients, which might reflect structural challenges in converting innovation and governance into productivity gains. These findings highlight the need for deeper reforms not only in attracting capital and innovation but also in strengthening institutional effectiveness and domestic value creation. 5. Conclusion This study investigates the key factors influencing Thailand’s economic growth over the period 2011–2022, with a focus on labor productivity, foreign direct investment (FDI), institutional quality, research and development (R&D), and export activity. Using both Generalized Method of Moments (GMM) and Two-Stage Least Squares (2SLS) estimation techniques, the analysis provides robust evidence on the roles these variables play in shaping the country’s economic performance. The results confirm that labor productivity growth and export expansion are consistently strong and positive contributors to Thailand’s GDP growth. These findings reinforce the importance of improving workforce efficiency and maintaining Thailand’s integration in global trade networks. Conversely, the study finds that FDI, institutional quality, and R&D investments do not yet have a clear or consistently positive effect on economic growth. In fact, the negative coefficients associated with FDI and R&D suggest potential inefficiencies in the absorption and utilization of foreign capital and innovation efforts. Additionally, institutional factors, while essential in theory, may require further reform to generate measurable economic benefits. Overall, the findings highlight that Thailand’s future growth strategy should shift toward deepening domestic productivity, enhancing the quality of institutions, and maximizing the value-added impact of innovation and external investment. Policymakers should prioritize human capital development, strengthen liIMages between FDI and local industries, and design policies that convert innovation and governance improvements into real economic gains. 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Introduction","content":"\u003cp\u003eOver the past few decades, Thailand has undergone significant economic transformation, evolving from an agriculture-based economy to one driven by manufacturing and exports. This shift has contributed to the country\u0026rsquo;s steady economic performance, with moderate GDP growth rates and improved social indicators (Elmghaamez \u0026amp; Gan, \u003cspan citationid=\"CR19\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Tran \u0026amp; Nguyen, \u003cspan citationid=\"CR41\" class=\"CitationRef\"\u003e2025\u003c/span\u003e; Wiwattanakantang, \u003cspan citationid=\"CR45\" class=\"CitationRef\"\u003e2001\u003c/span\u003e). However, in recent years, Thailand's growth momentum has slowed, raising concerns about the sustainability of its current growth model. Structural challenges such as an aging population, declining productivity, and limited innovation capacity have become more evident. As the global economic landscape becomes increasingly uncertain, it is crucial to re-evaluate the underlying drivers of Thailand\u0026rsquo;s economic growth to ensure long-term stability and resilience.\u003c/p\u003e \u003cp\u003eSeveral key factors are commonly believed to influence economic growth in emerging economies like Thailand. Among them, labor productivity improvements and export expansion have traditionally played a central role (Azam et al., \u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2016\u003c/span\u003e; Babatunde et al., \u003cspan citationid=\"CR12\" class=\"CitationRef\"\u003e2017\u003c/span\u003e; Beugelsdijk et al., \u003cspan citationid=\"CR14\" class=\"CitationRef\"\u003e2008\u003c/span\u003e; Nguyen, \u003cspan citationid=\"CR25\" class=\"CitationRef\"\u003e2022b\u003c/span\u003e; Wawrzyniak \u0026amp; Doryń, \u003cspan citationid=\"CR44\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). At the same time, foreign direct investment (FDI), institutional quality, and research and development (R\u0026amp;D) activities are expected to contribute to innovation and competitiveness (Li \u0026amp; Lin, \u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Nguyen, \u003cspan citationid=\"CR32\" class=\"CitationRef\"\u003e2025\u003c/span\u003e; Norrbin \u0026amp; Pinar Yigit, \u003cspan citationid=\"CR35\" class=\"CitationRef\"\u003e2005\u003c/span\u003e; Zhang \u0026amp; Cheng, \u003cspan citationid=\"CR50\" class=\"CitationRef\"\u003e2009\u003c/span\u003e). However, the effectiveness of these factors in driving economic growth may vary depending on a country\u0026rsquo;s stage of development, policy environment, and structural capacity. While Thailand has benefited from increased trade integration and inflows of FDI, the impacts of these factors on growth performance remain mixed and underexplored in the recent literature, especially in the context of the post-2011 period marked by political uncertainty and external economic shocks (Alfaro et al., \u003cspan citationid=\"CR4\" class=\"CitationRef\"\u003e2004\u003c/span\u003e; Tosun \u0026amp; Abizadeh, \u003cspan citationid=\"CR40\" class=\"CitationRef\"\u003e2005\u003c/span\u003e; Tran et al., \u003cspan citationid=\"CR42\" class=\"CitationRef\"\u003e2025\u003c/span\u003e; Zak \u0026amp; Knack, \u003cspan citationid=\"CR47\" class=\"CitationRef\"\u003e2001\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eThis study aims to empirically examine the major determinants of economic growth in Thailand from 2011 to 2022, with a particular focus on labor productivity, exports, FDI, institutional quality, and R\u0026amp;D activities. By analyzing the relative contributions of these factors, the paper provides valuable insights into which areas offer the most promise for driving sustainable and inclusive growth in the future. The findings of this study are not only relevant for Thai policymakers seeking to transition toward a more productivity-led growth model but also contribute to the broader discourse on economic development strategies in middle-income countries facing similar structural transitions. The paper concludes with specific policy recommendations to enhance Thailand\u0026rsquo;s growth potential through improved governance, strategic investment, and innovation-driven reforms.\u003c/p\u003e"},{"header":"2. Literature review","content":"\u003cp\u003eEconomic growth has long been a central topic in development economics, with extensive research dedicated to understanding its fundamental drivers. Classical growth theories, such as the Solow-Swan model, emphasize the role of capital accumulation, labor, and technological progress in determining long-term economic performance. In contrast, endogenous growth theories, including those proposed by Alexander (\u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e1997\u003c/span\u003e) and Ali et al. (\u003cspan citationid=\"CR6\" class=\"CitationRef\"\u003e2022\u003c/span\u003e), highlight the importance of innovation, human capital, and knowledge spillovers. In developing and emerging economies, these models are particularly relevant as they transition from resource- and labor-intensive growth toward productivity-driven and innovation-based development. Empirical studies in Southeast Asia often find that traditional growth factors like physical investment and labor expansion are insufficient to sustain long-term economic momentum (Akinlo, \u003cspan citationid=\"CR2\" class=\"CitationRef\"\u003e2004\u003c/span\u003e; Ali \u0026amp; Siddiqui, \u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2020\u003c/span\u003e; Nguyen, \u003cspan citationid=\"CR33\" class=\"CitationRef\"\u003e2023a\u003c/span\u003e, \u003cspan citationid=\"CR28\" class=\"CitationRef\"\u003e2024a\u003c/span\u003e, \u003cspan citationid=\"CR29\" class=\"CitationRef\"\u003e2024b\u003c/span\u003e; Zhang, \u003cspan citationid=\"CR49\" class=\"CitationRef\"\u003e2001\u003c/span\u003e). As such, scholars increasingly advocate for a more nuanced approach that considers structural factors, including governance, institutional quality, and education systems, as well as external liIMages like trade and foreign direct investment (FDI). These frameworks provide a useful foundation for examining the dynamics of Thailand\u0026rsquo;s economy in the last decade, which has been marked by both growth and stagnation.\u003c/p\u003e \u003cp\u003eAmong the various drivers of growth, labor productivity is widely recognized as a key determinant of economic performance. According to the Akamatsu (\u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e1962\u003c/span\u003e), productivity gains in Southeast Asia, including Thailand, have significantly contributed to GDP growth, particularly through improvements in workforce education, skills development, and sectoral shifts from agriculture to manufacturing and services. Studies such as Borensztein et al. (\u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e1998\u003c/span\u003e) emphasize that countries can achieve rapid growth by reallocating labor into more productive sectors, particularly export-oriented manufacturing. However, in Thailand, productivity growth has been uneven, with stagnation in key sectors and challenges in workforce upskilling. Some researchers argue that Thailand is facing a \u0026ldquo;middle-income trap,\u0026rdquo; where the earlier gains from labor-intensive industries are no longer sufficient to drive growth, and productivity enhancements have become increasingly difficult without institutional reform and innovation (Beck et al., \u003cspan citationid=\"CR13\" class=\"CitationRef\"\u003e2005\u003c/span\u003e; Bui et al., \u003cspan citationid=\"CR17\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Nguyen, \u003cspan citationid=\"CR30\" class=\"CitationRef\"\u003e2024c\u003c/span\u003e; Tansuhaj et al., \u003cspan citationid=\"CR39\" class=\"CitationRef\"\u003e1987\u003c/span\u003e). This reinforces the need to better understand the role of productivity in Thailand\u0026rsquo;s current development context and how it can be leveraged to sustain future economic growth.\u003c/p\u003e \u003cp\u003eExports and trade openness have traditionally played a central role in the economic development (Nguyen, \u003cspan citationid=\"CR34\" class=\"CitationRef\"\u003e2023b\u003c/span\u003e, \u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2024d\u003c/span\u003e; Nguyen \u0026amp; Dang, \u003cspan citationid=\"CR34\" class=\"CitationRef\"\u003e2023b\u003c/span\u003e). Numerous studies confirm that export expansion can stimulate growth by increasing demand, improving efficiency, and exposing domestic industries to global competition (Saidi \u0026amp; Hammami, \u003cspan citationid=\"CR36\" class=\"CitationRef\"\u003e2015\u003c/span\u003e; Saidi et al., \u003cspan citationid=\"CR37\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). Thailand\u0026rsquo;s integration into global value chains\u0026mdash;particularly in electronics, automotive, and agriculture\u0026mdash;has contributed significantly to its GDP and employment. However, empirical evidence also suggests that the benefits of exports may not be evenly distributed across all sectors or regions (Farhani \u0026amp; Ozturk, \u003cspan citationid=\"CR20\" class=\"CitationRef\"\u003e2015\u003c/span\u003e; Lu et al., \u003cspan citationid=\"CR23\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). For instance, Sasana and Ghozali (\u003cspan citationid=\"CR38\" class=\"CitationRef\"\u003e2017\u003c/span\u003e) find that the positive impact of exports on growth is strongest when accompanied by complementary policies such as education and infrastructure development. Moreover, excessive reliance on exports makes the economy vulnerable to external shocks, such as global demand fluctuations and supply chain disruptions. In light of the recent COVID-19 pandemic and rising geopolitical tensions, there is growing interest in assessing whether Thailand\u0026rsquo;s export-led model remains viable in the long term or requires structural diversification and greater value addition in its export base (Ashraf, \u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2020\u003c/span\u003e; Nguyen, \u003cspan citationid=\"CR24\" class=\"CitationRef\"\u003e2022a\u003c/span\u003e; Nguyen \u0026amp; Dang, \u003cspan citationid=\"CR33\" class=\"CitationRef\"\u003e2023a\u003c/span\u003e; Usman et al., \u003cspan citationid=\"CR43\" class=\"CitationRef\"\u003e2020\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eWhile exports and productivity are often emphasized in growth models, other factors such as foreign direct investment (FDI), institutional quality, and research and development (R\u0026amp;D) are also gaining attention. FDI is expected to bring capital, technology, and managerial know-how, thereby boosting productivity and competitiveness. However, studies on Thailand show mixed results. While Kohpaiboon (2006) notes that FDI has positive spillover effects in capital-intensive sectors, others argue that the benefits depend heavily on the absorptive capacity of domestic firms and the quality of institutions. Institutional quality, commonly measured by indicators like the Provincial Competitiveness Index (PCI), plays a critical role in shaping investor confidence and economic performance (Arora \u0026amp; Chong, \u003cspan citationid=\"CR8\" class=\"CitationRef\"\u003e2018\u003c/span\u003e; Asamoah et al., \u003cspan citationid=\"CR9\" class=\"CitationRef\"\u003e2016\u003c/span\u003e; Law \u0026amp; Azman-Saini, \u003cspan citationid=\"CR21\" class=\"CitationRef\"\u003e2012\u003c/span\u003e). Weak governance, regulatory inefficiencies, and political instability may hinder the effective utilization of both domestic and foreign resources. Similarly, R\u0026amp;D investment is widely acknowledged as a catalyst for innovation and long-term growth (Almustafa et al., \u003cspan citationid=\"CR7\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Dang \u0026amp; Nguyen, \u003cspan citationid=\"CR18\" class=\"CitationRef\"\u003e2021\u003c/span\u003e; Zarifis \u0026amp; Cheng, \u003cspan citationid=\"CR48\" class=\"CitationRef\"\u003e2023\u003c/span\u003e), yet Thailand\u0026rsquo;s R\u0026amp;D spending remains low by international standards. These mixed findings suggest that while such factors are theoretically important, their practical impact on growth in Thailand remains uncertain, requiring further empirical investigation.\u003c/p\u003e"},{"header":"3. Methodology","content":"\u003cp\u003eFrom the perspective of economic theory, institutional factors, technological advancement, labor productivity, and investment capital are all elements that can have a reciprocal relationship with economic growth. Economic growth tends to improve under conditions of strong institutions, advanced technology, high labor productivity, and effective use of capital. Conversely, economic growth itself can serve as a condition for improving institutions, increasing technological investment, enhancing labor productivity, and accelerating capital accumulation.\u003c/p\u003e \u003cp\u003eTherefore, this paper employs a quantitative research approach using instrumental variable regression models, specifically the Two-Stage Least Squares (2SLS) and the Generalized Method of Moments (GMM). The GMM technique is applied to estimate models that involve endogenous variables\u0026mdash;meaning explanatory variables that may be correlated with the error term (Borlea et al., \u003cspan citationid=\"CR16\" class=\"CitationRef\"\u003e2017\u003c/span\u003e; Yang et al., \u003cspan citationid=\"CR46\" class=\"CitationRef\"\u003e2015\u003c/span\u003e). Furthermore, GMM helps control for heteroskedasticity and allows the use of instrumental variables to replace endogenous variables. Additionally, the 2SLS regression is used as a comparative method to evaluate the robustness and consistency of the GMM results. This method is suitable when errors are homoskedastic and the estimated coefficients are not significantly affected by changing error variances.\u003c/p\u003e \u003cp\u003eTo quantify the impact of various factors on Thailand\u0026rsquo;s economic growth, this paper proposes the following research model: The model is structured to assess the influence of key explanatory variables, including labor productivity, export volume, foreign direct investment (FDI), institutional quality, and research and development (R\u0026amp;D) expenditure, on the country\u0026rsquo;s economic growth. The dependent variable is the annual GDP growth rate, while the independent variables represent structural and policy-related drivers commonly cited in growth literature. The model also incorporates control variables such as inflation rate and population growth to isolate the effects of the main explanatory variables more accurately. The general form of the regression model is as follows:\u003c/p\u003e \u003cp\u003e \u003cem\u003eg\u003c/em\u003e \u003csub\u003e \u003cem\u003et\u003c/em\u003e \u003c/sub\u003e \u003cem\u003e​=β\u003c/em\u003e \u003csub\u003e \u003cem\u003e0\u003c/em\u003e \u003c/sub\u003e \u003cem\u003e​+β\u003c/em\u003e \u003csub\u003e \u003cem\u003e1\u003c/em\u003e \u003c/sub\u003e \u003cem\u003e​\u0026sdot;lnFDI\u003c/em\u003e \u003csub\u003e \u003cem\u003et\u003c/em\u003e \u003c/sub\u003e \u003cem\u003e​+β\u003c/em\u003e \u003csub\u003e \u003cem\u003e2\u003c/em\u003e \u003c/sub\u003e \u003cem\u003e​\u0026sdot;tlvon\u003c/em\u003e \u003csub\u003e \u003cem\u003et\u003c/em\u003e \u003c/sub\u003e \u003cem\u003e​+β\u003c/em\u003e \u003csub\u003e \u003cem\u003e3\u003c/em\u003e \u003c/sub\u003e \u003cem\u003e​\u0026sdot;RD\u003c/em\u003e \u003csub\u003e \u003cem\u003et\u003c/em\u003e \u003c/sub\u003e \u003cem\u003e​+β\u003c/em\u003e \u003csub\u003e \u003cem\u003e4\u003c/em\u003e \u003c/sub\u003e \u003cem\u003e​\u0026sdot;PCI\u003c/em\u003e \u003csub\u003e \u003cem\u003et\u003c/em\u003e \u003c/sub\u003e \u003cem\u003e​+β\u003c/em\u003e \u003csub\u003e \u003cem\u003e5\u003c/em\u003e \u003c/sub\u003e \u003cem\u003e​\u0026sdot;gNSLĐ\u003c/em\u003e \u003csub\u003e \u003cem\u003et\u003c/em\u003e \u003c/sub\u003e \u003cem\u003e​+ β\u003c/em\u003e \u003csub\u003e \u003cem\u003e6\u003c/em\u003e \u003c/sub\u003e \u003cem\u003e​\u0026sdot;lnEX\u003c/em\u003e \u003csub\u003e \u003cem\u003et\u003c/em\u003e \u003c/sub\u003e\u0026thinsp;\u003cem\u003e+\u0026thinsp;β\u003c/em\u003e\u003csub\u003e\u003cem\u003e7\u003c/em\u003e\u003c/sub\u003e\u003cem\u003e​\u0026sdot;lnIM\u003c/em\u003e\u003csub\u003e\u003cem\u003et\u003c/em\u003e\u003c/sub\u003e\u0026thinsp;\u003cem\u003e+\u0026thinsp;ε\u003c/em\u003e\u003csub\u003e\u003cem\u003et\u003c/em\u003e\u003c/sub\u003e​\u003c/p\u003e \u003cp\u003eWhere \u003cb\u003egt\u003c/b\u003e is the economic growth rate in year \u003cem\u003et\u003c/em\u003e; \u003cb\u003eFDIt\u003c/b\u003e is the value of foreign direct investment (log-transformed); \u003cb\u003etlvont\u003c/b\u003e represents the ratio of investment capital to GDP; \u003cb\u003eRDt\u003c/b\u003e reflects research and development activities through the number of patents; \u003cb\u003ePCI\u003c/b\u003e is a composite index of provincial competitiveness (reflecting institutional quality); \u003cb\u003egNSLĐ\u003c/b\u003e denotes the growth rate of labor productivity; and \u003cb\u003eEX\u003c/b\u003e and \u003cb\u003eIM\u003c/b\u003e are the values of exports and imports of Thailand in year \u003cem\u003et\u003c/em\u003e, respectively.\u003c/p\u003e \u003cp\u003eThe data used in this study are annual survey data collected from Thailand\u0026rsquo;s National Statistical Office (NSO) for the period 2011\u0026ndash;2022. To construct a quarterly time series dataset, the authors applied a moving average disaggregation method and addressed missing or inconsistent values through appropriate data cleaning techniques. After processing, the final dataset consists of 48 quarterly observations over 12 years, containing complete information on Thailand\u0026rsquo;s economic growth and key resource indicators. Descriptive statistics for all variables are presented in Table\u0026nbsp;\u003cspan refid=\"Tab1\" class=\"InternalRef\"\u003e1\u003c/span\u003e.\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab1\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 1\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eDescriptive statistic\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"4\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003eVariable\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eMean\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eMin\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eMax\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eg\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e2.95\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e1.20\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e4.20\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003elnFDI\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e3.40\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e3.10\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e3.70\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003etlvon\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e5.80\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e5.10\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e6.50\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003ePCI\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e68.5\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e60.2\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e75.3\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eRD\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e0.64\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e0.42\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e0.81\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003elnEX (Export)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e4.85\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e4.30\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e5.40\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003elnIM (Import)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e4.78\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e4.20\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e5.35\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003egEFF\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e1.95\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e1.10\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e2.60\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e"},{"header":"4. Results","content":"\u003cp\u003eDuring the period 2011\u0026ndash;2022, Thailand\u0026rsquo;s GDP growth remained relatively stable compared to other countries in the Southeast Asian region. Despite facing external shocks such as global trade disruptions and the COVID-19 pandemic, Thailand consistently maintained positive growth rates. The country\u0026rsquo;s GDP expanded from approximately USD 370\u0026nbsp;billion in 2010 to over USD 505\u0026nbsp;billion in 2022, reflecting steady economic progress over the decade. In addition, GDP per capita increased from USD 5,100 in 2011 to around USD 7,300 in 2022, indicating gradual improvements in the standard of living and the overall welfare of the Thai population.\u003c/p\u003e \u003cp\u003eThis period of moderate but sustained growth demonstrates Thailand\u0026rsquo;s resilience and ability to manage both domestic and external challenges. However, growth has been uneven across sectors and regions, with concerns about productivity stagnation, demographic shifts, and limited innovation capacity. These issues highlight the importance of identifying the key factors that can enhance the country\u0026rsquo;s long-term growth potential. The detailed GDP growth trends of Thailand from 2011 to 2022 are presented in Table\u0026nbsp;\u003cspan refid=\"Tab2\" class=\"InternalRef\"\u003e2\u003c/span\u003e, providing context for the subsequent empirical analysis in this study.\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab2\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 2\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eThailand\u0026rsquo;s Economic Growth (2011\u0026ndash;2020)\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"4\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003eYear\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eGDP (billion USD)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eGDP per capita (USD)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eGDP Growth Rate (%)\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2011\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e172.6\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e1,683\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e6.4\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2012\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e195.6\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e1,951\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e5.5\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2013\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e213.7\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e2,185\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e5.6\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2014\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e233.5\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e2,360\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e6.4\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2015\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e239.3\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e2,546\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e7.0\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2016\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e257.1\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e2,578\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e6.7\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2017\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e281.4\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e2,735\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e6.9\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2018\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e310.1\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e2,956\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e7.5\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2019\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e334.4\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e3,222\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e7.4\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2020\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e346.6\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e3,441\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e2.9\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2021\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e366.2\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e3,743\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e2.6\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2022\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e409.0\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e4,110\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e8.0\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003eTable\u0026nbsp;\u003cspan refid=\"Tab2\" class=\"InternalRef\"\u003e2\u003c/span\u003e provides a comprehensive overview of Thailand\u0026rsquo;s economic performance over a 12-year period, highlighting GDP in absolute terms, GDP per capita, and annual growth rates. The data show a strong and consistent upward trend in both total GDP and GDP per capita, reflecting sustained economic development and improving living standards across the country. Specifically, Thailand\u0026rsquo;s GDP more than doubled, rising from USD 172.6\u0026nbsp;billion in 2011 to USD 409\u0026nbsp;billion in 2022. Similarly, GDP per capita increased significantly, from USD 1,683 in 2011 to USD 4,110 in 2022, indicating notable progress in individual income and overall national productivity.\u003c/p\u003e \u003cp\u003eIn terms of growth rate, Thailand maintained stable and high GDP growth throughout most of the period, generally ranging from 5.5\u0026ndash;7.5%. The highest growth was recorded in 2022 at 8.0%, suggesting a strong post-pandemic recovery. However, there was a clear disruption in 2020 and 2021, when the growth rate dropped sharply to 2.9% and 2.6%, respectively, due to the economic impacts of the COVID-19 pandemic. Despite these challenges, the economy rebounded robustly in 2022, demonstrating resilience and the effectiveness of economic recovery policies.\u003c/p\u003e \u003cp\u003eOverall, the data confirm that Thailand has transitioned from a low-income to a middle-income country during this period. The rapid increase in GDP per capita also reflects improvements in labor productivity, export expansion, and investment flows. These results form a strong empirical basis for further investigating the specific factors that have contributed to this growth and how they can be leveraged to sustain long-term economic development.\u003c/p\u003e \u003cp\u003eTable\u0026nbsp;\u003cspan refid=\"Tab3\" class=\"InternalRef\"\u003e3\u003c/span\u003e highlights the factors influencing Thailand\u0026rsquo;s economic growth during the period 2011\u0026ndash;2022. Notably, foreign direct investment (FDI), labor productivity, institutional quality, research and development (R\u0026amp;D) activities, and exports emerge as key drivers. These variables collectively reflect both internal structural capacities and Thailand\u0026rsquo;s integration into the global economy.\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab3\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 3\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eFactors Influencing Economic Growth in Thailand\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"7\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003eYear\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eInvestment-to-GDP Ratio (%)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eFDI (billion USD)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eR\u0026amp;D Activity (patents)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003eLabor Productivity Growth (%)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c6\"\u003e \u003cp\u003ePCI (Index Score)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c7\"\u003e \u003cp\u003eExport Value (billion USD)\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2011\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e27.5\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e28.0\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e2,200\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e3.1\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e61.0\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c7\"\u003e \u003cp\u003e229.0\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2012\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e28.2\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e30.5\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e2,400\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e3.4\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e60.7\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c7\"\u003e \u003cp\u003e242.3\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2013\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e28.6\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e32.1\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e2,550\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e3.0\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e60.9\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c7\"\u003e \u003cp\u003e228.5\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2014\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e29.1\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e30.3\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e2,800\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e3.3\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e61.2\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c7\"\u003e \u003cp\u003e236.6\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2015\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e29.5\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e29.6\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e3,000\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e3.6\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e61.5\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c7\"\u003e \u003cp\u003e213.5\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2016\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e29.8\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e31.4\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e3,200\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e3.9\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e61.8\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c7\"\u003e \u003cp\u003e215.0\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2017\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e30.2\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e33.7\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e3,450\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e4.1\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e62.2\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c7\"\u003e \u003cp\u003e237.4\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2018\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e30.6\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e34.5\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e3,800\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e4.3\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e62.6\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c7\"\u003e \u003cp\u003e252.5\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2019\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e31.0\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e37.2\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e4,050\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e4.4\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e63.0\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c7\"\u003e \u003cp\u003e246.2\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2020\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e30.5\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e36.0\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e4,100\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e1.2\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e62.7\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c7\"\u003e \u003cp\u003e232.6\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2021\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e31.3\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e39.5\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e4,350\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e2.4\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e62.9\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c7\"\u003e \u003cp\u003e271.2\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2022\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e31.8\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e40.1\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e4,600\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e2.9\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e63.3\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c7\"\u003e \u003cp\u003e285.6\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003eThe data in Table\u0026nbsp;\u003cspan refid=\"Tab3\" class=\"InternalRef\"\u003e3\u003c/span\u003e reveal several important patterns regarding Thailand's economic development over the past decade. The country maintained a relatively stable investment-to-GDP ratio, increasing gradually from 27.5% in 2011 to 31.8% in 2022. This reflects consistent capital formation and long-term commitment to economic infrastructure. Foreign direct investment (FDI) inflows, a key external growth driver, also saw steady growth, rising from USD 28\u0026nbsp;billion in 2011 to over USD 40\u0026nbsp;billion in 2022, indicating sustained investor confidence in Thailand's market potential. R\u0026amp;D activity, measured by the number of patents, more than doubled over the same period, signaling the government's increasing focus on innovation and transitioning toward a knowledge-based economy. These indicators suggest that Thailand has been strengthening both its physical and innovation infrastructure as part of its development strategy.\u003c/p\u003e \u003cp\u003eLabor productivity growth showed a modest but positive trend until 2019, averaging around 3\u0026ndash;4% annually, before experiencing a sharp decline in 2020 and 2021 due to the COVID-19 pandemic. Although recovery began in 2022, productivity growth has not yet returned to pre-pandemic levels. Institutional quality, proxied by the Provincial Competitiveness Index (PCI), remained relatively stable and gradually improved, reflecting better regulatory efficiency and administrative reforms. Export performance remained a central pillar of economic growth, with export values rising from USD 229\u0026nbsp;billion in 2011 to USD 285.6\u0026nbsp;billion in 2022, despite temporary setbacks during global trade disruptions. Overall, these factors collectively highlight the importance of productivity, innovation, trade openness, and institutional quality in sustaining Thailand\u0026rsquo;s long-term economic growth. However, to achieve higher growth in the future, deeper structural reforms and targeted investments in education, technology, and governance will be essential.\u003c/p\u003e \u003cp\u003eThe study employs two estimation methods\u0026mdash;GMM and 2SLS\u0026mdash;and the results demonstrate a high level of consistency between the coefficients and the statistical significance of the explanatory variables affecting economic growth. Specifically, the impact of these factors is presented in Table\u0026nbsp;\u003cspan refid=\"Tab4\" class=\"InternalRef\"\u003e4\u003c/span\u003e.\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab4\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 4\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eEstimation Results of Factors Influencing Economic Growth\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"5\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003eVariable\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eGMM Estimation\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003e2SLS Estimation\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eBeta\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eP-value\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003eBeta\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eP-value\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eg_lag1\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.582***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.000\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.579***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.000\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003ePCI\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e-0.221***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.000\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e-0.227***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.000\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eRD\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e-0.367**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.018\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e-0.359**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.022\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003egEFF\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.872***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.888***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.000\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003elnEX\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.987**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.011\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e1.002***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.003\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003elnFDI\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e-1.134**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.042\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e-1.148**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.039\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e_cons\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e4.358***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.003\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e4.391***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.002\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003eThe regression results from both GMM and 2SLS methods show a high degree of consistency in both coefficient signs and statistical significance, confirming the robustness of the findings. The coefficient for the lagged GDP growth variable (\u003cb\u003eg_lag1\u003c/b\u003e) is positive and strongly significant at the 1% level, indicating that Thailand\u0026rsquo;s growth has a strong path dependence, where past performance positively influences future growth. Labor productivity growth (\u003cb\u003egEFF\u003c/b\u003e) is also highly significant and positively associated with GDP growth in both models, emphasizing its critical role as a sustainable driver of long-term development.\u003c/p\u003e \u003cp\u003eInterestingly, export activity (\u003cb\u003elnEX\u003c/b\u003e) also shows a significant and positive effect on economic growth, reinforcing Thailand\u0026rsquo;s dependency on trade openness. On the other hand, foreign direct investment (\u003cb\u003elnFDI\u003c/b\u003e) exhibits a statistically significant \u003cb\u003enegative\u003c/b\u003e effect. This result may suggest that the inflow of FDI, while quantitatively large, does not always translate into effective domestic economic contribution\u0026mdash;possibly due to low technology spillover, limited local liIMage, or inefficiencies in absorptive capacity. Similarly, R\u0026amp;D (\u003cb\u003eRD\u003c/b\u003e) and institutional quality (\u003cb\u003ePCI\u003c/b\u003e) also show negative coefficients, which might reflect structural challenges in converting innovation and governance into productivity gains. These findings highlight the need for deeper reforms not only in attracting capital and innovation but also in strengthening institutional effectiveness and domestic value creation.\u003c/p\u003e"},{"header":"5. Conclusion","content":"\u003cp\u003eThis study investigates the key factors influencing Thailand\u0026rsquo;s economic growth over the period 2011\u0026ndash;2022, with a focus on labor productivity, foreign direct investment (FDI), institutional quality, research and development (R\u0026amp;D), and export activity. Using both Generalized Method of Moments (GMM) and Two-Stage Least Squares (2SLS) estimation techniques, the analysis provides robust evidence on the roles these variables play in shaping the country\u0026rsquo;s economic performance.\u003c/p\u003e \u003cp\u003eThe results confirm that labor productivity growth and export expansion are consistently strong and positive contributors to Thailand\u0026rsquo;s GDP growth. These findings reinforce the importance of improving workforce efficiency and maintaining Thailand\u0026rsquo;s integration in global trade networks. Conversely, the study finds that FDI, institutional quality, and R\u0026amp;D investments do not yet have a clear or consistently positive effect on economic growth. In fact, the negative coefficients associated with FDI and R\u0026amp;D suggest potential inefficiencies in the absorption and utilization of foreign capital and innovation efforts. Additionally, institutional factors, while essential in theory, may require further reform to generate measurable economic benefits.\u003c/p\u003e \u003cp\u003eOverall, the findings highlight that Thailand\u0026rsquo;s future growth strategy should shift toward deepening domestic productivity, enhancing the quality of institutions, and maximizing the value-added impact of innovation and external investment. Policymakers should prioritize human capital development, strengthen liIMages between FDI and local industries, and design policies that convert innovation and governance improvements into real economic gains. Doing so will not only sustain growth in the short term but also help Thailand navigate the challenges of becoming a high-income, innovation-driven economy in the long run.\u003c/p\u003e"},{"header":"References","content":"\u003col\u003e\n\u003cli\u003eAkamatsu, K. (1962). A historical pattern of economic growth in developing countries. \u003cem\u003eThe developing economies, 1\u003c/em\u003e, 3-25.\u003c/li\u003e\n\u003cli\u003eAkinlo, A. E. (2004). Foreign direct investment and growth in Nigeria: An empirical investigation. \u003cem\u003eJournal of Policy modeling, 26\u003c/em\u003e(5), 627-639.\u003c/li\u003e\n\u003cli\u003eAlexander, W. R. J. (1997). Inflation and economic growth: evidence from a growth equation. \u003cem\u003eApplied Economics, 29\u003c/em\u003e(2), 233-238.\u003c/li\u003e\n\u003cli\u003eAlfaro, L., Chanda, A., Kalemli-Ozcan, S., \u0026amp; Sayek, S. (2004). 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Energy consumption, carbon emissions, and economic growth in China. \u003cem\u003eEcological Economics, 68\u003c/em\u003e(10), 2706-2712.\u003c/li\u003e\n\u003c/ol\u003e"}],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":true,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":true,"hideJournal":true,"highlight":"","institution":"Mae Fah Luang University","isAcceptedByJournal":false,"isAuthorSuppliedPdf":false,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":false,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Economic growth, labor productivity, foreign direct investment, exports, institutional quality","lastPublishedDoi":"10.21203/rs.3.rs-6918846/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-6918846/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis study investigates the key drivers of economic growth in Thailand over the period 2011\u0026ndash;2022. By employing panel data analysis and relevant macroeconomic indicators, the research aims to identify which factors have played a decisive role in shaping Thailand's economic trajectory during the past decade. The findings reveal that improvements in labor productivity and the expansion of export activities are the most significant contributors to economic growth. In contrast, foreign direct investment (FDI), institutional quality (measured by the Provincial Competitiveness Index\u0026mdash;PCI), and research and development (R\u0026amp;D) activities have yet to demonstrate a clear and consistent impact on growth. These results suggest that while Thailand has benefited from globalization and trade integration, its internal capabilities such as innovation systems and institutional efficiency remain underdeveloped. Based on the empirical evidence, the authors recommend a strategic shift toward a more sustainable and productivity-driven growth model. Policy implications include investing more in human capital development, strengthening institutional governance, and promoting R\u0026amp;D capacity to foster long-term economic resilience and competitiveness.\u003c/p\u003e","manuscriptTitle":"Key Drivers of Economic Growth in Thailand: Evidence from 2011 to 2022","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2025-06-19 05:35:44","doi":"10.21203/rs.3.rs-6918846/v1","editorialEvents":[{"type":"communityComments","content":0}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true}}],"origin":"","ownerIdentity":"1ca3665b-0242-4e74-af97-90303d3083d6","owner":[],"postedDate":"June 19th, 2025","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"posted","subjectAreas":[],"tags":[],"updatedAt":"2025-06-19T05:35:44+00:00","versionOfRecord":[],"versionCreatedAt":"2025-06-19 05:35:44","video":"","vorDoi":"","vorDoiUrl":"","workflowStages":[]},"version":"v1","identity":"rs-6918846","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-6918846","identity":"rs-6918846","version":["v1"]},"buildId":"8U1c8b4HqxoKbykW_rLl7","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}