An Analysis On The Factors That Affect The Development Of Thailand Manufacturing Industry Under The Circumstance Of Imcomplete Industrialization

After undergoing several rounds of crisis and disaster,history and reality have proved that if without strong manufacturing sector,the country cannot come on the plight of the middle-income countries.From development experience of developed countries,industrialization is a key element of the booming economy,and the manufacturing sector is a key element in the process of industrialization.industrialization level determines the level of economic success,thus Thailand which of did not complete the industrialization reaffirms that the road of development of manufacturing industry is the urgent need to adapt to international competition.For any modern economy,manufacturing is a key component of its importance.It is far from being reflected by the rate of contribution to the GDP.Moreover,the manufacturing industry is composed of many interrelated and interdependent elements,so that manufacturing naturally depends on the fate of a number of common factors.On one hand,almost all world economic malaise lingering atmosphere,the manufacturing sector once again become the focus of the competition by the financial crisis.Advanced industrialized countries in summary and reflection have been implemented after the lessons of the financial crisis one after one implemented"industrialization" and "manufacturing return" strategies to strength development of advanced manufacturing industry again.Meanwhile,low level of industrialization of developing countries,for example India,and Viet Nam started at a lower cost and accelerate industrialization.On the other hand,the first,downturn of the world economy has not yet fully recovered,manufacturing began in the developed world shifted from China which as know as the factory of the world to Southeast Asian countries.Secondly,Thailand which as were transferred one of.It is Southeast Asia's largest car and computer hardware manufacturing and Assembly Center and manufacturing companies are mostly concentrated in the industrial park in the East,however,Northeast and central mass disasters and long-term domestic political instability will no doubt be deepen its recovery and development industry troublesManufacturing is Thailand essential engines of economic development.Under the changes in the world,researching on affecting Thailand manufacturing development factor is Thailand develop its manufacturing means there is an urgent need.Ruideng who is Director of Thailand Development Research Institute of Economics and Management Research,points out that in proposition advocated developing Thai manufacturing,although Thailand has been making constant efforts in macroeconomic management,but the problem is the low efficiency of capital and the low efficiency of human capital.In her view,the productivity and foreign direct investment is Thailand key factors of the development of the next 30 years.Based on the above background,this article specifies that the object is affected Thailand manufacturing factors.On the basis of existing studies,according to Thailand development background,current situation and characteristics of reasonable definition of the terms of labour productivity and foreign direct investment and the analysis of its impact.First of all,free trade economy has led to a process of global trade liberalization,and implementation of trade liberalization policies stimulated the Thailand economic and employment growth,while mean Thailand have to compete with other countries in the same fair arena.Thailand's exports of manufactured goods led Thailand to the growing internationalization of the economy,while Thailand also has implemented WTO commitments to reduce tariff rates.This made Thailand economic and manufacturing development system establishing close links with the world economy.This paper builds a model,introduced on behalf of proxy variables related to free trade policy,to investigate which factors in Thailand significantly influence the productivity in manufacturingSecond,Thailand active undertook international industry transfer vigorously to developed national manufacturing field,established up relies on natural resources and labor intensive processing production manufacturing products export,played national of elements endowment advantage and low cost labor advantage of while keeping Thailand of competitiveness will is government sector and civil sector faced of key challenge,because of implementation of minimum day wage policy.If Thailand want to maintained the gap of labour cost between Thailand and neighbours are not change,it means Thai'enterprise sector must sharply improve labour productivity similar to labour wage rates rose or synchronization.This paper base on this background studying on relationship between labour wages and manufacturing labor productivity and the factors that influence the effects of manufacturing wages.In this study,the basis used for the first time Thailand Ministry of education levels as a proxy variable of education,analysis of its role in affecting manufacturing wages.Third,foreign direct investment has become Thailand's economic growth stimulator.To Thailand,it goes without saying that the important contribution to economic growth.Because of its factor endowment and implementation of the policy of exchange rate fluctuations,setting off waves of foreign direct investment ever in Thailand manufacturing sectors.Based on the actual exchange rate fluctuations for the study,estimated that real exchange rate volatility using GARCH model and its fluctuations.Establishing measurement models,according to Thailand the actual situation introduced some truly reflect external factors influencing the manufacturing.The Cointegration theory has been used,analysised of real effective exchange rate level changes as well as chas in the intensity of foreign direct investment inflow into Thailand's influence,the policy recommendations based on the above conclusions.Finally,the stock of human capital is considered the prerequisite for developing countries to attract foreign direct investment.Thailand's the former revitalization is the need to rely on advanced technologies and strong capital investment of foreign direct investment.The stock of human capital in improving advanced technologies imported from foreign direct investment,transferring of skills and doing absorptive capacity play an irreplaceable contribution.Until in the late 80 Thailand realized the importance of human capital to the manufacturing industry.Human capital as Thailand key intangible soft conditions in the manufacturing sector,always affect flows of foreign direct investment in some form.This study built model,bound within the framework of reference to ADL testing test method of Cointegration test explanatory variables and the relationship between the foreign direct investment.Finally,the policy recommendations based on the above conclusions.