Paper Title
Study on the Role and Contribution of Science, Technology, and Innovation (STI) as Driving Factors for the Thai Economy in the 21st Century: An Empirical Observation
Abstract
This paper explores the characteristics, movements and determinants of Total Factor Productivity (TFP) in Thailand within the past two decades, with the study being organized into two main parts which are 1.) the correlation of TFP and economic growth (for both the overall economy and on the sectoral levels), in comparison with other factors of production, based on growth models with technology parameter (A) as the augmenting factor complimenting the traditional factors of production, which are capital (K) and labor (L), and, 2.) the determinants of TFP for the case of Thailand between 2000 and 2021. It is observed that, from the available data for Thailand between 1991 – 2021, technology (represented by TFP) correlates rather strongly with growth, both at the overall level and that of the industrial and service sectors, in line with previous studies. Furthermore, the econometric regression analysis at the determinant level - examining numerous factors that have theoretical or empirical influences on TFP in other countries and studies - suggests that for the case of Thailand within the period examined, domestic private RDI, industrial value added, and government expenditure have significant and positive correlation with TFP. Thus, while further in-depth examination and discussion will prove useful as the next phase of addressing the issue of TFP in Thailand, it can be observed that, for the past few decades, TFP in Thailand have been an active component in the growth of the Thai economy, where it is likely that changes in Thai TFP are most heavily influenced by private and government spendings, as well as value-added in the industrial sector. We acknowledge the results of the various studies prior which suggested that TFP in different economies across different time periods are influenced differently by a diverse mix of factors.
Keywords - Total Factor Productivity (TFP), Economic Growth, R&D, Science, Technology, and Innovation (STI).