Bachelor of Arts in Economics - International Program (EBA)

Faculty of Economics

Chulalongkorn University

Thai Economy 2952315 (Part II) Somprawin Manprasert, Ph.D.

Fall 2005 E-mail: Somprawin.M@chula.ac.th

11 October – 1 December, 2005 Office: 302 Tel: 0-2218-6263

Course Objectives

In this intermediate course, analytical tools and reasoning are applied to the data and circumstances of the Thai economy, to better understand economic performance and issues. It is in two parts. The first part addresses near-term macroeconomic policy issues, while the second part covers longer-term structural issues.

Here in part II, we will focus on various macroeconomic issues in Thailand. The topic includes a brief overview of the Thai economy, long-term economic growth in Thailand, poverty and inequality. The discussion of other current structural issues, such as, household debt and savings, investment cycles, and the intra-regional trade, will be based on group presentations.

Evaluation

The 50% of your second-half grade will be based on a presentation (20%), participation (5%), and the final examination (25%). The overall grade is the average of the first part (Dr. Chanpen’s) and this second part.

To obtain a good score from the presentation, you must deliver a clear and well-organized speak. Read-along presentation will result in a poor score. At the beginning of each session, you must show the objectives of the paper you are about to present (such as, questions seek to answer). Then, you may explain relevant economic theory or show supporting empirical data found in the paper. The conclusion of the presentation must wrap up reasoning and logics. Most importantly, you must show that the objectives of the presentation have been met. Extra points will be given to a presentation that can discuss weaknesses and possible extensions of the paper.

The 5% from participation does not refer to the class attendance. Students will earn this 5% if you can ask good questions during lectures and presentations.

Course Outline and Readings

Week 1: Introduction to the Thai economy

• “What are Thailand’s macroeconomic data?” Lecture notes.

Week 2: A brief history of the Thai economy.

• “Overview of the Thai Economy.” Lecture notes.
• Chandrachai, Achara Tubtimtong Bangorn, and Kanjana Chockpisansin. “Total Factor Productivity Growth: Survey Report – Thailand,” Asian Productivity Organization, Japan, 2004.
• “Thailand in Brief” National Economic and Social Development Board, 2005.

Week 3: What make us here?

• Pholphirul, Piriya. “Competitiveness, Income Distribution, and Growth in Thailand: What Does the Long-run Evidence Show?” TDRI Working Paper, Thailand Development Research Institute, 2005.
• Paitoonpong, Srawooth. “The Labor Market: An Overview.” TDRI Quarterly Review 17, no. 1 (2002): 6-16.

Week 4: Economic growth and poverty in Thailand.

• Kakwani, Nanak, Brahm Prakash, and Hyun Son. “Growth, Inequality, and Poverty: An Introduction.” Asian Development Review 18, no. 2 (2000): 1-21.

• Krongkaew, Medhi. “A Brief Note on Poverty in Thailand.” Working Paper, 2003.

• Kakwani, Nanak and Medhi Krongkaew. “A New Measurement of Poverty in Thailand.” Working Paper, 1996.

• Jitsuchon, Somchai. “What is Poverty and How to Measure it?” TDRI Quarterly Review 15, no. 3 (2001): 6-10.

• Deolalikar, Anil B. “Poverty, Growth, and Inequality in Thailand.” ERD Working Paper Series, no.8, Asian Development Bank, 2002.

Week 5: Income inequality and intra-regional trade.

• Motonishi, Taizo. “Why Has Income Inequality in Thailand Increased? – An Analysis Using 1975-1998 Surveys.” ERD Working Paper Series, no. 43, Asian Development Bank, 2003. (Presentation Slide – 8 Nov)

• Pootrakool, Kobsak, Chayawadee Chai-anant, Suchada Dejtrakul, and Bunnaree Punnarach. “Can We Count on Intra-regional Trade as a Source of Growth?” Bank of Thailand Symposium, 2003. (Presentation Slide – 10 Nov)

Week 6: The mega projects and investment cycles.

• Aramadee, Vachira, Rewadee Rattananuban, and Chayawadee Chai-anant. “Building Mega Projects: How to maintain economic stability?” Bank of Thailand Symposium, 2005. (in Thai) (Presentation Slide – 15 Nov)

• Mallikamas, Roong P., Yunyong Thaicharoen, and Daungporn Rodpengsangkaha. “Investment Cycles, Economic Recovery and Monetary Policy.” Bank of Thailand Symposium, 2003. (Presentation Slide – 17 Nov)

Week 7: Housing market and the household debt.

• Nakornthab, Don, Chatsurang Karnchanasai, and Suchot Piamchol. “Bank Lending, the Housing Market, and Risks: A test for financial fragility.” Bank of Thailand Symposium, 2004. (Presentation Slide – 22 Nov)

Week 8: Long-term saving and Where do we go from here?

• Pootrakool, Kobsak, Kiatipong Ariyapruchya, and Thammanoon Sodsrichai. “Long-term Saving in Thailand: Are we saving enough and what are the risks?” Bank of Thailand Symposium, 2005. (Presentation Slide – 29 Nov)

• Thaicharoen, Yunyong, Kiatipong Ariyapruchya, and Thitima Chucherd. “Rising Thai Household Debt: Assessing Risks and Policy Implications.” Bank of Thailand Symposium, 2004. (Presentation – 1 Dec)

• “Where do we go from here?” Lecture notes.

Code of Conduct

It is essential that each student is thoughtful and considerate of classmates. In particular, please note the followings:

If you talk during the lecture, students sitting near you will be distracted by your conversation. If several students happen to talk simultaneously in different parts of the room, the resulting noise will make it difficult for others to hear the lecture and to concentrate. So, please do not talk during the lecture. Students found talking or making noise will be asked to leave the room immediately.

If your cellular phone or beeper goes off in the middle of the lecture, this is a major distraction for everyone. Please make a habit to turn off everything before you come into the classroom.

If you come in late or leave early, your walking around is a source of distraction for other students. If due to special circumstances you do have to leave early on a given day, please make sure that you sit next to one of the doors so as to minimize the costs inflicted on others.