Fostering Thai Economy through the Perspective of Market Competition

Abstract

Over the past years, Thailand has implemented diverse economic development policies. Nevertheless, empirical evidence suggests that during several recent decades, Thailand has encountered challenges hindering its economic growth and escalating economic inequality. This article contents that the missing crucial element in pursuing economic development may lie in market competition. In fact, the optimal level of market competition is the economic infrastructure which stimulates economic development through allocative efficiency, productive efficiency, and dynamic efficiency. This, in turn, leads to a better rate of economic growth while reducing inequality gap. Nevertheless, international experiences have shown that competition policy formation and implementation require vast support from the government and collaborative efforts from various entities, both government and private organizations. This article makes arguments on the importance of competition and competition policy development. Also, it provides experiences across countries. An optimal level of competition is a crucial economic platform to spur competitiveness and competitive advantages of Thailand in which could help alleviate economic problems including slow economic growth and high economic inequality.