1 Thailand Productivity and Competitiveness Dr. Phanit Laosirirat Executive Director Thailand Productivity Institute 2 World Competitiveness rankings 2007: Thailand World Competitiveness rankings 2007: Thailand Source: IMD Source: IMD Source: IMD Source: IMD Source: IMD Source: IMD Source: IMD Source: IMD 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 28 26 25 29 33
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Thailand Productivity and Competitiveness · 1 Thailand Productivity and Competitiveness Dr. Phanit Laosirirat Executive Director Thailand Productivity Institute 2 World Competitiveness
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Thailand Productivity and CompetitivenessDr. Phanit LaosiriratExecutive Director
5454545451515151484848484242424226262626Productivity in Productivity in Productivity in Productivity in services services services services ((((PPPPPPPPPPPP))))
5050505044444444424242424343434324242424Productivity in Productivity in Productivity in Productivity in industry industry industry industry ((((PPPPPPPPPPPP))))
Purchasing Power Parity (PPP) * Background information 2006
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Stage of developmentStage of developmentStage of developmentStage of developmentStage of developmentStage of developmentStage of developmentStage of developmentStage of developmentStage of developmentStage of developmentStage of development
Global Competitiveness Index :Global Competitiveness Index :Global Competitiveness Index :Global Competitiveness Index :Global Competitiveness Index :Global Competitiveness Index :Global Competitiveness Index :Global Competitiveness Index :Global Competitiveness Index :Global Competitiveness Index :Global Competitiveness Index :Global Competitiveness Index :
Basic Requirements
•Institutions
•Infrastructure
•Macro and Primary Education
Basic RequirementsBasic Requirements
•Institutions
•Infrastructure
•Macro and Primary Education
Efficiency Enhances
•Higher Education and Training
•Market Efficiency (goods, labor,
financial)
•Technological Readiness
Efficiency EnhancesEfficiency Enhances
•Higher Education and Training
•Market Efficiency (goods, labor,
financial)
•Technological Readiness
Innovation and Sophistication
Factors
•Business Sophistication
•Innovation
Innovation and SophisticationInnovation and Sophistication
FactorsFactors
•Business Sophistication
•Innovation
Key for
factor-driven
economies
Key forKey for
factorfactor--drivendriven
economies
Key for
efficiency-driven
economies
Key forKey for
efficiencyefficiency--drivendriven
economies
Key for
Innovation -driveneconomies
Key forKey for
Innovation Innovation --drivendriveneconomies
Sub Sub Sub Sub Sub Sub Sub Sub -------- indexesindexesindexesindexesindexesindexesindexesindexes
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2
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Institution
Infrastucture
Macroeconomy
Health and primary education
Higher education and trainingMarket efficiency
Technological readiness
Business sophistication
Innovation
Thailand Economies in transition from 1 to2
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Thailand Total Factor ProductivityThailand Total Factor Productivity
Source: World Bank
Figure 1.1 Sources of Grow th in the Total Economy,
1977-2004
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2
3
4
5
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1975 1980 1985 1990 1995 2000 2005
Year
Index
Total
Employm ent
Capital
TFP
Labor quality
Source of Growth in the Total Economy: 1977-2004
TFP
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Lewis, William W. (2004). The Power of Productivity: Wealth, Poverty, and the Threat to Global Stability. Chicago: University of Chicago Press.
1. Labor Skills Enhancement1. Labor Skills Enhancement 1.1 Upgrade labor skills both new entry and existing labor forces to be ready for
global competition
1.2 Setup labor standards in strategic sectors and establish fair labor
compensation
1.3 Promote and build network of training centers both private and public
especially inside the factories
1.1 Upgrade labor skills both new entry and existing labor forces to be ready for
global competition
1.2 Setup labor standards in strategic sectors and establish fair labor
compensation
1.3 Promote and build network of training centers both private and public
especially inside the factories
2. Upgrade the Managerial Skills 2. Upgrade the Managerial Skills 2.1 Promote more Information Technology Utilization in Factory2.2 Encourage Continuous Productivity Enhancement2.3 Encourage Benchmarking and Best Practices Network Among Industrial
Associations2.4 Promote Productivity Awareness and Motivation
2.1 Promote more Information Technology Utilization in Factory2.2 Encourage Continuous Productivity Enhancement2.3 Encourage Benchmarking and Best Practices Network Among Industrial
Associations2.4 Promote Productivity Awareness and Motivation
3. Improve Machine Efficiency3. Improve Machine Efficiency3.1 Promote Research and the Development of Machine Improvement3.1 Promote Research and the Development of Machine Improvement
4. Develop Shared Logistic System Within the Various Industry Groups4. Develop Shared Logistic System Within the Various Industry Groups
5. Encourage the Establishment of Industrial Network5. Encourage the Establishment of Industrial Network
4.1 Promote and Support Private Sector to Develop SharedLogistic System4.1 Promote and Support Private Sector to Develop SharedLogistic System
5.1 Encourage Collective Capability Building Among Industrial Groups(Cluster &Supply Chain)
5.1 Encourage Collective Capability Building Among Industrial Groups(Cluster &Supply Chain)