Thailand's Macroeconomic Miracle: Stable Adjustment and Sustained Growth

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World Bank Publications, 1996 - Business & Economics - 257 pages
World Bank Discussion Paper No. 345. Focuses on financial sector reforms in the Czech Republic, Hungary, Poland, the Slovak Republic, and Slovenia and provides a detailed assessment of where each country stands relative to European Union requirements for financial sector integration. The paper reviews current trends and changes in the countries' banking systems, the development of their capital markets, and the effects of changes in their legal and regulatory systems on banking supervision.
 

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Page 67 - This administrative centralization has survived, surprisingly without radical modification, to this day. The system of government is organized at three levels - the central government, the local governments, and the state enterprises. Central Government By far the largest public sector body is the central government. It is made up of twelve ministries, the Office of the Prime minister, the Office of University Affairs, and seven independent government agencies including the Parliament and the Bureau...
Page 79 - ... rankings in the promotion policy. The main criticism of the promotion policy is that policy measures are frequently changed and the BOI often exercises discretionary powers in the granting of promotional privileges and the extent of incentives given. It has been observed that the incentives offered differ among firms within the same industry. In addition to the BOI, the Ministries of Industry, Commerce, and Finance, as well as the Bank of Thailand also formulate and administer policies which...
Page 169 - Until 1990 holdings of foreign exchange deposits by Thai citizens were not permitted. Thais could not purchase foreign currencies for investment overseas and were thus greatly restricted in taking advantage of differentials between domestic and foreign rates of interest. Individuals were not permitted to take out of Thailand domestic currency exceeding 500 baht (around US$20) or foreign currency exceeding US$1,000.
Page 90 - ... regularly lose large sums. The main examples are in the transport sector, notably the Bangkok Mass Transit Authority, annually losing an average of US$30 million and the State Railway of Thailand, annually losing around US$23 million. Nevertheless, in most years, the public enterprises' aggregate revenues exceed their aggregate expenditures. The problem with these calculations is that the expenditures of the state enterprises do not include proper allowance for a return on the public sector's...
Page 79 - To earn a BOI promotion certificate, prospective investors apply for privileges according to the BOI's regulations. A list of industries eligible for promotion privileges is drawn up by the BOI using the national development plan as a broad framework. The incentives offered typically include tax and tariff exemptions, guarantee of government protection from nationalization and from direct competition by state enterprises, and guarantees of rights of profit and capital repatriation. The range of incentives...
Page 78 - BOI, established in 1959, uses a combination of various investment promotion schemes, tariff policies, tax regimes, and trade and price controls to direct the pattern of private investment. During the 1960s and the early 1970s, industrial policies strongly favored import substitution.
Page 175 - R* is the coefficient of determination adjusted for degrees of freedom, DW is the Durbin Watson statistic, and the numbers in parentheses represent t-values.
Page 88 - ... bulk of this was spent on energy related activities, intended to develop an alternative local energy source and reduce dependence on imported energy. There was no definitive policy on the management of public debt when the decision to liberalize the public sector's foreign borrowing was made in 1977. Regulations on foreign debt merely limited the amount each state enterprise could borrow but not the aggregate for the public sector. The enlarged foreign debt commitment became a serious policy...
Page 38 - ... finance corporations; insurance companies; saving cooperatives; and other mortgage institutions. The commercial banks comprise the largest component in terms of total assets, credit extended, and savings mobilized. The second largest is the finance companies which began operation in 1969. There are three specialized banks, the Government Saving Bank (GSB), the Bank of Agriculture and Agricultural Cooperatives (BAAC) and the Government Housing Bank (GHB), and two development finance corporations,...
Page 83 - ... tariffs and export taxes, the trade regime in Thailand includes a number of restrictive measures such as quantitative import and export controls. Currently, there is an import ban on 18 commodities, and special permission is required to import another 30. The Ministry of Commerce imposes and supervises import controls. Commodities under control include those produced in the socialist countries, weapons and strategic firearms, rice, and sugar. The controls on rice and sugar are to prevent re-importing...

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