Thailand’s Internationalization and Its Rural Sector

The recent boom in the Thai economy is attributable mainly to three factors in the its exter nal sectors, namely its export growth, its increase in revenue from tourism, and its increase in direct foreign investment. These developments have changed the Thai economic structure, and affected rural poverty and income inequality. Although the country has become more urbanized, most of the people still live in rural areas and have not fully benefited from the overall economic development. Employment migration to Bangkok, other cities and foreign countries has helped to augment rural income but at great personal costs. The government attempt to industrialize the rural areas in the past had not been successful due to the lack of rural infrastructure, economic agglomeration, and rural fiscal autonomy. However, the re cent rise in the input cost of industrial production in Bankok and the success of the new rural investment promotion initiatives could speed up rural industrialization and improve the life of the rural people.