Dr. Atip Asvanundไทย
Thai Macroeconomy: Currency, Rates & Household Debt

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9:21YOUTUBE

Summary

The middle-income trap is the state where wages are too high to compete on price and productivity too low to compete on quality.

The talk covers causes, the economic and social consequences, and case studies of countries that got out.

The last section is what Thailand and its neighbours have attempted, and which lessons transfer.

Key points

  1. The trap is produced by success, not failure

    A country only reaches it after escaping poverty, which is exactly what makes it hard to leave.

  2. The exit is productivity, not wages

    Pushing wages back down is not available, politically or economically.

  3. The countries that escaped share a pattern

    Education, research and industrial upgrading pursued together is the recurring shape.

  4. Demographics shortens the runway

    The faster a society ages, the narrower the window for upgrading becomes.