jumping to 20.7 per cent in 1986, 28.8 per cent in 1987 and 33.9 per cent in 1988. The
international setting, namely currency realignment leading to the fall of the value of the US
dollar and the rise of the Yen immediately benefited Thailand’s economy and Japanese
manufacturers began to relocate their production base in Thailand. Moreover, Thai
macroeconomic performance has also been impressive by any international standards (see
Ranis, 1991; Ranis and Mahmood, 1992; World Bank, 1988-1993).