Chart 1 shows the sources of potential growth for Thailand over 2000-2025 estimated using
the growth accounting approach (Amarase, Apaitan,and Tanboon, 2014). Prior to the GFC the acceleration
in total factor productivity explains the bulk of the increase in trend output. This is consistent with the proliferation of global supply chains, technology spillovers that enabled the expansion of the production possibility frontier, and reallocation of
factors of production to higher-productivity sectors.This development also happened in various emerging market economies (IMF, 2015).