University of Warwick
Understanding Thailand’s Industrial Development in the Lenses of New Economic Geography
A Dissertation Submitted in Partial Fulﬁlmentof the Requirements for the Degree of
Masters of Science
in Economicsby Bhatara
Dr. Nicholas CraftsDepartment of EconomicsSeptember 2012
Industrial development in Thailand during the 1980s and 1990s was accompaniedby the uneven distribution of income and the location of factories. Developmentsin New Economic Geography and the unique technique of nesting a Heckscher-Ohlin model within an increasing returns to scale model by Davis & Weinstein,allows for investigation on the factors of the location of industry. There is supportfor the existence of economic geography eﬀects in as many as 56 percent of Thaiindustries. This home market eﬀect provides a good explanation to the rapid growthand strengthening of the Central region of Thailand as the major growth area of production in the country and Southeast Asia.
I would like to thank Dr. Nicholas Crafts for the supervision of this research and the thoughtfulsuggestions and critique. I have beneﬁted from comments from Dr. Joan R. Ros´es, Apisek Pansuwan,Fredy A. Gamboa-Estrada, Thomas Swenson, Paveena Amornkul, and Timothy Gaw.
Bhatara Chirapant, 2012. All rights reserved. This dissertation may not be cited, reproduced, ordistributed in whole or part without the express written permission of the author.