Mean years of schooling (years)

Q2A)
1990 1991 1992 1993 1994 1995 1996 1997
Thailand 4.6 4.7 4.7 4.8 4.9 5 5.2 5.5
USA 12.3 12.4 12.5 12.6 12.7 12.7 12.7 12.7

The mean years of schooling has increased from 4.6 years in 1990 to 7.9 years in 2019 in
Thailand ( a developing economy) while it has only increased from 12.3 years in 1990 to 13.4 M
years in 2019 in USA ( a highly developed economy). This means that human capital is 16
increasing at a fast pace in Thailand, which also implies to development of new technologies
and increase in labour productivity. 14
12
Supposingly, new technical knowledge arrives in USA and later diffuses to Thailand. It would 10
then have a greater pool of new ideas. Given, its increasing mean years of schooling, the
increase in human capital coud potentially allow it to imitate, adapt and use the new 8
technology. 6

However, when it comes to adapting and using new technology, a society’s performance 4
is not necessarily guaranteed, but is the result of whether the economic, educational, 2
and public policy institutions of the country are supportive. In theory, perhaps, low- 0
income countries have many opportunities to copy and adapt technology, but if they 90 992 994 996 998
lack the appropriate supportive economic infrastructure and institutions, the 19 1 1 1 1
theoretical possibility that backwardness might have certain advantages is of little
practical relevance.
Thus, NO it cannot be a route for convergence for Thailand.
 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
5.7 5.9 6.1 6.3 6.5 6.7 6.8 7 6.6 7.1
12.7 12.7 12.7 12.7 12.7 12.8 12.8 12.8 12.8 12.9

Mean Years of Schooling

16
14
12
10
8
6
4
2
0
90 992 994 996 998 000 002 004 006 008 010 012 014 016 018
19 1 1 1 1 2 2 2 2 2 2 2 2 2 2

Thailand USA
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
7.3 7.5 7.3 7.5 7.7 7.5 7.6 7.6 7.6 7.7
13.2 13.2 13.3 13.4 13.4 13.3 13.3 13.3 13.3 13.4
2018 2019
7.8 7.9
13.4 13.4
QUESTION 2B:
First launched in 2018, the HCI measures the amount of human capital that a child born today can expect
the next generation of workers compared to a benchmark of complete education and full health. The HCI
This means that a child born in Thailand today will be 61 percent as productive when she grows up as she could b
This is higher than the average for East Asia & Pacific region and Upper middle income countries. The HCI of Ind

Given below is the HDI and GDP for both the countries.

HDI GDP (current US$)

Year
Thailand India Thailand India
1990 0.577 0.429 8.53E+10 3.21E+11
0.9
2000 0.652 0.495 1.26E+11 4.68E+11
0.8
2010 0.724 0.579 3.41E+11 1.68E+12 0.7
2019 0.777 0.645 5.44E+11 2.87E+12 0.6
0.5
Observations: 0.4
0.3
India’s HDI value for 2019 is 0.645, which puts the country in the 0.2
medium human development category, positioning it at 131 out 0.1
of 189 countries and territories. Between 1990 and 2019, India’s 0
HDI value increased from 0.429 to 0.645, an increase of 50.3%. 1985 1990 1995

When looked at Thailand we see that, its HDI value for 2019 is
0.777, which puts the country in the high human development
category, positioning it at 79 out of 189 countries and
territories. Between 1990 and 2019, Thailand’s HDI value
increased from 0.577 to 0.777, an increase of 34.7%.
3.50E+12
HDI is a summary measure for assessing long-term progress in 3.00E+12
three basic dimensions of human development: a long and
healthy life, access to knowledge and a decent standard of 2.50E+12
living. Thus, we can say that India, despite have a much greater 2.00E+12
population than Thailand, has done better in increasing it's HDI
as compared to Thailand. 1.50E+12

1.00E+12

5.00E+11

0.00E+00
1
ild born today can expect to attain by age 18. It conveys the productivity of
and full health. The HCI for Thailand is 0.609310985 for the year 2020.
n she grows up as she could be if she enjoyed complete education and full health.
e countries. The HCI of India is 0.493510902

HDI
HDI Thailand India
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
1985 1990 1995 2000 2005 2010 2015 2020 2025

GDP (current US$)

3.50E+12

3.00E+12

2.50E+12

2.00E+12

1.50E+12

1.00E+12

5.00E+11

0.00E+00
1 2 3 4

Thailand India