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Protectionism Blog

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 Thailand has high tariffs placed on imported vehicles. This tariff is at 80% under the claim that it is needed to help Thailand's economy (Phoonphongphiphat ) . This tariff could have effects on many different people as is illustrated in the diagram below.                                     Figure 1:  Tariff on imported automobiles As shown in the diagram above, before the tariff the price of automobiles is S(world). After the tariff the price rises to S(world + Tariff). Before the tariff the quanitity demanded was at Q2, but Thai producers only produced Q1 of that amount giving them a revenue of E. After the tariff they increase production to Q3 which is the new equilibrium causing their revenue to rise to E + F + A + B. Foreign producers of automobiles will be producing the rest which is the distance from Q3 to Q4, which is less than it was before. Their reven...
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Fiscal Policy Country Blog

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Example 1:  Expansionary Fiscal Policy - $1.3 billion in stimulus package in 2021 Thailand is granted this stimulus to people located in the providences that were affected by Covid 19. This stimulus will include some for subsidies for water and electricity bills, and the rest for direct cash handouts to people. Workers in certain fields such as construction, hotel and food service, etc, will receive addition stimulus. In 2019 Thailand tourism contributed to 20% of GDP so with this shut down the economy is struggling (Medina).  This stimulus package is benefiting people who work in industries severly struggling from the pandemic if they are registered with the social security scheme. This money is an attempt to lessen the devestating effects and make conditions more liveable.  I cannot find any specific examples of people against this, but I can imagine people who were not affected as bad may be frusturated thinking it is unfair people are getting utility discounts and the...
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Changes in AS/LRAS

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  Thailand GDP per hour worked over last 10 years:  This is the GDP per hour, which has had a steady increase over the past 10 years. This shows that workers are being more productive which would be a qualitative shift. This would cause a shift to the right on the LRAS because over time there has steadily been growth in productivity.  https://www.statista.com/statistics/878207/thailand-labor-productivity-per-hour/  Thailand GDP Per person employed 1991-2019($):  The GDP per person employed shown here also shows an upward trend that is pretty similar to the GDP per hour. This graph looks at a longer time frame, but it would still have a shift to the right in the LRAS. More employment means that there are more people working which would be a quantitative shift.  https://data.worldbank.org/indicator/SL.GDP.PCAP.EM.KD  Thailand Immigration: This shows the immigration rate in Thailand over the last 30 years. There has been a steady incline in the migrant po...
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GDP Stats

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 Thailand Real GDP for 2009-2019:  https://fred.stlouisfed.org/series/RGDPNATHA666NRUG  Thailand Real GDP per capita for 2009-2019s:  https://www.macrotrends.net/countries/THA/thailand/gdp-per-capita  Thailand Real GDP growth per year 2009-2019:  https://knoema.com/atlas/Thailand/Real-GDP-growth  Thailand Unemployment rate 2009-2019: https://www.macrotrends.net/countries/THA/thailand/unemployment-rate  Thailand Inflation Rate 2009-2019: https://knoema.com/atlas/Thailand/Inflation-rate   Thailand Current Account Balance 2009-2019: https://knoema.com/atlas/Thailand/Inflation-rate   Thailand Hidden Economy % of GDP 2009-2019: I couldn't find any exact figures on hidden economy, but some research I did said there is a lot that comes from street vendors, food stalls and souvenir sales. There is also however, drug sales, gas smuggling, human trafficking and and illegal lotteries. Non of these are pay taxes or are documented.  https://www....
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