Effect of industrial standards on Thai economy

Abstract

Industrial standards have direct and indirect effects on Thai economy. These standards ensure safe and high-quality products for consumers. At the same time, domestic producers are motivated to improve the quality of their products, thereby increasing their global competitiveness. The standards, nonetheless, could translate into higher production costs for domestic producers and present an investment barrier for foreign investors, thus decreasing the amount of FDI inflows to the country. This research evaluates the effects of industrial standards on the Thai economy, based on the import-export figures and the number of domestic producers. Findings show that even though the industrial standards enhance the country s exports, they diminish the number of small domestic producers.