A comparative analysis of the differential economic performance between the Philippines and Thailand

Abstract

The economic performance of the Philippines and Thailand is a remarkable contrast. In the 1950s, the Philippines was among the most advanced economies with the brightest prospect in the whole of Asia for economic take-off. In contrast, Thailand was a backward agricultural economy with a capital, Bangkok, largely described as ancient oriental city. Three decades later, their economic positions were reversed. This study examines this reversal using rent-seeking as analytical framework. But unlike the conventional rent-seeking analysis which is concerned with the determination of rent-seeking expenditures, this study focuses on the implications of rent-outcomes. It recognizes rent-seeking as a process and its outcome as either value-enhancing or value-reducing. This study argues that the differential economic performance between the Philippines and Thailand is due to the lattera??s ability to produce more value-enhancing rents. This study also evaluates the rent-seeking success of sugar millers and planters in both countries.