Financial crisis impact on employment : a case study of the Thai finacial sector | |
| Author | Chalie Mahattanakul |
| Call Number | AIT RSPR no.ESM-01-07 |
| Subject(s) | Financial crisis--Thailand Employment--Thailand |
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master in Business Administration (Executive MBA Program) |
| Publisher | Asian Institute of Technology |
| Abstract | After the Thai government started on a course of deregulation and financial liberalization with the acceptance of Article 8 ofIMF in the early 1990s. Public sector and Private sector enjoyed high growth rate of GDP and growing capital inflow of foreign direct investment from abroad and also growing export growth. Both the public and private sectors lacked of rules and regulation and good supervision in policy planning to serve economic growth. Unfortunately major part of foreign direct investment was allocated to investment projects in unproductive sectors such as property development in term of high-rise buildings, complex plaza and shopping centers, commercial buildings and housing projects throughout the country, etc. In addition foreign direct investment to invest in capital market in term of stock speculation was not generating foreign exchange earning to service foreign debt repayment. In 1996 to first half of 1997, The Thai economy sank into the doldrums which was due to the drop in exports and more restrictive monetary policy. This situation deteriorated rapidly with the over supply in the property sector, finance companies faced by large NPL due to lack of ability to pay, the securities market was in severely bearish. Thai's financial institutions faced liquidity problems with many finance companies to borrow substantially from FIDF until Bank of Thailand ordered 58 finance companies to suspend their operations. In addition the government established FRA and AMC to handle financial institutions particularly helping financial restructuring in the financial sector. Foreign investors and foreign creditors lacked of confidence in term of debt repayment resulting in a steady capital outflow and Thai's currency depreciated. There also has intensified speculation on the Thai baht currency, eventually Thai government announced to change basket currency system to manage float system in Thai baht currency in July 2, 1997. All of this aspects was the cause of financial crisis in Thailand. This crisis has affected cover to economic and social sector interim of employment, wage, investment, consumption, production, income, indebtedness and in the part of social impact which was welfare, unequally, household, health, and education, etc. F or this research study will also mention the cause of financial crisis and focused on its impact on employment in some business sectors. It also concentrates on some measurement and measure to implementation by the public and private sectors and recommendations to the policy makers. In Both public and private sectors build its strength in the financial sector which enable them to compete in the global market. |
| Year | 2001 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Sununta Siengthai; |
| Examination Committee(s) | Bechter, Clemens;Tang, John C.S.; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2001 |