This article aims to analyze the key factors that contributed to the growth of the Thai economy from the 1980s to mid 90s. Identify the external and internal factors that represented a major change in Thailand's economy. The study focuses exclusively on those factors that contribute to the Thai economy. Thailand's economy has been one of the fastest growing economies in Southeast Asia. Before the growth, the Thai economy was mainly focused on agriculture. In the 1980s, Thailand's economy transformed from an agriculture-based country to a more modernized or industrialized country. During that time, Thailand was ruled by a military prime minister, Prem Tinsulanonda. Despite being ruled by a military officer, the Thai economy continued to grow year after year. (Southgate, 2017) Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Between the 1980s and 1990s, the Thai economy ushered in an era of economic growth, known as Thailand's "boom years." It was considered the rising tiger of Southeast Asia. (“Thailand – Economic Overview”) There are many key factors contributing to Thailand's economic growth. First, Thailand chose to take the risk of transforming its country from an agriculture-based country to a more industrialized country. Thai agricultural processes have helped improve the movement of change and has become a good framework for building industrialized change. In the 1960s, Thailand used earnings from agriculture to “initiate a shift to industrialization” (“Thailand – Economic Overview”) by attempting a strategy called “import substitution” (“Thailand – Economic Overview ”), focusing on local foods rather than food imported from other countries. (Staff, 2008) This strategy has led to an increase in the use of domestic products and greater value for local farms. All the profits obtained by agriculture from this strategy, the government had invested in the development of industrialized machinery, in order to catch up with the Western world. (“Thailand – Economy Overview”) The government had balanced economic growth and the gap between economic losses and gains. He had also contributed to the improvement of social services. Increasing urbanization, the spread of industrial and service activities continues to increase its incomes are the social and economic trends of the Thai economy. (Hays, 2014) Secondly, Thailand had diversified its economy. The diversification of the Thai economy is rooted in the nature of Thai people, to which they are very flexible in adapting. It is a type of production that started from simple agricultural production and developed through the use of resources such as natural resources and labor, into a more complex industry and, more importantly, to develop its own industrial technology. The process was also largely supported by foreign direct investment (FDI). This focused on a wide range of products, electronics, goods and food. The largest investors for Thailand are Japan, Korea, China and America. With these 4 countries alone, 2.5 billion dollars have been invested in Thailand out of a total FDI of 8 billion dollars. (“Thailand – Economy Overview”) In the 1990s, Thailand ranked fifth in FDI in Asia. The exchange rate of the Japanese currency, i.e. the yen,affected the exchange rate of the dollar and the Thai baht. Initially, the Thai baht was pegged to the US dollar, but after the Japanese yen skyrocketed through the global exchange rate in the Plaza Accord in 1985, this had a huge impact on the pegging of the baht-dollar and, moreover, triggers an impact significant on trade agreements and investment plans between Japan and Thailand. (Heng, 2003) Thailand's cheap labor and technology industry had fueled the Thai economy. As a result, Thailand has become the largest rice exporter and largest automobile manufacturer in Southeast Asia. In the period 1986-1989 the percentage increase in foreign income rose to 400%. After 1988, investments from Southeast Asian countries began to come to Thailand and become the major investors in Thailand. Thailand quickly realized the potential of creating huge revenue from various Southeast Asian countries, it quickly reacted by establishing an international bank in Bangkok called Bangkok International Banking facility, in order to simplify the path for foreign investors. (Hays, 2014) The third factor was his government. During Thailand's boom year, it was under military control. The military officer and also the Prime Minister of Thailand at the time was Prem Tinsulanonda. His reign lasted eight years, from 1980 to 1988. (“Thailand – Economic Overview”) He was known as the “Power Broker of Thailand”. (Southgate, 2017) He had fought against corruption in all his years of working for the government and the people. He had influenced the military to promote the fight against corruption. Since he was elected to the Privy Council, he has expressed his criticism of the Thai government, its transparency towards the people and the ineffective control system. This has opened up new improvements in Thailand's society and government system. It had set a macroeconomic policy under the command of the “Bank of Thailand, the Ministry of Finance, the National Economic and Social Development Council and the Budget Office”. (Southgate, 2017) Prem Tinsulanonda had introduced a project called the East Coast Development Project, which was the centerpiece of Thailand's fifth national development plan from 1982 to 1986. His goal was to focus in Bangkok on reducing factory overcrowding and divide those factories into commercial and manufacturing centers on the East Coast. The project has led to the growth in the number of development industries such as the establishment of deep-sea ports, the automotive and chemical industries have also been improved and the improvement of infrastructure since its creation in 1982. In the years between 1991 and 1995 , growth continued to move forward and added another 8.5% to the Thai economy. (Southgate, 2017) These creations have led to the uprising of industrialization in urban and even rural areas. Under the leadership of Prem Tinsulanonda, Thailand has become one of the fastest growing economies in all of Southeast Asia. The fourth factor was the power of the private sector in exporting production. In 1981, a policy was created in the bloc of the Joint Public-Private Advisory Committee on Economic Issues that gave citizens the freedom to exert influence on the market. This provides opportunities for entrepreneurs to contribute to society. It also gave space to the development of state-owned enterprises. The growth rate of the Thai economy between 1985 and 1995 was 8%. In 1988 it reached its peak growth rate of 13%. (“Thailand – Economic Overview”) Between 1993 and 1996, the private sectors.