Economic innovation challenges: lessons learnt from the major financial crises in Asia

Abstract

This paper discusses the lessons learnt from the two major financial crises with regard to their impacts on the economy of Thailand. In particular, the study compares the two major financial crises which have far-reaching impacts on the global financial system - the Tom Yam Kung crisis (the Asian financial crisis in 1997) and the hamburger crisis (the US financial crisis in 2008). The discussions on their impacts on the Thai economy are based on the Schumpeterian model of economic development. The results have shown that Thailand has brought the lessons from the Tom Yam Kung crisis to effectively protect its financial system in the midst of the global financial downturn caused by the hamburger crisis. The case of Thailand represents a paradigmatic case with valuable insights and experiences that can be applied to other economies.