Thailand in the Era of Digital Economy: How Does Digital Technology Promote Economic Growth?

As Thailand has undergone the reformation in both social and economic dimensions due to the digital economy, technologies are now becoming the new driving forces of economic growth. Therefore, an attempt of this study is to provide an empirical evidence on this issue, examining how increases in digital technologies impact the Thai economy. This study employs the stochastic frontier model estimated by entropy approach to model the production function. Because of a specific capability of this model, we are also able to find out how efficiently those technologies are utilized. The estimated results show that technologies can contribute positively to the Thai economy although the magnitudes are small. Moreover, our finding emphasizes that the digital technologies are not being used at the maximum capability, therefore, there is still a room for improvement in Thailand.