A continuation of the Thai 'success story' will require a shift of large numbers of workers out of agriculture into higher-productivity sectors. Among other things, this may have fostered the development of education, an important factor in improving the stock of human capital. Another major influence on rates of development is undoubtedly the degree of outward orientation in trade policy. As for Table 3.5. Malaysia and Thailand have been in the moderately outward-oriented group throughout the same period.
Outward orientation encourages efficient firms and discourages inefficient ones.
In 1982, manufacturing as a share of GDP ranged from 13 per cent in Indonesia to 21 per cent in Singapore. Malaysia, Singapore and Thailand have achieved real annual growth of manufacturing in excess of 10 per cent since 1960. Only in Indonesia and Malaysia did manufacturing output grow faster than that of services and agriculture over this period. 1987 Food, beverages and tobacco n.a. Textiles and clothing n.a.