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The development of a multisectoral model for the Thai economy (MUTE)


The MUTE model is a multisectoral model developed for the Thai economy. The structure of the MUTE model resembles 1NFORUM type models consisting of 3 main modules, namely, (1) the real side which estimates 7 components of the final demand, (2) the price - income side which calculates the 5 value added components, and (3) the accountant which includes the identity equations and some important behavioral equation in order to link both the real side and the price - income side. The major difference of the MUTE model from the INFORUM models, especially a Thai Interindustry Dynamic Model (TIDY) is the inclusion of a dummy variable representing the event of the political disorder, which is widely believed as one of the non-economic factors affecting the performances of the economy. Moreover, the use of the time-series technique called AICc to forecast some series (when the explanatory variables are non-stationary and the cointegration test reports the nonexistence of the cointegrating vector), the use of the RAS technique instead of Across the Row method in estimating the direct input requirement matrices, and the application of the ADF and the cointegration tests for all equations are among the new contributions aimed at improving the model reliability. Finally, the model is employed to forecast the performances of the Thai economy from 2005 to 2020 under the impacts of the Baht appreciation and the political disorder. The results show that these two impacts will adversely cause the growth rate of GDP to slowdown. The Baht appreciation against U.S. dollar worsens the net export, while the political disorder causes both consumers and producers to lose their confidences in the Thai economy, which results in the reduction in the personal consumption expenditure and the gross fixed capital formation. However, both impacts do not affect the income and output structures of the Thai economy. The Thai economy still moves toward the industrialized country by reckoning on manufacturing and service sectors as the main sources for generating income and employment with or without the presence of these two impacts.


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economic model
input-output table
interindustry model
political disorder
Thai economic model
Thai economy


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