A chance in Myanmar induced by the minimum wage policy in Thailand, a case study of Myawaddy industrial area

This paper discusses the possible effects of Thailand’s minimum wage rise on the industrial area located inside the Myanmar border. The authors compare this to the maquila program in Mexico and the Export Processing Zone in NIEs. The central government of Myanmar has developed the Myawaddy Industrial Area to enhance domestic small and medium-sized enterprises by setting up plants at the border of Thailand, but the present economic conditions in Myanmar make the realization of this plan difficult. The authors argue that the Myawaddy Industrial Area could drive the industrialization of Myanmar, if the government institutes a duty free zone to attract foreign direct investment and develops infrastructure.