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These factors encouraged domestic savings and investment and made the Thai economy an ideal host for foreign investment. As industry expanded, many Thai people who previously had worked in agriculture began to work in manufacturing, slowing growth in the agriculture sector. Meanwhile, manufacturing growth spurred the expansion of service sector activities.
In the early 1990s a series of economic policy reforms introduced by the Thai government made it easy and attractive for foreign banks to offer loans to Thai banks. The Thai banks used the capital to lend money to domestic finance companies, property developers, and other investors, starting an investment boom...
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