Thailand is one of the most suitable countries for testing the Melo-Vogt hypotheses in the sense that it experienced transition from a highly protected underdeveloped status to export promotion with more liberalized import during the 1970s, recording rapid economic growth rates and change in the structure of the economy during its process of economic development. Despite having good resource base, the strategy pursuing export-led economic growth since 1974 placing emphasis on the manufacturing sector should have relied on the import of capital goods to enhance the production capacity.