Advanced Search
MyIDEAS: Login

Sources and Pro-Poorness of Thailand's Economic Growth

Contents:

Author Info

  • Somchai Jitsuchon

    (Thailand Development Research lnstitute)

Registered author(s):

    Abstract

    Looking back around half a century, Thailand has been one of the fastest growing economies in the world. lt also possesses an impressive record in term of poverfy reduction' Whether the two phenomena are related and, if so, how, are of great interest to academic and policymakers. This paper attempts to shed some light on this issue, by first trying to provide descriptive explanation of what caused economic growth in the past 50 years, separated into five sub-periods, and then quantirativeiy calculates how much growth contributed to the reducfron of poverty since 1986. We argue that the impressive growth rates could be attributed to the country's high and rising openness. sound macroeconomic management emphasizing stability in both fiscal and monetary policies, promotion of market meehanism and private sector' strcngthening of key public policy agencies, and appropriate.mix of quantity and quality of human resources. There were some disruptions in the growth process, most notably during late 1970s up to early 1980s, and the 1997 hnancial crisis. The disruptions were caused both by cxternal factors, such as world recessions, effective appreciation of local culrency under fixed exchange rate, and by domestic factors such as failure to timely adjust exchange rate system, lack of good goverrance in both public policy and private businesses. The second part of the paper is the analysis of pro-poorness of overall economic growth and the irnportance of incolne sources in reducing poverty. Applying Kakwani et.al (2004),s methodology to Thai household data during 1986-2002, it is found that, before the crisis, economic growth helped poor more than proportionately since around 1992, when compared to the succeeding period of 1986-1992. After the crisis, the growth was unfavorable to the Thai poor only in 1999. Using household survey in 2000, the poverty elasticify is calculated at-1.206, meaning that for every I percent increase in average per capita income, poverty would reduce by l'206 percent' As for the importance of income sourccs in poverty reduction, the poverty elasticity indicates in-kind income, while the poverty reform index indicates rural non-form income and urban salary and farm-income as the most important income components in poverty reduction.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://saber.eaber.org/node/21961
    Download Restriction: no

    Bibliographic Info

    Paper provided by East Asian Bureau of Economic Research in its series Macroeconomics Working Papers with number 21961.

    as in new window
    Length:
    Date of creation: Jan 2006
    Date of revision:
    Handle: RePEc:eab:macroe:21961

    Contact details of provider:
    Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
    Web page: http://www.eaber.org
    More information through EDIRC

    Related research

    Keywords: Thailand; economic growth; poverty reduction;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Alesina, Alberto F & Rodrik, Dani, 1991. "Distributive Politics and Economic Growth," CEPR Discussion Papers 565, C.E.P.R. Discussion Papers.
    2. Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eab:macroe:21961. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shiro Armstrong).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.