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Rural income dynamics and poverty reduction in Thai villages from 1987 to 2004

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  • Supattra Cherdchuchai
  • Keijiro Otsuka

Abstract

This article aims to examine the factors contributing to the increase in household income and the corresponding reduction in poverty in rural Thai villages from 1987 to 2004 by employing household panel data. It is found that there has been a significant structural shift of household income away from farm to nonfarm income sources, as well as a reduction in the income gap and the difference in poverty incidence between favorable and unfavorable regions. Such decreases in poverty and its regional gap have been associated with the declining importance of income accrued to farm land, measured by farm size and the availability of irrigation, and with the increasing importance of human capital, measured by the proportion of working members who have graduated from post lower secondary schools. Such findings indicate that the success in rural poverty reduction in Thailand has resulted from the development of the rural nonfarm sector coupled with the improvement of the schooling levels of the rural population. Copyright 2006 International Association of Agricultural Economists.

Suggested Citation

  • Supattra Cherdchuchai & Keijiro Otsuka, 2006. "Rural income dynamics and poverty reduction in Thai villages from 1987 to 2004," Agricultural Economics, International Association of Agricultural Economists, vol. 35(s3), pages 409-423, November.
  • Handle: RePEc:bla:agecon:v:35:y:2006:i:s3:p:409-423
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    References listed on IDEAS

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    1. World Bank, 2001. "Thailand Social Monitor : Poverty and Public Policy," World Bank Other Operational Studies 15471, The World Bank.
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    Cited by:

    1. Gibson, John & Olivia, Susan, 2010. "The Effect of Infrastructure Access and Quality on Non-Farm Enterprises in Rural Indonesia," World Development, Elsevier, vol. 38(5), pages 717-726, May.
    2. Amare, Mulubrhan & Hohfeld, Lena & Waibel, Hermann, 2011. "Finding Quality Employment through Rural Urban Migration: a case study from Thailand," Proceedings of the German Development Economics Conference, Berlin 2011 4, Verein für Socialpolitik, Research Committee Development Economics.
    3. Stephan Klasen & Jan Priebe & Robert Rudolf, 2013. "Cash crop choice and income dynamics in rural areas: evidence for post-crisis Indonesia," Agricultural Economics, International Association of Agricultural Economists, vol. 44(3), pages 349-364, May.
    4. Laurent Parrot & Clovis Dongmo & Michel Ndoumbé & Christine Poubom, 2008. "Horticulture, livelihoods, and urban transition in Africa: evidence from South-West Cameroon," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 245-256, September.
    5. Yoko Kijima & Tomoya Matsumoto & Takashi Yamano, 2006. "Nonfarm employment, agricultural shocks, and poverty dynamics: evidence from rural Uganda," Agricultural Economics, International Association of Agricultural Economists, vol. 35(s3), pages 459-467, November.
    6. Yamano, Takashi & Kijima, Yoko, 2010. "The associations of soil fertility and market access with household income: Evidence from rural Uganda," Food Policy, Elsevier, vol. 35(1), pages 51-59, February.
    7. Hoang, Trung X. & Pham, Cong S. & Ulubaşoğlu, Mehmet A., 2014. "Non-Farm Activity, Household Expenditure, and Poverty Reduction in Rural Vietnam: 2002–2008," World Development, Elsevier, vol. 64(C), pages 554-568.
    8. Takahashi, Kazushi & Otsuka, Keijiro, 2007. "Human Capital Investment and Poverty Reduction over Generations: A Case from the Rural Philippines, 1979-2003," IDE Discussion Papers 96, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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