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Misallocation and manufacturing TFP in Thailand

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  • Siwapong Dheera-Aumpon

Abstract

type="main"> Using data from Thailand's 2007 Industrial Census, this research studied resource misallocation across manufacturing plants and its impact on manufacturing total factor productivity (TFP). It is found that there is more resource misallocation across plants in Thailand than in China, India, and the US, as well as in some other countries. When resource misallocation in Thailand is hypothetically reduced to the extent observed in the USA, manufacturing TFP increases by about seventy per cent. It is also found that manufacturing plants under government ownership or located in the northern region of Thailand have lower productivity, yet face lower input and output distortions than other plants. Also, medium-sized plants face higher distortions than smaller and larger plants.

Suggested Citation

  • Siwapong Dheera-Aumpon, 2014. "Misallocation and manufacturing TFP in Thailand," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 28(2), pages 63-76, November.
  • Handle: RePEc:bla:apacel:v:28:y:2014:i:2:p:63-76
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    File URL: http://hdl.handle.net/10.1111/apel.12073
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    Cited by:

    1. Jeremy Greenwood & Juan M. Sanchez & Cheng Wang, 2010. "Financing Development: The Role of Information Costs," American Economic Review, American Economic Association, vol. 100(4), pages 1875-1891, September.
    2. Archawa Paweenawat & Thitima Chucherd & Nakarin Amarase, 2017. "Uncovering Productivity Puzzles in Thailand: Lessons from Microdata," PIER Discussion Papers 73, Puey Ungphakorn Institute for Economic Research, revised Oct 2017.
    3. Ryzhenkov, Mykola, 2016. "Resource misallocation and manufacturing productivity: The case of Ukraine," Journal of Comparative Economics, Elsevier, vol. 44(1), pages 41-55.
    4. Doan Thi Thanh Ha & Kozo Kiyota & Kenta Yamanouchi, 2016. "Misallocation and Productivity: The Case of Vietnamese Manufacturing," Asian Development Review, MIT Press, vol. 33(2), pages 94-118, September.
    5. Siwapong Dheera Aumpon, 2018. "Resource Misallocation and Rice Productivity in Thailand," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 14(2), pages 143-153.
    6. Dai, Xiaoyong & Cheng, Liwei, 2019. "Aggregate productivity losses from factor misallocation across Chinese manufacturing firms," Economic Systems, Elsevier, vol. 43(1), pages 30-41.

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