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Is the development of the agro-processing industry pro-poor?: The case of Thailand

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  • Watanabe, Michio
  • Jinji, Naoto
  • Kurihara, Mitsuyo

Abstract

We examine how the development of the agro-processing industry contributed to poverty reduction in Thailand. The effects on farmers' income are emphasized because most of the poor in Thailand are farmers. The development of the agro-processing industry could improve farmers' income through two channels: (i) the purchase of agricultural products; and (ii) the employment of the poor farmers at factories. We show that the development of the agro-processing industry, which also played a leading role in the high economic growth of the Thai economy, contributed to poverty reduction through both of the two channels. It was hence pro-poor.

Suggested Citation

  • Watanabe, Michio & Jinji, Naoto & Kurihara, Mitsuyo, 2009. "Is the development of the agro-processing industry pro-poor?: The case of Thailand," Journal of Asian Economics, Elsevier, vol. 20(4), pages 443-455, September.
  • Handle: RePEc:eee:asieco:v:20:y:2009:i:4:p:443-455
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    References listed on IDEAS

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    1. Dollar, David & Kraay, Aart, 2002. "Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
    2. James Roumasset, 2004. "Rural Institutions, Agricultural Development, and Pro-Poor Economic Growth," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 1(1), pages 61-82, June.
    3. Krongkaew, Medhi & Kakwani, Nanak, 2003. "The growth-equity trade-off in modern economic development: the case of Thailand," Journal of Asian Economics, Elsevier, vol. 14(5), pages 735-757, October.
    4. Bardhan, Pranab & Mookherjee, Dilip, 2006. "Pro-poor targeting and accountability of local governments in West Bengal," Journal of Development Economics, Elsevier, vol. 79(2), pages 303-327, April.
    5. Dorward, Andrew & Kydd, Jonathan & Morrison, Jamie & Urey, Ian, 2004. "A Policy Agenda for Pro-Poor Agricultural Growth," World Development, Elsevier, vol. 32(1), pages 73-89, January.
    6. Paul Mosley & John Hudson & Arjan Verschoor, 2004. "Aid, Poverty Reduction and the 'New Conditionality'," Economic Journal, Royal Economic Society, vol. 114(496), pages 217-243, June.
    7. World Bank, 2004. "World Development Indicators 2004," World Bank Publications, The World Bank, number 13890.
    8. Ravallion, Martin & Chen, Shaohua, 2003. "Measuring pro-poor growth," Economics Letters, Elsevier, vol. 78(1), pages 93-99, January.
    9. Stephan Klasen & Melanie Grosse & Rainer Thiele & Jann Lay & Julius Spatz & Manfred Wiebelt, 2004. "Operationalizing Pro-Poor Growth - Country Case Study: Bolivia," Ibero America Institute for Econ. Research (IAI) Discussion Papers 101, Ibero-America Institute for Economic Research.
    10. Kraay, Aart, 2006. "When is growth pro-poor? Evidence from a panel of countries," Journal of Development Economics, Elsevier, vol. 80(1), pages 198-227, June.
    11. Ravallion, Martin & Datt, Gaurav, 2002. "Why has economic growth been more pro-poor in some states of India than others?," Journal of Development Economics, Elsevier, vol. 68(2), pages 381-400, August.
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    Cited by:

    1. repec:eee:wodepe:v:7-8:y:2017:i::p:1-8 is not listed on IDEAS
    2. Briones, Roehlano M., 2013. "The Structure of Agricultural Trade Industry in Developing Countries," Discussion Papers DP 2013-15, Philippine Institute for Development Studies.
    3. Tendai P. Chibarabada & Albert T. Modi & Tafadzwanashe Mabhaudhi, 2017. "Expounding the Value of Grain Legumes in the Semi- and Arid Tropics," Sustainability, MDPI, Open Access Journal, vol. 9(1), pages 1-25, January.
    4. Phumzile Ncube & Simon Roberts & Tatenda Zengeni, 2016. "Development of the animal feed to poultry value chain across Botswana, South Africa, and Zimbabwe," WIDER Working Paper Series 002, World Institute for Development Economic Research (UNU-WIDER).

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