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International spillovers, productivity growth and openness in Thailand

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  • Diao, Xinshen
  • Rattsø, Jørn
  • Stokke, Hildegunn Ekroll

Abstract

The present paper addresses the growth process of Thailand... After all the theoretical growth modeling and the cross-country growth regressions, we suggest to go back to the country level to understand the growth dynamics. The focus is on endogenous productivity growth in transition towards long run balanced growth. Thailand has had remarkable economic growth of about 6-7% and well above world averages for 40-50 years, in transformation from a ‘rice economy' to industrialization. Interestingly, this follows an earlier deindustrialization from domestically oriented rural industries to specialization in rice exports (the period 1870-1940). The more recent transformation has involved industrialization with labor- intensive manufacturing exports. The literature on endogenous productivity growth points to the role of research and development and innovation. But these key sources of productivity growth do not seem to be of great relevance for Thailand. Resource input to research and development is concentrated to the most developed countries of the North. Innovation is the result of R&D and certainly requires advanced skills, again not characterizing the local growth process. Human capital development and skill accumulation are important ingredients in Thailand, the low-tech labor- intensive industries in the country do not indicate that this is a major growth factor. Our analysis addresses learning by doing, technology adoption and foreign technology spillover as sources of productivity growth. Based on recent econometric evidence for Thailand, our understanding is that productivity growth has been related to the increased openness of the economy with the associated spillover of knowledge, incentives to improved organizational capital and disciplining of the work process.

Suggested Citation

  • Diao, Xinshen & Rattsø, Jørn & Stokke, Hildegunn Ekroll, 2002. "International spillovers, productivity growth and openness in Thailand," TMD discussion papers 89, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:tmddps:89
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Diao, Xinshen & Breisinger, Clemens, 2010. "Foreign inflows and growth challenges for African countries," IFPRI discussion papers 967, International Food Policy Research Institute (IFPRI).
    2. Godbertha Kinyondo & Margaret Mabugu, 2008. "The General Equilibrium Effects of a Productivity Increase on the Economy and Gender in South Africa," Working Papers 200801, University of Pretoria, Department of Economics.
    3. Stokke, Hildegunn E., 2008. "Resource boom, productivity growth and real exchange rate dynamics -- A dynamic general equilibrium analysis of South Africa," Economic Modelling, Elsevier, vol. 25(1), pages 148-160, January.
    4. Jørn Rattsø & Hildegunn Ekroll Stokke, 2003. "Learning and Foreign Technology Spillover in Thailand: Empirical Evidence on Productivity Dynamics," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 29, pages 47-66.
    5. Hildegunn Ekroll Stokke & Jørn Rattsø & Xinshen Diao, 2001. "Learning by Exporting and Productivity-investment Interaction: An Intertemporal General Equilibrium Analysis of the Growth Process in Thailand," Working Paper Series 2302, Department of Economics, Norwegian University of Science and Technology.
    6. Jan HAGEMEJER & Tomasz DARAS, "undated". "The long run-effects of the Poland´s accession to the eurozone. Simulation using POLDYN - a dynamic computable general equilibrium model," EcoMod2009 21500037, EcoMod.
    7. Diao, Xinshen, 2009. "Economywide impact of avian flu in Ghana: A dynamic CGE model analysis," IFPRI discussion papers 866, International Food Policy Research Institute (IFPRI).
    8. Hildegunn Ekroll Stokke, 2005. "Productivity Growth in Backward Economies and the Role of Barriers to Technology Adoption," Working Paper Series 4905, Department of Economics, Norwegian University of Science and Technology.
    9. Breisinger, Clemens & Diao, Xinshen, 2008. "Economic transformation in theory and practice: What are the messages for Africa?," IFPRI discussion papers 797, International Food Policy Research Institute (IFPRI).
    10. Hildegunn Ekroll Stokke & Jørn Rattsø, 2004. "Ramsey model of barriers to growth and skill-biased income distribution in South Africa," Working Paper Series 4604, Department of Economics, Norwegian University of Science and Technology, revised 07 Feb 2005.
    11. Diao, Xinshen & Zhang, Yumei & Chen, Kevin Z., 2010. "Country-level impact of global recession and China’s stimulus package," IFPRI discussion papers 979, International Food Policy Research Institute (IFPRI).

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