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Aggregate and Sectoral Productivity Growth in Thailand and Indonesia


  • Peter Warr



Total factor productivity growth is studied in this paper for two countries, Thailand and Indonesia, from 1980 to 2006. The analysis is conducted at both the aggregate and sectoral levels. A feature of the analysis is the decomposition of aggregate total factor productivity growth into two components: productivity growth in individual sectors, and a resource reallocation effect: the movement of resources from low productivity to high productivity sectors. In both countries, virtually all factor productivity growth at the sectoral level derived from agriculture, but the reallocation of resources away from agriculture was a much larger source of aggregate productivity growth.

Suggested Citation

  • Peter Warr, 2009. "Aggregate and Sectoral Productivity Growth in Thailand and Indonesia," Departmental Working Papers 2009-10, The Australian National University, Arndt-Corden Department of Economics.
  • Handle: RePEc:pas:papers:2009-10

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    References listed on IDEAS

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    total factor productivity growth; Thailand; Indonesia;

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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