Structural Transformation - How Does Thailand Compare?

Thailand stands out in international comparison as a country with a high dispersion of productivity across sectors. It has especially low labor productivity in agriculture-a sector that employs a much larger share of the population than is typical for a country at Thailand's level of income. Th...

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Main Author: Klyuev, Vladimir
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2015, 2015
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Summary:Thailand stands out in international comparison as a country with a high dispersion of productivity across sectors. It has especially low labor productivity in agriculture-a sector that employs a much larger share of the population than is typical for a country at Thailand's level of income. This suggests large potential productivity gains from labor reallocation across sectors, but that process-which made a significant contribution to Thailand's growth in the past-appears to have stalled lately. This paper establishes these facts and applies a simple model to discuss possible explanations. The reasons include a gap between the skills possessed by rural workers and those required in the modern sectors; the government's price support programs for several agricultural commodities, particularly rice; and the uniform minimum wage. At the same time, agriculture plays a useful social and economic role as the employer of last resort. The paper makes a number of policy recommendations aimed at facilitating structural transformation in the Thai economy
Physical Description:30 p.
ISBN:1498395333
9781498395335