Accounting for total factor productivity growth of the Thai economy

Sailesh Tanna, K. Topaiboul

Research output: Contribution to conferenceOther

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Abstract

We investigate the sources of Thai economic growth over the period 1972:1-2000:4 using both growth accounting and level accounting approaches, allowing explicitly for the contribution of human capital accumulation. The accumulation of human capital in Thailand is measured by the average years of schooling in population age 25-64, and we assess its relative contribution alongside physical capital accumulation and labour force growth. The rate of growth of human capital increased significantly in the period 1972:1-2000:4. We find that, after incorporating human capital, the Solow growth residual is positive and significant during the pre crisis period 1972-1996. Disaggregating our analysis over five year periods reveals a productivity slowdown with negative contribution from capital, labour, and human capital during the period 1997-2000. We conclude that both productivity growth and factor accumulation are significant in accounting for Thai growth performance during the pre and post crisis period.
Original languageEnglish
Publication statusPublished - 2002

Fingerprint

Human capital
Total factor productivity growth
Productivity growth
Physical capital
Human capital accumulation
Capital accumulation
Labor
Schooling
Labor force
Economic growth
Growth accounting
Thailand
Factors
Productivity slowdown

Bibliographical note

Paper presented at Being Sustainable – Competitiveness for Business and Industry 2002 Conference, Thammasat University, Bangkok, Sept 2002.

Keywords

  • TPF
  • Human Capital
  • Growth and Level Accounting
  • Thailand

Cite this

Accounting for total factor productivity growth of the Thai economy. / Tanna, Sailesh; Topaiboul, K.

2002.

Research output: Contribution to conferenceOther

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N2 - We investigate the sources of Thai economic growth over the period 1972:1-2000:4 using both growth accounting and level accounting approaches, allowing explicitly for the contribution of human capital accumulation. The accumulation of human capital in Thailand is measured by the average years of schooling in population age 25-64, and we assess its relative contribution alongside physical capital accumulation and labour force growth. The rate of growth of human capital increased significantly in the period 1972:1-2000:4. We find that, after incorporating human capital, the Solow growth residual is positive and significant during the pre crisis period 1972-1996. Disaggregating our analysis over five year periods reveals a productivity slowdown with negative contribution from capital, labour, and human capital during the period 1997-2000. We conclude that both productivity growth and factor accumulation are significant in accounting for Thai growth performance during the pre and post crisis period.

AB - We investigate the sources of Thai economic growth over the period 1972:1-2000:4 using both growth accounting and level accounting approaches, allowing explicitly for the contribution of human capital accumulation. The accumulation of human capital in Thailand is measured by the average years of schooling in population age 25-64, and we assess its relative contribution alongside physical capital accumulation and labour force growth. The rate of growth of human capital increased significantly in the period 1972:1-2000:4. We find that, after incorporating human capital, the Solow growth residual is positive and significant during the pre crisis period 1972-1996. Disaggregating our analysis over five year periods reveals a productivity slowdown with negative contribution from capital, labour, and human capital during the period 1997-2000. We conclude that both productivity growth and factor accumulation are significant in accounting for Thai growth performance during the pre and post crisis period.

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