Staff Paper No. 419 - Abstract
Thailand's Economic Boom and Agricultural Bust: Some Economic Questions and Policy Puzzles
Ian Coxhead [email@example.com]
Staff Paper No. 419, September 1998, 43p.
The relative decline of agriculture is a stylized fact of economic growth. As economies expand, they undergo structural change. Capital accumulation relative to labor and land endowments enables faster relative growth rates in industry and many countries, the pace of technical progress in non-agriculture exceeds that in the farm sector. Per-capita income growth skews the structure of incremental demand towards manufactures and services, and since many services are non-traded, this helps turn the domestic terms of trade against
agriculture. All of these asymmetries contribute to the decline of agriculture’s contribution to GDP and aggregate employment, even when—as in Thailand’s recent past—the pace of agricultural output and productivity growth is quite respectable.
Last updated on Wed, Jun 21, 2006 2:46pm