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Rural income dynamics and poverty reduction in Thai villages from 1987 to 2004

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  • Supattra Cherdchuchai
  • Keijiro Otsuka

Abstract

This article aims to examine the factors contributing to the increase in household income and the corresponding reduction in poverty in rural Thai villages from 1987 to 2004 by employing household panel data. It is found that there has been a significant structural shift of household income away from farm to nonfarm income sources, as well as a reduction in the income gap and the difference in poverty incidence between favorable and unfavorable regions. Such decreases in poverty and its regional gap have been associated with the declining importance of income accrued to farm land, measured by farm size and the availability of irrigation, and with the increasing importance of human capital, measured by the proportion of working members who have graduated from post lower secondary schools. Such findings indicate that the success in rural poverty reduction in Thailand has resulted from the development of the rural nonfarm sector coupled with the improvement of the schooling levels of the rural population.

Suggested Citation

  • Supattra Cherdchuchai & Keijiro Otsuka, 2006. "Rural income dynamics and poverty reduction in Thai villages from 1987 to 2004," Agricultural Economics, International Association of Agricultural Economists, vol. 35(s3), pages 409-423, November.
    • Handle: RePEc:bla:agecon:v:35:y:2006:i:s3:p:409-423
    DOI: 10.1111/j.1574-0862.2006.00187.x
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    References listed on IDEAS

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    1. World Bank, 2001. "Thailand Social Monitor : Poverty and Public Policy," World Bank Publications - Reports 15471, The World Bank Group.
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    Cited by:

    1. Laurent Parrot & Clovis Dongmo & Michel Ndoumbé & Christine Poubom, 2008. "Horticulture, livelihoods, and urban transition in Africa: evidence from South‐West Cameroon," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 245-256, September.
    2. Gibson, John & Olivia, Susan, 2010. "The Effect of Infrastructure Access and Quality on Non-Farm Enterprises in Rural Indonesia," World Development, Elsevier, vol. 38(5), pages 717-726, May.
    3. Grote, Ulrike & Waibel, Hermann, 2017. "Rural-Urban Migration, Welfare and Employment : Comparing Results from Thailand and Vietnam," 2017 ASAE 9th International Conference, January 11-13, Bangkok, Thailand 284809, Asian Society of Agricultural Economists (ASAE).
    4. Takahashi, Kazushi & Otsuka, Keijiro, 2007. "Human Capital Investment and Poverty Reduction over Generations: A Case from the Rural Philippines, 1979-2003," IDE Discussion Papers 96, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. Leblond, Jean-Philippe, 2019. "Revisiting forest transition explanations: The role of “push” factors and adaptation strategies in forest expansion in northern Phetchabun, Thailand," Land Use Policy, Elsevier, vol. 83(C), pages 195-214.
    6. Amare, Mulubrhan & Hohfeld, Lena & Waibel, Hermann, 2011. "Finding Quality Employment through Rural Urban Migration: a case study from Thailand," Proceedings of the German Development Economics Conference, Berlin 2011 4, Verein für Socialpolitik, Research Committee Development Economics.
    7. Saroj, Sunil & Pradhan, Mamata & Boss, Ruchira & Roy, Devesh, 2022. "Roles of rural non-farm employment (RNFE) in India: Why RNFE, the conveyor of a shock like COVID 19 is also the key to recovery?," Journal of Asian Economics, Elsevier, vol. 81(C).
    8. Yamano, Takashi & Kijima, Yoko, 2010. "The associations of soil fertility and market access with household income: Evidence from rural Uganda," Food Policy, Elsevier, vol. 35(1), pages 51-59, February.
    9. Hoang, Trung X. & Pham, Cong S. & Ulubaşoğlu, Mehmet A., 2014. "Non-Farm Activity, Household Expenditure, and Poverty Reduction in Rural Vietnam: 2002–2008," World Development, Elsevier, vol. 64(C), pages 554-568.
    10. Ling Wang & Jianqing Ruan, 2023. "The Cost and Benefit of Regional Cultural Diversity on the Income of Rural Workers: Evidence from China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 165(3), pages 759-786, February.
    11. Nguyen, Thao Phuong, 2020. "The determinants impact on poverty reduction in Vietnam," OSF Preprints 3f9xc, Center for Open Science.
    12. Yoko Kijima & Tomoya Matsumoto & Takashi Yamano, 2006. "Nonfarm employment, agricultural shocks, and poverty dynamics: evidence from rural Uganda," Agricultural Economics, International Association of Agricultural Economists, vol. 35(s3), pages 459-467, November.
    13. Nguyen, Thao Phuong, 2020. "The determinants impact on poverty reduction in Vietnam," OSF Preprints 3f9xc_v1, Center for Open Science.
    14. Gebrehiwot, Tagel & Teklewold, Hailemariam & Bezabih, Mintewab & Seifemichael, Robel, 2021. "Does a portfolio of consumption adjustment coping strategies erode resilience? Panel data evidence from Ethiopia," World Development Perspectives, Elsevier, vol. 23(C).

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