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Misallocation and manufacturing TFP in Thailand after the 1997 Asian financial crisis

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  • Siwapong Dheera-aumpon

Abstract

This paper evaluates the degree of resource misallocation and its effect on aggregate productivity in the Thai manufacturing sector after the 1997 crisis. This paper uses plant-level data from Thailand's Industrial Surveys. The results indicate that misallocation slightly decreases during 1999-2000 but significantly increases during 2000-2002. A change in misallocation, therefore, can slightly explain an increase in productivity during 1999-2000, but cannot explain an increase in productivity afterward. Different from other countries enjoying a decrease in misallocation for years after a crisis, Thailand has a decrease in misallocation for only a few years before experiencing an increase in misallocation again.

Suggested Citation

  • Siwapong Dheera-aumpon, 2020. "Misallocation and manufacturing TFP in Thailand after the 1997 Asian financial crisis," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 13(1), pages 118-125.
    • Handle: RePEc:ids:ijtrgm:v:13:y:2020:i:1:p:118-125
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