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What Drives Labour Productivity in the Ageing Agriculture of Thailand?

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  • Waleerat Suphannachart

Abstract

Thailand has particularly low labour productivity in agriculture as compared to industry and services. The situation is worrisome as the country population is increasingly ageing amidst the slow pace of structural transformation and the confronting middle-income trap. It is thus the purpose of this paper to investigate factors affecting labour productivity in the agricultural sector of Thailand taking into account the role of population ageing. The error correction modeling technique and time series data during 1970-2014 are employed to examine sources of the agricultural labour productivity. The results show that major factors positively influencing the agricultural labour productivity are the capital-labour ratio, land-labour ratio, research budget-labour ratio, and education level. However, there is no statistical evidence that the population ageing variable has a significant impact on the productivity. The results highlight the importance of physical capital accumulation, farm size, agricultural research, and human capital investment.JEL classification numbers: J24, O13Keywords: Labour Productivity, Population Ageing, Thai Agriculture

Suggested Citation

  • Waleerat Suphannachart, 2017. "What Drives Labour Productivity in the Ageing Agriculture of Thailand?," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 7(1), pages 1-6.
    • Handle: RePEc:spt:admaec:v:7:y:2017:i:1:f:7_1_6
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    References listed on IDEAS

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    Cited by:

    1. Nutchapon Prasertsoong & Nattapong Puttanapong, 2022. "Regional Wage Differences and Agglomeration Externalities: Micro Evidence from Thai Manufacturing Workers," Economies, MDPI, vol. 10(12), pages 1-22, December.

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    More about this item

    Keywords

    labour productivity; population ageing; thai agriculture;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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