International spillovers, productivity growth and openness in Thailand: an intertemporal general equilibrium analysis

Thailand has experienced economic growth well above world averages for about 40 years. It is a challenge to understand the sources of this high growth path, and in particular why growth has not slowed down with assumed decreasing returns to capital. We develop an intertemporal general equilbrium mod...

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Autores principales: Diao, Xinshen, Rattso, Jorn, Stokke, Hildegunn Ekroll
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2002
Materias:
Acceso en línea:https://hdl.handle.net/10568/156081
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author Diao, Xinshen
Rattso, Jorn
Stokke, Hildegunn Ekroll
author_browse Diao, Xinshen
Rattso, Jorn
Stokke, Hildegunn Ekroll
author_facet Diao, Xinshen
Rattso, Jorn
Stokke, Hildegunn Ekroll
author_sort Diao, Xinshen
collection Repository of Agricultural Research Outputs (CGSpace)
description Thailand has experienced economic growth well above world averages for about 40 years. It is a challenge to understand the sources of this high growth path, and in particular why growth has not slowed down with assumed decreasing returns to capital. We develop an intertemporal general equilbrium model separating between agriculture and industry, and with open capital market and endogenous productivity growth to analyze the underlying adjustment mechanisms. Foreign technology spillover embodied in trade is assumed to be the driving force of the productivity growth, consistent with econometric evidence. The high growth experience is understood as a transition path with interaction between productivity growth, openness and capital investment. Counterfactual analysis shows how protection may have had serious detrimental effect on growth rate due to productivity and investment slowdown. The role of relative prices in constraining growth is investigated, inspired by the Acemoglu-Ventura hypothesis of growth slowdown due to terms of trade effect. In our setting, low elasticity between domestic and exports goods in supply leads to large relative price shifts for domestic goods, but promotes investment and growth during transition.
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spelling CGSpace1560812025-11-06T07:19:02Z International spillovers, productivity growth and openness in Thailand: an intertemporal general equilibrium analysis Diao, Xinshen Rattso, Jorn Stokke, Hildegunn Ekroll growth models technology trade policies equilibrium theory Thailand has experienced economic growth well above world averages for about 40 years. It is a challenge to understand the sources of this high growth path, and in particular why growth has not slowed down with assumed decreasing returns to capital. We develop an intertemporal general equilbrium model separating between agriculture and industry, and with open capital market and endogenous productivity growth to analyze the underlying adjustment mechanisms. Foreign technology spillover embodied in trade is assumed to be the driving force of the productivity growth, consistent with econometric evidence. The high growth experience is understood as a transition path with interaction between productivity growth, openness and capital investment. Counterfactual analysis shows how protection may have had serious detrimental effect on growth rate due to productivity and investment slowdown. The role of relative prices in constraining growth is investigated, inspired by the Acemoglu-Ventura hypothesis of growth slowdown due to terms of trade effect. In our setting, low elasticity between domestic and exports goods in supply leads to large relative price shifts for domestic goods, but promotes investment and growth during transition. 2002 2024-10-24T12:43:09Z 2024-10-24T12:43:09Z Working Paper https://hdl.handle.net/10568/156081 en Open Access application/pdf International Food Policy Research Institute Diao, Xinshen; Rattso, Jorn; Stokke, Hildegunn Ekroll. 2002. International spillovers, productivity growth and openness in Thailand: an intertemporal general equilibrium analysis. TMD Discussion Paper 89. https://hdl.handle.net/10568/156081
spellingShingle growth
models
technology
trade policies
equilibrium theory
Diao, Xinshen
Rattso, Jorn
Stokke, Hildegunn Ekroll
International spillovers, productivity growth and openness in Thailand: an intertemporal general equilibrium analysis
title International spillovers, productivity growth and openness in Thailand: an intertemporal general equilibrium analysis
title_full International spillovers, productivity growth and openness in Thailand: an intertemporal general equilibrium analysis
title_fullStr International spillovers, productivity growth and openness in Thailand: an intertemporal general equilibrium analysis
title_full_unstemmed International spillovers, productivity growth and openness in Thailand: an intertemporal general equilibrium analysis
title_short International spillovers, productivity growth and openness in Thailand: an intertemporal general equilibrium analysis
title_sort international spillovers productivity growth and openness in thailand an intertemporal general equilibrium analysis
topic growth
models
technology
trade policies
equilibrium theory
url https://hdl.handle.net/10568/156081
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AT stokkehildegunnekroll internationalspilloversproductivitygrowthandopennessinthailandanintertemporalgeneralequilibriumanalysis