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

Authors: Siwapong Dheera-aumpon

Addresses: Department of Economics, Kasetsart University, Bangkok 10900, Thailand

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.

Keywords: crisis; manufacturing; misallocation; productivity; TFP; total factor productivity; Thailand.

DOI: 10.1504/IJTGM.2020.104910

International Journal of Trade and Global Markets, 2020 Vol.13 No.1, pp.118 - 125

Received: 28 Jan 2019
Accepted: 23 Apr 2019
Published online: 06 Feb 2020 *

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