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PART II
The decline and recovery of Thai agriculture: causes, responses, prospects and challenges (Continue)

Appendix Table 5. Net capital stock of Thailand at 1988 prices by major sector

 All sectors (m. baht)AgricultureManufacturingGrowth
(m. baht)(% share)(m. baht)(% share)All sectorsAgricultureManufacturing
1980195834228248514.4222126211.30   
1981210962028805213.6523951311.357.721.978.25
1982225126429167212.9624999211.106.711.264.38
1983242561429842912.3027950011.527.742.3211.80
1984261159430060411.5130400011.647.670.738.77
1985277503930778911.0931760511.456.262.394.48
1986293030532168310.9833857711.555.604.516.60
1987313463932541510.3837901012.096.971.1611.94
198834157073330539.7544511313.038.972.3517.44
198937853243416239.0252735713.9310.822.5718.48
199042988003568528.3062093314.4413.564.4617.74
199148777603801977.7973269115.0213.476.5418.00
199254804154042477.3884571015.4312.366.3315.43
199361270584396327.1896334715.7211.808.7513.91
199468484724797217.00108969215.9111.779.1213.12
199575494305103596.76120946316.0210.246.3910.99
199683898865508756.57136342516.2511.137.9412.73
199789304906033896.76146906716.456.449.537.75
199890194446238226.92146791416.271.003.39-0.08
199991021696334736.96147237816.180.921.550.30
200092139616553157.111 471 70715.971.233.45-0.05
200193053486719877.22148992916.010.992.541.24
200294352606936187.35152016516.111.403.222.03
200396327737172737.45156670416.262.093.413.06
Average growth rate:
1980–1985235524629483912.6626864511.397.221.737.53
1985–199649677363959548.5273607714.2410.255.2113.40
1996–199887799405926956.75143346916.336.196.956.80
1998–200392848266659157.17149813316.141.272.931.08
1980–200356503634504829.0385771114.217.254.179.06

Source: National Economic and Social Development Board (N

Appendix Table 6. Number of agricultural equipment

 2-wheel tractorsBig tractorsWater pumpsThreshing equipment
UnitGrowthUnitGrowthUnitGrowthUnitGrowth
1980280 591 37177 517 975 18 394 
1981284 3511.3450 04434.61603 54816.522060112.00
1982323 84613.896184023.5778061029.3430 09146.07
1983364 94812.6968 02410.0085867110.003310010.00
1984360243-1.2928 340-58.34564 915-34.2128243-14.67
1985402 08211.613141510.85614 7918.83307628.92
1986450 03311.9334 82310.85669 0958.8333 3528.42
1987515 07514.4540 45016.16768 32814.8334 8844.59
198858275313.1445 54412.59851 34910.8137 0286.15
198966068513.375127912.59943 38710.8139 3526.28
1990750 54213.605773912.601 101 85016.80418766.41
199185427913.826510112.75122072610.79446266.57
1992984 53015.2579 80122.581 387 52913.664963711.23
19931 13574215.3698 09622.93157722013.675524011.29
19941 311 42615.47120 75123.091 792 95313.686151011.35
1995151569315.58148 84123.262 038 31413.6868 52711.41
19961 753 36815.6818370423.422 317 39213.6976 38611.47
19972 02246715.3521823718.802624 30413.2483 5759.41
19982 378 81517.62282 05729.243 012 94814.8195 82914.66
19992 78670417.15351 17124.503448 29714.45107 64512.33
20003 279 30317.6843913925.053 95416014.67122 08813.42
20013 851 54117.4555362326.074 532 25814.62138 38713.35
20024 52363517.45697 95626.075194 77414.62156 86213.35
20035109 06012.94821 01417.635 821 32912.061694558.03
Average growth rate:
1980–1985336 0107.65461404.146567526.1026 86512.46
1985–1996909 68414.107979516.971 273 57812.51477658.67
1996–19982 051 55016.22227 99923.82265154813.918526311.85
1998–20033654 84316.71524 16024.764 327 29414.2013171112.52
1980–20031 520 07113.5419025716.561 966 53011.7565 72710.52

Source: Office of Agricultural Economics.

Appendix Table 7. Number of fishing units

 No. of registered fishing unitsNo. of unregistered vessels*No. of all fishing units
19801951145 37164 882
198114 72334 23748 960
198219 75645 94165 697
198317 38640 43057 816
198416 80639 08155 887
198515 97736 97352 950
1986159163719153107
198716 05437 21053 264
198815 55037 87153 421
198920 97932 60153 580
1990215473219153 738
199118 26035 63753 897
199216 82037 23754 057
19931814636 07154 217
199417 65736 72054 377
199517 28137 25754 538
199617 95038 01455 964
19971818238 50656 688
199818 43939 05057 489
199916 92135 83552 756
200017 29536 62753 922
200115 94533 76849 713
200215 92433 72449 648
200315 98333 84949 832
Average growth rate:
1980–198517 36040 33957 699
1985–199617 67836 24853 926
1996–19981819038 52356 714
1998–200316 75135 47552 227
1980–200317 4593714154 600

* Estimated and adjusted for unregistered vessels based on the Marine Fisheries Census in 1985 and 1995.

Sources: Office of Agricultural Economics.
Department of Fisheries.

Appendix Table 8. Contribution of inputs and TFP to growth by major sector

 GDP growthLabour adjusted for quality LandCapitalTFP(1)TFP (2)
 Employment (1)Working hours (2)
a) All sectors
1981–19855.452.451.510.072.350.581.52
1985–19968.781.841.610.024.882.042.27
1996–1998-1.990.960.630.013.30-6.27-5.94
1998–20032.181.240.690.010.660.260.81
1981–20036.071.931.470.033.280.841.29
 (100.00)(31.77)(24.24)(0.46)(54.00)(13.77)(21.30)
b) Agriculture
1981–19854.261.030.400.360.842.032.65
1985–19963.54-0.17-0.430.122.620.971.24
1996–19980.570.03-0.320.073.04-2.57-2.22
1998–20033.43-0.11-1.330.121.451.983.20
1981–20033.430.23-0.280.162.060.981.50
 (100.00)(6.81)(-8.09)(4.64)(59.90)(28.65)(43.55)
c) Crop
1981–19855.260.920.220.472.461.412.11
1985–19962.96-0.46-0.790.180.912.332.66
1996–19982.30-0.32-0.750.181.970.470.90
1998–20034.20-1.01-2.430.170.994.045.47
1981–20033.57-0.11-0.700.231.352.092.68
 (100.00)(-3.03)(-19.64)(6.52)(37.86)(58.66)(75.27)
d) Livestock
1981–19851.822.533.060.163.55-4.42-4.95
1985–19964.141.192.450.000.332.622.45
1996–1998-0.890.27-0.02-0.46-6.756.066.34
1998–20034.106.655.850.00-2.28-0.260.53
1981–20033.592.732.65-0.02-0.281.161.24
 (100.00)(76.12)(73.73)(-0.42)(-7.89)(32.20)(34.59)
e) Fishery
1981–19854.748.636.170.032.36-6.28-3.82
1985–19967.972.532.440.024.221.201.30
1996–1998-1.431.901.640.026.16-9.50-9.25
1998–20031.241.020.780.034.82-4.62-4.38
1981–20035.362.541.990.023.96-1.16-0.61
 (100.00)(47.36)(37.03)(0.42)(73.90)(-21.68)(-11.35)
f) Freshwater fishery
1981–19851.733.543.010.119.17-11.10-10.56
1985–19966.713.203.310.116.48-3.08-3.19
1996–19983.552.422.190.185.45-4.49-4.27
1998–20036.613.242.990.276.62-3.53-3.28
1981–20035.202.912.830.136.66-4.50-4.41
 (100.00)(56.00)(54.36)(2.46)(128.00)(-86.46)(-84.82)
g) Marine fishery
1981–19855.5812.899.38 0.64-7.954.44
1985–19968.203.573.31 3.730.901.16
1996–1998-2.042.011.18 5.89-9.94-9.11
1998–20031.42-0.45-0.70 4.05-2.17-1.93
1981–20036.373.482.69 3.14-0.260.54
 (100.00)(54.73)(42.17) (49.36)(-4.09)(8.47)

Appendix Table 9. Comparison of TFP growth in Thailand, 1981–1995

 Tinakorn & Sussangkarn (1998)Shintani (2003)*
With quality adjusted employmentAgriculture
All sectorsAgricultureStockFlow
TFPContributionTFPContributionTFPContributionTFPContribution
1981–19850.071.281.8142.490.4313.870.5517.82
1986–19902.8127.180.195.991.3327.731.7336.08
1991–1995-0.09-1.050.8121.831.3034.841.6744.98
1981–19950.9311.450.9325.070.3735.140.4812.78

* reestimated, base year = 1950.

Appendix Table 10. Growth accounting (whole economy)

 All sectors
GDP growthLabour adjusted for qualityLand adjusted for irrigationNet capital stockTFP (1)TFP (2)
Employment (1)Working hours (2)
19815.915.515.790.092.43-2.12-2.40
19825.352.27-2.040.082.090.915.23
19835.581.952.510.072.451.120.55
19845.752.221.910.082.520.931.24
19854.650.30-0.630.062.242.052.98
19865.533.253.520.032.240.01-0.26
19879.522.591.420.022.983.935.10
198813.293.884.240.034.095.294.93
198912.192.473.750.015.124.593.31
199011.171.14-1.350.016.613.405.89
19918.561.382.970.016.380.78-0.81
19928.083.513.400.015.63-1.07-0.96
19938.251.21-0.200.015.651.382.79
19948.990.451.300.016.022.511.66
19959.241.831.740.015.631.771.86
19965.900.06-0.800.015.98-0.150.72
1997-1.372.882.170.013.42-7.67-6.96
1998-10.51-0.040.540.010.52-10.99-11.57
19994.451.220.410.030.482.713.53
20004.651.621.930.010.642.382.07
20011.941.76-1.080.010.51-0.342.50
20025.671.381.090.010.713.573.86
20036.871.521.280.021.084.254.49
Average growth rate:
1981–19855.452.451.510.072.350.581.52
1985–19909.392.271.830.033.883.213.66
1990–19968.601.3710.010.015.981.231.59
1996–1998-1.990.960.630.013.30-6.27-5.94
1998–20032.181.240.690.010.660.260.81
1981–20036.071.931.470.033.280.841.29

Appendix Table 11. Growth accounting (agriculture)

 Agricultural sectors  
GDP growthLabour adjusted for qualityLand adjusted for irrigationNet capital stockTFP (1)TFP (2)
Employment (1)Working hours (2)
19815.124.094.750.401.04-0.41-1.07
19822.47-1.12-4.140.340.652.605.62
19834.770.761.410.311.132.561.92
19844.422.431.980.400.331.251.71
19854.51-1.03-1.970.331.064.145.09
19860.380.330.540.162.22-2.33-2.54
19870.070.19-0.840.140.61-0.880.15
198810.513.903.990.171.275.175.08
19899.602.523.800.041.375.674.39
1990-4.69-1.22-3.870.082.42-5.95-3.31
19917.26-1.93-0.050.093.545.553.67
19924.792.652.440.083.33-1.28-1.06
1993-2.43-2.93-4.620.124.36-3.99-2.29
19944.95-0.301.350.074.560.62-1.03
19953.45-2.36-2.460.083.092.652.74
19964.14-1.83-3.540.113.562.304.01
1997-0.901.862.820.054.10-6.91-7.87
1998-1.520.07-0.240.061.45-3.11-2.80
19992.17-2.30-3.810.240.683.555.06
20006.441.742.120.081.583.042.66
20012.68-1.09-5.940.081.252.447.29
20022.121.110.850.101.75-0.85-0.59
20038.71-0.18-0.970.151.966.787.57
Average growth rate:
1981–19854.261.030.400.360.842.032.65
1985–19903.400.780.280.151.490.971.48
1990–19962.50-1.13-1.540.093.55-0.010.39
1996–19980.570.03-0.320.073.04-2.57-2.22
1998–20033.43-0.11-1.330.121.451.983.20
1981–20033.430.23-0.280.162.060.981.50

Appendix Table 12. Growth accounting (crops)

 Crops  
GDP growthLabour adjusted for qualityLand adjusted for irrigationCapitalTFP (1)TFP (2)
Employment (1)Working hours (2)
19816.324.315.110.47-1.022.561.75
19821.85-1.804.990.441.831.384.57
19836.441.331.830.430.574.103.61
19846.142.652.160.5710.82-7.90-7.41
19855.58-1.92-3.030.460.126.918.03
1986-3.510.831.010.21-0.434.124.29
1987-3.58-0.66-1.900.19-0.60-2.50-1.27
198815.435.485.530.28-0.6410.3010.25
198910.932.964.520.06-10.3518.2616.71
1990-8.48-2.09-5.270.115.51-12.00-8.83
19916.29-2.86-0.530.135.723.310.98
19923.963.733.310.124.74-4.634.21
1993-7.30-5.02-6.970.163.95-6.394.45
19944.31-0.311.790.10-1.225.743.64
19955.10-3.03-3.260.152.145.856.08
19966.79-2.614.680.161.987.269.33
19970.562.603.860.271.97-4.28-5.54
1998-0.45-0.95-1.430.121.96-1.57-1.09
19993.16-3.96-5.740.321.285.537.31
20008.082.613.030.210.464.804.38
20013.20-3.81-9.570.100.556.3612.11
20020.941.130.870.140.43-0.76-0.50
200310.26-1.08-1.760.151.279.9110.59
Average growth rate:
1981–19855.260.920.220.472.461.412.11
1985–19902.730.770.140.22-1.062.813.43
1990–19961.53-1.74-2.230.133.26-0.120.36
1996–19982.30-0.32-0.750.181.970.470.90
1998–20034.20-1.01-2.430.170.994.045.47
1981–20033.57-0.11-0.700.231.352.092.68

Appendix Table 13. Growth accounting (livestock)

 Livestock  
GDP growthLabour adjusted for qualityLand adjusted for irrigationCapitalTFP (1)TFP (2)
Employment (1)Working hours (2)
1981-2.782.988.260.568.77-15.09-20.36
19822.999.602.570.165.98-12.75-5.72
19835.23-5.07-1.210.07-1.1711.397.53
19840.702.451.60-0.041.26-2.96-2.11
19852.962.694.080.052.92-2.694.08
198611.70-3.14-2.880.05-0.9815.7815.52
19878.269.389.45-0.08-1.900.860.79
19884.46-3.39-3.67-0.07-0.298.208.49
19899.262.183.14-0.020.966.145.18
19902.327.325.38-0.034.67-9.63-7.69
19910.952.725.760.02-3.031.24-1.80
19923.180.630.960.031.870.650.33
19933.886.282.910.07-1.94-0.542.83
1994-0.12-7.66-6.880.132.315.114.33
19950.720.412.21-0.13-1.942.380.58
19962.10-3.20-4.140.031.284.004.93
19972.12-1.22-1.76-1.15-11.6116.1016.64
1998-6.895.225.85-0.27-9.92-1.92-2.55
19991.212.431.970.390.69-2.31-1.84
20006.810.771.34-0.45-2.348.838.25
20018.8115.4313.810.12-5.39-1.350.27
20026.673.121.980.071.531.953.10
20038.0112.9110.170.141.75-6.784.05
Average growth rate:
1981–19851.822.533.060.163.55-4.42-4.95
1985–19906.492.512.58-0.020.893.113.03
1990–19961.860.930.890.020.460.460.50
1996–1998-0.890.27-0.02-0.46-6.756.066.34
1998–20034.106.655.850.00-2.28-0.260.53
1981–20033.592.732.65-0.02-0.281.161.24

Appendix Table 14. Growth accounting (fishery)

 Fishery  
GDP growthLabour adjusted for qualityLand adjusted for irrigationCapitalTFP (1)TFP (2)
Employment (1)Working hours (2)
198118.7030.4323.780.01-4.59-7.14-0.49
19828.16-13.59-12.570.0311.989.738.71
19830.915.602.950.090.81-5.60-2.95
1984-2.892.180.18-0.021.53-6.58-4.58
1985-1.1618.5416.500.052.07-21.80-19.77
19868.040.762.180.032.105.163.74
198712.57-0.711.430.056.906.324.19
19882.83-4.12-5.100.047.24-0.330.65
198910.623.384.980.0111.09-3.86-5.46
19907.504.552.23-0.02-0.463.425.75
199124.23-5.32-3.390.023.0126.5224.59
19927.892.863.930.001.343.692.62
199313.162.51-2.060.002.078.5813.15
19949.132.956.380.013.472.70-0.73
19951.93-3.63-3.920.003.601.972.25
1996-1.118.636.080.008.21-17.95-15.40
1997-4.64-2.71-2.590.011.88-3.83-3.95
19981.46-0.241.420.048.39-6.73-8.40
1999-0.135.743.910.020.78-6.66-4.83
20000.23-4.85-4.360.027.61-2.55-3.04
20010.497.094.680.01-3.50-3.10-0.70
20022.092.052.28-0.010.030.03-0.20
20033.33-3.69-3.260.1315.60-8.71-9.14
Average growth rate:
1981–19854.748.636.170.032.36-6.28-3.82
1985–19906.733.733.700.034.82-1.85-1.82
1990–19968.961.791.320.003.034.134.60
1996–1998-1.431.901.640.026.16-9.50-9.25
1998–20031.241.020.780.034.82-4.62-4.38
1981–20035.362.541.990.023.96-1.16-0.61

Appendix Table 15. Growth accounting (freshwater fishery)

 Freshwater fishery
GDP growthLabour adjusted for qualityLand adjusted for irrigationCapitalTFP (1)TFP (2)
Employment (1)Working hours (2)
198111.579.157.560.034.97-2.58-1.00
1982-21.79-8.13-8.410.1010.11-23.88-23.59
198314.367.819.870.3015.59-9.34-11.39
19843.898.525.57-0.084.24-8.78-5.84
19850.620.370.460.2010.93-10.89-10.98
19864.641.091.760.138.35-4.92-5.59
198710.47-6.20-6.650.3318.41-2.08-1.63
1988-8.273.673.390.2714.93-27.14-26.85
19890.715.237.380.084.81-9.42-11.56
199010.0410.6911.85-0.14-7.506.985.82
199113.53-10.04-9.460.149.2314.2113.62
19923.635.505.570.051.26-3.18-3.25
199321.6512.727.330.051.377.5012.89
199411.323.588.940.122.185.440.09
1995-0.421.042.640.045.48-6.98-8.58
199612.5810.726.500.058.34-6.53-2.31
1997-4.34-7.22-6.720.070.562.251.75
19982.413.766.800.417.44-9.20-12.24
199915.4410.174.230.171.943.169.09
20001.97-4.20-2.050.2110.50-4.54-6.69
Average growth rate:
1981–19851.733.543.010.119.17-11.10-10.56
1985–19903.032.483.030.158.32-7.91-8.47
1990–199610.334.894.770.042.912.492.61
1996–19983.552.422.190.185.45-4.49-4.27
1998–20006.613.242.990.276.62-3.53-3.28

Appendix Table 16. Growth accounting (marine fishery)

 Marine fishery
GDP growthLabour adjusted for qualityCapitalTFP (1)TFP (2)
Employment (1)Working hours (2)
198120.2040.7532.15-4.35-16.20-7.61
198213.971.001.897.985.004.10
1983-0.89-4.22-9.81-1.474.8010.39
1984-3.93-9.02-7.560.874.222.76
1985-1.4535.9230.220.18-37.55-31.85
19868.61-0.550.780.538.637.30
198712.9111.0615.192.74-0.89-5.02
19884.61-9.54-10.193.6410.5111.16
198912.010.742.1617.29-6.02-7.44
19907.18-0.43-4.164.263.347.07
199125.610.483.51-0.4725.6022.57
19928.391.893.441.395.113.56
199312.21-2.24-5.922.5811.8715.55
19948.863.055.524.391.43-1.05
19952.23-5.89-6.711.596.527.34
1996-2.778.405.916.64-17.80-15.32
1997-4.68-0.35-0.652.92-7.26-6.95
19981.32-2.01-1.718.11-4.77-5.07
1999-2.343.673.39-0.51-5.51-5.22
20005.29-3.02-3.764.553.754.50
Average growth rate: 
1981–19855.5812.899.380.64-7.954.44
1985–19907.316.205.674.77-3.66-3.13
1990–19968.820.750.232.915.155.67
1996–1998-2.042.011.185.89-9.94-9.11
1998–20001.42-0.45-0.704.05-2.17-1.93

Appendix 2

Growth-accounting framework

With the assumption of profit maximization, the growth-accounting approach solves the problem relating to the measurement of the unobservable output elasticity with respect to each input by using the share of factor incomes. Then we can straightforwardly compute the technical change as described below. We first write the production function in a general form with inputs i.

 y(t) = f (x1(t), x2(t),…, xn (t), t)(1)
wherey(t) = output at time t 
 xi(t) = input i at time t; i = 1,…,n 

Then equation 1 is differentiated with respect to time, we derive

 
or(2)

where the dot over a variable indicates differentiation with respect to time. Divide equation (2) by (1) and we get

 
   
   
or(3)

where

From equation 3, technical change is the difference between output growth and the sum of all input growth weighted by output elasticity with respect to each input. In order to compute the growth of TFP, we need to know the output elasticity with respect to input i. Following the assumptions of profit maximization and producer's equilibrium whereby each input is employed up to the point where its marginal product equals its marginal cost, we can replace output elasticity with respect to input i with factor income shares going to input i. In principle, we can obtain the values of factor income shares from the national income accounts. There are problems involved in measuring TFP as residual. We must also note that factors other than technical change like economies of scale, cyclical effects and the contribution of omitted inputs may also be captured by the TFP residual. This is a serious issue. When we mismeasure the growth of inputs, we wrongly attribute a part of output growth to TFP growth when it was in fact due to the growth in inputs. Therefore, when measuring TFP growth by the residual, we have to be certain that our measurement of inputs is correct, because otherwise part of output growth will be wrongly attributed to TFP growth. By the same token, if we overestimate growth in inputs, too little output growth will be attributed to TFP growth.

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