Total factor productivity in Thai agriculture: Measurement and determinants

This chapter measures the total factor productivity (TFP) of Thai agriculture and examines its determinants using data for the period 1970-2006. The findings show that TFP made an important contribution to both crop and livestock output growth during the study period, but has stagnated or regressed since the mid-1990s. In general, TFP accounts for 21% of crop output growth and 17% of livestock output growth. Analysis of TFP determinants using an error correction model reveals that drivers of agricultural TFP include not only domestic agricultural research, but also international technology transfer, domestic investments in extension and infrastructure, weather and disease shocks, and international commodity prices.