Does A Long-Run Relationship Exist between Agriculture and Economic Growth in Thailand?

Abstract

This empirical study investigates the causality between agriculture and economic growth in Thailand over the period of 1961 to 2009. A Granger causality approach and the Wald (χ 2 ) coefficient statistic are utilized to reveal a long-run causal relationship and impact transmission between the variables. Based on the time series analyses, a long-run relationship and size impact are detected running from agriculture to economic growth, and vice versa. These findings including with the generalized variance decomposition show that agriculture is existed in a long-term stable in economic growth while economic development encourages the growth of agriculture as a whole. As a conclusion, policy-makers should regard agriculture as an important supporter of Thai economy.

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“…Many researchers (Haleem et al, 2005;Stiglitz, 2007;Shirazi and Manap, 2004;Raza et al, 2012;Jatuporn et al, 2011) believe that agriculture can salvage the declining economy under unstable global economic conditions. Avocado, apple, mango and orange production in South Africa over the decade has shown good growth trends.…”

Agricultural Transformation, Economic Growth, and Poverty in Indonesia

“…There has been a relatively large number of empirical studies evaluating the theoretical link between agricultural transformation and economic growth, but there is no consensus among scholars. Some economists maintain that agricultural sector is a crucial part of economic growth (Jatuporn et al, 2011;Xuezhen and Gaofeng, 2010;Rostow, 1986). Meanwhile others believe that agricultural sector does not have significant correlation with economic growth (Tiffin and Irz, 2006;Tsakok and Gardner, 2007).…”

Crop Production, Livestock Production and Economic Growth in Botswana (1990-2017): An Application of ARDL Model

“…Therefore, increased agricultural productivity would be the initiator of industrialization (Dethier and Effenberger, 2011). Jatuporn et al (2011) investigated the long run relationship between agriculture and economic growth for Thailand between 1961 and 2009. The study findings revealed a long run relationship between agriculture and economic growth and concluded that policy makers should regard agriculture as playing an important role in enhancing economic growth.…”