@article{Diao:16316,
      recid = {16316},
      author = {Diao, Xinshen and Rattso, Jorn and Stokke, Hildegunn  Ekroll},
      title = {INTERNATIONAL SPILLOVERS, PRODUCTIVITY GROWTH AND OPENNESS  IN THAILAND: AN INTERTEMPORAL GENERAL EQUILIBRIUM ANALYSIS},
      address = {2002},
      number = {607-2016-40319},
      series = {TMD Discussion Paper},
      pages = {51},
      year = {2002},
      abstract = {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 equilibrium 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.},
      url = {http://ageconsearch.umn.edu/record/16316},
      doi = {https://doi.org/10.22004/ag.econ.16316},
}