Files
Abstract
Total factor productivity growth in the agricultural, industry and services sectors is
studied in this paper for two countries: Thailand and Indonesia, over the period
1981 to 2002. A feature of the analysis is the decomposition of aggregate total
factor productivity growth into two components: productivity growth in individual
sectors; and the reallocation of resources from low productivity to high productivity
sectors. The results show that in both countries virtually all factor productivity
growth at the sectoral level derives from agriculture, but the reallocation of
resources away from agriculture was a much larger source of aggregate
productivity growth.