Is the development of the agro-processing industry pro-poor?: The case of Thailand |
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Authors: | Michio Watanabe Naoto Jinji Mitsuyo Kurihara |
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Institution: | aInternational Development Center of Japan, Shinagawa-ku, Tokyo, 140-0002, Japan;bFaculty of Economics, Kyoto University, Yoshida-honmachi, Sakyo-ku, Kyoto 606-8501, Japan |
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Abstract: | We examine how the development of the agro-processing industry contributed to poverty reduction in Thailand. The effects on farmers’ income are emphasized because most of the poor in Thailand are farmers. The development of the agro-processing industry could improve farmers’ income through two channels: (i) the purchase of agricultural products; and (ii) the employment of the poor farmers at factories. We show that the development of the agro-processing industry, which also played a leading role in the high economic growth of the Thai economy, contributed to poverty reduction through both of the two channels. It was hence pro-poor. |
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Keywords: | Thailand Pro-poor growth Agro-processing industry Poverty reduction |
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