Misallocation and manufacturing TFP in Thailand after the 1997 Asian financial crisis

摘要

This paper evaluates the degree of resource misallocation and its effect on aggregate productivity in the Thai manufacturing sector after the 1997 crisis. This paper uses plant-level data from Thailand's Industrial Surveys. The results indicate that misallocation slightly decreases during 1999-2000 but significantly increases during 2000-2002. A change in misallocation, therefore, can slightly explain an increase in productivity during 1999-2000, but cannot explain an increase in productivity afterward. Different from other countries enjoying a decrease in misallocation for years after a crisis, Thailand has a decrease in misallocation for only a few years before experiencing an increase in misallocation again.