DOES THE SECTORAL ECONOMIC GROWTH LOWER THE POVERTY INCIDENCE: ADDITIONAL EVIDENCE FROM THAILAND
Keywords:
Poverty Incidence, Economic Growth, Sectoral Economic GrowthAbstract
Thailand has magnificent progress during the past ten years in terms of poverty eradication. However, there are still 5.33 million Thai people who are struggling in poverty in 2017 and up to 620,540 people are living in extreme poverty. Enormous approaches have been proposed to heal poverty by international organizations, government, and by the theoretical frameworks. This paper thus investigates the role of economic growth on poverty reduction from macro-economic perceptive, and try to find the empirical evidence to support the theoretical framework that aggregate and sectoral economic growth (agriculture, industrial, and service sector) can help lowering poverty incident. Based on a classical linear regression model, we found that the results are analogous to the theoretical framework in which aggregate and sectoral economic growth (only service sector) do play a significant role in poverty reduction. While increasing in food prices worsen the poverty incidence.
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