Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/109460
Authors: 
Koonnathamdee, Pracha
Year of Publication: 
2013
Series/Report no.: 
ADB Economics Working Paper Series 353
Abstract: 
Although Thailand's service sector accounts for almost half of the national income and has a major stake in national employment, its contribution to the growth of the gross domestic product (GDP) fluctuates. Moreover, the share of the service sector in GDP is decreasing while many developed countries maintain a positive association between the shares of the sector in output and per capita income. This paper investigates this relationship by examining the gross provincial product of 76 provinces to test the hypothesis that the service sector is a growth engine in the Thai economy. Using the fixed-effects model, the estimates confirm two waves of growth. Total factor productivity and revealed comparative advantages are discussed to determine significant service activities. Wholesale and retail trade, tourism and travel-related activities, transportation, and construction all play major roles in contributing to Thailand's economic growth. The government should continue to promote these services with unambiguous policies suitable for each region and province. Educational services also require more attention from pertinent agencies.
Subjects: 
service sector
economic growth
structural change
Thai economy
economic development
JEL: 
O14
O17
R11
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/3.0/igo
Document Type: 
Working Paper

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