Why Do Rural Households in Northeast Thailand Invest Less? Consequences for the Development
Chomphunut Kantabussabong, Sabine Liebenehm, Hermann Waibel
Leibniz Universität Hannover, Institute of Development and Agricultural Economics, Germany
In emerging market economies like Thailand, rural development has not received ade-quate attention in the recent past. The government tends to rely more on specific and often irrelevant agricultural income subsidies (e.g. rice pledging scheme), as well as the rural urban migration, in order to improve the well-being of rural households. However, well-targeted rural development programs are largely missing. As a consequence, the productive investments by rural households have declined. Using a unique panel data set of some 2000 households from over 200 villages in three provinces of Northeast Thailand, this paper analyses the pattern and determinants of investments by rural households. We use two panel waves (2010 and 2013) from the project “Thailand-Vietnam Socioeconomic Panel (TVSEP)”, which included specific investment modules in the survey instrument.
Keywords: Fixed-effect regressions, investments, panel data, rural development, Thailand
Contact Address: Chomphunut Kantabussabong, Leibniz Universität Hannover, Institute of Development and Agricultural Economics, Koenigsworther Platz 1, 30167 Hannover, Germany, e-mail: kantabussabongifgb.uni-hannover.de