Effect of Population Aging on Total Factor Productivity: Evidence from Thai Agriculture
This paper aims to provide empirical evidence on the effect that population aging has on total factor productivity using the agricultural sector of Thailand as a case study. Statistical analysis is employed using national level time series data during 1986-2016. The results show that the population aging variable, measured as old-age-dependency ratio, has a negative and significant impact on the total factor productivity. The only factor that help enhance technical change in the aging agriculture of Thailand is the expenditure on agricultural R&D. The results suggest a policy implication for mitigating the negative effect of the population aging is to promote an investment in R&D.
Keywords - Population Aging, Total Factor Productivity, Thai Agriculture