Misallocation and manufacturing TFP in Thailand

Using data from T hailand's 2007 Industrial Census, this research studied resource misallocation across manufacturing plants and its impact on manufacturing total factor productivity ( TFP ). It is found that there is more resource misallocation across plants in T hailand than in C hina, I ndia, and the US , as well as in some other countries. When resource misallocation in T hailand is hypothetically reduced to the extent observed in the USA , manufacturing TFP increases by about seventy per cent. It is also found that manufacturing plants under government ownership or located in the northern region of T hailand have lower productivity, yet face lower input and output distortions than other plants. Also, medium‐sized plants face higher distortions than smaller and larger plants.