Globalization, Growth, and Poverty Reduction in Thailand

Sustained reduction of poverty incidence in Thailand has occurred over a period of several decades. This reduction in absolute poverty has occurred in spite of an increase in inequality over the same period. The rate of reduction of poverty has been strongly related to the rate of growth of GDP but the increase in inequality has not. The long-term growth of the Thai economy has been associated with a gradual opening to international trade and investment. The paper also reviews the prospects for reducing poverty by raising minimum wages and argues that poverty cannot be reduced effectively in this way.