Examining the Dynamics of Livelihood Strategies in Rural Thailand: A Case Study of Buriram, Sisaket, Chachoengsao, and Lopburi Provinces

Uchook Duangbootsee (uchook.d@ku.th)
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Uchook Duangbootsee: Kasetsart University, Postal: Department of Agricultural and Resource Economics, Faculty of Economics, Kasetsart University, Ngamwongwan Road, Ladyao, Chatuchak, Bangkok10900.

Asian Journal of Applied Economics/ Applied Economics Journal, 2023, vol. 30, issue 1, 142-162

Abstract: Rural households in Thailand exhibit significant heterogeneity, necessitating tailored policy approaches to effectively reduce rural poverty. This study employs latent-class clustering and transition matrix analyses to classify and examine the dynamics of livelihood strategies among rural households. Using balanced-panel data from the Townsend Thai Project spanning the years 2000-2017, six distinct strategies are identified, with the three lowest-income strategies comprising 70.53% of the sample.These households share common characteristics, including limited farm diversification, with a primary focus on small-scale rice farming. Additionally, they often operate small businesses and find employment in low-wage jobs. Interestingly, these households demonstrate the highest levelof mobility, particularly between low and medium livelihood strategies, throughout the study period. Conversely, households following high-income strategies engage in diverse income sources and possess higher levels of farm assets and education compared to those in poor-strategy households. Rural livelihood strategies exhibit considerable dynamism, with 39.86% of households transitioning to higher-ranked strategies at least once, and 24.15% descending to lower-ranked strategies over time. These transitionsalign with the prevailing economic context and government policies concerning agricultural price supports and micro-finance access. Policymakers should prioritize initiatives that promote farm diversification, strengthen farming and non-farming community networks, and mitigate fluctuations in farm prices. Moreover, rural development plans should consider tailored policies suitable for each livelihood strategy to enhance the efficiency and sustainability of programs.

Keywords: livelihood strategies; livelihood transition; poverty dynamics; cluster analysis; transition matrix (search for similar items in EconPapers)
JEL-codes: I32 O15 R20 (search for similar items in EconPapers)
Date: 2023
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