TAILIEUCHUNG - Changing age structure and input substitutability in the Thai agricultural sector

This paper estimated the degree of elasticity substitution of inputs, particularly young labor, older labor, and physical capital. The elasticity of input substitution was estimated using a nested constant elasticity of substitution (CES) production function and nonlinear regression analysis. Research data were obtained from the annual secondary data of government sources from 1990 to 2013. The findings indicated that the input substitutability of young and older labor was low. However, capital and labor could substitute for each other. | Kasetsart Journal of Social Sciences 38 2017 259e263 Contents lists available at ScienceDirect Kasetsart Journal of Social Sciences journal homepage http locate kjss Changing age structure and input substitutability in the Thai agricultural sector Pakapon Saiyut a b Isriya Bunyasiri b c Prapinwadee Sirisupluxana c Itthipong Mahathanaseth c a Doctoral Program in Agricultural and Resource Economics Department of Agricultural and Resource Economics Faculty of Economics Kasetsart University Bangkok 10900 Thailand b Center for Advanced Studies for Agriculture and Food Kasetsart University Institute for Advanced Studies Kasetsart University Bangkok 10900 Thailand c Department of Agricultural and Resource Economics Faculty of Economics Kasetsart University Bangkok 10900 Thailand a r t i c l e i n f o a b s t r a c t Article history The rapidly aging society and agricultural abandonment by young people in Thailand have Received 16 October 2015 changed the age structure of Thai agricultural labor and influenced the potential for Received in revised form 15 July 2016 agricultural production. Thus it is important to study the feasibility of other inputs as a Accepted 22 July 2016 substitute for labor. This paper estimated the degree of elasticity substitution of inputs Available online 26 August 2017 particularly young labor older labor and physical capital. The elasticity of input substi- tution was estimated using a nested constant elasticity of substitution CES production Keywords function and nonlinear regression analysis. Research data were obtained from the annual age structure secondary data of government sources from 1990 to 2013. The findings indicated that the elasticity of substitution input substitutability of young and older labor was low. However capital and labor could production function substitute for each other. Moreover capital better substituted for young labor than older Thai agriculture labor. The results suggested that both the public .

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