Two reports together: (1) Poverty, Growth, and Inequality in Thailand, by Anil B. Deolalikar: explores the impact of economic growth as well as changes in income inequality on poverty reduction using provincial data from Thailand over the period 1992-1999. (2) Why Has Income Inequality in Thailand Increased?: An Analysis Using 1975-1998 Surveys, by Taizo Motonoshi: the effects of agricultural factors and other sectoral factors are stressed.

Is there a tradeoff between raising growth and reducing inequality and poverty? This paper reviews the theoretical and empirical literature on the complex links between growth, inequality, and poverty, with causation going in both directions. The evidence suggests that growth can be effective in reducing poverty, but its impact on inequality is ambiguous and depends on the underlying sources of growth. The impact of poverty and inequality on growth is likewise ambiguous, as several channels mediate the relationship. But most plausible mechanisms suggest that poverty and inequality reduce growth, at least in the long run. Policies play a role in shaping these relationships and those designed to improve equality of opportunity can simultaneously improve inclusiveness and growth.

Over the past 35 years, income structures and poverty levels in Thailand have generally followed the same patterns as most developing countries. This study shows a growing income inequality between different groups of the Thai population. However, the country's poverty levels, whether expressed as a percent of the total population or in absolute terms, have reduced significantly. These contrasting results are explained by two main factors: natural resource endowments and the effects of government policies on income distribution. Growth patterns and income structures in each region, especially in the agricultural sector, are primarily determined by natural resource endowments. These regional and sectoral endowments are either strengthened or weakened by government policies. Among these policies, the economic and social development plans have a great impact on income distribution. As the Thai economy has matured, the government is now attempting to both reduce poverty and narrow the income gap.