The Non-Farm Rate of Profit and the Thai Economic Development: 1970–2010

The article measures the non-farm profit rate in Thailand from 1970 to 2010. The shape of the profit rate suggests that the Thai economy can be differentiated into four phases. The decomposition analysis reveals that the organic composition of capital has greatly contributed to fluctuations of the profit rate, while the rate of capacity utilization and the capacity—capital ratio have positive impacts in three out of four phases. Meanwhile, the profit share and the rate of surplus value have just slight impacts on the profit rate. Furthermore, the article discusses that the capitalist class has always been a dominant class who could benefit from economic development, and the profit rate determines the growth rate of capital stock in Thailand.