1.1 Research Background
In recent years, successfully proven as a crucial part of Asean regional growth,Thailand’s economy grows impressively and steadily by macroeconomic stability,large domestic market, strong labor market conditions, good infrastructure, andabundant of natural resources. Since 2013, Thailand’s average annual GDP (GrossDomestic Product) growth rate has been about 6.11 per cent (World DevelopmentIndicator). Linkages between Thailand and global economy significantly by way ofinternational trade.
Thailand ranks 31stin ranking of the Global Competitiveness Index (GCI) 2014-2015 (World Economic Forum, 2014), The competitiveness of Thailand basis onmacroeconomics and microeconomics, especially in export section. In 2013,Thailand’s export as percentage of GDP was 74.2 per cent in both trades of goodsand service. World Economics Forum (2014) assumed that Thailand’s economy arebased on export – oriented. Thailand’s trade performance stands strong in food andagricultural cluster of both processed and unprocessed. Thailand is top five net foodexporter countries globally; the nation holds the record in exports of rice, naturalrubber, cassava, canned tuna, canned and frozen chicken and seafood, cannedpineapples, and sugar products. Thailand has been referred as the kitchen of theworld.
In 2013, Thailand produced and gained from agricultural commodities at 11.98 percent of share of GDP (World Development Indicators). Employment in agriculturesector valued at 33.4 per cent of total population in Thailand. In order that theagricultural sector is very considerable in Thai economy.
1.2 Reason of the research
Agriculture sector used to be a majority of economic growth in Thailand for a longperiod. Before the 1980s, the expansion of cultivated land area and employmentsincreased productivity of agricultural products in both cases of Thai agriculturalproducts’ quantity and quality. Thailand became a big player in agricultural trade inglobal market, Thai agriculture products have not been only produce for theirdomestic consumption but also be a major source of income from export trade.(Suphannachart and Warr, 2010). Likewise, Thai agricultural sector also positionedas potential and competitive in the international market.
Thai Agriculture sector also be a momentous absorber role of labor market shock innon-agriculture sectors during adverse circumstances, such as Asian Financial Crisisin 1997, and Sub-Prime Crisis in 2008-2009. Unemployed labors from non-agriculture sector moved back to this economic sector as the second-best solution attheir hometown. Furthermore, Thai agriculture for moving forward of Thai main source of income and growth, Thailand needs be able to maintain a net food supplierduring an anxiety of food securit