Agriculture used to be an engine of economic growth in Thailand. Before 1980, an
expansion of agricultural land increased outputs of the economy. Thai agricultural sector
became a major comparative advantage in the international trade. In addition, as being the
labor-abundant country, agriculture supplied an industrial sector with cheap labors and other
factors of production. The role of agriculture in growth was undeniable. However, in 1980s,
land surplus began to disappear (Siamwalla, 1996). Industry and service then stepped up to
the frontier instead. That’s why agricultural value-added share to GDP becomes small as an
industrial sector became a bigger sector as shown in figure 1.
Agriculture used to be an engine of economic growth in Thailand. Before 1980, an
expansion of agricultural land increased outputs of the economy. Thai agricultural sector
became a major comparative advantage in the international trade. In addition, as being the
labor-abundant country, agriculture supplied an industrial sector with cheap labors and other
factors of production. The role of agriculture in growth was undeniable. However, in 1980s,
land surplus began to disappear (Siamwalla, 1996). Industry and service then stepped up to
the frontier instead. That’s why agricultural value-added share to GDP becomes small as an
industrial sector became a bigger sector as shown in figure 1.
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