A quadratic programming model of the selected crops of Thailand

Sector analysis models have been developed in Thailand for providing policy recommendations to decision makers in the Fourth Five Year Development Plan (1977-1981) to raise the income level in the farm sector. In the agricultural sector, linear programming models with fixed estimated demand levels were constructed. The assumption of fixed level of demand will result in an error in estimating both the final level of demand and equilibrium price if the demand for the final product is not perfectly inelastic;The objective of this research is to develop a quadratic programming model of interregional competition which permits dealing with continuous demand functions rather than discrete demand quantities for rice, soybeans, and mungbeans. The model is formulated such that it can be used to determine equilibrium farm prices and quantities of selected commodities together with optimal production patterns, optimal transportation flows and net return to scarce resources;The model is composed of 19 agroeconomic zones or producing regions and four consuming regions. Homogeneity of input-output coefficients is assumed for each production region. Each production region is completely contained in some consuming region and production in the production region contributes to the supply in the consuming region in which it is located;A set of linear consumer demand functions are first specified at the national level, then the regional level functions are derived from the national level demand functions. Export and livestock and/or seed demand are treated as exogenously determined quantities to the model. Activities included in the model are crop production, transportation, capital borrowing and capital transfer activities. Resource constraints are land, labor and capital constraints. Three types of paddy land and one type of upland are defined in the model;The model is formulated as a self-dual quadratic programming problem. The objective function is to maximize the aggregate net profit of producers in the whole subject to constraints on demand for and supply of commodities, resource use, product and input prices within a market region, and interregional differences in product prices;The following items are discussed in this study as possible improvements and applications of the model: (1) estimation of the commodity demand equations in a system of equations framework, (2) incorporation of a minimum subsistence demand constraint in the model, and (3) incorporation of a price-support program to improve farm incomes

Agricultural Supply Response in Northeast Thailand: Production, Resources, Income, and Policy Implications

This study presents the Northeast Regional Model (NEREGON) for northeast Thailand. It is the first in a series of regional models to be constructed and applied for Thailand. For the Northeast, the model is of the first generation and further model work will continue. Also, a larger demographic and economic data base is being built up in the region to facilitate improved models and analytical work. Northeast Thailand was selected as the region for initiating regional studies because income in this agricultural region lags behind that of other regions. This fact has been recognized in the national interregional programming model developed in the Division of Agricultural Economics (DAE). The national model has been applied to develop five-year plans that focus special attention on the Northeast and in raising income of the region relative to other regions. Other members of the DAE staff and the ISU research team also made large contributions to the research reported.https://lib.dr.iastate.edu/dae-card_sectoranalysis/1007/thumbnail.jp

Agricultural Employment and Migration in Northeast Thailand: Application of a Regional Planning Model

This report summarizes initial work in regional rural development as one phase of an agricultural sector analysis project being conducted in the Division of Agricultural Economics (CAE), the Ministry of Agriculture and Cooperatives, Royal Thai Government. The project is a cooperative one between the Division of Agricultural Economics and Iowa State University and is funded by the Agency for International Development. The overall project has several phases including national and interregional programming models for analyzing policies and five-year plans, macro models of the entire Thai economy, models of the transport and market sectors, and others. The report which follows explains the initial work completed on regional development of agriculture. Further work on regional economic development is now underway. The analysis in this report relates to the Northeast Region of Thailand. The Northeast Regional Model (NEREGON) includes the 15 northeast Changwats (provinces) of the nation. It also includes five of the Agro-Economic Zones used in constructing the national linear programming model for Thai agriculture. The Northeast was selected for initiating work on regional development since incomes are relatively low, soil and climate are less favorable for crop production, and underemployment of labor is greater than in other regions. This initial study relates to improvement of incomes and employment, mainly through the region\u27s agriculture. Subsequent analyses will consider agribusiness possibilities, nonfarm industry, and human and public services. The current study revolves around a programming model since, in the short time after the overall project was initiated, data were more readily available for this approach. As other data are accumulated and verified, additional types of models and analyses may be included.https://lib.dr.iastate.edu/dae-card_sectoranalysis/1000/thumbnail.jp

Macroeconometric Analysis of Economic Activity in Thailand, 1962–1974

This report summarizes work completed to date on macro models of the Thai economy. The project is a cooperative one conducted by the Division of Agricultural Economics (DAE) of the Ministry of Agriculture and Cooperatives, Royal Thai Government, and the Center for Agricultural and Rural Development (CARD) and the Department of Economics of Iowa State University. Funded by the Agency for International Development and the Royal Thai Government, it is one phase of a sector analysis project being undertaken in the DAE to provide models which can aid development and policies, particularly for Thai agriculture. A series of macro models for the Thai economy have been undertaken to supplement the various models being developed for the agricultural sector of Thailand. These activities were undertaken not only because of the importance of national economic policies on employment, prices, and other variables in agriculture, but also because various policies enacted in behalf of agriculture also impact on other sectors of the economy. The model reported is the first generation of a set of macro economic models which may be specified and quantified for the Thai economy. The current model is now being linked with a national programming model developed for the agricultural sector.https://lib.dr.iastate.edu/dae-card_sectoranalysis/1002/thumbnail.jp

Macroeconometric model of the Thai economy

Thailand is an agricultural country in Southeast Asia. She always faces the same problems as other developing countries, such as high growth rate of population, low income per capita, unequal income distribution, and low productivity of labor. Thus, government attempts to solve these problems through the national development planning. The first national development planning was adopted in 1960. It did not achieve as expected due to lack of good statistical data and trained manpower. The Ministry of Agriculture and Cooperatives was assigned to make a plan for agriculture. In 1973, there was a joint project between the Ministry of Agriculture and Cooperatives (through its division of agricultural economics), Iowa State University, and United States Overseas Mission/Thailand. The objective of this project was to apply agricultural economic research in supporting development of Thailand's Fourth Five-Year Development Plan for the period 1977-1981. National linear programming and other analyses were constructed except a macroeconometric model. Until 1974, it was felt that the macroeconometric should be included in order to obtain a complete picture of Thai economy. Therefore, the Thai macroeconometric model was constructed. When the model was built, there were some difficulties in terms of econometrics and computer programming. Thus, the equations in the model were estimated by Ordinary Least Squares. Two Stage Least Squares could not be applied directly. These problems led to further study in this dissertation. The objective of this research is to construct a model which can describe the Thai economy in a more extensive and disaggregate manner.;The estimated model in this study consists of 91 equations which contain 68 behavioral equations and 23 identities. The model contains 89 endogenous variables and 107 predetermined variables. The estimation of the model was done by the method of two stage principal component (2SPC). Short time series data from 1963 to 1978 were used in the estimation of coefficients in all sectors except in the compensation of employee equation where the data used range from 1967 to 1978. The model simulation uses the Gauss-Seidel algorithm procedure.;In the model, there remain weaknesses, especially in the investment sector, income distribution sector, and the balance of payment equation. Therefore, the model should be revised. It is hoped that these weaknesses can be reduced in the future.</p

Effects of Trade Liberalization on Agriculture in Thailand: Commodity Aspects

This book analyzes commodity aspects of the effects of trade liberalization on agriculture in Thailand. The study describes the effects of trade liberalization on selected commodities namely rice, maize, soybean, milk and milk products, at the national level and the farm level. The analysis includes ex-ante and ex-post welfare gain and loss at the national level and profitability at the farm level.trade liberalization, agricultural products, production, marketing, demand, International Relations/Trade,

Effects of Trade Liberalization on Agriculture in Thailand: Institutional and Structural Aspects

This book analyzes institutional and structural aspects of the effects of trade liberalization on agriculture in Thailand. The study stresses the analysis of trade-related policies, physical infrastructure, institutions in the public sector and various economic indicators. It discusses such commodities as rice, maize, rubber, cassava, shrimp, chicken, soybean products, dairy products and fertilizers. This book gives readers a general view of trade liberalization in Thailand.trade, trade policies, trade liberalization, infrastructure, International Relations/Trade,

Effects of Trade Liberalization on Agriculture in Thailand: Institutional and Structural Aspects

This book analyzes institutional and structural aspects of the effects of trade liberalization on agriculture in Thailand. The study stresses the analysis of trade-related policies, physical infrastructure, institutions in the public sector and various economic indicators. It discusses such commodities as rice, maize, rubber, cassava, shrimp, chicken, soybean products, dairy products and fertilizers. This book gives readers a general view of trade liberalization in Thailand

Macroeconometric Analysis of Economic Activity in Thailand, 1962–1974

This report summarizes work completed to date on macro models of the Thai economy. The project is a cooperative one conducted by the Division of Agricultural Economics (DAE) of the Ministry of Agriculture and Cooperatives, Royal Thai Government, and the Center for Agricultural and Rural Development (CARD) and the Department of Economics of Iowa State University. Funded by the Agency for International Development and the Royal Thai Government, it is one phase of a sector analysis project being undertaken in the DAE to provide models which can aid development and policies, particularly for Thai agriculture. A series of macro models for the Thai economy have been undertaken to supplement the various models being developed for the agricultural sector of Thailand. These activities were undertaken not only because of the importance of national economic policies on employment, prices, and other variables in agriculture, but also because various policies enacted in behalf of agriculture also impact on other sectors of the economy. The model reported is the first generation of a set of macro economic models which may be specified and quantified for the Thai economy. The current model is now being linked with a national programming model developed for the agricultural sector.</p

Agricultural Employment and Migration in Northeast Thailand: Application of a Regional Planning Model

This report summarizes initial work in regional rural development as one phase of an agricultural sector analysis project being conducted in the Division of Agricultural Economics (CAE), the Ministry of Agriculture and Cooperatives, Royal Thai Government. The project is a cooperative one between the Division of Agricultural Economics and Iowa State University and is funded by the Agency for International Development. The overall project has several phases including national and interregional programming models for analyzing policies and five-year plans, macro models of the entire Thai economy, models of the transport and market sectors, and others. The report which follows explains the initial work completed on regional development of agriculture. Further work on regional economic development is now underway. The analysis in this report relates to the Northeast Region of Thailand. The Northeast Regional Model (NEREGON) includes the 15 northeast Changwats (provinces) of the nation. It also includes five of the Agro-Economic Zones used in constructing the national linear programming model for Thai agriculture. The Northeast was selected for initiating work on regional development since incomes are relatively low, soil and climate are less favorable for crop production, and underemployment of labor is greater than in other regions. This initial study relates to improvement of incomes and employment, mainly through the region's agriculture. Subsequent analyses will consider agribusiness possibilities, nonfarm industry, and human and public services. The current study revolves around a programming model since, in the short time after the overall project was initiated, data were more readily available for this approach. As other data are accumulated and verified, additional types of models and analyses may be included.</p