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Page 1: RESEARCH - Bank of Thailand · Profit Maximization Input Demand Output Supply Land Allocation Share ... Policy Implications H OW will I A NSWER RESEARCH Q UESTIONS . L ITERATURE REVIEW
Page 2: RESEARCH - Bank of Thailand · Profit Maximization Input Demand Output Supply Land Allocation Share ... Policy Implications H OW will I A NSWER RESEARCH Q UESTIONS . L ITERATURE REVIEW

RESEARCH

PROBLEMS

L1: Agricultural land rental act of 1981 L2: Adverse possession law L3: Land and property tax act reform

E1: Price subsidy program E2: Debt moratorium program E3: Agricultural zoning by distance

S1: Land infrastructure development S2: Land allocation program S3: Community land title act S4: Limit land holding

Economies Policies

Infrastructure Policies

Legal Policies

? ?

?

Page 3: RESEARCH - Bank of Thailand · Profit Maximization Input Demand Output Supply Land Allocation Share ... Policy Implications H OW will I A NSWER RESEARCH Q UESTIONS . L ITERATURE REVIEW

RESEARCH QUESTIONS POVERTY LAND ABANDONMENT

What are the factors that cause agricultural land abandonment in Thailand?

What measures and policies should be adopted by the Thai government to deal with agriculture land abandonment?

Page 4: RESEARCH - Bank of Thailand · Profit Maximization Input Demand Output Supply Land Allocation Share ... Policy Implications H OW will I A NSWER RESEARCH Q UESTIONS . L ITERATURE REVIEW

(CONCEPTUAL FRAMEWORK)

Profit Maximization

Input Demand Output Supply Land Allocation

Share

Input price, Output price, Physical and Institutional Factors

Policy Implications

HOW will I ANSWER RESEARCH QUESTIONS

Page 5: RESEARCH - Bank of Thailand · Profit Maximization Input Demand Output Supply Land Allocation Share ... Policy Implications H OW will I A NSWER RESEARCH Q UESTIONS . L ITERATURE REVIEW

LITERATURE REVIEW

Literature in Thailand

Land use model

Land abandonment

Onchan (1990), Gine (2005), Chankrajang, (2012), Land Institute Foundation (2001)

Muller et al. (2009), Muller and Munroe (2008), Baumann et al. (2011), Zaragozi et al. (2012), Benayas et al. (2007), Prishchepov et al. (2012), Nishihara (2012),

Chambers and Just (1989), Taylor and Monson (1985), Lopez (1984), Coyle (1993), Lubowski et al. (2008), Maligaya and White (1989), Arnade and Kelch (2007), Lacroix and Thomas (2011), Fezzi and Bateman (2011)

Page 6: RESEARCH - Bank of Thailand · Profit Maximization Input Demand Output Supply Land Allocation Share ... Policy Implications H OW will I A NSWER RESEARCH Q UESTIONS . L ITERATURE REVIEW

METHODOLOGY Profit optimization based on duality production theory

Input demand

Output supply

Land share

Profit function (1)

(4)

(2)

(3)

For i= 2,…, h

Page 7: RESEARCH - Bank of Thailand · Profit Maximization Input Demand Output Supply Land Allocation Share ... Policy Implications H OW will I A NSWER RESEARCH Q UESTIONS . L ITERATURE REVIEW

Empirical Specification Normalized Quadratic Profit Function Statistical Estimation Multivariate Tobit Estimation Technique Seemingly Unrelated Regression

(5)

(6)

(7)

Page 8: RESEARCH - Bank of Thailand · Profit Maximization Input Demand Output Supply Land Allocation Share ... Policy Implications H OW will I A NSWER RESEARCH Q UESTIONS . L ITERATURE REVIEW

PP_RICE (E1) PP_SUGARCANE (E1) PP_MACHINE(E1) PP_FERT (E1) PP_LABOR (E1) PP_PEST(E1) PP_CAPITAL (E1) PP_INTEREST(E2) DIST (E3)

Output eqn.1 Y_RICE Output eqn.2 Y_SUGARCANE Input eqn.1 CASH Input eqn.2 FERT Input eqn.3 LABOR Input eqn.4 MACHINE Input eqn.5 PEST Input eqn.6 CAPITAL

Land share eqn.1 S_ABANDON

DEPENDENT VARIABLES INDEPENDENT VARIABLES

S_ABANDON S_SUGARCANE

SOIL (S1) WATER (S1) RIGHT (S2, S3)

SIZE (S4)

RENT (L1) TAX (L3)

POSSESSION (L2)

PP_RICE (E1) PP_SUGARCANE (E1) PP_MACHINE(E1) PP_FERT (E1) PP_LABOR (E1) PP_PEST(E1) PP_CAPITAL (E1) PP_INTEREST(E2) DIST (E3)

SOIL (S1) WATER (S1) SIZE (S4) RIGHT (S2, S3)

A SYSTEM OF NINE EQUATIONS

RENT (L1) TAX (L3)

POSSESSION (L2)

Page 9: RESEARCH - Bank of Thailand · Profit Maximization Input Demand Output Supply Land Allocation Share ... Policy Implications H OW will I A NSWER RESEARCH Q UESTIONS . L ITERATURE REVIEW

RESEARCH SCOPE

o Study Site: Khon-Kaen Province o Sampling method: Multi-stage cluster

sampling using probability proportional to size: PPS (Cochran, 1977)

n = (deff * Z2pq) = 767 d2

o Number of sample: 808 of agricultural parcels

- 118 of abandoned parcels - 690 of used parcels

Page 10: RESEARCH - Bank of Thailand · Profit Maximization Input Demand Output Supply Land Allocation Share ... Policy Implications H OW will I A NSWER RESEARCH Q UESTIONS . L ITERATURE REVIEW

STUDY RESULTS

THEORITICAL VALIDITY

NO IMPACT VARIABLES Rice Price (E1) Fertilizer price (E1) Household labor price (E1) Machine labor price (E1) Loan Interest rate (E2) Adverse possession law (L2) Land tax (L3)

VARIABLES SIGN SIZE (SQW/SQM) Machine Value (E1) + 3,660.4 SQW Distance to city (E3) - 3.2 SQM Land rental law (L1) + 10.8 SQW. Irrigation (S1) - 8.8 SQW. High quality of soil (S1) - 7.2 SQW. Semi-property right (S2, S3) + 398.8 SQW. Land size (S4) - 3.2 SQM

VARIABLES SIGN SIZE (SQW/SQM) Pesticide price (E1) + 315.2 SQW Sugarcane price (E1) - 41.6 SQM

Page 11: RESEARCH - Bank of Thailand · Profit Maximization Input Demand Output Supply Land Allocation Share ... Policy Implications H OW will I A NSWER RESEARCH Q UESTIONS . L ITERATURE REVIEW

MARGINAL EFFECT SCENARIO TEST LAND SIZE:

0, 25, 50, 75, 100, 125

0

.05

.1.1

5.2

Lan

d S

ha

re fo

r A

ban

do

nm

ent

0 25 50 75 100 125Parcel Size

Predictive Margins with 95% CIs

0.2

.4.6

Lan

d S

ha

re fo

r A

ban

do

nm

ent

0 25 50 75 100 125 150Distance to city

Predictive Margins with 95% CIs

DISTANCE TO CITY: 0, 25, 50, 75, 100, 125, 150

Page 12: RESEARCH - Bank of Thailand · Profit Maximization Input Demand Output Supply Land Allocation Share ... Policy Implications H OW will I A NSWER RESEARCH Q UESTIONS . L ITERATURE REVIEW

POLICY

IMPLICATIONS

?

L1: Agricultural land rental act of 1981 L2: Adverse possession law L3: Land and property tax act reform

E1: Price subsidy program E2: Debt moratorium program E3: Agricultural zoning by distance

S1: Land infrastructure development S2: Land allocation program S3: Community land title act S4: Limit land holding

Economies Policies

Infrastructure Policies

Legal Policies

x

?

?

x

x

Page 13: RESEARCH - Bank of Thailand · Profit Maximization Input Demand Output Supply Land Allocation Share ... Policy Implications H OW will I A NSWER RESEARCH Q UESTIONS . L ITERATURE REVIEW

แผนดนไทย ผนน ทใหญกวาง ยงมท รกราง คางอาศย เปนตนเหตใหชาต ขาดก าไร ผลทได ไมดเทาทควร นโยบายรฐบาล ออกมาแก อนาถแท คนยงจน ผลปนปวน ไดครอบครองทผนนอย แตพอควร จะท านา ท าสวน แสนยากเยน กฎหมายตรา จบจอง เจาของท ตองเปนหน หนหนา พายากเขญ ท าประโยชน ในทดน แสนล าเคญ ไมมน า แลงเหน ดนไมด จ าขายท แปลงนอย ใหนายหนา ไมน าพา ทงราง วางเปลาหน ภาคเกษตร หยดชะงกตลอดป ชนชนม รายไดนอย คอยซ าเตม ความไมร แกนแท ของปญหา ขาดต ารา งานวจย ใหผลเสรม กนโยบาย ตราออกมา แตดงเดม ยงคงเพม สาเหต ความยากจน ถงเวลา ทกหนวยฝาย ทเกยวของ หนมามอง ลองศกษา หาเหตผล เหตทเกด ปมประเดน ทวกวน ทกขของชน ทวเขต ประเทศไทย