Sj. Yao, COMPARATIVE ADVANTAGES AND CROP DIVERSIFICATION - A POLICY ANALYSIS MATRIX FOR THAI AGRICULTURE, Journal of agricultural economics, 48(2), 1997, pp. 211-222
This study aims to assess the costs and benefits of the Thai agricultu
ral diversification policy in 1994-96. Three competitive crops (rice,
soybeans and mungbeans) are selected in two provinces to study their c
omparative advantages in terms of a policy analysis matrix. The result
s suggest that rice is more profitable than soybeans and mungbeans, im
plying that government intervention may incur efficiency losses. Some
sensitivity analyses, however, suggest that potential price changes, i
ncreasing water scarcity, and the effects of crop production on the en
vironment are important concerns which may justify government interven
tion.