Abstract
This research study is based on analyzing the variables, which assess the Thailand’s paddy production. Similarly, the TFP in Thailand’s paddy production can be determined through these factors. Moreover, the substitution elasticity between capital and labor has been measured in this research. Further, the substitution elasticity between the older and young farmers has been tried to be investigated. It is expected that the results of research would offer suitable suggestions for policy makers to improve the level of paddy sub-sector productivity in Thailand. In this study, the first objective is based on analyzing the factors, which assess the paddy production with reference to Thailand. Cobb-Douglas production function has been used in this study. Moreover, the stand error and coefficient of determination have been used to assess the regressors, which are significant. The study has used production function to formulate the problem. The findings of the study have revealed the fact that A crucial role is played by productivity in improving the paddy production of country. Therefore, there is need for determining the level of paddy production to be sufficient (high enough) or insufficient. Productivity can be measured in different ways. The measurement of productivity is based on the type of information of the productivity available.
Highlights
Apart from being a staple food and a source of calorie, paddy sub-sector is vital in influencing the Thailand political environment
The results of the correlation test between dependent variable and independent variables proved to be very useful in pre estimation analysis especially as regards potential relationships suggested by theories
The current research has found that land, capital, young farmers, old farmers, fertiliser, and paddy price are the important inputs in paddy production
Summary
Apart from being a staple food and a source of calorie, paddy sub-sector is vital in influencing the Thailand political environment. All of the above policies are tools to achieve multi-racial unity in Thailand, which will be achieved if the government can reduce poverty and income gap between agricultural (paddy farmers) and non-agricultural sectors. The total incomes earned by paddy farmers are relatively low, which has contributed to the high rate of rural poverty. 73 per cent of the rural poverty is contributed by paddy farmers. Most of these farmers have an average monthly income of less than RM1,500 per month (Kamaruddin, Ali, & Saad, 2013). If we assume that the poverty rate for all granary and nongranary areas 4 equals to 1.4 per cent, the total poverty rate in paddy sub-sector exceeds 11 per cent.
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