Abstract
In the context of globalisation, states are insinuated as little homes in the global village. Although arguments on change of powers in the current situation are widely made qualitatively, quantitative analysis by empirical information is still minimal. This study, therefore, chose an advanced quantitative methodology, using time series data on domestic paddy price, cost of domestic rice production, rice world market price, and the government-determined price according to its policy, in multiple regression analysis.The research findings show that, as the cost of domestic rice production does not influence domestic paddy price, at statistical significance of .05, the domestic paddy price is in fact more affected by the rice world market price, which represents the power of globalisation, than by the price determined by the government, which represents the power of the state, at statistical significance of .05, for approximately 4.78 times, indicating that state power in this context is no longer in the position to bargain with the power of globalisation. Hence, policy recommendations continue to be regarded with the adjustments of economic management, in which the current Thai government still chooses to utilise great amount of its budget to intercept the market price of rice.
Highlights
The research findings show that, as the cost of domestic rice production does not influence domestic paddy price, at statistical significance of .05, the domestic paddy price is more affected by the rice world market price, which represents the power of globalisation, than by the price determined by the government, which represents the power of the state, at statistical significance of .05, for approximately 4.78 times, indicating that state power in this context is no longer in the position to bargain with the power of globalisation
The researchers have divided the results of this research into two sections, where the first presents the result of the analysis of descriptive data obtained from time series data of each variable in respective order; the domestic paddy price, the cost of domestic rice production, the rice world market price, and the government-determined price
The descriptive analysis of the time series data in overall has revealed that domestic paddy price, cost of domestic rice production, rice world market price, and government-determined price all share similar data trends and positively correlated, that is, the first period, from January 2005 to December 2007 or January 2008, there are fluctuations within a narrow range in the data before they ascend to reach the peaks around April or May of 2008 and decline afterwards
Summary
The research findings show that, as the cost of domestic rice production does not influence domestic paddy price, at statistical significance of .05, the domestic paddy price is more affected by the rice world market price, which represents the power of globalisation, than by the price determined by the government, which represents the power of the state, at statistical significance of .05, for approximately 4.78 times, indicating that state power in this context is no longer in the position to bargain with the power of globalisation. “A truly global economy is claimed to have emerged or to be in the process of emerging, in which distinct national economies and, domestic strategies of national economic management are increasingly irrelevant.”. “The world economy has internationalized in its basic dynamics, it is dominated by uncontrollable market forces, and it has as its principal economic actors and major agents of change truly national transnational corporations the owe allegiance to no nation-state and locate wherever on the globe market advantage dictates” Until late 20th century, important political scientists such as Samuel Huntington
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