A Survey on Agricultural Trade Liberalisation in Thailand

Abstract

The purpose of this paper is to review the empirical evidence on agricultural trade policies and their impacts on Thai economy with a view to presenting both the positive and negative effects of trade liberalisation. While advocates of trade liberalisation argue that free trade is an engine of growth and protection leads to wasteful use of resources, critics argue that openness has its costs and sometimes it could be detrimental to economic development. The empirical evidence from Thailand was consistent with the ongoing debate on the effects of trade liberalisation on economic development. The evidence remained mixed and loaded with criticisms on the grounds of choice of liberalisation determinants, model specifications and methodology as well as other measurement shortcomings. The review suggests that the literature is inconclusive and outcomes are largely case-specific.