PRODUCTIVITY GROWTH AND FARM MACHINERY ADOPTION IN THAI AGRICULTURE Nongluck Jongsuwa t MASTER OF ECONOMICS (ENGLISH LANGUAGE PROGRAM) FACULTY OF ECONOMICS THAMMASAT UNIVERSITY BESTAVAILABLE COPY PRODIJCTIVITY G R O W AND FARM MACHINERY ADOPTION IN THAI AGRICULTURE A Thesis submitted in partial fulfilment of the requirements for the degree of Master of Economics (English-Language Program) Faculty of Economics, Thammasat University Bangkok, Thailand fgril 1980 F$.CIJLTY OF ECON84ICS THAMMASAT UNIVERSITY PRODUCTIVITY GROWTH ANT) FARM MACHINERY ADOPTION IN TMI AGRJCULTURE A Thesis NONGLUCK JONGSUWAT Submitted in partial fulfilment of the requirements for the degree of MASTER OF ECONOMICS (En~lishL-a nguage Program) Is Hereby Approved by: &d>& LJ, ~ J .......... .......... ..3..1. .N..o.r.&.. ..l.~ i y Chairman, Thesis Committee : r.. .do. (Dr! Chesada Loohawenchit) Date , , ... '4 .. Member, Thesis Committee : %<!. . . .,.i;?rs, . (Dr. Geor~eE . Delehanty) Date . ~ ~ d . . ' ~ ? ~ k & % ..-..,....... ...... Member, Thesis Cornittee : &'%,C/, /5iOo (Dr. Diow Mion pko, 1 smagi ) - nat e 0 Dean, Faculty of Economics : .... ;*:. ....F.,.. ........i ,.. .. .../ '?. ,.'f. ./! . 1.7.8.' 0 (Dr. Gosah kya) Date MSTRACT PRODUCTIVITY GROWTH AND FARM MACHINERY ADOPTION IN THAI AGRICULTURE Farm mechanization has been widely adopted and diffused in Thai agriculture since the 1960s. However, there are repional variations in the level of farm machinery adoption. This study has attem~tedt o ldentify some factors which affect farm machinery adoption with special reference to farm tractors and water pumps. Specific objectives of the study include: (1) description of the historical development of farm tractors. (2) investigation of changes over time in resource endowments and product ivities in connect ion with farm machinery adoption. (3) indentification of factors which affect the utilization of farm tractors and water pumps. The introduction of farm machinery before the 1950s was limited to the Government experimental fields since imported farm machines in those days were large in scale, costly and required a high level of technical knowledge. I t was not until the 1960s that farm machinery began to generate public intemst with the emergence of a local industry producing small-scale farm machines. Investigation of variations in agricultural resource endowments as well as changes in their productivities in the study covers the period after the Second !~forldW ar, (1950-1975), partly because of data deficiencies in prior years. Labor productivity as measured by agricultural output per worker in the Thai agricultural sector rose at a substantial rate of 4.5 per cent per annun! during this period. The land-labor ratio and land productivity (agricultural output per rai) reveal an equal rate of growth during the same period. Flowever, the land-labor ratio reveals a fastcr grcwrh rete From the mid 1960's onwards. One of the reasons which supports this finding is the exolanation tha? the achievement of a hiyher level of mechanization in a~riculture~ ermitted the worker t o cultivate a gre~teram ount of land. It is unfortunate that statistical analysis of the relationships over time of changes in relative factor prices and their uses cannot be studied because of deficiencies in time-series data. Some major factors which may influence farm machinery utilization were instead investi~atedb y using cross-sectional data. The hypothesized relationships were studied with the use of repression analysis enploying farm level data of the 19 agro-economic zones obtained from the Division of Agricultural Economics. Three types of farm machines were tested as devendent variables, , i .e. four-wheel tractors, two-wheel tractors and water pumps. Independent variables in the regression models include the price of labor, the price of animal ?ewer, the percentage of upland crop area, the percentage of double crcp area, the averaEe farm income 2nd the average rainfall. The variable concernin? double cropp area was found to be positively related to all three categories of farm machines. This implies that multiple-cro~pince nh,mces the use of farm machinery. The upland crop area was found to be positively related t o the number of four-wheel tractors and water rumps whereas it was negatively related to two-wheel tractors. With respect to the scale basis of the machines, four-wheel tractors are more suitable for upland cultivation because they possess greater power for dry land tillage whereas two-wheel tractors were mostly used for puddling in rice cultivation. Additional water f ~ mrla nd crop production is also obtained through pump irrigation. The mice of labor wes found to be positively related to the number of both types of farm tracters. This seems to verify the hypothesis th.zt regions with higher labor costs tend to be more mechanized. In addition, the higher income regions were more able to a f f ~ r dtr actorization. I-!r?wever, regional variations in water pump utiliz xtion result inp fron variations in farm income and labor cost were fo~mdt o be not important. My Parents, My Sister, N~npkran, "We raphan" I wish t o express my appreciation to many people and organizations who have contributed to this study. I am very much indebted to Dr. Chesacla Loohawenchit, who always convinced me that I c ~ u l dw rite this thesis, for his valuable ~uidance as well as his patience. I am also grateful for his untiring efforts in helping me polish this thesis. Specie1 thanks is extended to Dr. George E. Delehanty md Dr. Trend Bertrmd for their sharp comments and critical questions were bene fic ia l. I am a l s ~ve ry tnankful to Dr. b w l~bngkolsmai for kindly reading my thesis and correcting my mistakes. I am grcat ful to Mr. Bart Duff f ~hris encouragement, Mr. Metha Rat chapiti for his valuable information, Ids. Duangchai Phusunthorn~ilp of the USAID Library for her constant cooperation, a d t o my classmates for their friendship and encouragement. Very speclal thank is due tc. Ms. Mary ivlcFadden for her help in correctinp my En~lish. Fly very special thmks should also to to the University Development Comission for granting ne a scholarship durinf my two ye2rs of study a t Faculty of Economics. Financial assistmce fcr this study provided by the International Rice Research Institutt- -. is also greatfully ackngwledred. My husbmd, Dr. Weraphan Suphanchzimat, has been a constant sGurce rv of inspiratir~na rid cheer. deepest epy~ciationi s offered t o him for his endurin~? atience, understanding, and sacrifices during the time of my thesis preparation. Finally, I would like to dedicate this thesis to my Darents to whom I cwe ever thin^ and their const.mt encourayement w i l l never be for~otten. I am fully resnonsible for any mistakes in this thesis and criticisms from the readers are invited. Thaimasat L'~?iversitv Banqkok , Thailand viii TABLE OF CONTENTS Parre ....................................................... ABSTRACT iii ................................................ ACKNOMLE W,EPIENT vii ................................................. LIST OF TABLES xi ................................................ LIST OF FIGURES xiii CHAPTER .......................................... I. INTRODUCTION ....................................... A. Introduction ............................. B. Objectives of the Study ................. C. Fbthodo10,qy and Scope of the Study .......................... D. Organization of the Study I I. HISTORICAL RACXGROLVJD ON THE TNTRODIJCTION OF FAR" ..................... B4ECkJANI ZATION IN THAI AGRI CULTllKE A. Traditional Farm Implersents Em~loyedi n Rice Farming ........................ 1. Equipment for Irri~ation .................. 2. ~quinmentf or Land Preparation 3. Eouiyment for Plantin?, "arvestinu, Threshing and ......................................... Millin? ................ B. The 1ntroducti.on of Tractor Plowine .......... 1. The Exnansion of Irrigation Facilities 2. Tie E~ansiono f Goverment Pesearch Work and Its ............................... Extension Service ...... 3. The Development of Farm Yachinery Industry I I I. REVIE!'' OF LITCFAT1:RE, THEOPETICAL FRAF~EIVOFI! AND ?."Tk!ODOLc3CY ............................... A. Review of Literature ................. R. Theoretical Framework of ,the Study .................... C. Methodolopy and Sources of Data IV. RESOIIRCE ENl)O!i!MENTS AND TECPNOLOGICAL CHANGE IN THAI ........................................... AGRICIILTURE ...................... A. Trends in Apricultural Innuts ........................................... 1. Labor ............................................ 2. Land ................................... 3. Draft Animals ...................... E. Trends in Aaricultural Output C. Mechanizaticn and Productivity Growth in Thai ........................................ k~ricutlu re
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