Analysis of the impact of world trade organization on palm oil industry in Thailand
1996
Nikom Panyatawegitpisan
Objectives of this research were to study the production, marketing and price for oil palm and palm oil, and the effect of free trade on demand and supply of palm oil and provide suggestion that make palm oil industry of Thailand compete on free trade market. The study found that the wholesale price of palm oil in Bangkok market had the greatest influence on demand for palm oil, in terms of elasticity of -1.9052, secondly was wholesale price of soybean in Bangkok market which had influence over demand for palm oil 1.0964 percent, thirdly was national income per head which generated demand elasticity of 1.0660. The factors effecting supply of palm oil were wholesale price of palm oil at Bangkok market, which generated supply elasticity of 0.6239, and secondly was the import price of palm oil which had influence over supply elasticity 0.1207 percent. If the Thai government imposes, the import controll strategy into practice to palm oil, the tariff equivalent rate should be 85.50 percent to be taxed from the import price which make the import price equal to the domestic price. If the tariff equivalent rate is reduced by 24 percent or zero, the domestic price will be reduced by 33 and 45.95 percent respectively, and the domestic consumption of palm oil will be increased by 85,468 and 119,008 tons respectively, but the domestic production will be decreased by 27,804 and 38,715 tons respectively, dued to the decrease in tariff equivalent rate.
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