Long before the early 1970s when Thai economy started to experience significant transformation in
her economic structure, agriculture was considered the engine of rapid economic growth for Thailand as
the sector contributed most to the country’s gross domestic products (GDP). Agricultural exports provided
substantial foreign exchange earnings. This happened mainly because of the world commodity price boom
and the plentiful supply of available land that opened up for agricultural expansion in the past. However, the
agricultural sector started to lose its comparative advantage due to the closing land frontier and the decline
in world commodity prices. At the same time, the Thai government began to change its focus, moving
away from agriculture-led development strategies towards industrial development and modernization of
the economy.