Agricultural commercialization of Karen Hill tribes in northern Thailand

Based on a random sample of 240 farm households in Chiang Mai province, Thailand, this study shows that—contrary to widespread belief—Karen farm households are well-integrated into markets. Average levels of market integration are 31% for gross farm output, 35% for variable inputs, 49% for food consumption, and 80% for net family income. By estimating a two-stage least squares (2SLS) regression model, this study finds that integration into output markets is positively associated with a diversification of land use away from rice monoculture, more intense contact with nearby urban centers, and a greater number of roads connecting the village to the outside world. Controlling for these factors, the distance to urban centers does not impede market integration; distant villages are equally well integrated into output markets. The study further finds that integration into output markets improves farm productivity and net per capita income. Concerns about market integration are discussed. Results have implications for Thai policy makers who have recently placed increasing emphasis on the concept of "sufficiency economy" in order to promote the well-being of rural people.