Determinants Influencing Adoption of Geographical Indication Certification: The Case of Rice Cultivation in Thailand

Geographical indications (GIs) have gained more interest since its protection has been ensured multilaterally under the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement of the World Trade Organization (WTO). Thung Kula Rong-Hai Thai Hom Mali Rice (TKR) is the first officially registered GI Jasmine rice in Thailand. A GI certification is licensed to producers and other business operators of the GI production line through a membership application in a GI club. This paper aims at identifying factors that are likely to predict the behaviour of Thai Jasmine rice households in the Thung Kula Rong-Hai (TKRH) area in adopting a GI certification. A logit model is applied for empirical analyses. The marginal effects of the key factors on the probability of adoption are estimated. All analyses are based on survey data collected through a formal survey in two districts of the TKRH area where 541 Thai Jasmine rice households were selected for interviews using a disproportionate stratified random sampling procedure. The results indicate that institutional and social factors such as information, transportation costs and membership of a cooperative influence the decision to obtain the GI certification of the Thai Jasmine rice households in the TKRH area significantly.