This paper indicates a possible expiry date of the Export-led Growth policy thathas long been pursued by developing countries. The zero export growth rate experiencedby Thailand in 1996, which later on has been regarded as a trigger to thecountry’s prolonged economic crisis, is one clear evidence. Deteriorating terms oftrade can normally be observed in developing countries as their export incomesincrease. The study suggests that this may induce the so-called “ImmiserisingGrowth”. In this paper, the situation of deteriorating terms of trade in Thailand isexamined by analysing its representative export and import commodities,regarded asrice and crude petroleum,respectively.As the limitation of export-led growth policyis proved in the study, an alternative inward-looking policy is proposed. That is toreallocate the domestic factor of production;here is the labour,between agriculturaland non-agricultural sectors.The result shows that higher GDP of the country can bereached by driving more labours to the non-agricultural sector, rather than bypursuing the export-led growth policy.