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Sufficiency Economy Matrix multiplier analysis and optimization: The case of Mukdahan, Thailand

Author

Listed:
  • Jintanee Jintranun

    (Walailak University)

  • Peter Calkins

    (Chiang Mai University)

  • Songsak Sriboonchitta

    (Chiang Mai University)

Abstract

This paper has used Sufficiency Economy Matrix multiplier and optimization analyses to estimate the impacts of the East West Economic Corridor on economic growth, poverty reduction and the implementation of the sufficiency economy philosophy in Mukdahan province, Thailand. We employed both the standard multiplier model and linear programming optimizations to explore provincial plans increasingly constrained by resources, environmental and social planning objectives. The results reveal that the optimized SAM, ESAM and SEM lead to significantly different plans for economic development and poverty reduction in Mukdahan province. The EWEC and tourism exert high and widespread multiplier effects on marketing, communication, and financial services in Mukdahan, while charitable donations and direct transfers to poor households constitute the most effective sufficiency economy social strategy. Road construction, wats, and employment creation in border tourism should optimally receive increased aggregate investment; while government programs should be substantially reduced. The results give further support to the importance of studying and applying the King’s Sufficiency Economy at the provincial and national level in Thailand and around the world.

Suggested Citation

  • Jintanee Jintranun & Peter Calkins & Songsak Sriboonchitta, 2013. "Sufficiency Economy Matrix multiplier analysis and optimization: The case of Mukdahan, Thailand," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 2(2), pages 1-26., June.
    • Handle: RePEc:chi:journl:v:2:y:2013:i:2:p:1-26
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    References listed on IDEAS

    as
    1. Edward K. Y. Chen, 1979. "Economic Growth and Income Distribution," Palgrave Macmillan Books, in: Hyper-growth in Asian Economies, chapter 8, pages 152-176, Palgrave Macmillan.
    2. Peter Calkins, 2009. "Sufficiency Economy Matrices: Multi-Period Optimization for Local Development Planners," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 5(2), pages 305-332, July.
    3. Jeffrey Round, 2003. "Constructing SAMs for Development Policy Analysis: Lessons Learned and Challenges Ahead," Economic Systems Research, Taylor & Francis Journals, vol. 15(2), pages 161-183.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Sufficiency Economy Matrix; multiplier analysis; linear programming; Mukdahan; Thailand;
    All these keywords.

    JEL classification:

    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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