ANALYSIS OF ISAAN ECONOMIC CHANGE WITH LOCATION QUOTIENT INDEX (LQ)
DOI:
https://doi.org/10.14456/nrru-rdi.2020.47Keywords:
Thai economy, Isaan economy, LQAbstract
The objective of this research study was to investigate the economic changes of North Eastern Thailand or the Isaan region from the year 1997 to 2016 by employing the Location Quotient Index (LQ) in order to signify the characteristic changes in sectoral specializations of each province. Research results revealed that the pattern of changes in specializations may be categorized into 3 groups: 1) the group of provinces that has had no change in sectoral specializations; 2) the group of provinces where sectoral specializations have changed, but are still related to their original specialization, such as Ubon Ratchathani which has changed from real estate to administrative and support service activities; and 3) the group of provinces where the sectoral specializations have completely changed to different ones, such as Udonthani which has changed from accommodation and food services to mining activities. A policy recommendation was proposed that policy makers should take provincial specializations into consideration in drafting the economic development plan of Isaan region. A recommendation for future research was the extension of study results to analyze the strengths and weaknesses of each province by adding the detail of institutional factors affecting the economic structure of each province and using Shift-Share analysis to draw out an analytical comparison between provincial specialization and the trend of economic growth on both a regional and a national scale.
References
Ativanichayapong, N. (2014). Livelihood of People in Rural Isan: Changes over the Past Decade, Journal of Sociology and Anthropology, 33(2), 103-127. (in Thai)
Beung Kan Province Establishment Act. (2011). The Royal Thai Government Gazette. Vol 128 Section 18 Kor Kai. (In Thai)
Ekkasart, E., Hongthai, S., Poontawee, W., & Dajtanon, I. (2016). The Economic Development Strategies in the Nakhon Ratchasima Area to Prepare for Joining the ASEAN Economic Community. Nakhon Phanom University Journal, 6(1), 87-96. (in Thai)
Habibullah, M. S., & Radam, A. (2009) Industry Concentration in Rich and Poor States in Malaysia: Location Quatient and Shift Share Analyses. The Icfai University Journal of Industrial Economics, 1(1), 56-65
Haggett, P. (1965). Locational Analysis in Human Geography. Edward Arnold : London.
Ministry of Labour. (2009). Thailand Standard Indutrial Classification. Retrieved January 4, 2019, from https://www.doe.go.th/prd/assets/upload/files/vgnew_th/d8a88846bfef391bbf 9602fe0ba18d1b.pdf (in Thai)
Ouyyanont, P. (2017). Isan Economy Development and Change. Bangkok : Chulalongkorn University Press. (in Thai)
Promoakping, B., Inmueng, Y., & Phongsiri, M. (2019). Khon Kaen City: Growth, Challenges, and Opportunities. Nonthaburi : Sue Tawan Press. (in Thai)
Tananuchittikul, J. (2014). Analysis of Northern Region’s Economic Specialization: Implication from being AEC. Chaingmai University Journal of Economics, 18(2), 3-25. (in Thai)
Teerasatwat, S. (2003). Isan Cummunity Econnomy: Economic History of Isan Villages Post-WWII to present (1945-2001). Humanities and Social Sciences, 30(April-June 2012), 30-39 (in Thai)
Tienwong, K., & Pansuwan, A. (2012). Regional Idustrial Specialization under Decentralization Policy in Thailand. Academic Research International, 3(2), 32-42. (In Thai)
