A Causal and Effect Model in the Process of the Community’s Economy in the Northeast of Thailand

Abstract

The objectives of this research were 1) to verify the statistical validity of a cause and effect model in the process of a community economy, 2) to study the impact of the push factors for a community economy on the process of the community economy, 3) to study the impact of the push factors and the process of a community economy on the allocations of the community’s excess profit, and 4) to study the indirect effect of the push factors for the community economy on the allocations of the community’s excess profit through the process of community economy. The main focus of this study was on successful career groups in 6 provinces of the northeastern region of Thailand: Nakhon Ratchasima, Ubon Ratchathani, Surin, Khon Kaen, Udon Thani, and Loei. A stratified random sampling technique was used to obtain 408 samples, and a questionnaire was administered to collect data, which were analyzed by using quantitative analysis methods according to a structural equations modeling. The results show that the model is consistent with the empirical data. Goodness of fit measures were found to be: Chi-square 4458.81 (df = 1555); Relative Chi-square (χ2/df) 2.86; CFI = 0.86; TLI = 0.85; Root Mean Square Error of Approximation (RMSEA) 0.068; and Root Mean Square Residual (SRMR) 0.075. If the push factors for a community economy are effective, the process of the economy would be improved (β = 0.947, p <0.001). The allocations of the community’s excess profits would be increased if the process of the economy is efficient (β = 0.677, p <0.05). It was also found that the push factors of a community economy have no effect on the allocations of the community’s excess profits. Furthermore, if the push factors for such an economy function properly, it will also help in the implementation process as well as the allocation of excess profits for the benefit of the community (β = 0.641, p <0.05).