Abstract:
The main purpose of this research was to make a comparative analysis of the
Thai Households expenditure pattern before and after the economic crisis in 1997. The
institute has assigned the year 1998 as the year of the economic crisis, and part of
Northern, Central, North-Eastern Southern, in each part of the country, compare between
urban households and rural households and professions. The research uses the Extended
Linear Expenditure System (ELES) model and cross-section data. Survey data concerned
with the economic and social status of Thai households in 1996, 1998 and 2002, collected
by the National Statistic Office, Office of the Prime Minister, was used as source material.
The results of this study shows that in the period of 1996, 1998 and 2002, the
expenditure in the Northern provinces tended to increase every year according to an
Marginal Propensity to Consume (MPC) value of 0.152, 0.245 and 0.313, respectively. The
expenditure of the Central provinces of the country had their in lowest value during 1999
illustrated by value of 0.353, 0.293 and 0.332 MPC 1996,1998 and 2002, respectively.
The expenditure of the North-Eastern provinces according to the MPC values of 0.119,
0.123 and 0.121 seemed roughly steady. The expenditure of the Southern provinces also
had their lowest value in 1998, with and MPC value of 0.283, 0.183 and 0.317
respectively. Every reported urban household MPC value was lower than the rural
households. The highest expenditure for goods tended be food and non-alcohol
beverages, follow by accommodation, transport, and communication.
Analysis of the career of the main breadwinner, indicated that agricultural
worthiers purchasing power decreased as a result of the economic crisis, with the
exception of households in the Northern provinces, which tended to increase every year.
Careers classified as merchants, in every part of Thailand, tended to have a decreased
purchasing power with exception of the North-Eastern provinces, which had a stable
purchasing power over the 3 years. Vocational workers had the following expenditure
change. In the Northern and North-Eastern provinces the expenditure increased through 3
year; the expenditure of households in the Central and Southern provinces decreased
during the economic crisis after that increase. Construction worker had the following
expenditure changes: In the Northern and North-Eastern provinces the expenditure
decreased during the economic crisis, but for the Central and Southern provinces, their
expenditures increased during the economic crisis.
This research found a tend where purchase of certain goods was reduced due to
the economic crisis; namely accommodation, transport, entertainment and alcohol, which
are luxury goods. Necessity goods, namely food and non-alcoholic beverages and
housing have a constant high expenditure. Education expenditure, particularly, increased
during the study period.
This research suggests a stimulant for economic development should consider
household consumption behavior in each part of the country, the different urban
households and rural households, and professions in facts about different value of MPC