A multiplier of e-consumption: The study of the developing economy

Abstract

In 2020, private consumption in Thailand grew slowly due to the COVID-19 pandemic and e-commerce has grown rapidly (Macroeconomic Strategy and Planning Division, Office of the National Economic and Social Development Council of Thailand, 2020). The objectives of this study are to examine the proportion of e-consumption and private sector consumption in Thailand and to understand the multiplier effects affecting e-consumption in Thailand. The internet users who have shopped and sold as merchants through online platforms across Thailand have been utilised online for this survey. The findings show that most goods and services were purchased offline, except for clothes, shoes and personal items, and communication. In contrast, goods and services for entertainment and travelling had the highest percentage of online purchases. The results of the study model show the significance of education and saving to e-consumption. Hence, the multiplier of e-consumption in this study equals 1.21. Since private consumption had a higher significance for the Thailand economy over total public consumption, it is, therefore, recommended that ICT infrastructure development should be prioritized for ease of e-consumption. Moreover, human skills need to be improved and e-retail should be encouraged.