Globalization, Poverty, and Inequality: A Case Study of Thailand

Abstract

This research examines the effect of globalization on poverty and inequality in Thailand during the period 2015 to 2021, using provincial level data from 77 provinces. The study investigates the effect of overall globalization and its different types, namely economic globalization, social globalization and political globalization. The results from System-GMM estimation show that overall globalization reduces poverty and inequality. Regarding different types of globalization, economic globalization in terms of financial globalization, and social globalization in terms of interpersonal and information globalization, can help reduce both poverty and inequality. However, political globalization only reduces poverty in Thailand but does not influence inequality. The results also indicate that economic growth, unemployment, inflation, health service, and technological infrastructure are important related factors. The research findings can be beneficial for policy makers in developing policy and economic planning to reduce poverty and inequality. JEL Classification: A10, F60.