THE INFLUENCE OF PER CAPITA GDP AND THE INCOME SHARE OF THE TOP 10% ON INCOME INEQUALITY IN THAILAND DURING THE PERIOD 1993 TO 2023
DOI:
https://doi.org/10.65886/ijde.v2i02.33Keywords:
Gini Index, Income Inequality, ThailandAbstract
Income inequality remains a structural challenge in Thailand despite the country experiencing relatively stable economic growth over the past three decades. This study aims to analyze the influence of Gross Domestic Product (GDP) per capita and the income share of the top 10% group on income inequality, as measured by the Gini Index, over the period 1993–2023. Utilizing annual time series data from the World Bank and employing multiple linear regression analysis, the study also conducts classical assumption tests and cointegration tests to ensure the validity of long-term relationships among variables. The findings reveal that an increase in GDP per capita has a negative and statistically significant effect on the Gini Index, indicating that economic growth contributes to reducing inequality. Conversely, a rise in the income share held by the top 10% significantly exacerbates income inequality, reflecting the dominant role of the economic elite in widening the welfare gap. The regression model explains 95.04% of the variation in income inequality in Thailand. These results underscore that wealth concentration is a key driver of structural inequality, which cannot be adequately addressed through economic growth alone.
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