Is The Natural Resource Drive Thailand National Income
Keywords:
National income, urban population growth, gender inclusiveness, Thailand, simultaneous equations modelAbstract
This study examines how urbanization, savings, natural resource use, and women’s business activity jointly influence Thailand’s national income from 1972 to 2020. Using a simultaneous equations framework and the two-stage least squares (2SLS) method, the analysis reveals that women’s business activity significantly enhances national income, emphasizing the economic importance of gender equality. Urbanization shows a mixed effect: while rapid urban population growth appears to reduce national income in simple models, it contributes positively when treated as an endogenous factor, reflecting the complexity of urban dynamics. Savings have a slightly negative impact on national income, suggesting inefficiencies in converting savings into productive investment. Natural resources do not directly increase national income but do stimulate urban population growth, although this channel does not produce a significant effect under the 2SLS estimation. Overall, the study highlights the need for policies that support gender equality, efficient urban development, improved use of savings, and responsible natural resource management to foster long-term economic growth.
References
Ajayi, T. A. (2024). Oil price, energy consumption and CO2 emissions as growth determinants: A PVAR system GMM approach. International Journal of Energy Sector Management. https://doi.org/10.1108/ijesm-09-2023-0013
Amemiya, T. (1982). Two stage least absolute deviations estimators. Econometrica, 50(3), 689. https://doi.org/10.2307/1912608
Aman, R., Ahokangas, P., Elo, M., & Zhang, X. (2024). Empowering migrant women’s entrepreneurship: Stakeholder perspectives from the entrepreneurial ecosystem. International Journal of Entrepreneurial Behavior & Research, 30(7). https://doi.org/10.1108/ijebr-04- 2023-0425
Atique, Z., & Ahmad, M. H. (2022). The impact of FDI on economic growth under foreign trade regimes: A case study of Pakistan. The Pakistan Development Review, 43(4II), 707–718. https://doi.org/10.30541/v43i4iipp.707-718
Banerjee, O., Cicowiez, M., Vargas, R., Obst, C., Cala, J. R., Alvarez-Espinosa, A. C., Melo, S., Riveros, L., Romero, G., & Meneses, D. S. (2021). Gross domestic product alone provides misleading policy guidance for post-conflict land use trajectories in Colombia. Ecological Economics, 182, 106929. https://doi.org/10.1016/j.ecolecon.2020.106929
Brahma, D. (2021). Population composition and its effect on economic growth. Quest Journal of Management and Social Sciences, 3(1), 86–100. https://doi.org/10.3126/qjmss.v3i1.37597
Cylus, J., & Al Tayara, L. (2021). Health, an ageing labour force, and the economy: Does health moderate the relationship between population age-structure and economic growth?
Dokas, I., Panagiotidis, M., Papadamou, S., & Spyromitros, E. (2022). The determinants of energy and electricity consumption in developed and developing countries: International evidence. Energies, 15(7), 2558. https://doi.org/10.3390/en15072558
Fang, Q., & Leong, C. K. (2014). Impact of population growth and one child policy on economic growth of China. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2464426
Fumagalli, E., Pinna Pintor, M., & Suhrcke, M. (2024). The impact of health on economic growth: A narrative literature review. Health Policy, 143, 105039. https://doi.org/10.1016/j.healthpol.2024.105039
Ghosh, S., & Ranjan, A. (2023). A machine learning approach to GDP nowcasting: An emerging market experience. Bulletin of Monetary Economics and Banking, 26(0), 33–54. https://doi.org/10.59091/1410-8046.2055
Govori, F., & Fejzullahu, A. (2020). External financial flows and GDP growth in Kosovo. Journal of Developing
Gulvira, A., Meiramgul, A., Ainash, M., Aliya, K., & Sagynysh, M. (2024). The impact of female entrepreneurship on economic growth in developing and developed economies. Economics, 0(0). https://doi.org/10.2478/eoik-2024-0016
Gu, X., Badeeb, R. A., Ali, S., Khan, Z., Zhang, C., & Uktamov, K. F. (2023). Nonlinear impact of natural resources and risk factors on the U.S. economic growth. Resources Policy, 82, 103570. https://doi.org/10.1016/j.resourpol.2023.103570
Haseeb, M., Kot, S., Iqbal Hussain, H., & Kamarudin, F. (2020). The natural resources curse-economic growth hypotheses: Quantile–on–Quantile evidence from top Asian economies. Journal of Cleaner Production,
Henningsen, A., & Hamann, J. D. (2007). systemfit: A package for estimating systems of simultaneous equations in R. Journal of Statistical Software, 23(4). https://doi.org/10.18637/jss.v023.i04
Ikhsan, A., & Satrianto, A. (2023). The effect of financial development on economic growth in high-income countries. Asian Economic and Financial Review, 13(3), 202–215. https://doi.org/10.55493/5002.v13i3.4743
Jayadevan, C., Hoang, N., & Yarram, S. (2024). Spillover effects of globalization using alternative spatial approaches. Applied Economics, ahead-of-print(ahead-of-print), 1–20. https://doi.org/10.1080/00036846.2024.2364118
Khan, I., Hou, F., Irfan, M., Zakari, A., & Le, H. P. (2021). Does energy trilemma a driver of economic growth? The roles of energy use, population growth, and financial development. Renewable and Sustainable Energy Reviews, 146, 111157. https://doi.org/10.1016/j.rser.2021.111157
Khan, Y., Hassan, T., Guiqin, H., & Nabi, G. (2023). Analyzing the impact of natural resources and rule of law on sustainable environment: A proposed policy framework for BRICS
Kerner, P., Kalthaus, M., & Wendler, T. (2023). Economic growth and the use of natural resources: Assessing the moderating role of institutions. Energy Economics, 126, 106942. https://doi.org/10.1016/j.eneco.2023.106942
Kumarasinghe, P., & Wickramasinghe, A. (2018). Population pyramid and economic growth: An econometric analysis of Sri Lanka. International Journal of Management Excellence, 10(3), 1348. https://doi.org/10.17722/ijme.v10i3.427
Lee, C.-F., Lin, F.-L., Yang, Y., & Liang, W.-L. (2015). Applications of simultaneous equations in finance research: Methods and empirical results. Review of Quantitative Finance and Accounting, 47(4), 943–971. https://doi.org/10.1007/s11156-015-0526-0
Li, Y., Pang, D., & Cifuentes-Faura, J. (2023). Time-varying linkages among financial development, natural resources utility, and globalization for economic recovery in China. Resources Policy, 82, 103498. https://doi.org/10.1016/j.resourpol.2023.103498
Majekodunmi, T. B., Abidin, N. Z., Esquivias, M. A., & Shaari, M. S. (2023). The environmental influence of national savings in D-8 countries: Empirical evidence using an ARDL model. Environmental Science and Pollution Research International, 30(41), 94456– 94473. https://doi.org/10.1007/s11356-023-28865-3
Mahmoudinia, D., Hosseini Kondelaji, M. H., & Jafari, S. (2020). The causality relationship between population, economic growth and capital stock in OIC countries and its policy aspects. International Journal of Economics and Politics, 1(2), 117–132. https://doi.org/10.29252/jep.1.2.117
Meng, B., Xue, K., & Han, M. (2022). Digitalization, natural resources rents, and financial market risk: Evidence from G7 countries. Resources Policy, 79, 103074. https://doi.org/10.1016/j.resourpol.2022.103074
Mirziyoyeva, Z., & Salahodjaev, R. (2023). Does representation of women in parliament promote economic growth? Considering evidence from Europe and Central Asia. Frontiers in Political Science, 5. https://doi.org/10.3389/fpos.2023.1120287
Mishra, S. K. (2008). Robust two-stage least squares: Some Monte Carlo experiments.
SSRN Electronic Journal, 3. https://doi.org/10.2139/ssrn.1178642
Morwat, A. (2021). Study of population growth impact on economic growth during (2003-2017) in Afghanistan. International Journal for Research in Applied Sciences and Biotechnology, 8(1), 49–56. https://doi.org/10.31033/ijrasb.8.1.6
Mubeen, S., Shahid, M. H., Rehan, R., & Hye, Q. M. A. (2022). The nexus among family business, household finances and women empowerment: Evidence from PDHS 2017- 18. Nurture, 16(2), 90–102. https://doi.org/10.55951/nurture.v16i2.131
Naveed, A., Ahmad, N., Naz, A., & Zhuparova, A. (2023). Economic development through women’s economic rights: A panel data analysis. International Economics and Economic Policy, 20(2), 257–278. https://doi.org/10.1007/s10368-023-00560-1
Osei, D. B., Sare, Y. A., & Ibrahim, M. (2019). On the determinants of trade openness in low- and lower-middle-income countries in Africa: How important is economic growth? Future Business Journal, 5(1). https://doi.org/10.1186/s43093-019-0002-8
Rehman, A., Nicolae, E., Chirtoc, I.-E., & Gabriela, B. (2023). Natural resources, financial expansion and gross domestic savings influence to economic progress: A road to long-term sustainability. Applied Economics, ahead-of-print(ahead-of-print), 1–16. https://doi.org/10.1080/00036846.2023.2290590
Rizvi, S. A. A., Shah, S. J., Qureshi, M. A., Wasim, S., Aleemi, A. R., & Ali, M. (2023). Challenges and motivations for women entrepreneurs in the service sector of Pakistan. Future Business Journal, 9(1). https://doi.org/10.1186/s43093-023-00251-y
Salamzadeh, A., Hadizadeh, M., Eslahi Fatmesari, H., Ghaffari Feyzabadi, J., & Dana, L.-P. (2024). Digital technology as a disentangling force for women entrepreneurs. World, 5(2), 346–364. https://doi.org/10.3390/world5020019
Shams, M. Y., Tarek, Z., El-Kenawy, E.-S. M., Eid, M. M., & Elshewey, A. M. (2024). Predicting gross domestic product (GDP) using a PC-LSTM-RNN model in urban profiling areas. Computational Urban Science, 4(1). https://doi.org/10.1007/s43762-024-00116-2
Sijabat, R. (2023). The association between foreign investment and gross domestic product in ten ASEAN countries. Economies, 11(7), 188. https://doi.org/10.3390/economies11070188
Suluk, S. (2021). The relationship between population growth and economic growth: The case of Singapore. International Journal of Academic Research in Business and Social Sciences, 11(12). https://doi.org/10.6007/ijarbss/v11-i12/11702
Tsen, W. H., & Furuoka, F. (2005). The relationship between population and economic growth in Asian economies. Asean Economic Bulletin, 22(3), 314–330. https://doi.org/10.1355/ae22-3e
Veckalne, R., & Tambovceva, T. (2023). The importance of gender equality in promoting entrepreneurship and innovation. Marketing and Management of Innovations, 14(1), 158–168. https://doi.org/10.21272/mmi.2023.1-14
Wang, J., Yang, J., & Yang, L. (2023). Do natural resources play a role in economic development? Role of institutional quality, trade openness, and FDI. Resources Policy, 81, 103294. https://doi.org/10.1016/j.resourpol.2023.103294
Xue, P., Liu, H., Zhao, D., & Liu, J. (2024). Mineral resources and equitable economic development: South Asian mineral resources policy perspective with innovation for resources efficiency. Resources Policy, 96, 105151. https://doi.org/10.1016/j.resourpol.2024.105151
Zhang, J., Prettner, K., Chen, S., & Bloom, D. E. (2023). Beyond GDP: Using healthy lifetime income to trace well-being over time with estimates for 193 countries. Social Science & Medicine, 320, 115674. https://doi.org/10.1016/j.socscmed.2023.115674
Zhong, L., Wen, L., & Wang, Z. (2023). A comprehensive analysis of the societal impact of industrial diversity on sustainable economic development. International Journal of Development Issues, 23(1), 166–184. https://doi.org/10.1108/ijdi-05-2023-0127
Zhou, L., Hu, J., Liu, D., & He, M. (2023). Studying the role of fiscal policy to utilize natural resources development: Leads to sustainable development goals. Resources Policy, 84, 103651. https://doi.org/10.1016/j.resourpol.2023.103651
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Journal of Recycling Economy & Sustainability Policy
This work is licensed under a Creative Commons Attribution 4.0 International License.
