Sufficiency Economy Matrix multiplier analysis and optimization: The case of Mukdahan, Thailand

This paper has used Sufficiency Economy Matrix multiplier and optimization analyses to estimate the impacts of the East West Economic Corridor on economic growth, poverty reduction and the implementation of the sufficiency economy philosophy in Mukdahan province, Thailand. We employed both the standard multiplier model and linear programming optimizations to explore provincial plans increasingly constrained by resources, environmental and social planning objectives. The results reveal that the optimized SAM, ESAM and SEM lead to significantly different plans for economic development and poverty reduction in Mukdahan province. The EWEC and tourism exert high and widespread multiplier effects on marketing, communication, and financial services in Mukdahan, while charitable donations and direct transfers to poor households constitute the most effective sufficiency economy social strategy. Road construction, wats, and employment creation in border tourism should optimally receive increased aggregate investment; while government programs should be substantially reduced. The results give further support to the importance of studying and applying the King’s Sufficiency Economy at the provincial and national level in Thailand and around the world.