By: Kendall Brannen, Westminster College, B.S. Economics, May 1, 2013
My interests while studying Economics at Westminster has been economic wellbeing of communities and what it takes for those communities to be sustainable and self-serving. When I was initially thinking about this assignment I wanted to look at the macroeconomic situation that is specific to Thailand. In this paper I will look at the descriptive statistics that surround the macro-economy and attempt to extrapolate more of the story that lay within each statistic/variable. As you can imagine there are a lot of factors that surround each observation, which for this observation paper I will simplify assumptions and take a high level approach.
I began researching to understand the economic conditions within Thailand and how it compares to the world economy with general descriptive statistics of the major economic indicators used globally. Thailand’s Gini Coefficient, a measure of income equality distribution, ranked 14th highest among 140 countries. That number rose between 2002 and 2009 from 42 to 53.6. From this observation Thailand is becoming increasingly more unequal in its income distributions. There is direct correlation between income distributions and poverty, when the lower quintiles have a larger percentage of the population within it, the income disparity widens and because of this the gini coefficient is a great indicator of a country’s poverty level. Below is a simple graph to help explain the concept of equal income distribution. It assumes a one to one slope for income to population as a fair measure.