Power of education in economic conflicts: how the Deep South differs from other southern provinces in Thailand?

Abstract

Three border provinces in southern Thailand commonly known as the Deep South have a long history of conflicts and insurgency. These chronic conflicts in the Deep South may forcibly hinder educational attainment and its effectiveness in the aggregate economy. This study aimed to analyze the comparative effects of education on the aggregate economy between the Deep South (a region with conflict) and other provinces of the South (a region of harmony) in Thailand. The Thai Labor Force Survey from 1995 to 2015, a large-scale national survey conducted by the National Statistical Office, and data from the Office of National Economic and Social Development Council (NESDC) of Thailand were used for the analysis. Employing a Random Effect Model and pooled regression, this study revealed that if average schooling increases by one percent, overall economic output will increase by 2.62%. However, the effects of educational attainment are significantly lower in the Deep South economy compared to other southern provinces. Therefore, this study provides an analysis of the comparative effects of schooling on the economy between areas of conflict and harmony because this issue has not been properly addressed in the existing literature.