Modeling the Factors of Economic Growth of the Provinces of Thailand

The article examines the relationship between socio-economic factors and the dynamics of economic development in Thailand’s provinces within the context of sustainable development and pronounced territorial heterogeneity. The aim of the study is to assess the factors of provincial economic development using econometric modeling methods. The analysis covers 77 provinces of Thailand, studied on the basis of panel data for the period 2013−2022. The methodology involves the application of fixed and random effects models, logarithm of variables and Hausman, Breusch-Pagan and Pesaran tests to evaluate model quality. The modeling results revealed statistically significant relationships: population size and the level of industrial investment per employee are negatively related to net provincial product per capita. The negative contribution of these factors indicated the need to reconsider their role and apply spatial analysis to account for regional differentiation and interprovincial interactions. The importance of time-fixed effects allows for consideration of the impact of macroeconomic and political events, including the 2014 coup d'état, the COVID-19 pandemic and structural reforms. The developed model confirms the necessity of a targeted approach to the formation of state policy and regional planning strategies. The findings can be used to develop mechanisms for stimulating sustainable development and improving the efficiency of territorial governance. The study fills a gap in empirical research and can serve as a foundation for further scientific and applied developments.