Assessing the access: the significance of internet penetration on economic output in Thailand

Abstract

The COVID-19 pandemic and the digitalization of industries have emphasized the importance of Internet access in Thailand. Thai households that could not access the Internet during the COVID-19 pandemic were left behind in both education and employment. The digital divide has never become any more apparent during this moment. As such it is important to study how the Internet penetration rate, the proportion of Internet users relative to the entire population, across Thai provinces affects their economic output through productivity. The effects of the rate of Internet penetration on the growth of Gross Provincial Product will be studied. Other factors that are considered in this study include the proportion of computer users, the proportion of mobile phone users, human capital, and the time-lag effects of Internet penetration. Observing 2019 data across 76 provinces and 1 special administrative region, a 1-point increase in the rate of Internet penetration in a Thai province causes its GPP per capita to increase by 3.1%.