The Impact of Consumption, Saving and Investment in the Northeast on the National Income of Thailand

Abstract

This study aimed to study the real economic conditions of the Northeast, the agricultural, industrial and service sectors and  the effects of consumption, savings and investment in the Northeast on the National income The secondary data in time series category 2002 - 2013 was used to analyze the relationship between multiple variables by technique. Multiple Linear Regression was analyzed and the coefficient was estimated by the Ordinary Least Square (OLS) method.

The results of the study showed that consumption, saving and investment were related to national income. The independent variable was able to describe the dependent variable 99% (R2 = 0.99), which was statistically significant. Consumption and income were significantly correlated in the same direction as hypothesis one. With consumption increasing by 1%, income will increase by 1.220% as consumption is part of the component of national income. When the economic system has the consumption increase, it will also increase the national income. Money Savings and income correlate each other with no statistical significance which is not in accordance with hypothesis. Because money saving is an economic outflow If savings were increased by 1%, income was reduced by 0.293%. Study results are not in accordance with the second hypothesis. Investment and income were significantly in the same direction as the third hypothesis. One percent of increase in investment will bring about national income enhancement 0.464 percent.