Effect of Fiscal Policy on Human Capital in Thailand
Purpose: The purpose of this study aims to examine the composition effect of fiscal policy variables, labor effectiveness, Thailand’s innovation, public debt, and personal income on human capital. Design/Methodology/Approach: To achieve this purpose, regression models are used, with time series data, employed form 1985 to 2019. The simple model was employed to investigate the effect of fiscal policy and personal income toward both long-run and short-run human capital. Findings: The results found that in the long run after changing fiscal policy, labor effectiveness, Thailand’s innovation, and personal income are positive coefficient and significant for human capital while public debt has a negative coefficient and is significant for human capital in Thailand. Only public debt and personal income are short run significant of human capital accumulation. Practical Implication: Based on the finding of this study, it recommended that appropriate fiscal policy is still worthwhile and fiscal policy authorities must use an effective framework to build the education system in order to improve human capital in Thailand. Originality/Value: Because of this finding, indicating how the effective roles both policy maker and lecturer in university including education pattern should be shaped and reformed. This finding will be the track to enhance labor performance in the long-term human capital and all part of involvement will be aware the future developing target of country in order to ultimately obtain the highest successful not only in Thailand’s labor bot also throughout the world particularly in developing countries..