This study utilizes information gathered from satellites and economic sources spanning two decades (2000–2020) to estimate the effect of income shocks from industrialization on urbanization at the provincial level in Thailand. To measure urbanization, the study relies on the observable increase in urban land area as seen from space, serving as a proxy for the country's urban growth. Four regression models—fixed-effects, spatial autoregressive, spatial error model, and dynamic panel—are employed to assess the short-term impact of income shock on urbanization. The results suggested that increased productivity from industrialization positively affected urbanization in Thailand. This study also revealed that natural factors such as water accessibility and rainfall played a role in driving city expansion. A higher proportion of educated workers was found to strongly influence urban growth. Moreover, the expansion of urban land in one province spurred land growth in neighboring areas, demonstrating the spatial spillover effect of urban land expansion throughout Thailand.
Prasertsoong et al. (Tue,) studied this question.