Factor Analysis of Sustainable Livelihood Potential Development for Poverty Alleviation Using Structural Equation Modeling

The United Nations’ Sustainable Development Goals (SDGs) focus on reducing inequality while promoting economic growth, environmental protection, and access to critical services. The latest Multidimensional Poverty Index report shows that Thailand’s Multidimensional Poverty Index has decreased. This study analyzes factors that significantly affect the increase in sustainable livelihood potential development based on 37 indicators determined from a relevant questionnaire. The sample size was 17,536 households from 3612 villages and 193 districts, covering 20 provinces of Thailand, which is a region with a low Human Achievement Index (HAI). The data are analyzed and processed using structural equation modeling (SEM) statistical methods in order to confirm the factor structure and indicate the appropriateness of the empirical data according to the required criteria. It is found that sustainable living potential development includes 5 dimensions based on 37 indicators in Thailand, with natural capital being the most important, followed by human capital, financial capital, social capital, and physical capital. This research is expected to help community leaders or local agencies to prioritize projects or activities that improve the quality of life of people in each locality, including evaluating policies and various interventions, thus enabling the explanation of phenomena and statistical measurements.