What is the impact of colonial threat on a state’s development path? This
paper analyzes the influence of colonial pressure on Thailand (formerly
Siam)’s internal political reform. Unlike other countries in the region,
Thailand remained independent by adopting geographical administrative
boundaries and incorporating traditional governance structures into a
centralized governance system. This paper shows that the centralization
process had long-run impacts on provincial economic development in
Thailand. Results indicate that the timing in which provinces were
incorporated into the new centralized governance system over a century ago
can explain levels of public goods provision and subsequent economic
development today