Asian Affairs: An American Review, 42:1–21, 2015CopyrightC2015 Taylor & Francis Group, LLCISSN: 0092-7678 print / 1940-1590 onlineDOI: 10.1080/00927678.2015.999515Disequalizing Equalization Grant:An Assessment of the RelationshipBetween Equalization Grant and LocalFiscal Capacity in Northeast ThailandTATCHALERMSUDHIPONGPRACHAACHAKORNWONGPREDEEAbstract:This paper examines the extent to which Thailand’s current general orequalization grant program has helped reduce local fiscal disparity. Theoretically,the general grant transfers ought to be inversely related to local revenue-generatingcapacity. However, based on the 2010–2012 local government financial data fromKhon Kaen province, this paper finds that local jurisdictions with high fiscalcapacity and income per capita tend to receive more equalization grant per capitathan the fiscally and economically disadvantaged localities. Descriptive statistics,the Gini coefficients, and fixed-effects econometric model are used to examine therelationship between general grant transfers and local fiscal capacity.