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Factor adjustment implications of a free trade agreement between the United States and Thailand

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  • Clark, Don P.
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    Abstract

    Changes in intra-industry specialization indicators are used to assess factor adjustment pressures that may be experienced by U.S. and Thai industries from a proposed U.S.-Thailand Free Trade Agreement (FTA). Many industries experienced large increases in intra-industry trade over the 2000-2008 period. Ten U.S. industries are found to be candidates for factor adjustment pressures based on past experiences. These industries account for 38% of all U.S. imports from Thailand and 4% of imports from all trading partners. Results also show that nine Thai industries face possible adjustment pressures. These industries account for 9% of Thai imports from the United States. An FTA should result in a larger increase in U.S. exports to Thailand than U.S. imports from Thailand because Thai exporters face much lower tariffs in the U.S. market than do U.S. exporters in the Thai market.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Asian Economics.

    Volume (Year): 22 (2011)
    Issue (Month): 3 (June)
    Pages: 213-221

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    Handle: RePEc:eee:asieco:v:22:y:2011:i:3:p:213-221

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    Web page: http://www.elsevier.com/locate/asieco

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    Keywords: Intra-industry specialization Factor adjustment pressures Free trade agreement;

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    1. Don Clark, 2009. "Intraindustry Specialization and the Proposed Korea-United States Free Trade Agreement," International Economic Journal, Taylor & Francis Journals, vol. 23(2), pages 181-195.
    2. Abdul Azhar & Robert Elliott & Chris Milner, 1998. "Static and dynamic measurement of intra-industry trade and adjustment: A geometric reappraisal," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 134(3), pages 404-422, September.
    3. Sawyer, William C. & Sprinkle, Richard L. & Tochkov, Kiril, 2010. "Patterns and determinants of intra-industry trade in Asia," Journal of Asian Economics, Elsevier, vol. 21(5), pages 485-493, October.
    4. Xing, Yuqing, 2007. "Foreign direct investment and China's bilateral intra-industry trade with Japan and the US," Journal of Asian Economics, Elsevier, vol. 18(4), pages 685-700, August.
    5. Michael Thorpe & Zhaoyang Zhang, 2005. "Study of the Measurement and Determinants of Intra-industry Trade in East Asia ," Asian Economic Journal, East Asian Economic Association, vol. 19(2), pages 231-247, 06.
    6. Clark Don P., 2010. "Intra-Industry Specialization in United States-Mexico Trade," Global Economy Journal, De Gruyter, vol. 10(2), pages 1-18, May.
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