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Thailand's Economic Integration with Neighboring Countries and Possible Connectivity with South Asia

Author

Listed:
  • Chirathivat, Suthiphand

    (Asian Development Bank Institute)

  • Cheewatrakoolpong, Kornkarun

    (Asian Development Bank Institute)

Abstract

Thailand's increasing importance as a regional co-production base and as an intra-regional trade and border trade hub is due mainly to recent changes in its economic structure, namely, the lack of operational workers, rises in wages, and increases in outward foreign direct investment (FDI), together with a change of regional policies in Southeast Asia. As a result, improvements in physical connectivity, trade facilitation, energy cooperation, and financing infrastructure play an important role within an ongoing Association of Southeast Asian Nations (ASEAN) framework. Extending connectivity to South Asia could also complement the current promotion of regional trade and regional production networks. This paper reviews the current stages of Thailand's intra-regional trade, physical connectivity, trade facilitation, energy cooperation, and infrastructure funding as there are projects planned in these areas that could impact Thailand and its links to Southeast Asia and beyond to South Asia. However, Thailand's political instability impedes the progress and implementation of such projects. The paper also examines the current financing mechanism of Thailand's infrastructure projects that relies heavily on public spending. The authors propose strategies to promote Thailand's physical infrastructure, trade facilitation, and energy cooperation with the mainland countries of Southeast Asia and South Asia.

Suggested Citation

  • Chirathivat, Suthiphand & Cheewatrakoolpong, Kornkarun, 2015. "Thailand's Economic Integration with Neighboring Countries and Possible Connectivity with South Asia," ADBI Working Papers 520, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0520
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    References listed on IDEAS

    as
    1. Kornkarun Cheewatrakoolpong & Somprawin Manprasert, 2012. "Trade concentration and crisis spillover: Case study of transmission of the supprime crisis to Thailand," Working Papers 11212, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
    2. Biswa Nath Bhattacharyay & Masahiro Kawai & Rajat M. Nag (ed.), 2012. "Infrastructure for Asian Connectivity," Books, Edward Elgar Publishing, number 14819.
    3. Kornkarun Cheewatrakoolpong, 2009. "Towards a better understanding of the political economy of regional integration in the GMS: Stakeholder coordination and consultation for subregional trade facilitation in Thailand," Working Papers 7209, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
    4. Yu Sheng & Xunpeng Shi, . "Energy Market Integration and Economic Convergence: Implications for East Asia," Chapters,, Economic Research Institute for ASEAN and East Asia (ERIA).
    5. Yu Sheng & Xunpeng Shi, . "Economic Development, Energy Market Integration and Energy Demand: Implication for East Asia," Chapters, in: Yanrui Wu & Xunpeng Shi & Fukunari Kimura (ed.), Energy Market Integration in East Asia: Theories, Electricity Sector and Subsidies, chapter 2, pages 11-35, Economic Research Institute for ASEAN and East Asia (ERIA).
    6. Kojima, Kiyoshi, 1973. "A Macroeconomic Approach to Foreign Direct Investment," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 14(1), pages 1-21, June.
    7. Navarro, Adoracion M. & Sambodo, Maxensius Tri & Todoc, Jessie L., 2013. "Energy Market Integration and Energy Poverty in ASEAN," Discussion Papers DP 2013-50, Philippine Institute for Development Studies.
    8. Jansen, Karel, 1995. "The macroeconomic effects of direct foreign investment: The case of Thailand," World Development, Elsevier, vol. 23(2), pages 193-210, February.
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    Cited by:

    1. Lamthai Asanok & Torlarp Kamyo & Monthon Norsaengsri & Teeka Yotapakdee & Suwit Navakam, 2021. "Assessment of the Diversity of Large Tree Species in Rapidly Urbanizing Areas along the Chao Phraya River Rim, Central Thailand," Sustainability, MDPI, vol. 13(18), pages 1-13, September.
    2. Wladimir Andreff, 2017. "New-Wave Emerging Multinational Companies: The Determinants of Their Outward Foreign Direct Investment," Post-Print hal-03231804, HAL.
    3. Wladimir Andreff, 2017. "New-Wave Emerging Multinational Companies: The Determinants of Their Outward Foreign Direct Investment," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-03231804, HAL.

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    More about this item

    Keywords

    thailand; infrastructure; infrastructure financing; project finance; public-private partnerships;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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