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Assessing Regional Economic Performance in the Southern Thailand Special Economic Zone Using a Vine-COPAR Model

Author

Listed:
  • Arisara Romyen

    (Faculty of Economics, Prince of Songkla University, Songkhla 90110, Thailand
    Faculty of Economics, Chiang Mai University, Chiang Mai 50200, Thailand)

  • Jianxu Liu

    (Faculty of Economics, Shandong University of Finance and Economics, Jinan 250000, China
    Puey Ungphakorn Center of Excellence in Econometrics, Faculty of Economics, Chiang Mai 50200, Thailand)

  • Songsak Sriboonchitta

    (Faculty of Economics, Chiang Mai University, Chiang Mai 50200, Thailand
    Puey Ungphakorn Center of Excellence in Econometrics, Faculty of Economics, Chiang Mai 50200, Thailand)

  • Parinya Cherdchom

    (Faculty of Economics, Prince of Songkla University, Songkhla 90110, Thailand)

  • Paratta Prommee

    (Faculty of Economics, Prince of Songkla University, Songkhla 90110, Thailand)

Abstract

Special economic zones (SEZ) can play an integral role in enhancing both regional and national economic growth. To explore the relationship between regional growth and the presence of an SEZ in Songkhla province, Thailand, the CD Vine–Copula AutoRegressive (CD-Vine COPAR) models were constructed using annual datasets of Songkhla’s economic performance from 1995 to 2016. The findings indicate that the D Vine-COPAR model produced better fitting predictions for the manufacturing sector, while the C Vine-COPAR models better fit for the agriculture and service sectors. A five-year forecast (2017–2021) was also created. For Vine-COPAR-based Granger causality, the Gross Provincial Production, Foreign Direct Investment and Border Trade are evidently important contributors to regional economic development. Consequently, the government should adopt comprehensive strategies to ensure comparative advantages for operating in the region based on favorable local factors.

Suggested Citation

  • Arisara Romyen & Jianxu Liu & Songsak Sriboonchitta & Parinya Cherdchom & Paratta Prommee, 2019. "Assessing Regional Economic Performance in the Southern Thailand Special Economic Zone Using a Vine-COPAR Model," Economies, MDPI, vol. 7(2), pages 1-10, April.
    • Handle: RePEc:gam:jecomi:v:7:y:2019:i:2:p:30-:d:219442
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    References listed on IDEAS

    as
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    Cited by:

    1. Lanzhuang Xu & Hu Xue & Qianrong Wu, 2022. "The Impact of Development Zones on Economic Growth in Less Developed Regions: Evidence from Guangxi, China," Land, MDPI, vol. 11(10), pages 1-20, September.

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