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Trade integration of Thailand with Mekong region

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  • Taguchi, Hiroyuki

Abstract

The purpose of this paper is to examine the extent of the trade integration of Thailand with the Mekong region in comparison with its trade integration with the other major partners (advanced ASEAN, China, India, Japan, and the United States). The study adopts the gravity trade model as an analytical framework, for the period from the 1980s through the 2000s. It is found that Thailand’s trade integration with the Mekong region has remarkably grown from the 1980s to the 2000s, in the sense that Thailand’s total trade with the Mekong region, which lies below the gravity-model standard in the 1980s, exceeds the standard in the 1990s and the 2000s. However, it is also found that the intensity of Thailand’s trade integration with the Mekong region is still behind that with advanced ASEAN even in the 2000s. It might come from the higher service-link costs that prevent the Mekong region from being fully involved in international production network. The paper may be valuable to the policy makers and researchers in the Mekong region, since it contributes to reviewing the two-decade progress of the regional cooperation of the Greater Mekong Sub-region from such quantitative perspectives as trade integration.

Suggested Citation

  • Taguchi, Hiroyuki, 2013. "Trade integration of Thailand with Mekong region," MPRA Paper 81807, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:81807
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    References listed on IDEAS

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    Cited by:

    1. Nnanna P. Azu & Benedette Nneka Okezie & Amatus Hirwa, 2019. "Gravity Perspective of Trade Realignment: Assessing China’s Engagement in West Africa," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 11(3), pages 165-182, September.
    2. Gustavo Rodríguez & Jorge Dávalos, 2017. "El Potencial de Comercio del Acuerdo Trans-Pacífico para el Perú, un enfoque Gravitacional (The Trans-Pacific Partnership Agreement (TPP) Trade Potential for Peru, a Gravity Model Approach)," Revista Internacional de Gestión del Conocimiento y la Tecnología (GECONTEC), Revista Internacional de Gestión del Conocimiento y la Tecnología (GECONTEC), vol. 5(2), pages 93-107, December.
    3. Lien Thi Dinh, 2017. "Evaluation of the Trade Relationship between Vietnam and China; Vietnam and United States: A Comparison Using Gravity Model," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 5(2), pages 141-154.

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    More about this item

    Keywords

    Thailand; Mekong region; ASEAN; trade integration; gravity trade model;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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