The paper uses the dataset on annual value and volume of Thailand’s exports to its top 35 destination markets for roughly 6,290 6-digit Harmonized System (HS) products for the years 1992-2013. The 6-digit HS level product code is used because it is considered to be the most suitable available level of disaggregation that allows for comparison across different countries (Bown and Crowley 2006). The export data is obtained from the UN Commodity Trade Statistics Database (UN COMTRADE). The list of Thailand’s major export markets used in this study is presented in table 2. The export data is further reformatted to match with the product-level information on effectively applied tariff rate including estimated Ad Valorem Equivalents (AVE). …show more content…
The main interest of this paper is identifying trade deflection, an increase in Thailand’s exports to other country i when facing a trade restriction imposed by Thailand’s trade partner; and identifying trade depression, a decline in Thailand’s exports to the third market when that country is targeted by trade restriction from another country.
To investigate the question identified by the theoretical model, a standard gravity model equation can be written as follows: xciht = aih + aht + ait + act + ∑_(j=t-2)^t▒〖β '〗_(1j〖 τ〗_(c,usahj)^USA ) + ∑_(j=t-2)^t▒〖β '〗_(2j〖 τ〗_(c,eunhj)^EUN ) + ∑_(j=t-2)^t▒〖β '〗_(3j〖 τ〗_(c,aushj)^AUS ) + ∑_(j=t-2)^t▒〖β '〗_(4j〖 τ〗_(c,indhj)^IND ) + ∑_(j=t-2)^t▒〖β '〗_(5j〖 τ〗_(i,usahj)^USA ) + ∑_(j=t-2)^t▒〖β '〗_(6j〖 τ〗_(i,eunhj)^EUN ) + ∑_(j=t-2)^t▒〖β '〗_(7j〖 τ〗_(i,indhj)^IND ) + ∑_(j=t-2)^t▒〖β '〗_(8j〖 τ〗_(c,ihj)^i ) + εciht , (1) where i denotes an importing country, h denotes a 6-digit HS product, and t denotes time in years. The dependent variable is Thailand’s export to country i of a 6-digit HS product h in year t. aih is country-product dummies to control for country i’s time-invariant effect to all import good h (e.g. distance, transportation costs, culture). For instance, distance affect the trade flow of goods between countries and may affect the chance of a country being targeted for
9. Refer to the model and estimates in the previous question. Ceteris paribus, according to these
One of the major advantages of trading is that it allows producers to concentrate or specialize their work in the type of goods they produce best. When people decide to specialized in a specific profession an become doctors, farmers, teachers, or any other profession within an economy, they will be able to produce goods and offers different services that can be trade for any goods or services they may need. In this same way countries can become specialized in the production of specify products and/or services and trade those with other countries. However, trading and importing products and services from other countries also has its disadvantages. As a result of the different products imported governments impose certain restrictions and limitations to protect the domestic production and market of every country involve in any kind of trading transactions. Governments have imposed taxes on trading transactions adding them to the cost of importation, and have the purpose of restricting and/or limiting the imports of goods and services into a country. These government
A country’s imports only partially measure the market potential for a product. A product might be imported with the intention to sell at stores like Target Stores, but because of various reasons, the product may not have done well in those markets and ended up in liquidation and sold at a Dollar Store. Reasons such as poor marketing efforts, lack of foreign exchange may have made it difficult to initiate a roll-out of the product, the expense of transportation of the product as well as duties and the inevitable markups that imports incur (304).
Argentina is one of the top vegetable oil producers in the world-due to low domestic consumption and high productivity- with Chile as a main buyer. After a tariff reclassification in 1999, the Chilean price band system (PBS) resulted in higher customs duties of up to 64.41%, thus violating the limit set at 31.5%. As a result, this issue was submitted to the WTO .
Emerging economies like China, India and Thailand are rapidly expanding their vehicle and automotive component production. At the same time, these and other emerging economies, apply various tariff and non-tariff barriers which serve as a hindrance on
There is no doubt that increasing in international trade is supporting the economic growth across the world, raising incomes and creating jobs. However, international trade can also some create economic obstacles, such as the international context and the market policy and regulations of each country, and consequently it can be said that the effects would have positive and negative sides, and it is useful to mention all of them and to take them into consideration.
3.) A regression of exports as a function of imports in 1991 across industry types yielded
This is a look into the effects of varying horizontal G-Forces that are exposed to us and the amount or limit a human can tolerate of the horizontal G-Forces. Charts and graphs that will represent the data will lend to a more authentic and concrete conclusion. To demonstrate growth and unknown variables, an equation will be crafted. Such variables will be labeled and shown on the visual representations. To aide in the analysis of the information, calculations will be done with a graphing calculator as well as open-source software available here: HYPERLINK "http://my.hrw.com/math06_07/nsmedia/tools/Graph_Calculator/graphCalc.html"http://my.hrw.com/math06_07/nsmedia/tools/Graph_Calculator/graphCalc.html.
In this I am going to assess the methods to increase trade between countries and the methods to restrict trade between countries. When asses the methods of encouraging and restricting trade I will talk about the purpose for the methods of promoting and restricting international trade, identify how and why they might be used and I will decide how useful each method is giving appropriate reasons for it. International trade is the exchange of goods and services between countries.
1) The scope of any economy is that of creating a balance between its exports and imports, or exporting more than importing, in order to generate national gains and revenues. Within the United States however, it has often happened that the totality of the imports exceeded the totality of the exports. The result of
The global financial crisis has affected severely on Vietnamese exports. After joining the WTO, Vietnam’s trade has become depend on global
We experimentally determined the local gravitational constant using Kater’s Pendulum to provide the authors with experience in data analysis. In this manuscript, we rigorously derive the relevant equations from first principles with the appropriate expressions for the experimental uncertainty. We found that by assuming the periods were equal we were able to determine that g was 9.7993 ± 0.0010 m/s2 which was 0.0653 % from the known value. If we took into account the period difference, we found that g was 9.7982 ± 0.0083 m/s2 which is 0.0552 %. Both methods gave us results well within our
This study was conducted to (a) determine which market is the most dynamic for Thai exports, (b) measure the intensity of trade between Thailand and its regional trading partners and (c) test whether the modified Revealed Comparative Advantage (RCA) index, which was developed based on the gravity trade model, is applicable for measuring Thailand’s competitiveness resulting from its border trade policy. The RCA index is typically applied based on three conceptual points. First, the trade balance index (TBI) can be used to indicate whether GMS countries are net exporters or importers. Second, the trade balance is typically decomposed by product and country (i.e., bilateral trade balance). Relevance refers to the degree of concentration of trade imbalances
Some of the countries with surplus commodities may dumb them on international markets at a low price. Under such conditions, some of the efficient industries can might find difficulties in competing for long period. Furthermore, countries whose economies are mostly rural will face unfavourable terms of trade. For example, ration of export prices to import prices. Which means that their export income is more smaller than their import payments the make for high value added imports, as it leads to subsequently large foreign debt levels.
The regression results of a study on the determinants of the Kenyan exports by Orindi (2010) indicated that explanatory variables namely, the importer’s GDP and population provided most of the explanatory power in the regression. The coefficients of these variables had positive signs consistent with the theoretical expectations. The positive coefficient for the importer’s GDP is due to the fact that as income levels of the importing country increases, so does the country’s demand for imports. The Kenya’s GDP and population were found to be insignificant in the model and hence the two variables were dropped out of the regression model. The distance variable was found to be significant at 5% and had negative sign as was expected. In this study, the distance had been factored in as the proxy for the transportation costs. The distance in this case had inverse relationship with exports. This implied that the further away from the Nairobi the importing country is located the higher the transportation costs. High transportation costs have negative effects on the exports. However the author did not take into consideration of the fact that there are countries which are nearer to Kenya and yet exports to these countries from Kenya are less than countries that are far away from Kenya. This implies that the level of trade between countries that have close proximity will be influenced by other factors such as; income, trade agreements, and similar