7.1. Formal Cross-border Trade
The following analyses primarily focus on formal cross-border trade between Thailand and neighboring countries using available time series data of 17 years from 1996–2012. Fostered by both geographical adjacency of structural differences and the above-mentioned contributing factors, coupled with advancement of information technology, particularly the Internet and mobile phones, local and regional cross-border trade has shown a rising trend. The cumulative cross-border trade value between Thailand and neighboring countries significantly reached 170.33 billion US$ with a share of 57.69% of total international trade value with neighboring countries. The cumulative share of cross-border export to these neighbors was as high at 59.16%. The cumulative share of cross-border import was at 40.84%, contributed by Malaysia (55.73%), Myanmar (35.92%), Lao PDR (6.89%), and Cambodia (1.44%). As a result, Thailand gained a significant cumulative balance of cross-border trade at 31.23 billion US$. The annual average growth of cross-border trade from 1996–2001 was 16.98% despite the fact that Thailand had faced severe financial crisis during 1998–2001. During enforcement of AFTA from 2002–2012, it significantly kept increasing to 24.28% per year (Table 1). Above all, when the specified AFTA tariffs became 0% in 2010, its annual cross-border trade growth considerably increased to 32.08% compared with 2009. This growth could partly sustain national macroeconomic stability. With the increasing trend of international trade of Thailand, the intra-ASEAN trade and cross-border trade are also gradually rising though the proportion of their share is low. Cross-border trade during 2008–2012 reached a significant level sharing an average of 30.97% to intra-ASEAN trade reflecting the convergent effects of bilateral and regional trade agreements and regional trade facilitation initiatives. Similarly, the share of cross-border trade to Thailand’s aggregate international trade with the world significantly rose from 1.02% in 1996 to 6.48% in 2011 or the equivalent of 8.53% of Gross Domestic Product. Cross-border trade growth may somehow contribute to regional development as both urban and rural people including the poor along border regions between Thailand and neighboring countries can also benefit from trade, as well as accessing a variety of products. This will result in better quality of life. However, cross-border traded goods are mainly produced in Bangkok, the national capital city, and its vicinity like the eastern region and regional growth centers. At present, Thai border cities and towns play a distribution role.
7.1. อย่างเป็นทางการค้าข้ามแดนThe following analyses primarily focus on formal cross-border trade between Thailand and neighboring countries using available time series data of 17 years from 1996–2012. Fostered by both geographical adjacency of structural differences and the above-mentioned contributing factors, coupled with advancement of information technology, particularly the Internet and mobile phones, local and regional cross-border trade has shown a rising trend. The cumulative cross-border trade value between Thailand and neighboring countries significantly reached 170.33 billion US$ with a share of 57.69% of total international trade value with neighboring countries. The cumulative share of cross-border export to these neighbors was as high at 59.16%. The cumulative share of cross-border import was at 40.84%, contributed by Malaysia (55.73%), Myanmar (35.92%), Lao PDR (6.89%), and Cambodia (1.44%). As a result, Thailand gained a significant cumulative balance of cross-border trade at 31.23 billion US$. The annual average growth of cross-border trade from 1996–2001 was 16.98% despite the fact that Thailand had faced severe financial crisis during 1998–2001. During enforcement of AFTA from 2002–2012, it significantly kept increasing to 24.28% per year (Table 1). Above all, when the specified AFTA tariffs became 0% in 2010, its annual cross-border trade growth considerably increased to 32.08% compared with 2009. This growth could partly sustain national macroeconomic stability. With the increasing trend of international trade of Thailand, the intra-ASEAN trade and cross-border trade are also gradually rising though the proportion of their share is low. Cross-border trade during 2008–2012 reached a significant level sharing an average of 30.97% to intra-ASEAN trade reflecting the convergent effects of bilateral and regional trade agreements and regional trade facilitation initiatives. Similarly, the share of cross-border trade to Thailand’s aggregate international trade with the world significantly rose from 1.02% in 1996 to 6.48% in 2011 or the equivalent of 8.53% of Gross Domestic Product. Cross-border trade growth may somehow contribute to regional development as both urban and rural people including the poor along border regions between Thailand and neighboring countries can also benefit from trade, as well as accessing a variety of products. This will result in better quality of life. However, cross-border traded goods are mainly produced in Bangkok, the national capital city, and its vicinity like the eastern region and regional growth centers. At present, Thai border cities and towns play a distribution role.
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