We finally report the total trade of Thailand’s exports plus imports in Table IV. The
total tradewith CLMV,which lies belowthe gravity-model standard in the 1980s, exceeds
the standard in the 1990s and the 2000s.The intensity of trade integrationwithCLMVis in
the process of catching up with that with advanced ASEAN, but still behind its level. The
coefficient of dummy variables signifies that in the 2000s Thailand’s trade volume with
CLMV,which is 2.85 times (exp. (1.05) ¼ 2.85) greater than the gravity-model standard, is
less than that with advanced ASEAN shown by 4.17 times (exp. (1.43) ¼ 4.17) above
the standard. As for the trade with the other major partners, Japan and the USA keep the
above-standard level all through the periods, whereas China represents the
above-standard, but not so high level in the 2000s. Although we found the growing
trade share between Thailand and China in Table I, itmight reflect the growing economic
size of China for themost part. India, however, indicates negative trade integration though
the level is not significant.
3.2.3 Discussions. We now discuss the implications of the above-mentioned
outcomes of the gravity model estimation. One of the important findings is that the
trade integration of Thailand with the Mekong region has remarkably grown from the
1980s to the 2000s, as shown in the estimation results that Thailand’s trade with
CLMV, which lies below the gravity-model standard in the 1980s, exceeds the standard
in the 1990s and the 2000s, mainly reflecting the trend in Thailand’s exports. It might
reflect the steady progress of the GMS collaboration, which launched in 1992 and has
evolved in terms of facilitating the hard and soft infrastructure as the cross-border
projects with nine sectors and areas, as we stated in the introduction.
We finally report the total trade of Thailand’s exports plus imports in Table IV. Thetotal tradewith CLMV,which lies belowthe gravity-model standard in the 1980s, exceedsthe standard in the 1990s and the 2000s.The intensity of trade integrationwithCLMVis inthe process of catching up with that with advanced ASEAN, but still behind its level. Thecoefficient of dummy variables signifies that in the 2000s Thailand’s trade volume withCLMV,which is 2.85 times (exp. (1.05) ¼ 2.85) greater than the gravity-model standard, isless than that with advanced ASEAN shown by 4.17 times (exp. (1.43) ¼ 4.17) abovethe standard. As for the trade with the other major partners, Japan and the USA keep theabove-standard level all through the periods, whereas China represents theabove-standard, but not so high level in the 2000s. Although we found the growingtrade share between Thailand and China in Table I, itmight reflect the growing economicsize of China for themost part. India, however, indicates negative trade integration thoughthe level is not significant.3.2.3 Discussions. We now discuss the implications of the above-mentionedoutcomes of the gravity model estimation. One of the important findings is that thetrade integration of Thailand with the Mekong region has remarkably grown from the1980s to the 2000s, as shown in the estimation results that Thailand’s trade withCLMV, which lies below the gravity-model standard in the 1980s, exceeds the standardin the 1990s and the 2000s, mainly reflecting the trend in Thailand’s exports. It mightreflect the steady progress of the GMS collaboration, which launched in 1992 and hasevolved in terms of facilitating the hard and soft infrastructure as the cross-borderprojects with nine sectors and areas, as we stated in the introduction.
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