This study aims at assessing the determinants of trade flows between
Thailand and three major trading partners. By and large, the evidence from this study
indicates that domestic and foreign real income, and real exchange rates seem to be
the prime determinants of Thailand's trade flows with the major trading partners. The
results from this study show that the generalized Marshall-Lerner condition seems to
hold in most cases. For example, a real depreciation improves exports but worsens
imports, and vice versa. Furthermore, the trade flows seem to follow the international
trade theory in general. Both domestic and foreign real income are crucial
determinants of bilateral exports and imports as predicted by the international trade
literature.