Influential Factors on Border Trade Value between Thailand and Neighboring Countries ( Myanmar, Laos, Cambodia, and Malaysia)
Keywords:
Trade, Border Trade, Export, Import, Neighboring CountriesAbstract
The value of Thailand’s border trade tends to grow every year. Border trade refers to developing good relationships through economic, social, and security cooperation with neighboring countries (Myanmar, Laos, Cambodia, and Malaysia). Many studies of border trade have focused on a specific area/neighboring country. Some work has been carried out to investigate how economic community, consumer purchasing behavior, and promotion policy affect the strategic plan for border trade, border trade promotion, and export development. Previous works have not comprehensively examined factors affecting total border trade value, border trade export value, and border trade import value. Therefore, the objectives of the study are to identify factors affecting Thailand’s total border trade value, border trade export value, and border trade import value. The method used to investigate factors affecting border trade value is multiple regression and ordinary least square (OLS). Data were collected from the National Statistical Office, the Department of Foreign Trade, and the Thailand Board of Investment from 2009 to 2021. The multiple regression and ordinary least square (OLS) were applied to test the model. The results revealed the growing population of border provinces and the increasing number of border provinces affecting Thailand’s total border trade value of 4.724 and 0.131, respectively. The results show that border trade export value is related to the growing population of border provinces and the increasing number of border provinces within 4.752 and 1.305, respectively. Furthermore, these findings support the growth of the population of border provinces, consisting of consumers and labors, and the importance of border province numbers that are essential border trade gateways affecting border trade import value within 5.092 and 1.843, respectively. The result of the study could provide a better understanding of the factors that affect the value of Thailand’s border trade.
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