The Determinant of Thailand Export Demand by Industries
Keywords:
Error Correction Model, Export Demand, ThailandAbstract
The purpose of this paper is to investigate the determinant of Thailand export demand with quarterly data for the period 1997 through 2011. This paper included price and income variables to estimate error correction model. In addition, these models are tested to satisfy the econometric issues such as stationarity and serial correlation. The export demand functions are estimated for 3 main industries which included: Automotive and Parts, Garment and Textile, and Gem and Jewelry. The results of this paper indicate that price elasticity for automotive and parts industry,
and gem and jewelry industry has corrected sign and valued greater than 1 in absolute term. Garment and textile industry has unit price elasticity. Income elasticity for automotive and parts, and garment and textile industry have a large number with positive sign. Even though, income elasticity for gem and jewelry has correct positive sign but is not significantly different from zero. The results of this paper conclude that
devaluation, price competition, and export-led growth are an effective policy for improving Thailand export performance.
