Exchange rate regimes, capital account opening and real exchange rates: evidence from Thailand

This paper examines the roles of pegged exchange rate regime and capital account opening inducing persistent RER appreciation in the lead-up to the 1997 currency crisis in Thailand. The three-sector (primary, manufacturing, and nontradable) economy-wide model is constructed and policy simulation experiments are undertaken. Key findings are imposing capital control under a pegged exchange rate regime would have averted the persistent internal RER appreciation and boom in nontradable sector. However, it would not have averted persistent external RER appreciation. Exports and output would have eventually declined because of the capital shortage. A freely floating regime only with a high developmental level of foreign exchange and financial markets would have been able to avert both persistent internal and external RERs appreciation. The export and output would have eventually increased. However, this regime would have generated fluctuations in domestic prices and output. The managed floating regime (combined with inflation targeting) would have helped reduce such adverse effects while retaining the benefit from exchange rate flexibility. In a context where the foreign exchange and financial markets are not well developed, capital control measures could be beneficial to ensure smooth functioning of a managed floating regime

The trade effect of non-tariff measures in a high-quality trade agreement

The aim of this study is to quantify the trade effects of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which is considered to be a high-quality trade agreeme nt. To this end, we estimate the gravity equation for worldwide trade and introduce applied tariffs i nto this equation to differentiate between the trade effects of tariff reduction and non-tariff measur e (NTM) changes. Our gravity equation results indicate that the trade effect of NTM changes under t he CPTPP is insignificant on average and negative for most products. We also estimate the gravity equatio n for foreign direct investment (FDI) and find some evidence that the CPTPP increased FDI by a statistic ally significant amount. Thus, the NTM changes in the CPTPP may increase FDI, rather than trade, a mong member countries

The determinants of remanufacturing practices in developing countries : evidence from Thai industries

Remanufacturing represents a significant End-of-Life (EoL) process for gaining environmental and economic advantages by extending product longevity, whilst reducing raw material consumption. Due to paucity of relevant empirical studies, this study aims to bridge the gap in remanufacturing knowledge by investigating the significant factors influencing firms' decisions to conduct remanufacturing in three Thai industries, namely automotive parts, photocopiers and agricultural machinery. This research combined qualitative and quantitative approaches involving the use of semi-structured interviews and questionnaires. Our results show that across all three industries, the most powerful determinant driving the decision making of firms constitute factors within the area of business feasibility, followed by elements in a firm's strategic factors and policy factors. Environmental regulations comprise the least important variable. Among the subordinate factors, financial aspects are ranked as the most crucial factor for conducting remanufacturing and acquiring cores matters for remanufacturing firms to increase their profit margins. All industries perceive product maturity, especially in terms of product lifespan, technological change and complexity, as the second most crucial factor in remanufacturing. As the industries under consideration are labor-intensive, skilled workers are needed and this is ranked as the third most influential factor to expedite remanufacturing. The firm's characteristics and the structure of particular industries are important in identifying the impact of influencing factors. A comprehensive development of policies and strategies and robust governmental support are needed to develop remanufacturing in Thailand

Factors influencing a firm's decision to conduct remanufacturing : evidence from the Thai automotive parts industry

This paper aims to investigate the key factors influencing the decision making process of firms in conducting remanufacturing activities, using the Thai automotive parts as a case study. Our results show that on average, business feasibility is the most influential determinant driving the decision making of firms, followed by areas of the firm's strategic factors, and policy factors. In terms of individual factors, product maturity is ranked first as the most important factor for a firm to engage in remanufacturing activities, followed by financial aspects, availability of skilled workers and technical aspects. Policies related to trade, intellectual property rights and the environment are identified as the least crucial factors in affecting the decision of firms. Characteristics of firms and products matter in ranking the factors influencing a firm's decision to conduct remanufacturing

Trade protection and productivity differentials between multinationals and local firms in Vietnamese manufacturing

This paper investigates the how effective protection and firm ownership affected firm productivity in Vietnam during 2005-2010. In labour-intensive industries and industries with intermediate labour intensity, the level of effective protection in an industry had a significantly negative effect on firm productivity. Multinational enterprise (MNE) joint ventures (JVs) and state-owned enterprises (SOEs) had consistently higher productivity than private firms, with productivity usually being highest in JVs. Wholly-foreign MNEs (WOs) also had significantly higher productivity than private firms in 2005-2007, but lower productivity than JVs or SOEs, and in 2008-2010, WO-private differentials were insignificant. In capital-intensive industries, the pattern of productivity differentials (highest in JVs, followed by SOEs, WOs, and private firms) was similar in the earlier period, but not in the latter period or when all years were included in the sample. The level of effective protection also did not have a significant, independent effect on firm productivity in capital-intensive industries

Global financial crisis and southeast Asian trade performance: Empirical evidence

© 2018 The Applied Regional Science Conference (ARSC) and John Wiley & Sons Australia, Ltd. The literature on the recent Global Financial Crisis (GFC) focuses on the decimation of Western economies; however, the impact of the crisis on Asian economies has remained largely unexplored. Using the classic dependency approach of the "core-periphery" framework, this paper investigates the trade performance of Association of South East Asian Nation (ASEAN) members during (2008-2009) and after (2010-2012) the GFC and analyses the transmission of shocks to these countries from the Western core. A modified gravity model of trade flows is estimated for a panel of five leading ASEAN economies and their trading partners for the period 2002-2012. The empirical results show a decline in ASEAN trade during the financial crisis that becomes stronger during the post-crisis period. The decline in trade exceeds that associated with changing gross domestic product at home and abroad, suggesting the crisis and its aftermath have been particularly disadvantageous for ASEAN trade

Do countries belonging to the same region suggest the same growth enhancing variables? Evidence from selected South Asian countries

We investigate the growth enhancing variables in a group of countries belonging to the same geographical area namely, India, Sri Lanka, Pakistan and Bangladesh over the period 1960-2010. We find that this homogeneity does not necessarily imply that countries have the same growth enhancing variables due mainly to differences in institutions and policies. Our result suggests that time-series econometrics are preferable to identify the growth drivers for a country accurately