Thailand's openness and implications for economic and trade policy : an econometric study

Thailand is currently enhancing and promoting intensive trade and investment liberalisation, and has implemented a long-term growth policy in accordance with current regional economic integration, World Trade Organisation obligations and globalisation. Nevertheless, several recent internal and external factors such as the severe acute respiratory syndrome (SARS) and avian flu outbreaks, the Indian Ocean tsunami devastation, the Asian financial crisis and domestic economic policy reforms and political instability as well as military coups have affected the efficiency and success of this policy. While these issues have been important for Thailand and developing countries in Asia, only limited quantitative or evidence-based research has been undertaken to investigate them. Consequently, it has been very interesting to undertake modelling and policy-based research on this subject. Therefore, this study aims to develop an appropriate econometric model for Thailand to study the impact of openness on the country’s trade and growth to provide plausible policy implications and recommendations