Terms of Trade and Economic Growth in Thailand
Terms of Trade and Economic Growth in Thailand
Author(s): Malliga SompholkrangSubject(s): National Economy, Business Economy / Management, Recent History (1900 till today), Labor relations, Economic policy, International relations/trade, Economic development
Published by: Reprograph
Keywords: terms of trade; terms of trade volatility; economic growth;
Summary/Abstract: The purpose of this study is to examine the impact of the terms of trade and its volatility on economic growth in Thailand through the Auto Regressive Distributed Lag (ARDL) model. The analysis was employed with time series data from 1981 to 2015. Results of the bounds testing procedure confirm that there is a long run relationship between the terms of trade volatility with economic growth. Results show that only the volatility of the terms of trade significantly affects the economic growth of Thailand in the long run and in the short run. The study provides some interesting findings; the improvement of labor force quality, capital productivity, import and export prices, and the characteristics of trading partners should be considered when formulating policy in Thailand.
Journal: Journal of Applied Economic Sciences (JAES)
- Issue Year: XI/2016
- Issue No: 44
- Page Range: 1226-1228
- Page Count: 3
- Language: English
