An Analysis of long-run equilibrium and short term adjustment between border trade value and Economic development of Thailand
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Abstract
This research aimed to analyze the relationship between border trade value and Economic development of Thailand; we use the quarterly time series data is gross domestic product, border trade value of Thailand with Laos, Myanmar, Malaysia, and Cambodian from 1st quarter 2007 to 1st quarter 2020 by using the method Cointegration and Error Correction model. The results from the study found that border trade value of Thailand with Laos, Malaysia, and Cambodian had positive long-term equilibrium with economic development of Thailand and the results has a coefficient equal to 5.91x10-5, 1.66x10-5, 7.05x10-5 respectively. On the other hand trade values of Thailand had negative long-term equilibrium with Myanmar. It was coefficient as 4.68x10-6 The result of the change in border trade value of Thailand with Laos, Myanmar, Malaysia, and Cambodian will be able to adjust to the long-run equilibrium with 0.0784 0.0614 0.0922 and 0.1813 respectively.
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