Trade balance and exchange rate in Thailand & the implications for Vietnam: an application using instrumental variable and the heterogeneous panel cointegration methods
This study aims to investigate the link of trade balance and exchange rate for the case of Thailand in different aspects by initially attempting to examine what factors determine the trade balance in Thailand and then to test the long-run relationship between the exchange rate and Thailand’s trade b...
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Trường Đại học Kinh tế Tp. Hồ Chí Minh
2017
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| Truy cập trực tuyến: | http://digital.lib.ueh.edu.vn/handle/UEH/55240 http://jabes.ueh.edu.vn/Home/SearchArticle?article_Id=c323bb7d-5954-4120-bb6d-4277fd10afde http://doi.org/10.24311/jed/2016.23.1.04 |
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Đại học Kinh tế Thành phố Hồ Chí Minh |
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Exchange rate Trade balance Currency depreciation Instrumental variable Fully modified ordinary least square |
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Exchange rate Trade balance Currency depreciation Instrumental variable Fully modified ordinary least square Vo The Anh Trade balance and exchange rate in Thailand & the implications for Vietnam: an application using instrumental variable and the heterogeneous panel cointegration methods |
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This study aims to investigate the link of trade balance and exchange rate for the case of Thailand in different aspects by initially attempting to examine what factors determine the trade balance in Thailand and then to test the long-run relationship between the exchange rate and Thailand’s trade balance. The empirical findings indicate that the exchange rate and relative growth rate of income play central roles in explaining Thailand’s trade balance, and fiscal and monetary policies are beneficial in some cases. Additionally, panel fully modified ordinary least square (FMOLS) estimations illustrate that a devaluation of Thailand Baht offers a significantly positive improvement on its trade balance in the long run, especially for the groups of countries with upper middle and high income in America and Europe. Individual FMOLS regressions of Thailand’s trade balance and each of its 62 trading partners suggest that a devaluation of Thailand’s currency would stimulate Thailand’s trade performance with over 20 trading partners, but hurt its performance with the other 10 countries and be inconclusive to the others. |
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Vo Hong Duc |
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Vo Hong Duc Vo The Anh |
| format |
Journal Article |
| author |
Vo The Anh |
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Vo The Anh |
| title |
Trade balance and exchange rate in Thailand & the implications for Vietnam: an application using instrumental variable and the heterogeneous panel cointegration methods |
| title_short |
Trade balance and exchange rate in Thailand & the implications for Vietnam: an application using instrumental variable and the heterogeneous panel cointegration methods |
| title_full |
Trade balance and exchange rate in Thailand & the implications for Vietnam: an application using instrumental variable and the heterogeneous panel cointegration methods |
| title_fullStr |
Trade balance and exchange rate in Thailand & the implications for Vietnam: an application using instrumental variable and the heterogeneous panel cointegration methods |
| title_full_unstemmed |
Trade balance and exchange rate in Thailand & the implications for Vietnam: an application using instrumental variable and the heterogeneous panel cointegration methods |
| title_sort |
trade balance and exchange rate in thailand & the implications for vietnam: an application using instrumental variable and the heterogeneous panel cointegration methods |
| publisher |
Trường Đại học Kinh tế Tp. Hồ Chí Minh |
| publishDate |
2017 |
| url |
http://digital.lib.ueh.edu.vn/handle/UEH/55240 http://jabes.ueh.edu.vn/Home/SearchArticle?article_Id=c323bb7d-5954-4120-bb6d-4277fd10afde http://doi.org/10.24311/jed/2016.23.1.04 |
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AT votheanh tradebalanceandexchangerateinthailandtheimplicationsforvietnamanapplicationusinginstrumentalvariableandtheheterogeneouspanelcointegrationmethods |
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1810054340911562752 |
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oai:localhost:UEH-552402019-11-21T06:54:23Z Trade balance and exchange rate in Thailand & the implications for Vietnam: an application using instrumental variable and the heterogeneous panel cointegration methods Vo The Anh Vo Hong Duc Exchange rate Trade balance Currency depreciation Instrumental variable Fully modified ordinary least square This study aims to investigate the link of trade balance and exchange rate for the case of Thailand in different aspects by initially attempting to examine what factors determine the trade balance in Thailand and then to test the long-run relationship between the exchange rate and Thailand’s trade balance. The empirical findings indicate that the exchange rate and relative growth rate of income play central roles in explaining Thailand’s trade balance, and fiscal and monetary policies are beneficial in some cases. Additionally, panel fully modified ordinary least square (FMOLS) estimations illustrate that a devaluation of Thailand Baht offers a significantly positive improvement on its trade balance in the long run, especially for the groups of countries with upper middle and high income in America and Europe. Individual FMOLS regressions of Thailand’s trade balance and each of its 62 trading partners suggest that a devaluation of Thailand’s currency would stimulate Thailand’s trade performance with over 20 trading partners, but hurt its performance with the other 10 countries and be inconclusive to the others. 2017-09-14T11:02:18Z 2017-09-14T11:02:18Z 2016 Journal Article 1859 -1124 http://digital.lib.ueh.edu.vn/handle/UEH/55240 http://jabes.ueh.edu.vn/Home/SearchArticle?article_Id=c323bb7d-5954-4120-bb6d-4277fd10afde http://doi.org/10.24311/jed/2016.23.1.04 Journal of Economic Development JED, Vol.23(1) Alexander, S. S. (1952). Effects of a devaluation on a tradebalance. 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