Bilateral trade between Thailand and China with gravity model: Evidence from copula-based MS-SUR approach

© 2017 Serials Publications Pvt. Ltd. This paper aims to investigate the characteristic factors of bilateral Thailand-China trade from the copula-based Markov Switching Seemingly Unrelated Regression (MS-SUR) model with the gravity model. We estimate the export and import demand equations representi...

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Main Authors: Petchaluck Boonyakunakorn, Pathairat Pastpipatkul, Songsak Sriboonchiita
Format: Journal
Published: 2018
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http://cmuir.cmu.ac.th/jspui/handle/6653943832/43725
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Institution: Chiang Mai University
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spelling th-cmuir.6653943832-437252018-04-25T07:30:01Z Bilateral trade between Thailand and China with gravity model: Evidence from copula-based MS-SUR approach Petchaluck Boonyakunakorn Pathairat Pastpipatkul Songsak Sriboonchiita Business, Management and Accounting Economics, Econometrics and Finance Agricultural and Biological Sciences © 2017 Serials Publications Pvt. Ltd. This paper aims to investigate the characteristic factors of bilateral Thailand-China trade from the copula-based Markov Switching Seemingly Unrelated Regression (MS-SUR) model with the gravity model. We estimate the export and import demand equations representing China's demand for Thailand's exports and Thailand's demand for imports from China. The result suggests that the best-fitted model based on both AIC and BIC criteria is both normal distribution for export equation and import equation, and joint distribution by the Frank copula. Based on the findings, GDP's of both China and Thailand are the main factors driving Thailand's import from China in market upper regime. In contrast, China's GDP, FDI's China, and ACFTA decrease Thailand's import in downward upper regime. The filtered probabilities of the upper regime of the trade market shows that the trade between Thailand and China operates mostly in the upper regime rather than in the downturn regime. 2018-01-24T03:56:49Z 2018-01-24T03:56:49Z 2017-01-01 Journal 09729380 2-s2.0-85040198809 https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85040198809&origin=inward http://cmuir.cmu.ac.th/jspui/handle/6653943832/43725
institution Chiang Mai University
building Chiang Mai University Library
country Thailand
collection CMU Intellectual Repository
topic Business, Management and Accounting
Economics, Econometrics and Finance
Agricultural and Biological Sciences
spellingShingle Business, Management and Accounting
Economics, Econometrics and Finance
Agricultural and Biological Sciences
Petchaluck Boonyakunakorn
Pathairat Pastpipatkul
Songsak Sriboonchiita
Bilateral trade between Thailand and China with gravity model: Evidence from copula-based MS-SUR approach
description © 2017 Serials Publications Pvt. Ltd. This paper aims to investigate the characteristic factors of bilateral Thailand-China trade from the copula-based Markov Switching Seemingly Unrelated Regression (MS-SUR) model with the gravity model. We estimate the export and import demand equations representing China's demand for Thailand's exports and Thailand's demand for imports from China. The result suggests that the best-fitted model based on both AIC and BIC criteria is both normal distribution for export equation and import equation, and joint distribution by the Frank copula. Based on the findings, GDP's of both China and Thailand are the main factors driving Thailand's import from China in market upper regime. In contrast, China's GDP, FDI's China, and ACFTA decrease Thailand's import in downward upper regime. The filtered probabilities of the upper regime of the trade market shows that the trade between Thailand and China operates mostly in the upper regime rather than in the downturn regime.
format Journal
author Petchaluck Boonyakunakorn
Pathairat Pastpipatkul
Songsak Sriboonchiita
author_facet Petchaluck Boonyakunakorn
Pathairat Pastpipatkul
Songsak Sriboonchiita
author_sort Petchaluck Boonyakunakorn
title Bilateral trade between Thailand and China with gravity model: Evidence from copula-based MS-SUR approach
title_short Bilateral trade between Thailand and China with gravity model: Evidence from copula-based MS-SUR approach
title_full Bilateral trade between Thailand and China with gravity model: Evidence from copula-based MS-SUR approach
title_fullStr Bilateral trade between Thailand and China with gravity model: Evidence from copula-based MS-SUR approach
title_full_unstemmed Bilateral trade between Thailand and China with gravity model: Evidence from copula-based MS-SUR approach
title_sort bilateral trade between thailand and china with gravity model: evidence from copula-based ms-sur approach
publishDate 2018
url https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85040198809&origin=inward
http://cmuir.cmu.ac.th/jspui/handle/6653943832/43725
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