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Trade Liberalization And Firm Performance: The Case Of Thailand

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  • Zadia M. Feliciano
  • Nadia Doytch

Abstract

After the Asian Financial Crisis, Thailand's trade policy has been driven by the proliferation of free trade agreements (FTAs). We use firm‐level data to estimate the effects of reductions in tariffs applied to Thai imports on Thai firms. Reductions in Association of Southeast Asian Nations (ASEAN) tariffs were associated with increasing firm employment and exports, lower ASEAN‐China import tariffs were associated with increasing firm employment, while lower tariffs from the Japan‐Thailand FTA were associated with reductions in firm employment and increasing likelihood of International Organization for Standardization (ISO) certifications. FTAs were associated with a decrease in firm R&D spending. (JEL F1, F2, F6)

Suggested Citation

  • Zadia M. Feliciano & Nadia Doytch, 2020. "Trade Liberalization And Firm Performance: The Case Of Thailand," Contemporary Economic Policy, Western Economic Association International, vol. 38(4), pages 607-621, October.
    • Handle: RePEc:bla:coecpo:v:38:y:2020:i:4:p:607-621
    DOI: 10.1111/coep.12488
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    References listed on IDEAS

    as
    1. Masahiro Kawai & Kanda Naknoi, 2017. "ASEAN’s TRADE AND FOREIGN DIRECT INVESTMENT: LONG-TERM CHALLENGES FOR ECONOMIC INTEGRATION," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(03), pages 643-680, June.
    2. Juthathip Jongwanich & Archanun Kohpaiboon, 2017. "Exporter responses to FTA tariff preferences: evidence from Thailand," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 31(1), pages 21-38, May.
    3. Baier, Scott L. & Bergstrand, Jeffrey H., 2007. "Do free trade agreements actually increase members' international trade?," Journal of International Economics, Elsevier, vol. 71(1), pages 72-95, March.
    4. Albert Guangzhou Hu & Zhengning Liu, 2014. "Trade Liberalization and Firm Productivity: Evidence from Chinese Manufacturing Industries," Review of International Economics, Wiley Blackwell, vol. 22(3), pages 488-512, August.
    5. Jayanthakumaran, Kankesu & Sangkaew, Piyapong & O’Brien, Martin, 2013. "Trade liberalisation and manufacturing wage premiums: Evidence from Thailand," Journal of Asian Economics, Elsevier, vol. 29(C), pages 15-23.
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    Cited by:

    1. Hayato Kato & Toshihiro Okubo, 2022. "The Resilience of FDI to Natural Disasters Through Industrial Linkages," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(1), pages 177-225, May.

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    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business
    • F6 - International Economics - - Economic Impacts of Globalization

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