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Testing the small‐country assumption: Thailand's rice exports

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  • Peter Warr
  • Frances Wollmer

Abstract

The familiar ‘small‐country’ assumption is tested empirically in this paper, focusing upon the long‐run international demand for Thailand's rice exports and drawing upon recent developments in the statistical analysis of economic time series. A relatively robust long‐run price elasticity of export demand is obtained, at just under 2. The literature on the export demand for manufactured goods has shown the central importance of the ‘normalization’ used during estimation. Our results suggest that this issue may not be as important in the case of primary commodity exports, at least not where the exporting country possesses a degree of monopoly power.

Suggested Citation

  • Peter Warr & Frances Wollmer, 1997. "Testing the small‐country assumption: Thailand's rice exports," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 2(2), pages 133-143.
    • Handle: RePEc:taf:rjapxx:v:2:y:1997:i:2:p:133-143
    DOI: 10.1080/13547869708724612
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    Cited by:

    1. Rabia Latif & Attiya Yasmin Javid, 2016. "The Determinants of Pakistan Exports of Textile: An Integrated Demand and Supply Approach," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(3), pages 191-210.

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