The Study of Competitiveness of Thai Exports to the U.S. Market
Keywords:
Comparative Advantage, Competitiveness, Export, Thai Economy, ASEANAbstract
This study primarily focuses on competitiveness measurement via revealed comparative advantage index (RCA) of Thai economic products being exported to the United States during 2007 – 2013. This is an original attempt to use this index to assess the competitiveness of important three Thai economic products exported to the United States. The dataset for the study has been provided by the Thai Ministry of Commerce and the World Bank. The study reveals that rubber exports to US market from Thailand have considerably comparative advantage and it is noticeably greater than those of other products. Conversely, the chemical and steel products exported to US market from Thailand have noticeably comparative
dis-advantage in the US market. The findings of the study will contribute to knowledge of international competitiveness, especially in trade between Thailand, one of the spearhead countries of ASEAN, and the gigantic economy of a country like the United States. The volume and value of trade between these two countries is expected to grow rapidly and consistently with the arrival of the ASEAN economic community (AEC).
References
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Addison-Smyth, D., (2005). Ireland’s Revealed Comparative Advantage. Central Bank Quarterly Bulletin,
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Assche, A.V., Hong, C., and Slootmaekers, V., (2007). China’s International Competitiveness:
Reassessing the Evidence, Discussion Paper 201/2008. LICOS Centre for Institutions and
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Balassa, B., and Noland, M., (1989). Revealed Comparative Advantage in Japan and United
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Ballance, R.H., Forstner, H. and Murray, T. (1987). Consistency Tests of Alternative Measures
of Comparative Advantage. The Review of Economics and Statistics. 69/2. 157-161.
Benedictis, L., and Tamberi, M., (2002). “A note on the Balassa Index of Revealed
Comparative Advantage.” Working Paper 158, Universita' Politecnica delle Marche
(I), Dipartimento di Economia.
Cai, J., and Leung, P., (2007). A Review of Comparative Advantage Assessment Approaches in Relation to
Aquaculture Development, in Species and System Selection for Sustainable Aquaculture.
(eds P. Leung, C.-S.Lee, and P.J. O’Bryen), Blackwell Publishing, Ames, Iowa, USA.
Chanlett-Avery, M., Dolven, B., and Mackey, W., (2015). Thailand: Background and U.S.
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Chikan, A., (2008). National and Firm Competitiveness: A General Research Model.
Competitiveness Review: An International Business Journal, 18(1/2), 20-28.
Doner, R., and Abonyi, G., 2013. Upgrading Thailand’s Rubber Industry: Opportunities and Challenges.
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Erkan, B., and Saricoban, K., (2014). Comparative Analysis of Competitiveness in the Export of Science-
Based Goods Regarding Turkey and The EU+13 Countries. International Journal of Business
and Social Science, 5(8/1), 117-130.
Hinloopen, J., (2001). On the Empirical Distribution of the Balassa Index. Review of World Economics,
137(1), 1-49.
Huo, D., (2014). Impact of Country-level Factors on Export Competitiveness of Agriculture
Industry from Emerging Markets. Competitiveness Review, 24(5), 393-413.
Jayawickrama, A., and Thangavelu, S.M., (2010). Trade Linkages Between China, India, and
Singapore: Changing Comparative Advantage of Industrial Products. Journal of
Economic Studies, 37(3), 248-266.
Jin, H., and Moon, H-C., (2006). The Diamond Approach to the Competitiveness of Korea’s
Apparel Industry. Journal of Fashion Marketing and Management: An International
Journal, 10(2), 195-208.
Kathuria, L.M., (2013). Analysing Competitiveness of Clothing Export Sector of India and
Bangladesh: Dynamic Revealed Comparative Advantage Approach.
Competitiveness Review: An International Business Journal, 23(2), 131-157.
Krugman, P.R., (1994). Competitiveness: A Dangerous Obsession. Foreign Affairs, 73(2), 28-44.
Leishman, D., Menkhaus, D.J.. and Whipple D. G. (1999). Revealed Comparative Advantage
and the Measurement of International Competitiveness for Agriculture Commodities:
An Empirical Analysis of Wool Exporters. Western Agricultural Economics
Association Annual Meeting. July 11-14.
Liesner, H.H., (1958). The European Common Market and British Industry. Economic Journal, 68, 302-316.
McKean, C., Toh, K., and Fisher, W., (1994). Export and Investment Promotion in Thailand.
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Information and Evaluation, U.S. Agency for International Development (USAID).
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The Thailand Development Research Institute.
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publications/2015/2015-Trade-Policy-Agenda-and-2014-Annual-Report
Prasad, R.N., (2004). Fiji‟s Export Competitiveness: A Comparison with Selected Small Island Developing
States, Economics Department Reserve Bank of Fiji, Working Paper 2004/06.
Ricardo, D., (1817) On The Principles of Political Economy and Taxation. London. 1817.
[Online] [Accessed 1 January 2016] https://www.econlib.org/LIBRARY/Ricardo/ricP.html.
Rivlin, P., (2000). Trade Potential in the Middle East: Some Optimistic Findings. Middle East
Review of International Affairs, 4(1), 56-66.
Rugman, A., (1993). The Double Diamond Model of International Competitiveness:
The Canadian Experience. Management International Review, 33, 17-39.
Seyoum, B., (2007). Revealed Comparative Advantage and Competitiveness in Services: A Study with
Special Emphasis on Developing Countries. Journal of Economic Studies, 34(5), 376-388.
Siggel, E., (2007). International Competitiveness and Comparative Advantage: A Survey and a Proposal
for Measurement in The Many Dimensions of Competitiveness. CESifo Venice Summer Institute.
July 20-21 2007, 1-33.
Suwannarat, P., (2016). Export Intermediaries and Their Competency to Reduce Transaction Costs:
Examining the Moderating Role of Learning Orientation, Asian Journal of Business and
Accounting, 9(2), 182-217.
Suwannarat, P., (2017). Ascertaining the Competiveness of Thai Exports to PRC,
Competitiveness Review: An International Business Review, 27(3), 275-299.
Wei, H., and Chunming, Z., (2012). The Comparative Advantage of Chinese Manufactured
Exports. Journal of Chinese Economic and Foreign Trade Studies, 5(2), 107-126.
Welch, J.M., and Lyford, C.P., (2007). Measuring Competition for Textiles: Does the United States Make the
Grade? International Food and Agribusiness Management Review, 10(4), 64-79.
World Bank, (2014). Thailand Economic Monitor 2013 [Online] [Accessed 19 June 2015].
https://www.worldbank.org/en/country/thailand/publication/thailand-economic-monitor-february-2014
World Bank, (2015). Thailand Economic Monitor 2014 [Online] [Accessed 19 June 2015].
https://www.worldbank.org/en/country/thailand/publication/thailand-economic-monitor-june-2015
https://www.adb.org/documents/adb-annual-report-2016
Addison-Smyth, D., (2005). Ireland’s Revealed Comparative Advantage. Central Bank Quarterly Bulletin,
Spring, 101-114.
Assche, A.V., Hong, C., and Slootmaekers, V., (2007). China’s International Competitiveness:
Reassessing the Evidence, Discussion Paper 201/2008. LICOS Centre for Institutions and
Economic Performance. Belgium, 1-18.
Balassa, B., (1965). Trade Liberalization and Reveal Comparative Advantage. Manchester
School of Economics and Social Studies, 33, 99- 123.
Balassa, B., (1967). Trade Liberalization among Industrial Countries, New York: McGraw Hill.
Balassa, B., and Noland, M., (1989). Revealed Comparative Advantage in Japan and United
States. Journal of International Economic Integration, 4(2), 8-22.
Ballance, R.H., Forstner, H. and Murray, T. (1987). Consistency Tests of Alternative Measures
of Comparative Advantage. The Review of Economics and Statistics. 69/2. 157-161.
Benedictis, L., and Tamberi, M., (2002). “A note on the Balassa Index of Revealed
Comparative Advantage.” Working Paper 158, Universita' Politecnica delle Marche
(I), Dipartimento di Economia.
Cai, J., and Leung, P., (2007). A Review of Comparative Advantage Assessment Approaches in Relation to
Aquaculture Development, in Species and System Selection for Sustainable Aquaculture.
(eds P. Leung, C.-S.Lee, and P.J. O’Bryen), Blackwell Publishing, Ames, Iowa, USA.
Chanlett-Avery, M., Dolven, B., and Mackey, W., (2015). Thailand: Background and U.S.
Relations. [Online] [Accessed 15 July 2015]. https://fas.org/sgp/crs/row/RL32593.pdf
Chikan, A., (2008). National and Firm Competitiveness: A General Research Model.
Competitiveness Review: An International Business Journal, 18(1/2), 20-28.
Doner, R., and Abonyi, G., 2013. Upgrading Thailand’s Rubber Industry: Opportunities and Challenges.
[Online] [Accessed 17 July 2015]. https://www.econ.tu.ac.th/oldweb/doc/article/fulltext/364.pdf
Erkan, B., and Saricoban, K., (2014). Comparative Analysis of Competitiveness in the Export of Science-
Based Goods Regarding Turkey and The EU+13 Countries. International Journal of Business
and Social Science, 5(8/1), 117-130.
Hinloopen, J., (2001). On the Empirical Distribution of the Balassa Index. Review of World Economics,
137(1), 1-49.
Huo, D., (2014). Impact of Country-level Factors on Export Competitiveness of Agriculture
Industry from Emerging Markets. Competitiveness Review, 24(5), 393-413.
Jayawickrama, A., and Thangavelu, S.M., (2010). Trade Linkages Between China, India, and
Singapore: Changing Comparative Advantage of Industrial Products. Journal of
Economic Studies, 37(3), 248-266.
Jin, H., and Moon, H-C., (2006). The Diamond Approach to the Competitiveness of Korea’s
Apparel Industry. Journal of Fashion Marketing and Management: An International
Journal, 10(2), 195-208.
Kathuria, L.M., (2013). Analysing Competitiveness of Clothing Export Sector of India and
Bangladesh: Dynamic Revealed Comparative Advantage Approach.
Competitiveness Review: An International Business Journal, 23(2), 131-157.
Krugman, P.R., (1994). Competitiveness: A Dangerous Obsession. Foreign Affairs, 73(2), 28-44.
Leishman, D., Menkhaus, D.J.. and Whipple D. G. (1999). Revealed Comparative Advantage
and the Measurement of International Competitiveness for Agriculture Commodities:
An Empirical Analysis of Wool Exporters. Western Agricultural Economics
Association Annual Meeting. July 11-14.
Liesner, H.H., (1958). The European Common Market and British Industry. Economic Journal, 68, 302-316.
McKean, C., Toh, K., and Fisher, W., (1994). Export and Investment Promotion in Thailand.
USAID Technical Report No. 17, Washington D.C.: Centre for Development
Information and Evaluation, U.S. Agency for International Development (USAID).
Ministry of Commerce (MOC), (2015). Trade and Economic Indices. [Online]
[Accessed 15 June, 2015] https://www2.moc.go.th/main.php?filename=index_design4_en.
Ministry of Industry (MOI) (2015). MOI’s Statistical Data [Online] [Accessed 12 July 2015]
https://www.industry.go.th/industry/index.php/2011-06-30-23-44-4/2013-10-10-05-50-05.
Narongchai, Akrasanee., (1989). Thailand in the International Economic Community, Main
Report: Synthesis, The 1989 TDRI Year-end Conference. Chon Buri, Thailand:
The Thailand Development Research Institute.
Office of U.S. Trade Representative (2015), 2015 Trade Policy Agenda and 2014 Annual Report.[Online ]
[ Accessed 13 June, 2015]. https://ustr.gov/about-us/policy-offices/press-office/reports-and-
publications/2015/2015-Trade-Policy-Agenda-and-2014-Annual-Report
Prasad, R.N., (2004). Fiji‟s Export Competitiveness: A Comparison with Selected Small Island Developing
States, Economics Department Reserve Bank of Fiji, Working Paper 2004/06.
Ricardo, D., (1817) On The Principles of Political Economy and Taxation. London. 1817.
[Online] [Accessed 1 January 2016] https://www.econlib.org/LIBRARY/Ricardo/ricP.html.
Rivlin, P., (2000). Trade Potential in the Middle East: Some Optimistic Findings. Middle East
Review of International Affairs, 4(1), 56-66.
Rugman, A., (1993). The Double Diamond Model of International Competitiveness:
The Canadian Experience. Management International Review, 33, 17-39.
Seyoum, B., (2007). Revealed Comparative Advantage and Competitiveness in Services: A Study with
Special Emphasis on Developing Countries. Journal of Economic Studies, 34(5), 376-388.
Siggel, E., (2007). International Competitiveness and Comparative Advantage: A Survey and a Proposal
for Measurement in The Many Dimensions of Competitiveness. CESifo Venice Summer Institute.
July 20-21 2007, 1-33.
Suwannarat, P., (2016). Export Intermediaries and Their Competency to Reduce Transaction Costs:
Examining the Moderating Role of Learning Orientation, Asian Journal of Business and
Accounting, 9(2), 182-217.
Suwannarat, P., (2017). Ascertaining the Competiveness of Thai Exports to PRC,
Competitiveness Review: An International Business Review, 27(3), 275-299.
Wei, H., and Chunming, Z., (2012). The Comparative Advantage of Chinese Manufactured
Exports. Journal of Chinese Economic and Foreign Trade Studies, 5(2), 107-126.
Welch, J.M., and Lyford, C.P., (2007). Measuring Competition for Textiles: Does the United States Make the
Grade? International Food and Agribusiness Management Review, 10(4), 64-79.
World Bank, (2014). Thailand Economic Monitor 2013 [Online] [Accessed 19 June 2015].
https://www.worldbank.org/en/country/thailand/publication/thailand-economic-monitor-february-2014
World Bank, (2015). Thailand Economic Monitor 2014 [Online] [Accessed 19 June 2015].
https://www.worldbank.org/en/country/thailand/publication/thailand-economic-monitor-june-2015
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Published
07-10-2019
How to Cite
Suwannarat, P., Srimaungtong, N., Kuboonya-arags, P., & Sukprasert, A. (2019). The Study of Competitiveness of Thai Exports to the U.S. Market. Journal of Accountancy and Management, 11(1), 211–225. Retrieved from https://so02.tci-thaijo.org/index.php/mbs/article/view/220163
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