Cross-Border Trades and Commerce between Thailand and Neighboring Countries: Policy Implications for Establishing Special Border Economic Zones

Abstract

Regional economic integration leads to closer interdependence within the Greater Mekong sub-region (GMS) especially for trade and commerce. Contributing factors to cross-border trade expansion between Thailand and four neighboring countries, Cambodia, Lao PDR, Malaysia and Myanmar (CLMM) have been studied, as well as an analysis of its pattern and trend utilizing time series data from1996–2012. This study found a rapid increase of local and regional cross-border trade, cross-border shopping and mobility of people. Cross-border traded goods are mainly produced in Bangkok and its vicinity and the eastern region of Thailand. Thai border cities currently play major roles as distribution centers; while industrial development along Thai border regions has not progressed enough to capture the full potential of this trade. The development of emerging border economic zones (BEZs) could be a means as well as a strategy not only to minimize interregional and intra-regional disparities within Thailand but also to foster integrated borderland development with less developed countries surrounding Thailand. Therefore, this study aimed to identify prospective locations for joint border economic zones across Thailand to suggest an enabling policy in realizing BEZs.