On the asymmetric effects of exchange rate changes and Thailand's inpayments from and outpayments to its partners

Abstract

A strand of the literature in international economics includes studies that have assed impact of exchange rate changes on inpayments and outpayments of a country with its trading partners. That strand now has a new direction where the analysis is extended to include asymmetric effects of exchange rate changes. We apply the new advances to bilateral trade data between Thailand and each of its 12 largest partners. Combining our findings from the old and new approaches, we find that a depreciation of baht will increase Thailand's outpayments to eight partners with almost 41% trade share and it will increase its inpayments from seven partners with almost 23% trade share.