Narrow Results

This paper examines the trade of machinery parts and components between Thailand and the other Mekong countries though gravity model, for the purpose of assessing the existing production networks in Mekong region by applying fragmentation theory. The findings are: First, the evolution of production networks between Thailand and Vietnam was identified in terms of their two-way trade integration. Second, the trade intensity between Thailand and Vietnam was explained by the fragmentation factors, i.e., their gaps in per capita GDP and the relatively lower service-link costs in Vietnam. Third, the trade less-integration of Thailand with Cambodia and Myanmar was explained by their higher service-link costs.

This paper aims to examine the trade integration of Yunnan and Guangxi of China with the Greater Mekong Sub-region (GMS) by using the gravity trade model during the 2000s. The strategic purpose is to investigate whether the two Southern border areas of China as a gateway have tended to be integrated with GMS or with the other ASEAN, in other words, whether the hypothesis of Poncet [Poncet, S. 2006. "Economic integration of Yunnan with the Greater Mekong subregion." Asian Economic Journal, 20(3): 303–317] presenting a re-orientation "beyond GMS" of Yunnan trade in 1990s can be applicable to the 2000s' trend in its trade and in Guangxi trade. The main findings were: The trade integration of Yunnan with GMS has exceeded by far above the gravity-model standard in the 2000s, which is different from the Poncet hypothesis; and Guangxi trade has shown a different picture from Yunnan one in that Guangxi trade has exceeded the gravity-model standard for both GMS and the other ASEAN.