Analysis of factors influencing Thai rice trade based on Gravity model

• Published in: IOP conference series. Earth and environmental science Vol. 951; no. 1; pp. 12039 - 12045
• Main Authors: Yusiana, E, Hakim, D B, Syaukat, Y, Novianti, T
• Format: Journal Article
• Language: English
• Published: Bristol IOP Publishing 01.01.2022
• Subjects: Coefficients; Crop production; Exports; Foreign exchange rates; Mathematical models; Rice
• ISSN: 1755-1307; 1755-1315
• DOI: 10.1088/1755-1315/951/1/012039

Abstract The purpose of this study is to analyse what factors influencing Thai rice export including importers’ GDP, exporters of GDP, distance of the countries, international rice prices, production and exchange rates by using the gravity model approach. The results show that the factors that influence rice exports in Thailand include the GDP of the importing country, the GDP of the exporting country, distance, international rice prices, production and the real exchange rate. Factors that have positive coefficients are importers’ GDP and real exchange rates, while those with negative coefficients are exporters’ GDP, rice prices, production and distance. Positive coefficients include importer’s GDP and Real Exchange Rate. The GDP of the importing country has a positive coefficient of 0.73 and the real exchange rate or RER (Real Exchange Rate) has a positive coefficient of 0.73. In addition, the negative coefficient values include exporters’ GDP, rice prices, production and distance. The exporting country’s GDP has a negative coefficient of 0.98, prices have a negative coefficient of 1.37 and production has a negative coefficient of 0.23 and distance has a negative coefficient of 0.3.