IMPORT DEMAND FOR THAI PRODUCTS OF VIETNAM

Abstract

The purpose of this study was to analyses the factors affecting the import for Thai products of Vietnam in general classified into 5 categories which were capital goods, consumer goods, intermediate goods, hide and skin, machine and electronic. The research methodology was multiple regression analysis using time series data from 1986 to 2016. The results of the study in general model were as follows, If the gross domestic products of Vietnam increased by 1 dollar, total import value for Thai products of Vietnam increased by 0.07 dollar. If the export price index of Thailand to Vietnam increased by 1%, total import value for Thai products of Vietnam increased by 16,452,270 dollars. If the investment of Thailand in Vietnam increased by 1 dollar, total import value for Thai products of Vietnam decreased by 317.98 dollars. According to the study of five categories, there were three main factors that affected import demand for Thai products of Vietnam which were 1) Vietnam’s Gross Domestic Product related to import price index of Thai products, also Thailand's direct investment in Vietnam. Vietnam’s Gross Domestic Product had positive impact to import demand for Thai products of Vietnam. 2) Thailand's direct investment in Vietnam had negative impact to import demand for Thai products of Vietnam. 3) Export price index of Thai products had both positive impact and negative impact to import demand for Thai products of Vietnam. There was negative impact between the export price index and the import demand. It can be said that Thai products could be like Giffen Goods which is a product that people consume more of as the price rises.