ABSTRACT: The main purpose of this study is to find determining factors that affect the bilateral trade flows between Thailand and partner countries around the world, and further to check the ASEAN integration effect on Thailand. The study analyzes the effect by applying the gravity model with a panel fixed effect approach. The findings of the study indicate that bilateral trade flows between Thailand and partners are mainly affected by the economic size, geographical distance, exchange rate, and joining the ASEAN whereas land endowments and difference between the per capita income has no significant impact. The ASEAN FTA dummy variable has a statistically significant positive influence on bilateral trade between Thailand and other ASEAN countries.
Keywords: ASEAN, Trade, Thailand, Gravity model, Panel fixed effect