The Impact of Uncertainty on Trade: The Case for a Small Port
Economies
; 10(8):193, 2022.
Article
in English
| ProQuest Central | ID: covidwho-2023278
ABSTRACT
In the present paper, we show how uncertainty emanating from fluctuations in economic uncertainty, news-based uncertainty, and geopolitical risks affect the number of containers exported from Thailand via Penang Port, Malaysia. Our sample extends from January 2009 to May 2020 from three main entry points in the Northern Peninsular Malaysia–Thailand Border Padang Besar, Surat Thani, and Bukit Kayu Hitam. Two modes of transportation of containers are mainly used for export purposes, namely, road and rai. This study examines the nonlinear effect of uncertainty on trade by employing a two-regime Markov regime-switching approach. The empirical results show that, overall, uncertainty significantly affects the movement of containers in the high-uncertainty regime. Therefore, small ports must continue to diversify their client base to cushion the impact of fluctuations in global trade due to uncertainty.
Business And Economics; Malaysia–Thailand cross-border trade; economic policy uncertainty; geopolitical news; economic news; Geopolitics; Economic conditions; Quarantine; International trade; Steel products; Immigration; COVID-19; Stock exchanges; Economic policy; Furniture; Exports; Institutional investments; Pandemics; Consumption; Tariffs; Trade disputes; Vegetable oils; Coronaviruses; Vietnam; Singapore; Hong Kong; United States--US; Penang Malaysia; China; Japan; Malaysia; Thailand; 92611:Administration of General Economic Programs
Full text:
Available
Collection:
Databases of international organizations
Database:
ProQuest Central
Type of study:
Experimental Studies
Language:
English
Journal:
Economies
Year:
2022
Document Type:
Article
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