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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 MalaysiaThailand 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.
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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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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