Trade Factors Affecting Apple Exports from China to Thailand

Export supply and import demand factors are used to examine the apple exports from China to Thailand. Error Correction Model (ECM) and Cochrane-Orcutt regression are applied to examine the apple trade from 1976 to 2007. China apples export supply to Thailand is only influenced by domestic production cost. An increase in China apples production cost leads to a decrease of export quantity to Thailand. The result is consistent with the Thailand import demand function, where import quantity is negatively related to the China apple export price. The real exchange rate also plays an important role in the apples trade between China and Thailand. Thai baht appreciation would cause Thai import less apples from China.