Illicit Border Trade in the Borderlands of Thailand and Lao PDR Under Trade Liberalization and AFTA

Natedao Taotawin ()
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Natedao Taotawin: Ubon Ratchathani University

Chapter Chapter 11 in Rethinking Asian Capitalism, 2022, pp 251-269 from Springer

Abstract: Abstract This chapter is based on a research project conducted in 2017 in the borderlands of Thai-Lao People’s Democratic Republic (PDR). The research was qualitative in nature and a sociological approach is adopted in order to examine the illicit border trade and its relation to the local economy and livelihoods of people in the Thai-Lao borderlands. However, quantitative data was also collected as a basis for estimating the volume of illicit cross-border trade taking place in the Thai borderlands. The research study sites were several border checkpoints along the borderlands of Ubon Ratchathani Province of Thailand and Savannakhet Province and Salavan Province of Lao PDR. In the context of trade liberalization, the state has reduced barriers to trade and has flexibly implemented regulations in support of cross-border trade between Thailand and Lao PDR. Moreover, the state has developed measures to encourage cross-border traders to move into legal and formal trade. In reality, the informal and illegal trade is still widespread, for various reasons. The adoption of neoliberalism in cross-border trade has not led to a reduction in the role of the state in economic governance. On the contrary, it has introduced more regulations and created new roles for the state in economic governance. Consequently, Lao traders prefer to trade illegally, as the cost is lower and it is more convenient.

Keywords: Trade liberalization; Illicit cross-border trade; Thai-Lao PDR borderland; Economic development; Local livelihoods (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-98104-4_11

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DOI: 10.1007/978-3-030-98104-4_11

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