Manufacturing exports after the lifting of economic sanctions in Myanmar

Hiroyuki Taguchi ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper aims to evaluate Myanmar’s exports of manufacturing products by using a gravity trade model for emerging ASEAN economies. The main focus of this study is whether Myanmar’s manufacturing exports have recovered towards the gravity-trade-standard of the other emerging ASEAN countries for the post-sanction period of 2013-2018. The main findings from the gravity trade model estimation are summarized as follows. First, the Myanmar’s manufacturing exports for the post-sanction period have been still significantly below the level of the gravity-trade-standard. Second, the downward deviation from the standard could be explained by the two Myanmar-specific factors, i.e., the low institutional quality and the Dutch Disease effect in the Myanmar’s exports to western countries, but not fully in those to Asian countries. The additional factor for the deviation against Asian countries might come from Myanmar’s sluggish participation in the international production networks.

Keywords: Myanmar’s manufacturing exports; lifting economic sanctions; gravity trade model; in-sample and out-of-sample estimations; institutional quality; Dutch Disease; international production networks (search for similar items in EconPapers)
JEL-codes: F14 O53 (search for similar items in EconPapers)
Date: 2021-05
New Economics Papers: this item is included in nep-int and nep-sea
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Published in Foreign Trade Review 2.56(2021): pp. 147-164

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