Impact of Myanmar's trade liberalization on the country's international trade environment: A gravity approach

Using a gravity model with a panel dataset encompassing ASEAN countrie and their 85 trading partners for a 15-year time period (1994-2008), this stud empirically examines ASEAN members' trade pattern. Then, using this empirica result, we simulate Myanmar's gravity-based predicted trade flows. This simulatio reveals that Myanmar's trade has been distorted due to political factors, includin economic sanctions. However, the degree of distortion has been varying ove countries; distortion with Japan has declined while distortion with the U.S. ha increased. As a result of these political factors, economic contact with Myanmar'sneighboring countries, particularly with Thailand has skyrocketed.