How can middle-income economies convert trade openness and productivity-enhancing reforms into higher real income and welfare? This paper develops a quantitative trade model with input-output linkages and labor market frictions to assess the impact of trade and productivity reforms on real income, wages, trade and production. Thailand and ASEAN provide a useful case because the region spans economies with very different approaches to growth: some deeply embedded in Asian manufacturing value chains, others focused on commodities, export-led industrializers, and countries pursuing more selective integration. This variation allows to assess when openness yields large welfare gains, when productivity reforms matter more, and when the two are complementary. The results show that openness gains depend on domestic capabilities, while productivity gains depend on access to inputs and markets. The policy implication is a twin agenda: reduce trade frictions in connectivity, customs, logistics, standards, certification, and regulatory recognition, while strengthening firm productivity, supplier capabilities, and manufacturing related services in high-growth sectors and GVCs.
| Repository name | URI |
|---|---|
| Reproducible Research Repository (World Bank) | https://reproducibility.worldbank.org |
Paper exhibits were reproduced on a computer with the following specifications:
• OS: Windows 11 Enterprise 10.0.26200
• Processor: Intel64 Family 6 Model 207 (GenuineIntel), 128.0 GB RAM
• Memory available: 128.0 GB
Run time: ~15 minutes
Julia: 7 minutes
Matlab: 7 minutes
Python: 1 minute
Stata: 1 minute
To reproduce the findings in this paper, a new user needs to do the following:
code_tables_1_and_2 do-file from the descriptive folder, update the path, and run the code.descriptive_tables Excel file, located in the descriptive folder.simulations/tiva_2025.data_process_tiva.jl using Julia.data_process_pwt using Python.simulations.run_main using Matlab.simulations/main_results_table6.All data sources are publicly available and included in the reproducibility package
| Author | Affiliation | |
|---|---|---|
| Erhan Artuc | World Bank | eartuc@worldbank.org |
| Ilena Cristina Neagu | World Bank | ineagu@worldbank.org |
| Daria Taglioni | World Bank | dtaglioni@worldbank.org |
2026-07-02
| Location | Code |
|---|---|
| Thailand | THA |
The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.
| Name | URI |
|---|---|
| MIT License | https://opensource.org/license/mit |
| World Bank IGO Rider | https://github.com/worldbank/metadata-editor/blob/main/WB-IGO-RIDER.md |
| Name | Affiliation | |
|---|---|---|
| Erhan Artuc | World Bank | eartuc@worldbank.org |
| Reproducibility WBG | World Bank | reproducibility@worldbank.org |
| Name | Abbreviation | Affiliation | Role |
|---|---|---|---|
| Reproducibility WBG | DECDI | World Bank - Development Impact Department | Verification and preparation of metadata |
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