Do Regional Trade Agreements Really Help Global Value Chains Develop? Evidence from Thailand

Thailand’s firm-level trade data suggest that regional trade agreements (RTAs) play only a modest role in advancing global value chain development, as imports under RTA regimes show a weak and often insignificant correlation with exports—implying that firms using RTAs tend to focus mainly on domestic markets. In contrast, firms operating under most-favoured-nation or other preferential schemes, such as duty drawback programs, demonstrate stronger export performance and deeper integration into international production networks. These patterns indicate that while RTAs may support domestic production, other preferential tariff mechanisms contribute more effectively to strengthening firm-level trade linkages and participation in global value chains.

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