Using CGE modelling for Thailand’s policymaking in the context of regionalism and other trade policy options

The advantages of using CGE models for trade policy analysis are clear, and although there are some significant challenges to their use, a careful application of such models can provide an invaluable asset to policymakers and researchers alike. It must however be remembered that CGE models remain illustrative simplifications of what a real economy looks like; hence the results must be understood as such. Nevertheless, if integrated into a thoughtful and encompassing analytical approach, and reinforced with the use of other tools such as indices and empirical analyses, CGE models are powerful tools that can significantly strengthen Thailand’s trade policy during this critical juncture along its development path.