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Trade facilitation and microfinance for poverty reduction in the Greater Mekong Subregion: A case study of Thailand

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This paper investigates whether trade facilitation measures benefit the poor and explores the role of microfinance in supporting the utilization of the trade facilitation initiatives. The focus of the study is on the Economic Corridors and Cross Border Transportation Agreement (CBTA), an Asian Development Bank programme to facilitate trade in the Greater Mekong Subregion. The paper shows that trade facilitation measures have brought about major improvements in transportation between Thailand and its neighbouring countries, such as the Lao People’s Democratic Republic, Viet Nam and southern China. This has helped considerably in promoting tourism, export activities, labour movement and investment activities. However, the poor and microenterprises still face many obstacles in taking advantage of such opportunities due to their inability to access financing as well as a lack of relevant skills and knowledge.

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