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Table 10 presents trader churning by broad sectors and regions. The churning rate for any given year is defined as the gross sum of new entrants and exits divided by the total number of traders at the end of the previous year. During the entire sample, the average churning rate per year is 69.8%. That is, in a typical year, entering and exiting traders amount to almost 70% of all traders. The sectors with the highest churn rate are textiles and wearing apparels and transportation, the former showing a significant increase since 2007. Looking across regions, traders exporting to the PRC have the largest churn rate over the entire sample, though the rate has declined over time. The opposite applies in the case of Japan.

Table 9. 
Characteristics of Traders
  Stayers  All Types 
Year Exits Beginning End Entrants Beginning End 
Median value of exports (million baht) 
2003–2007 0.5 9.2 11.9 0.4 2.7 1.8 
2007–2011 0.3 8.7 9.7 0.2 1.8 1.1 
2011–2015 0.1 11.1 11.5 0.4 1.1 1.9 
Median number of products 
2003–2007 
2007–2011 
2011–2015 
Median number of markets 
2003–2007 
2007–2011 
2011–2015 
Median size of fixed assets (million baht) 
2005–2007 1.8 6.1 6.9 1.3 4.8 4.1 
2007–2011 1.2 7.6 8.7 1.2 4.1 4.0 
2011–2013 1.1 6.5 7.6 1.4 4.0 4.5 
Median return on assets (%) 
2005–2007 2.9 4.2 4.8 3.8 4.0 4.6 
2007–2011 3.1 5.1 4.9 4.5 4.6 4.8 
2011–2013 4.0 5.0 5.1 4.6 4.8 5.0 
  Stayers  All Types 
Year Exits Beginning End Entrants Beginning End 
Median value of exports (million baht) 
2003–2007 0.5 9.2 11.9 0.4 2.7 1.8 
2007–2011 0.3 8.7 9.7 0.2 1.8 1.1 
2011–2015 0.1 11.1 11.5 0.4 1.1 1.9 
Median number of products 
2003–2007 
2007–2011 
2011–2015 
Median number of markets 
2003–2007 
2007–2011 
2011–2015 
Median size of fixed assets (million baht) 
2005–2007 1.8 6.1 6.9 1.3 4.8 4.1 
2007–2011 1.2 7.6 8.7 1.2 4.1 4.0 
2011–2013 1.1 6.5 7.6 1.4 4.0 4.5 
Median return on assets (%) 
2005–2007 2.9 4.2 4.8 3.8 4.0 4.6 
2007–2011 3.1 5.1 4.9 4.5 4.6 4.8 
2011–2013 4.0 5.0 5.1 4.6 4.8 5.0 

Sources: Thai Customs Department, Ministry of Commerce, and authors’ calculations.

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