Foreign Direct Investment and Emerging Markets: A Study of Direct Investment in Thailand with a focus on Australia Investment

Abstract

This study will contribute to the academic literature concerning the factors affecting all inwards Foreign Direct Investment (FDI), as well as the Australian investor's decision to be involved in FDI in Thailand. The procedure of this study will be to review foreign direct investment empirically to discover the key factors involved. Then, from an applied perspective, the factors affecting all inwards FDI as well as the Australian investor's decision to be involved in FDI in Thailand will be analyzed. A linear panel data model applying a random or fixed effect model, being determined by a Hausman test, are employed on the panel data set consisting of annual frequency data of 10 years period from 2002 to 2011 to specific the determinant of FDI inflow into Thailand.