The Impacts and Determinants of Inward Foreign Direct Investment on Economic Growth in Thailand

Abstract

Thailand has been productive in attracting FDI flows since the beginning of economic development in 1986. It is to continue to increase inward FDI, thus the objective of this research is to investigate the inward FDI on economic growth in Thailand. The main question is what determinants attract, promote, and sustain the inward FDI in Thailand. In addition, this research also adapts the concept of the eclectic paradigm to establish the research framework. The 22 independent variables which are grouped into 4 factors such as human capital, economic, infrastructure, and policy and related factors. The correlation result shows the positive relative strength and direction of a linear relationship among independent variables at the 1% level of significance. A total data collection between 1981 and 2021 were collected various sources such as worldbank, board of investment of Thailand, stock exchange of Thailand, bank of Thailand, International Monetary Fund, UNCTAD, and office of national economic and social development board.The results show 11 variables are positive and significant, but 2 variables are negative and significant. This showed that the economic growth in Thailand is significant affected by human capital, economic, infrastructure, and policy related factors.