Abstract
We employed co-integration analysis to investigate the determinants of FDI inflows into Thailand for the period 1970 to 1996. Our findings show that the market size; the relative low labor cost; the degree of openness; the level of trade barriers; the user cost of capital differentials and the real exchange rate were the determinants of the aggregate FDI inflows. Regarding the components of FDI inflows, namely manufacturing and non-manufacturing FDI, our findings indicate that the manufacturing FDI was also responsive to factors related to the firm's capacity to export, including the relative labor cost, the degree of openness and the exchange rate. In contrast, the non-manufacturing FDI was mainly induced by the domestic demand and relative low labor cost of Thailand.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
