Analysis of Factors Influencing the Decision of Japanese Investors to Direct Investment in Thailand

Abstract

The report studies the key factors of Japanese investors who decide to invest in Thailand. Using direct survey of executives of Japanese companies in Thailand of 162 companies in all business groups, which consisted of seven groups. Metal and Machinery, Transportation and vehicle, Chemical , Paper and Plastic, Electronics, Electric appliances and Other industries group. Data was collected using a questionnaire to measure the level of satisfaction which uses a seven-point likert scale questions and the results were processed and analyzed exploratory factor Analysis and structural equation. The variable using observations from studies in the past were 23 variables comprising economic variables, government & regulation and legal variables, Infrastructure variables, and the factors In terms of human resource. The results showed that the structural equation model of factors critical to the investment of Japan in Thailand. Political and Economic Potential effects of the maximum. Followed by the Learning Growth and Long-term disaster Protection. Law, Regulation and Practicing and Infrastructure factor has no direct effect on of Japan's direct investment in Thailand however they were indirect representation. When Kano's theory applied to the analysis of structural equation found. Performance dimension on theory of Kano that influence of Japanese direct investment in Thailand a rising were Reasonable wage, Economic and Exchange rates stability. Stable political. Logistics system efficiency. And the development of Long-term disaster protection. The factors that make Thailand is inviting and attractive for investment or Attractive dimension on Kano's Theory and it is different from other countries were develop The competition and modernized tax system as well as improving The standard of education.