Exploring the Relationship Among Foreign Direct Investment, Technology Transfer and Economic Growth: A Case of the Lower Northern Region in Thailand

Purpose: This article aimed to examine factors determining Foreign Direct Investment (FDI) leading to technology transfer on economic growth in Thailand and to study policies related to foreign investment promotion.   Theoretical framework: The target variables were formed to set up a model specification to estimate the relationship between determinants in terms of technology transfer, FDI, and economic growth of Thailand.   Design/Methodology/Approach: The research scope covered and explored the relevant dataset of each expected variable from 1995 – 2021 and some target companies enquired in 2021. The secondary data included FDI at regional level, Gross provincial products (GPP), the number of establishment enterprises in the province and others.   Findings: The major factors determined FDI included the number of labour, the number of establishments, consumer price index, the value of investment and the number of internet users. These determinants  had significant relationship with the GPP. Most entrepreneurs confirmed that technology transfer affected the investment decision.     Research, practical & social implications: The researchers indicated that there was significant relationship among the GPP and other independent variables ;for instance, the number of labour, the number of establishments, the FDI, and the number of internet users. The government plans reflected the investment mechanism and extensively stimulated the region’s development.   Originality/Value: The value of this research confirmed that technology adopted  increased productivity in the production processes. The government created the investment promotion through the infrastructure and facilities which would support the area-based regional development.

Still Big in Bangkok? An Empirical Analysis of the Regional Distribution of Foreign Direct Investment in Thailand

Abstract This paper analyses regional Foreign Direct Investment (FDI) in Thailand. Its determinants are identified using a unique assembled panel dataset comprising all 76 Thai provinces during the period 1985–2005. The work is premised on the view that foreign investors consider various determinants of location choices in each province (including labour costs, Gross Provincial Products (GPP) per head, areas of industrial estates, communication and transportation issues, population characteristics, educational attainment, population density and distance from the centre of town to the main ports of Thailand) as well as government incentives, before deciding to undertake FDI in a given region. Our econometric model estimates suggest that government regional policy, and the effect of zoning in particular, however, has a significant and positive effect on regional FDI, drawing FDI to those zones where the greatest incentives are on offer. The other possible determinants of FDI amongst regions are largely shown to be insignificant.Multinational Firms, Asia, Regional Economic Development, F23, O53, R11,