The Relationship of Foreign Direct Investment Inflow and Economic Growth in Thailand (2006–2016)

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Tuangporn Pinudom


This paper analyzes the relationship of foreign direct investment inflow (FDI inflow) to economic growth of Thailand during the period of 2006 to 2016. The analysis used the simple linear regression model. Aside from assessing the relationship of FDI inflow and GDP of the country, the relationship of the variables for major 11 sectors of the Thai industries were also studied. The results showed that total FDI inflow had a positive effect on the economic growth of Thailand. However, when analyzing each sector, the results indicate that FDI inflow had a significant effect on the GDP of 4 sectors including electricity, gas, steam and air conditioning; construction; transportation and storage, and a group of poorly defined sectors. For the other 7 sectors, FDI inflow did not have a significant effect.


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