Concepedia

Publication | Open Access

Foreign Trade Regime and FDI-Growth Nexus: A Case Study of Thailand

Full Paper Access

31

Citations

0

References

2002

Year

Archanun Kohpaiboon
ANU Open Research (Australian National University)

Abstract

This paper examines the role of trade policy regimes in conditioning the impact of foreign direct investment (FDI) on growth performance in investment receiving (host) countries through a case study of Thailand. The methodology involves estimating a growth equation, which provides for capturing the impact of FDI interactively with economic openness on economic growth, using data for the period 1970-1999. The results support the ‘Bhagwati’ hypothesis that, other things being equal, the growth impact of FDI tends to be greater under an export promotion (EP) trade regime compared to an import-substitution (IS) regime.