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Trade openness, foreign direct investment and growth in Thailand

Yusoff, Mohammed and Nuh, Ruslee (2011) Trade openness, foreign direct investment and growth in Thailand. In: Asia Pacific Marketing and Management Conference 2011, 9-11 Novemeber 2011, Merdeka Palace Hotel, Kuching, Sarawak.

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Abstract

This study attempts to examine the relationship among trade openness, foreign direct investment, gross domestic investment, and economic development in Thailand using co-integration test, Granger causality test, and variance decomposition analysis. The cointegration analysis suggests that the variables are cointegrated and there exists a unique long-run relationship among the variables. The results of Granger causality test show that trade openness, foreign direct investment and gross domestic investment Granger caused economic growth unidirectionally, except trade openness. The variance decomposition analysis indicates that foreign direct investment seems to be the most important determinant of Thailand’s real GDP per capita growth, followed by trade openness and gross domestic investment. This suggests that policy makers in Thailand should liberalize its economy to encourage foreign trade and foreign direct investment inflows to achieve a sustained high economic growth.

Item Type: Conference or Workshop Item (Full Paper)
Additional Information: 4178/8115
Uncontrolled Keywords: GDP,FDI
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HF Commerce > HF3000 By region or country
Kulliyyahs/Centres/Divisions/Institutes: Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User: Professor Mohammed Yusoff
Date Deposited: 25 Nov 2011 16:38
Last Modified: 25 Nov 2011 16:38
URI: http://irep.iium.edu.my/id/eprint/8115

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