Publication Code: I19
by Wisarn Pupphavesa and Bunluasak Pussarungsri
In spite of significant improvement in domestic savings mobilization, there still exists a substantial saving-investment gap in Thailand necessitating foreign capital to finance public and private investment. Foreign direct investment (FDI) has become increasingly important in terms of capital formation and share of total foreign capital inflows. The share of FDI in total private investment increased from only 3 percent in 1980 to about 10 percent in 1990. The share of FDI in total foreign capital inflows also increased from only 10 percent in early 1980's to about 30 percent in 1990 (Pongpisanupichit and Pussarungsri, 1992).
This study on FDI will provide a brief description of the FDI profile in Thailand. Further, it will review and provide additional empirical tests on the factors affecting FDI in Thailand and its impacts on Thai economy. A special reference is made to the electrical and electronic sector in the section dealing with the technology transfer and exports relationship with FDI in Thailand.
April 1994