Foreign trade regimes and the FDI–Growth Nexus: a case study of Thailand

Archanun Kohpaiboon

137 citations0/0 files storedThe Journal of Development Studies

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International Business and FDI Global trade and economics Economic Growth and Productivity

Abstract

This article 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 1970–99. 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.

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References

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