Analysis of Thailand Foreign Direct Investment after Revolution in 2014

Parinya Maglin, Kwanruetai Boonyasana, Waralee Srisombat, Sontaya Khamvirat, Wanitcha Sumanat

Abstract


Foreign direct investment (FDI) is defined as a company from one country making a physical investment into building a factory in another country, and it plays an important role in global business while promoting economic growth. Despite its decrease after a revolution in 2014, Thailand’s FDI has increased slightly and remained at the same level until 2015. This case’s forecasting process involves some complications. The current paper employs documentary research and time series analysis to determine the effect of revolution on net FDI. We employ net FDI monthly data from 2005 to 2015, provided by the Bank of Thailand (BOT). The forecasting results show that, from 2014 to 2015, we can see that the average of actual net FDI is higher than the expectation by time series forecasting by about 3.13%. This indicates that the Thai government’s policies provide a positive effect on FDI. Thailand’s government and policymakers should be attentive to this situation in trying to find the best explanation to improve results of forecasting. The findings of this paper can be of benefit for economic development planning.

Aus. J. Acc. Eco. Fin. Vol 3(1), April 2017, P 30-36


Keywords


Foreign Direct Investment; Revolution; Coup d’état; Thailand

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