IDEAS home Printed from https://ideas.repec.org/a/adm/journl/v7y2018i3p1-7.html
   My bibliography  Save this article

Policy and Foreign Direct Investment : Case Study of Thailand’s Automotive Industry

Author

Listed:
  • Titapa Tanchoun

Abstract

Thailand’s automotive industry has derived over the past 50 years, perpetually supported by government investment, taxation, and the promotion of foreign direct investment. However, the economic crisis (Tom Yam Kung) caused the worst downturn in Thailand. After the crisis, Thailand set policies to strengthen the potential of the automotive industry and implemented measures to promote the manufacture and utilisation of domestic automotive parts, such as an increase in import tax on Complete Built-Up (CBU) and Complete Knock-Down (CKD) to support foreign investment in Thailand’s production base, such as exemption from corporate tax income and the import duty on machinery. Furthermore, the government determined an increasing requirement ratio for local content. Consequently, Thailand has the biggest production base in Southeast Asia; the first of its kind for pickup trucks in the world, and ranked twelfth for exports of automobile and automotive parts. Meanwhile, Thailand continues to develop its major goal to become a top ten exporter of the automotive industry in the world.

Suggested Citation

  • Titapa Tanchoun, 2018. "Policy and Foreign Direct Investment : Case Study of Thailand’s Automotive Industry," International Journal of Sciences, Office ijSciences, vol. 7(03), pages 1-7, March.
    • Handle: RePEc:adm:journl:v:7:y:2018:i:3:p:1-7
    DOI: 10.18483/ijSci.1566
    as

    Download full text from publisher

    File URL: https://www.ijsciences.com/pub/article/1566
    Download Restriction: no
    File URL: https://www.ijsciences.com/pub/pdf/V72018031566.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.18483/ijSci.1566?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Theodore H. Moran, 2001. "Parental Supervision: The New Paradigm for Foreign Direct Investment and Development," Peterson Institute Press: All Books, Peterson Institute for International Economics, number pa64, April.
    2. Theodore H. Moran, 1998. "Foreign Direct Investment and Development: The New Policy Agenda for Developing Countries and Economies in Transition," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 53, April.
    3. Beata Smarzynska Javorcik, 2004. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages," American Economic Review, American Economic Association, vol. 94(3), pages 605-627, June.
    4. Razeen Sally, 2007. "Thai Trade Policy: From Non‐discriminatory Liberalisation to FTAs," The World Economy, Wiley Blackwell, vol. 30(10), pages 1594-1620, October.
    5. Doner,Richard F., 2009. "The Politics of Uneven Development," Cambridge Books, Cambridge University Press, number 9780521736114, November.
    6. Doner,Richard F., 2009. "The Politics of Uneven Development," Cambridge Books, Cambridge University Press, number 9780521516129, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bernard M. Hoekman & Keith E. Maskus & Kamal Saggi, 2023. "Transfer of Technology to Developing Countries: Unilateral and Multilateral Policy Options," World Scientific Book Chapters, in: Kamal Saggi (ed.), Technology Transfer, Foreign Direct Investment, and the Protection of Intellectual Property in the Global Economy, chapter 5, pages 127-142, World Scientific Publishing Co. Pte. Ltd..
    2. Pack, Howard & Saggi, Kamal, 2006. "The case for industrial policy : a critical survey," Policy Research Working Paper Series 3839, The World Bank.
    3. Antonio Postigo, 2014. "Liberalisation and Protection under Overlapping Free Trade Agreements: Dynamic Interplay between Free Trade Agreements and Investment," The World Economy, Wiley Blackwell, vol. 37(11), pages 1612-1633, November.
    4. An, Galina & Puttitanun, Thitima, 2010. "Quality requirements in developing countries," Journal of Economics and Business, Elsevier, vol. 62(2), pages 94-115, March.
    5. Kate Hynes & Yum K. Kwan & Anthony Foley, 2017. "Local linkages: The interdependence of foreign and domestic firms," GRU Working Paper Series GRU_2017_006, City University of Hong Kong, Department of Economics and Finance, Global Research Unit.
    6. Chrysovalantou Milliou, 2014. "Location for Foreign Direct Investment in Vertically Related Markets," Review of International Economics, Wiley Blackwell, vol. 22(2), pages 326-341, May.
    7. Sanjaya Malik, 2015. "Conditional technology spillovers from foreign direct investment: evidence from Indian manufacturing industries," Journal of Productivity Analysis, Springer, vol. 43(2), pages 183-198, April.
    8. Blalock, Garrick & Gertler, Paul J., 2008. "Welfare gains from Foreign Direct Investment through technology transfer to local suppliers," Journal of International Economics, Elsevier, vol. 74(2), pages 402-421, March.
    9. Prema-chandra Athukorala, 2014. "Industrialisation through State-MNC Partnership: Lessons from the Malaysia's National Car Project," Departmental Working Papers 2014-06, The Australian National University, Arndt-Corden Department of Economics.
    10. Olivier N. Godart & Holger Görg, 2016. "Suppliers of multinationals and the forced linkage effect: Evidence from firm level data," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT, chapter 15, pages 277-288, World Scientific Publishing Co. Pte. Ltd..
    11. Davies, Ronald B. & Ellis, Christopher J., 2007. "Competition in taxes and performance requirements for foreign direct investment," European Economic Review, Elsevier, vol. 51(6), pages 1423-1442, August.
    12. Holger Görg & Michael Henry & Eric Strobl & Frank Walsh, 2009. "Multinational companies, backward linkages, and labour demand elasticities," Canadian Journal of Economics, Canadian Economics Association, vol. 42(1), pages 332-348, February.
    13. Resnik, Danielle & Okumo, Austen, 2017. "Institutional Limits To Land Governance Reform: Federal-State Dynamics In Nigeria," Feed the Future Innovation Lab for Food Security Policy Research Papers 259578, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    14. Feinberg, Susan & Keane, Michael, 2005. "Intrafirm Trade of US MNCs: Findings and Implications for Models and Policies Toward Trade and Investment," MPRA Paper 55120, University Library of Munich, Germany.
    15. Sen, Kunal & Tyce, Matthew, 2019. "The elusive quest for high income status—Malaysia and Thailand in the post-crisis years," Structural Change and Economic Dynamics, Elsevier, vol. 48(C), pages 117-135.
    16. Veerayooth Kanchoochat, 2014. "Coalition Politics and Reform Dynamics in Thailand," GRIPS Discussion Papers 13-26, National Graduate Institute for Policy Studies.
    17. Jose Groizard, 2009. "Technology Trade," Journal of Development Studies, Taylor & Francis Journals, vol. 45(9), pages 1526-1544.
    18. Matthias Arnold, Jens & Javorcik, Beata S., 2009. "Gifted kids or pushy parents? Foreign direct investment and plant productivity in Indonesia," Journal of International Economics, Elsevier, vol. 79(1), pages 42-53, September.
    19. Luis Alfonso Dau & Elizabeth M Moore & William Newburry, 2020. "The grass is always greener: The impact of home and host country CSR reputation signaling on cross-country investments," Journal of International Business Policy, Palgrave Macmillan, vol. 3(2), pages 154-182, June.
    20. Maxime Delabarre, 2021. "The Economic and Institutional Determinants of Foreign Direct Investments," Working Papers hal-03334549, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adm:journl:v:7:y:2018:i:3:p:1-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Staff ijSciences (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.