IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v9y2025i15p281-294.html
   My bibliography  Save this article

Examining the Role of Globalization in Shaping Foreign Direct Investment Flows to Thailand: An Empirical Study

Author

Listed:
  • Noris Fatilla Ismail

    (Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Kedah Campus, 08400 Merbok, Kedah Darulaman, Malaysia)

  • Roziyana Jafri

    (Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Kedah Campus, 08400 Merbok, Kedah Darulaman, Malaysia)

  • Syahida Abd Aziz

    (Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Kedah Campus, 08400 Merbok, Kedah Darulaman, Malaysia)

  • Irlisuhayu Mohd Ramli

    (Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Kedah Campus, 08400 Merbok, Kedah Darulaman, Malaysia)

  • Suraya Ismail

    (Faculty of Business and Management, Universiti Sultan Zainal Abidin (UniSZA), Kampung Gong Badak, 21300, Terengganu, Malaysia)

  • Mariam Idris

    (Faculty of Business and Communication, Universiti Malaysia Perlis (UniMAP), Jalan Alor Setar-Kangar, 01000 Kangar, Perlis, Malaysia)

Abstract

Along with the growth and integration of its economy into the global economy, Thailand has made significant progress in the areas of sustainable and equitable development. With the rise of significant new economic markets, Thailand’s advantageous location serves as a gateway to Southeast Asia. Foreign Direct Investment (FDI) is one of the most important sources of external capital for nations in today’s increasingly globalised world. This study uses yearly data from 1980 to 2022 to examine the connection between globalisation and FDI in Thailand. According to the Autoregressive Distributed Lag (ARDL) analysis, trade openness—a gauge of globalization—has significantly influenced FDI inflows into Thailand. The empirical results show that FDI inflows and globalisation are positively correlated. Policymakers may find these findings useful in developing plans to increase FDI prospects in Thailand.

Suggested Citation

  • Noris Fatilla Ismail & Roziyana Jafri & Syahida Abd Aziz & Irlisuhayu Mohd Ramli & Suraya Ismail & Mariam Idris, 2025. "Examining the Role of Globalization in Shaping Foreign Direct Investment Flows to Thailand: An Empirical Study," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(15), pages 281-294, February.
  • Handle: RePEc:bcp:journl:v:9:y:2025:i:15:p:281-294
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-9-issue-15/281-294.pdf
    Download Restriction: no

    File URL: https://rsisinternational.org/journals/ijriss/articles/examining-the-role-of-globalization-in-shaping-foreign-direct-investment-flows-to-thailand-an-empirical-study/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998. "How does foreign direct investment affect economic growth?1," Journal of International Economics, Elsevier, vol. 45(1), pages 115-135, June.
    2. Mehta, Aashish & Mohr, Belinda Acuña, 2012. "Economic Liberalization and Rising College Premiums in Mexico: A Reinterpretation," World Development, Elsevier, vol. 40(9), pages 1908-1920.
    3. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    4. Helmi Hamdi & Rashid Sbia & Hakimi Abdelaziz & Wafa Khlaifia hakimi, 2013. "Multivariate Granger causality between foreign direct investment and economic growth in Tunisia," Economics Bulletin, AccessEcon, vol. 33(2), pages 1193-1203.
    5. John C. Anyanwu & Nadege D. Yameogo, 2015. "What Drives Foreign Direct Investments into West Africa? An Empirical Investigation," African Development Review, African Development Bank, vol. 27(3), pages 199-215, September.
    6. Panagiotis Liargovas & Konstantinos Skandalis, 2012. "Foreign Direct Investment and Trade Openness: The Case of Developing Economies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 106(2), pages 323-331, April.
    7. Lawrence Dumisani Nyathi & Mbheki Mlobane, 2024. "The Role of Ease of Doing Business in Attracting Foreign Direct Investment in the SADC Region," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(5), pages 2587-2602, May.
    8. Ezcurra, Roberto & Rodríguez-Pose, Andrés, 2013. "Does Economic Globalization affect Regional Inequality? A Cross-country Analysis," World Development, Elsevier, vol. 52(C), pages 92-103.
    9. International Monetary Fund, 1990. "The Changing Structure of Japanese Trade Flows: The Changing Structure of Japanese Trade Flows," IMF Working Papers 1990/107, International Monetary Fund.
    10. Bekhet, Hussain Ali & Al-Smadi, Raed Walid, 2015. "Determinants of Jordanian foreign direct investment inflows: Bounds testing approach," Economic Modelling, Elsevier, vol. 46(C), pages 27-35.
    11. Nicholas Apergis & Costantinos Katrakilidis & Nikolaos Tabakis, 2006. "Dynamic Linkages between FDI Inflows and Domestic Investment: A Panel Cointegration Approach," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 34(4), pages 385-394, December.
    12. Albert Wijeweera & Renato Villano & Brian Dollery, 2010. "Economic growth and FDI inflows:a stochastic frontier analysis," Journal of Developing Areas, Tennessee State University, College of Business, vol. 43(2), pages 143-158, January-M.
    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. Sbia, Rashid & Shahbaz, Muhammad & Hamdi, Helmi, 2014. "A contribution of foreign direct investment, clean energy, trade openness, carbon emissions and economic growth to energy demand in UAE," Economic Modelling, Elsevier, vol. 36(C), pages 191-197.
    2. Askandarou Diallo & Luc Jacolin, & Isabelle Rabaud, 2021. "Foreign Direct Investment and Domestic Private Investment in Sub-Saharan African Countries: Crowding-In or Out ?," Working papers 816, Banque de France.
    3. Shah, Syed Hasanat & Hasnat, Hafsa & Cottrell, Simon & Ahmad, Mohsin Hasnain, 2020. "Sectoral FDI inflows and domestic investments in Pakistan," Journal of Policy Modeling, Elsevier, vol. 42(1), pages 96-111.
    4. Leandro do Rosario Viana Duarte & Yin Kedong & Li Xuemei, 2017. "The Relationship between FDI, Economic Growth and Financial Development in Cabo Verde," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(5), pages 132-142, May.
    5. Rosemary Stanley Taylor, 2020. "Foreign direct investment and economic growth. Analysis of sectoral foreign direct investment in Tanzania," African Development Review, African Development Bank, vol. 32(4), pages 699-717, December.
    6. Hussain Ali Bekhet & Raed Walid Al-Smadi, 2016. "The dynamic causality between FDI inflow and its determinants in Jordan," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 11(1), pages 26-47.
    7. Buhari Doğan, 2016. "The Effects of Globalization on Employment: Bounds Test Approach in Turkey Sample," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 6(10), pages 620-633, October.
    8. Samad, Abdul & Masih, Mansur, 2018. "Does institutional quality matter in attracting foreign direct investment? the case of Ethiopia based on ARDL approach," MPRA Paper 108493, University Library of Munich, Germany.
    9. Bhavesh Garg & Pravakar Sahoo, 2021. "DO DIFFERENT TYPES OF CAPITAL INFLOWS HAVE DIFFERENTIAL IMPACT ON OUTPUT? Evidence from Time series and Panel Analysis," IEG Working Papers 443, Institute of Economic Growth.
    10. Muhammad Shahbaz & Pervaz Azim & Khalil Ahmad, 2011. "Exports-Led Growth Hypothesis in Pakistan: Further Evidence," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 1(3), pages 182-197.
    11. Dierk Herzer & Stephan Klasen & Felicitas Nowak-Lehmann D., 2006. "In search of FDI-led growth in developing countries," Ibero America Institute for Econ. Research (IAI) Discussion Papers 150, Ibero-America Institute for Economic Research.
    12. Magombeyi, Mercy Tsitsi & Odhiambo, Nicholas Mbaya, 2017. "Dynamic impact of FDI inflows on poverty reduction:Empirical evidence from South Africa," Working Papers 22006, University of South Africa, Department of Economics.
    13. Lee Lian Ivy-Yap & Hussain Ali Bekhet, 2015. "Examining the Feedback Response of Residential Electricity Consumption towards Changes in its Determinants: Evidence from Malaysia," International Journal of Energy Economics and Policy, Econjournals, vol. 5(3), pages 772-781.
    14. Muyambiri Brian & Odhiambo Nicholas, 2017. "Financial Development, Savings and Investment in South Africa: A Dynamic Causality Test," Global Economy Journal, De Gruyter, vol. 17(3), pages 1-10, September.
    15. Sheilla Nyasha Author-Name: Yvonne Gwenhure & Nicholas M. Odhiambo, 2017. "Poverty and Economic Growth in Ethiopia: A Multivariate Causal Linkage," Journal of Developing Areas, Tennessee State University, College of Business, vol. 51(1), pages 343-359, January-M.
    16. Husam Rjoub & Mehmet Aga & Ahmad Abu Alrub & Murad Bein, 2017. "Financial Reforms and Determinants of FDI: Evidence from Landlocked Countries in Sub-Saharan Africa," Economies, MDPI, vol. 5(1), pages 1-12, January.
    17. Sunde, Tafirenyika, 2016. "Foreign direct investment and economic growth: ADRL and causality analysis for South Africa," MPRA Paper 72382, University Library of Munich, Germany, revised Jun 2016.
    18. Lessmann, Christian & Seidel, André, 2017. "Regional inequality, convergence, and its determinants – A view from outer space," European Economic Review, Elsevier, vol. 92(C), pages 110-132.
    19. Mohammad Mafizur Rahman & Muhammad Shahbaz, 2013. "Do Imports and Foreign Capital Inflows Lead Economic Growth? Cointegration and Causality Analysis in Pakistan," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 14(1), pages 59-81, March.
    20. Sadam Hussain & Waqar Ahmad & Yasmeen Qamar & Muhammad Shahid Akram, 2019. "Impact of Inflation, CO2 Emissions and Foreign Investment on Economic Growth: A Case of Pakistan," Asian Development Policy Review, Asian Economic and Social Society, vol. 7(4), pages 307-317, December.

    More about this item

    Statistics

    Access and download statistics

    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:bcp:journl:v:9:y:2025:i:15:p:281-294. 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: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    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.