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Does Foreign Direct Investment Cause A Race To The Bottom?

Author

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  • Donghyun Park
  • Simon Tan Eng Kui
  • Tan Yee Keong
  • Alexius Wong Chow Khin
  • Yap Tee Peng

Abstract

One of the main initiatives for regional economic integration and cooperation in Southeast Asia is the Greater Mekong Sub-Region (GMS), which involves Cambodia, Laos, Myanmar, Thailand, Vietnam and China's Yunnan Province. Our paper provides an overview of major recent developments in the GMS initiative. In particular, we explore the impact of the Asian financial crisis and the economic role of Thailand within the group. Being the largest and most market-oriented economy, Thailand is a natural leader of the GMS. We conclude with a discussion of the GMS initiative's prospects in the aftermath of the Asian crisis.

Suggested Citation

  • Donghyun Park & Simon Tan Eng Kui & Tan Yee Keong & Alexius Wong Chow Khin & Yap Tee Peng, 2003. "Does Foreign Direct Investment Cause A Race To The Bottom?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 8(2), pages 251-279.
    • Handle: RePEc:taf:rjapxx:v:8:y:2003:i:2:p:251-279
    DOI: 10.1080/1354786032000074758
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    Cited by:

    1. Ofori, Isaac K. & Asongu, Simplice A., 2022. "Repackaging FDI for Inclusive Growth: Nullifying Effects and Policy Relevant Thresholds of Governance," MPRA Paper 111359, University Library of Munich, Germany.
    2. Ofori, Isaac K. & Asonngu, Simplice A., 2021. "Foreign Direct Investment, Governance and Inclusive Growth in Sub-Saharan Africa," MPRA Paper 108178, University Library of Munich, Germany.
    3. Sujan Chandra Paul & Md Harun Or Rosid & Mohammad Rakibul Islam & Refat Ferdous, 2021. "The Macroeconomic Determinants and FDI: Evidence from 14 International Alliances," Asian Development Policy Review, Asian Economic and Social Society, vol. 9(2), pages 69-82, June.
    4. Jakob De Haan & Susanna Lundström & Jan‐Egbert Sturm, 2006. "Market‐oriented institutions and policies and economic growth: A critical survey," Journal of Economic Surveys, Wiley Blackwell, vol. 20(2), pages 157-191, April.
    5. Mohammad Abdullah Al FAISAL & Mohammed Saiful ISLAM, 2022. "The impact of foreign direct investment on the economy of Bangladesh: A time-series analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(630), S), pages 123-142, Spring.
    6. Sadia Idrees & Nor’Aznin Abu Bakar, 2019. "Foreign Direct Investment and Social Sectors Development: A Review," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 7(1), pages :93-105, March.

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