| Author | Somkiat Suebsubanunt |
| Call Number | AIT Thesis no.SM-93-05 |
| Subject(s) | Investments, Foreign--Thailand
|
| Note | A thesis study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration |
| Publisher | Asian Institute of Technology |
| Abstract | Foreign direct investment (FDI) plays a vital role in a country's economic growth and technological development. Thailand has benefitted considerably through FDI especially after the establishment of the Investment Board in the 1960s. Thailand's double digit growth rates in recent years has been attributed partly to FDI. One of the interesting features of FDI in Thailand is that the Asia Pacific region countries such as Japan and the Newly Industrializing Countries (NICs) have become major investors displacing the United States and the European countries from their top positions. Thus considerable interest has been created in trying to understand the patterns, role and impact of Asia Pacific region FOi in Thailand. This study is an attempt to meet that need. However because of its exploratory nature this study focuses its attention only on FDI from the Asia Pacific region in the e lectronics industry of Thailand. In order to fully understand the pattern, role and impact of FDI, an analytical framework has been proposed. This framework proposes that five aspects namely: characteristics of FDI firms; motivations for FDI; incentives given for attracting FDI; technology tra nsfer mechanisms and modes of payment in FDI; and impact of FDI, need to be looked at to gain a fuller understanding of FDI issues. This framework has been operationalized through the development of a questionnaire and its application in forty FDI firms from Japan, Hong Kong, South Korea, Singapore and Taiwan currently operating in the e lectronics industry of Thailand. Secondary data collected to supplement the primary data collected through the administration of the questionnaire and interviews with the managers of the firms The finding show that government incentives and cheap labor are still the main motivation factors for attracting FDI to Thailand. The firms in the electronics industry appear to use mainly middle level technology and skills with the Japanese firms being more sophisticated in these than the NIC firms. There also seems to be an inverse relationship between direct technology payments and percentage of equity controlled by the foreign investor. The FDI appears to have improved export performance, generated employment at not only lower but also at higher skill levels and increased import dependence. No clear evidence is available to assess the impact of FDI on productivity improvement, technological capability improvement and creation of industrial linkages. Issues, especially related to government procedures that hinder the effectiveness of foreign investment, have been identifie d and corrective measures are suggested. |
| Year | 1993 |
| Type | Thesis |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Ramanathan, K. |
| Examination Committee(s) | Supapol A. Bhanich ;Hertzberg, E. ; |
| Scholarship Donor(s) | The Netherlands Government; |
| Degree | Thesis (M.B.A.) - Asian Institute of Technology |