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Foreign Direct Investment, Trade Openness and Economic Growth

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  • Mohammed B. Yusoff
  • Ruslee Nuh

Abstract

In recent years, the Thailand economy has become more open to foreign trade as well as foreign direct investment (FDI). Thus, the main objective of this article is to examine whether FDI and international trade have positively contributed to the economic growth of Thailand. The results of the Granger causality tests indicate that they are indeed important determinants of growth in Thailand. This suggests that policymakers in Thailand should liberalize its economy to encourage foreign trade and FDI inflows to achieve a sustained high economic growth.

Suggested Citation

  • Mohammed B. Yusoff & Ruslee Nuh, 2015. "Foreign Direct Investment, Trade Openness and Economic Growth," Foreign Trade Review, , vol. 50(2), pages 73-84, May.
    • Handle: RePEc:sae:fortra:v:50:y:2015:i:2:p:73-84
    DOI: 10.1177/0015732515572055
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    References listed on IDEAS

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    Cited by:

    1. Cai, Peilin & Kim, Suk-Joong & Wu, Eliza, 2019. "Foreign direct investments from emerging markets: The push-pull effects of sovereign credit ratings," International Review of Financial Analysis, Elsevier, vol. 61(C), pages 110-125.
    2. Cai, Peilin & Gan, Quan & Kim, Suk-Joong, 2018. "Do sovereign credit ratings matter for foreign direct investments?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 55(C), pages 50-64.

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    More about this item

    Keywords

    Foreign direct investment; trade openness; economic growth; Thailand;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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