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Private Investment: Trends and Determinants in Thailand

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  • Jongwanich, Juthathip
  • Kohpaiboon, Archanun

Abstract

Summary This paper examines patterns and determinants of private investment in an attempt to understand why levels of private investment in South East Asia have not yet fully recovered, using Thailand as a case study. The private investment equation is estimated during the period 1960-2005. We find that it was capital fund shortages rather than existing spare capacity that hindered short-run investment recovery. While the health of the financial institutions must be kept in check, policy attention should be geared more toward credit availability to ensure that prudent investors can access credit adequately and accelerate investment recovery. In the long run, policy emphasis should be on promoting a conducive investment climate.

Suggested Citation

  • Jongwanich, Juthathip & Kohpaiboon, Archanun, 2008. "Private Investment: Trends and Determinants in Thailand," World Development, Elsevier, vol. 36(10), pages 1709-1724, October.
  • Handle: RePEc:eee:wdevel:v:36:y:2008:i:10:p:1709-1724
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Choon-Seng Lim & Vincent & Min B. Shrestha, 2009. "Investment in The SEACEN Countries in The Post-Crisis Era: Issues and Challenges," Research Studies, South East Asian Central Banks (SEACEN) Research and Training Centre, number rp77, April.
    2. Okey Mawussé Komlagan Nézan, 2016. "Public Expenditure and Private Sector Investment in WAEMU Countries," Research Papers RP_328, African Economic Research Consortium.
    3. Ang, James B., 2009. "Private Investment and Financial Sector Policies in India and Malaysia," World Development, Elsevier, vol. 37(7), pages 1261-1273, July.
    4. Manop Udomkerdmongkol & Sra Chuenchoksan & Nutthikarn Vorasa-ngasil, 2010. "Investment in Thailand: How to unleash the new investment cycle?," Working Papers 2010-05, Monetary Policy Group, Bank of Thailand.
    5. Morrissey, Oliver & Udomkerdmongkol, Manop, 2012. "Governance, Private Investment and Foreign Direct Investment in Developing Countries," World Development, Elsevier, vol. 40(3), pages 437-445.
    6. James B. Ang, 2010. "Determinants Of Private Investment In Malaysia: What Causes The Postcrisis Slumps?," Contemporary Economic Policy, Western Economic Association International, vol. 28(3), pages 378-391, July.

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