A Comparative Study of Japanese and American FDI in Thailand

The intention of this paper is to comparatively assess the determinants of Japanese and American FDI in Thailand during 1970-2000. In this analysis, the short and long-term determinants of both FDI are estimated. Estimation results reveal that, in the short and the long run, Japanese FDI is found to be driven by trade factors and the yen deprecation. While the American FDI is driven by market factor, specifically the income level of Thai people. These findings lead us to conclude that Japanese FDI is trade-oriented whereas the American FDI is market-seeking-oriented.