Influences Factors between THAI FDI Policy and Regional Distribution of FDI—Based on 77 Provinces During 1985-2016 Panel Data

Abstract

This article studies regional distribution of Foreign Direct Investment (FDI) under Thai Foreign Direct Investment Policy 2016. Its focus is classified doing a single constructed panel data covering all 77 Thai provinces when the time 1985-2016. The work is started on the opinion that international investors analyze many focuses of location decision in all provinces (covering wage rates, GPP per head, industrial area, telecommunication and transportation, population size and density, human capital, and way from the center of city to the central harbors of Thailand) and government policy such as incentives, back choosing to move FDI in a given region. Author econometric model views propose government regional level policy, and the impact of zoning especially, nevertheless, has a positive effect and significant on regional FDI, brining FDI to these zones that the best incentives were on proposition. The other feasible determinants of FDI regions are mainly appeared to be insignificant.