Foreign direct investment is often considered as simultaneously being one of the consequences and drivers of globalisation. In the process of opening up economies to participate in some of the positive impacts of globalisation, countries position themselves in respect of attracting foreign direct investment. In addition, the ability to attract foreign direct investment and its positive impact in growing economies is valued as an integral part of the road to successful economic growth and development. . | Sustainable Globalization and Emerging Economies The Impact of Foreign Direct Investment in Thailand Werner Soontiens Siriporn Haemputchayakul Curtin University of Technology Australia Abstract Foreign direct investment is often considered as simultaneously being one of the consequences and drivers of globalisation. In the process of opening up economies to participate in some of the positive impacts of globalisation countries position themselves in respect of attracting foreign direct investment. In addition the ability to attract foreign direct investment and its positive impact in growing economies is valued as an integral part of the road to successful economic growth and development. The Asian economic crisis has highlighted the vulnerability and volatility of emerging economies especially in the financial sector and in the case of Thailand directly linked to foreign direct investment. The question that prevails is to what extent does foreign direct investment support or sabotage globalisation attempts by countries. This paper considers the role and impact that foreign direct investment FDI has had in Thailand over the past decade. The first section identifies the nature and impact of FDI in general followed by an explanation of the underlying reasons for the flow of funds. The nature and impact of FDI defines the concept and summarizes the consequences both positive and negative towards the recipient country. Different theories explaining why FDI takes place are also discussed here. The second section briefly considers foreign direct investment in Asia. This section looks at tendencies in the flow of foreign direct investment in terms of target markets and industries. The role of FDI in Asia is analysed over the 1990 to 1998 period to show its behaviour before and during the Asian financial crisis. The third section analyses the impact of foreign direct investment in Thailand by pointing out its nature and origin in terms of the major sources of FDI and the .
