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Foreign trade regime and FDI-growth nexus : A case study of Thailand

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Kohpaiboon, Archanun

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Crawford School of Public Policy, The Australian National University

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Open Access

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Foreign direct investment (FDI) on growth performance in investment receiving (host) countries through a case study of Thailand. The methodology involves estimating a growth equation, which provides for capturing the impact of FDI interactively with economic openness on economic growth, using data for the period 1970-1999. The results support the "?Bhagwati' hypothesis that, other things being equal, the growth impact of FDI tends to be greater under an export promotion (EP) trade regime compared to an import-substitution (IS) regime.

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Working papers in trade and development

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