Determinants of Foreign Direct Investment in Thailand: Chinese Investors in Chiang Mai, Thailand

Abstract

The objective of this study was to examine the determinants affecting the foreign direct investment from Chinese investors in a developing country-Thailand. Many theories attempted to explain the reasons and motives for the multinational enterprises (MNEs) to go abroad. This paper concentrated on the idea of the eclectic paradigm, also known as the OLI Model, stand for “Ownership, Location, Internationalization”, created by John H. Dunning. The researcher of this study added value to the literature by indicating that the characteristics of local people matter for foreign investment in Chiang Mai. In-depth interviews with 10 Chinese investors were conducted by the native mainland Chinese research assistant. Ten interviewees included five restaurant owners, three business owners, one souvenir shop, and one Chinese language school. Thematic analysis was applied to analyze the data.