Determinants of Outward FDI for Thai Firms


  • Tanapong Potipiti Assistant professor, Faculty of Economics, Chulalongkorn University, Bangkok
  • Kiriya Kulkolkarn Assistant professor, Faculty of Economics, Thammasat University, Bangkok


Firm Decisions, Firm-level Data, Outward FDI, Thailand


Using firm-level data from the Thailand Productivity and Investment Climate Survey for 2004 and 2007, we study characteristics of Thai firms that make foreign direct investments. We investigate determinants of outward FDI decisions as well as outward FDI share in total investments. It is found that factors positively affecting outward FDI decisions are the firm’s public company and exporting status, the number of plants and workers as well as age and foreign ownership. The only factor found to have a negative effect on outward FDI is the firm’s fixed assets. As for the share of outward FDI in total investments, the only factor that positively affects it is export intensity. Surprisingly, we found that firms with their own brands and a higher number of products per worker tend to have a lower share of outward FDI.


How to Cite

Potipiti, T., & Kulkolkarn, K. (2015). Determinants of Outward FDI for Thai Firms. SOUTHEAST ASIAN JOURNAL OF ECONOMICS, 43–59. Retrieved from