Abstract:
This paper determines whether there is a relationship between the growth rate in Thailand and outward foreign direct investment from ASEAN and Europe. The variables that have been adopted are outward foreign investment in ASEAN, outward foreign investment in Europe, foreign direct investment, and gross fixed capital formation, all of which have been measured using time series data from Quarter 1 in 2005 to Quarter 3 in 2021. The two-stage least squares model was employed in this investigation. The main findings are the outward foreign direct investment from ASEAN has a relationship with GDP and it also has an effect on the gross fixed capital formation. Furthermore, there is no relationship between foreign direct investment in Europe and GDP. The outward foreign direct investment from Europe has no impact on the gross fixed capital formation, which is a measure of economic growth that can be related to GDP growth.
