Communications in Humanities Research ISSN: 2753-7072
Home> Volumes> Volume CHR Vol.56> Article
Research Article

Foreign Direct Investment and Industrial Upgrading in Developing Economies: A Case Study of Thailand, Malaysia, and Indonesia

Zhilin HuangXi'an Jiaotong-Liverpool University*

* Corresponding author: [email protected]

Abstract

This article explores in depth how FDI becomes a key driver of industrialization in Thailand, Malaysia and Singapore. Through the detailed investigation of these countries for foreign enterprise policy, research found that the construction of protecting the rights and interests of foreign investors of open and transparent investment environment, attract a lot of international capital and advanced technology, can promote the upgrading of industrial transformation in developing countries, accelerate the labor-intensive economy to the development of technology-intensive economy, for the sustainable development of these countries laid a solid foundation. But at the same time, the establishment of foreign enterprises also depends on the attractiveness of national policies to these enterprises, and the direct impact of policies is an important factor in whether foreign enterprises are willing to enter these countries. The establishment of preferential, open and transparent policies for foreign enterprises is an important condition for developing countries to realize industrial transformation by using foreign capital.

Keywords: Malaysia; Indonesia; Thailand; Foreign-funded company; industrial transformation and upgrading
Published: March 7, 2025
DOI: 10.54254/2753-7064/2024.21244
Volume: CHR Vol.56
pp. 47-50
Download PDF

References

  1. Chia, S. Y. (1993). Foreign direct investment in ASEAN economies. Asian development review, 11(01), 60-102.
  2. Kanta Marwah, & Akbar Tavakoli (2004). The effect of foreign capital and imports on economic growth: further evidence from four Asian countries (1970–1998). Journal of Asian Economics, 15(2), 399-413.
  3. Hill, H. (1990). Foreign investment and East Asian economic development. Asian‐Pacific Economic Literature, 4(2), 21-58.
  4. Athukorala, P., & Menon, J. (1995). Developing with foreign investment: Malaysia. Australian Economic Review, 28(1), 9-22.
  5. Hill, H., & Athukorala, P. C. (1998). Foreign investment in East Asia: A survey. Asian‐Pacific Economic Literature, 12(2), 23-50.
  6. Ozawa, T. (1992). Foreign direct investment and economic development. Transnational corporations, 1(1), 27-54.
  7. Naya, S., & Ramstetter, E. D. (1992). Foreign Direct Investment in Asia’s Developing Economies and Trade in the Asian and Pacific Region. Foreign Investment, Trade and Economic Cooperation in the Asian and Pacific Region, United Nations ESCAP Development Papers, (1006), 43-99.
  8. Wint, A. G. (1992). Liberalizing foreign direct investment regimes: the vestigial screen. World Development, 20(10), 1515-1529.
  9. Reinhardt, N. (2000). Back to basics in Malaysia and Thailand: The role of resource-based exports in their export-led growth. World Development, 28(1), 57-77.
  10. Athukorala, P., & Menon, J. (1996). Foreign investment and industrialization in Malaysia: exports, employment and spillovers. Asian Economic Journal, 10(1), 29-44.
  11. Park, Y. C., & Song, C. Y. (1996). Managing Foreign Capital Flows: The Experience of Korea, Thailand, Malaysia, and Indonesia (No. 163). Working Paper.
  12. Dailami, M., & Leipziger, D. (1998). Infrastructure project finance and capital flows: A new perspective. World Development, 26(7), 1283-1298.