An Effect between Factors Influencing Foreign Direct Investment to Labour Productivity in Firm Level of Thailand

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Denchai Meedecha Adisak Chandprapalert Yordying Thanatawee

Abstract

The purposes of this study are to develop the model and examine the Causal Relationship of factors influencing Foreign Direct Investment to Labor Productivity in the multinational company which direct investment in Thailand from 433 samples of foreign senior executives. The statistical methods for analyzing data are Confirmatory Factor Analysis and Structural Equation Modeling analysis.

The research result found that the 2 main factors influencing Foreign Direct Investment are Competitiveness Advantage of Host Country and Internal Motivation in Company.

The result of Structural Equation Modeling analysis showed that the factors influencing Foreign Direct Investment also have positive influence on Labor Productivity. The most influential factor is Seeking for Resources followed by Comparative Cost and Income Changes, Save from Logistical and Business Transactional Cost, Avoid Trade Barriers, and Exchange Rate respectively. Therefore, related agency should promote and secure the stability of resources or raw materials used in the operation, build up the competitive advantage (e.g. promote and support Tax or non-Tax privileges), improve logistic and business transaction system (e.g. development of transportation network, process of coordination, regulations and procedures , or implementation of business operation), support and reduce barriers related to imported duties (e.g. imported raw materials, reducing or eliminating duties on imported machineries, or the barriers of the standards of products manufactured in Thailand), and stabilization of the exchange rate not to fluctuate too much.

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Article Details

Section
Research Articles-Academic Articles
Author Biographies

Denchai Meedecha

Doctor of Philosophy In Organization Development and Human Capability Management, Graduate School of Commerce, Burapha University, Chonburi

Adisak Chandprapalert

Doctor of Philosophy In Organization Development and Human Capability Management, Graduate School of Commerce, Burapha University, Chonburi

Yordying Thanatawee

Organization Development and Human Capability Management, Graduate School of Commerce, Burapha University, Chonburi

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