FDI and Thailand’s Color-coded Politics: The Thai Paradox - Will it Endure?

Jean Dautrey

Abstract


Considering first various categories of political risk in which to pigeonhole the recent political mayhem in Thailand, this article explores the impact of these political events on the flow of foreign direct investment into the country. It posits that, contrary to the commonly-held view, the main threat to transnational capital inflow is the Map Ta Phut legal entanglement over environmental issues, not the political standoff. The Supreme Administrative Court’s controversial halt, while good news for the environment climate could be bad news for the investment climate; all the more as with the Association of Southeast Asian Nations’ Economic Community looming on the horizon and a new regional architecture taking shape, Thailand also faces increasing competition for FDI within its own economic block.


Keywords


FDI; Political and legal risks; foreign investor confidence; AEC; ASEAN; Map Ta Phut industrial estate

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