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The correlation between foreign direct investment (FDI) and economic development is discussed by many specialists in the sphere of finances. In his article “Foreign Direct Investment and Its Impact on the Thai Economy”, Ang aimed to add to the discussion of this relationship while focusing on the case study of Thailand (Ang 321). Even though the author used an effective analytical framework and appropriate statistical methods to analyse the data, Ang’s discussion of effects and conclusions are rather incomplete, and it is necessary to point out more aspects to be addressed in the conclusion section.
Having discussed the analysis’ results, Ang concludes that financial development and economic growth are related processes while discussing them from the point of output expansion. The main conclusion is based on the idea that FDI has both direct negative and indirect positive impacts on economic growth. This conclusion lacks supporting details to explain how the author came to such an idea referring to the data analysis.
Although the author discusses the findings, he fails to provide the discussion of effects observed with references to tabulated data and graphs. Ang states that the direct impact of FDI on the economy is negative in the long run, but he does not support this idea with the previous discussion of the role of the Asian financial crisis in this process (Ang 321). The conclusion seems to be incomplete and irrational. The other weakness is the unsupported statement that the indirect effect is positive because of its role in the financial sector development. However, the author does not discuss Thailand’s financial system and sector in detail to draw conclusions referring to these concepts. The research’s conclusions should be expanded to provide support for important statements.
Works Cited
Ang, James. “Foreign Direct Investment and Its Impact on the Thai Economy: The Role of Financial Development”. Journal of Economics and Finance 33.3 (2009): 316-323. Print.
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