THE RELATIONSHIP BETWEEN DOMESTIC INVESTMENT AND QUALITY ECONOMIC GROWTH IN THAILAND

The purpose of the following paper was to investigate the interrelation between domestic investment and economic growth of Thailand and for this purpose data for GDP, domestic investment, imports and exports have been collected from 1975 to 2018. Statistical and econometric tests of ADF, Johansen Cointegration, granger causality and vector error correction model (VECM) model were used. The findings of the study suggest the presence of long-run cointegration of the domestic investment, imports and exports with economic growth, but no short-run relation could be found in the study. In addition, the VECM model suggests that domestic investment has an insignificant effect on economic growth, but imports have a positive and significant effect on economic growth. Furthermore, exports have a negative significant effect. The paper also provides recommendations for policymaking and decision making.