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

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.