Foreign direct investment (FDI) plays an extraordinary and growing role in global business. For many years, Thailand was among the most open in the developing world to foreign investment. This study aims to examine the determinants of foreign direct investment in Thailand. The study focuses on macroeconomic variables (GDP, exchange rate and labor cost) and mega events (red shirt and yellow shirt protests, world economic crisis and the interaction effect between red shirt and yellow shirt protests and world economic crisis). The data employed in this study is quarterly data from 2000 to 2009. Regression analysis is used as the method of analysis and the econometric program (E-Views) is used to test the model. The empirical results from this study indicate that GDP and exchange rate depreciation have positive influence on FDI inflow to Thailand; while red shirt and yellow shirt protests and world economic crisis have negative influence on the FDI inflow to Thailand, which is consistent with the previous literatures. However, labor cost and the interaction effect between red shirt and yellow shirt protests and world economic crisis do not have impact on the FDI inflow to Thailand.

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