The objective of this study is to analyze the relationship between Thailand’s key economic indicators, domestic political crisis and FDI flows from Taiwan to Thailand. E-views software program is used to investigate key economic indicators and domestic political crisis which have the effect to FDI flows. The test of OLS, Multicollinearity, Heteroscedasticity and Autocorrelation are applied to this study. There are six variables tested, four key economic indicators variables tested are; Real GDP, inflation rate, exchange rate, and interest rate. Two dummy variables of domestic political crisis are; September 2006 military coup and Yellow-Red Shirts Protesting. The study used yearly secondary data from 1976 to 2010. The research finding found that there are relationships between Thailand’s key economic indicators, domestic political crisis and FDI flows from Thailand and Taiwan. The variable of Real GDP, inflation rate, interest rate and Yellow-Red Shirts Protesting are significantly correlated to FDI flows from Taiwan to Thailand. There are no significant relationships to exchange rate and September 2006 military coup. The largest influence on FDI flows from Taiwan to Thailand is the variable of Real GDP.

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