Multi-criteria decision analysis on Chinese investment in Chiang Mai property market based on belt and road initiative

Abstract

This research aims to evaluate the feasibility and potential impacts of Chinese investment in the Chiang Mai property market under the Belt and Road Initiative (BRI) framework. By employing a Multi-Criteria Decision Analysis (MCDA) approach, the research seeks to provide a comprehensive assessment of the investment opportunities, considering various economic, political, social, environmental, and legal factors. The research employs a systematic MCDA methodology to analyze Chinese investment in Chiang Mai's property market. Key criteria were identified through an extensive literature review and expert consultations, covering economic growth potential, political stability, social acceptance, environmental sustainability, infrastructure development, and the legal-regulatory environment. Data for each criterion were collected from secondary sources, including economic reports, government publications, and academic studies. Criteria were weighted using the Analytical Hierarchy Process (AHP) based on expert opinions. Each investment option was evaluated against the criteria, and scores were aggregated to determine the overall attractiveness of the investment opportunities. Sensitivity analysis was conducted to test the robustness of the results.

The analysis reveals that the Chiang Mai property market offers significant opportunities for Chinese investors under the BRI, particularly in terms of economic growth potential and infrastructure development. However, legal and regulatory complexities, environmental sustainability, and social acceptance challenges were identified as critical factors that could influence investment decisions. The aggregated scores indicate that while the economic and infrastructural criteria are highly favorable, attention must be paid to mitigating legal and environmental risks. The sensitivity analysis confirms the robustness of the results, suggesting that economic and infrastructure factors remain pivotal even under varying conditions. The research concludes that strategic investment in Chiang Mai's property market could yield substantial benefits for Chinese investors, provided that they address the identified challenges through comprehensive risk management and stakeholder engagement strategies.