Journal of Asia-Pacific Studies 2023 KCI Impact Factor : 0.61
-
pISSN : 1225-8539 / eISSN : 2671-5171
- https://journal.kci.go.kr/japs
KJCKorea
Journal Central
Roles of External Sectors in the Economic Growth of Laos: Focused on Trade, FDI, Foreign Aid, Tourist Revenue, and Remittances
- Journal of Asia-Pacific Studies
- Abbr : JAPS
- 2017, 24(1), pp.131-159
- DOI : 10.18107/japs.2017.24.1.005
- Publisher : Institute of Global Affairs
- Research Area : Social Science > Social Science in general
- Received : February 7, 2017
- Accepted : March 21, 2017
- Published : March 30, 2017
Kim,Kyu 1, Kichul Kwon 2
1경남과학기술대학교
2부산외국어대학교
Accredited
ABSTRACT
This paper tries to examine the impact of external sectors on economic growth in Laos. Since the New Economic Mechanism in 1986, Trade volume and flows of foreign aid, FDI, tourist revenue, and remittances have increased rapidly, which has been considered to contribute to economic growth of Laos. It uses annual time series data during the period 1988-2014. The Augmented Dickey-Fuller unit root test is implemented to ascertain whether the variables included in this analysis are non-stationary. Because all variables are found to be stationary, we implemented Johansen cointegration test which can find the relations between variables avoiding stationarity of variables. The results of empirical analyses show that all foreign trade variables have cointegration relations with GDP except remittances. In addition, it is shown that exports, imports and trade volumes have positive relations with GDP when analysed respectively. But remittances are not shown to have any effect. Foreign aid has greater effect on GDP than any other external sectors. This suggests that to sustain a high rate of economic growth Laotian government should have maintain good relationships with international aid agencies and rich countries and improve trade and FDI policy paradigm. It is desirable for Laotian government to promote exporting manufactural products and nurturing FDI based on the resources of the country.
Statistics
-
680 Viewed
-
185 Downloaded
Tools
Issue List
Citation status
* References for papers published after 2023 are currently being built.
[journal]
권기철
/ 2015
/
An analysis of macroeconomic interdependence between Greater Mekong Sub-region countries
/ 동남아시아연구
/ 한국동남아학회
25(1)
: 121~155
[journal]
백두주
/ 2011
/
A Study on the characteristics and effect of policies for economic reform and liberalization in transitional county: A case of study on the Lao PDR
/ 민주주의와 인권
/ 5.18연구소
11(3)
: 249~298
[journal]
이요한
/ 2011
/ 라오스, 내륙 국가에서 내륙연결 국가로
/ Chindia Journal
59
: 65~67
[journal]
Arvin, B. M.
/ 2002
/ Foreign Aid, Poverty Reduction, and Democracy
/ Applied Economics
34(1)
: 2121~2156
[journal]
Barro, R.
/ 1997
/ Technological Diffusion, Convergence, and Growth
/ Journal of Economic Growth
2(1)
: 1~26
[journal]
Bernard, A. B.
/ 2003
/ Plants and Productivity in International Trade
/ American Economic Review
93(4)
: 1268~1290
[journal]
Bernard, A. B.
/ 2004
/ Why Some Firms Export
/ Review of Economics and Statistics
86(2)
: 561~569
[journal]
Burnside, C.
/ 2000
/ Aid, Policies, Growth
/ American Economic Review
90(4)
: 847~868
[journal]
Edwards, S
/ 1998
/ Openness, Productivity and Growth: What Do We Really Know?
/ Economic Journal
108(447)
: 383~398
[other]
FAO
/ 2011
/ Foreign Agricultural Investment Country Profile: Lao PDR
/ FAO Investment Policy Support
[journal]
Fosu, A. K
/ 1990
/ Export Composition and the Impact of Exports on Economic Growth of Development Economies
/ Economic Letters
34(1)
: 67~71
[journal]
Gomanee, K.
/ 2005
/ Aid and Growth in Sub-Saharan Africa: Accounting for Transition Mechanisms
/ Journal of International Development
17(8)
: 1055~1075
[book]
Grossman, G.
/ 1991
/ Innovation and Growth in the Global Economy
/ MIT Press
[journal]
Gulati, U
/ 1978
/ Effect of Capital Imports on Savings and Growth in Less Developed Countries
/ Economic Inquiry
16(4)
: 563~569
[book]
Gupta, K. L.
/ 1983
/ Foreign Capital, Savings and Growth:An International Cross-Section Study
/ D. Reidel Publishing Company
[book]
Hill, R. C.
/ 2007
/ Principles of Econometrics
/ John Wiley & Sons
[journal]
Hudson, J
/ 2004
/ Introduction: Aid and Development
/ Economic Journal
114(1)
: 185~190
[journal]
Karras, G
/ 2005
/ Foreign Aid and Long-Run Economic Growth: Empirical Evidence for a Panel of Developing Countries
/ Journal of International Development
18(7)
: 15~28
[journal]
Krugman, P
/ 1979
/ A Model of Innovation, Technology Transfer, and the World Distribution of Income
/ Journal of Political Economy
87(2)
: 253~266
[journal]
Levy, V
/ 1987
/ Aid and Growth in Sub-Saharan Africa: the Recent Experience
/ European Economic Review
32
: 1777~1795
[journal]
McGillivray, M.
/ 2006
/ Controversies over the Impact of Development Aid: It Works; It Doesn’t Work; It Can, but That Depends
/ Journal of International Development
18(1)
: 1031~1050
[report]
Medina-Smith, E. J.
/ 2001
/ Is Export-Led Growth Hypothesis Valid for Developing Countries? A Case Study of Costa Rica
/ United Nations Conference on Trade and Development
: 1~57
[journal]
Mobeen, H. A
/ 2011
/ An Econometric Analysis of Export-Led Growth Hypothesis: Reflections from Pakistan
/ Interdisciplinary Journal of Contemporary Research in Business
2(12)
: 329~338
[journal]
Mosley, P
/ 1980
/ Aid, Savings and Growth Revisited
/ Oxford Bulletin of Economics and Statistics
42(2)
: 79~95
[journal]
Mosley, P.
/ 1987
/ Aid, the Public Sector and the Market in Developing Countries
/ Economic Journal
97(1)
: 616~642
[journal]
Obadan, M. I.
/ 2011
/ An Empirical Study Analysis of the Impact of Trade on Economic Growth in Nigeria
/ Job Journal of Economics
4(1)
: 1~23
[journal]
Pananek, G. F
/ 1972
/ The Effect of Aid and Other Resource Transfers on Savings and Growth in Less Developed Countries
/ Economic Journal
82(327)
: 934~950
[journal]
Rivera-Batiz, L. A.
/ 1991
/ Economic Integration and Endogenous Growth
/ Quarterly Journal of Economics
106(2)
: 531~555
[journal]
Rodríguez, F. R.
/ 2001
/ Trade Policy and Economic Growth: A Skeptic’s Guide to the Cross-National Evidence
/ NBER Macroeconomics Annual 2000
(15)
: 261~338
[journal]
Sachs, J.
/ 1997
/ Sources of Slow Growth in African Economies
/ Journal of African Economies
6(3)
: 335~376
[journal]
Young, A
/ 1991
/ Learning by Doing and the Dynamic Effects of International Trade
/ Quarterly Journal of Economics
106(2)
: 369~405
[report]
Busse, M.
/ 2012
/ Trade and Economic Growth: A Re-examination of the Empirical Evidence
/ Hamburg Institute of International Economics
[other]
Chansomphou, V.
/ 2011
/ Foreign Aid, Foreign Direct Investment and Economic Growth of Lao PDR
/ Development Discussion Policy Paper
[report]
Dolla, D.
/ 2001
/ Growth is Good for the Poor
/ World Bank
[report]
Dowling, J. M.
/ 1982
/ Aid, Savings and Growth in the Asian Region
/ Asian Development bank Economic Office
[report]
Government of Lao P. D. R.
/ 2015
/ 2014 Statistical Report on Tourism in Laos
[report]
Harrison, A.
/ 1991
/ Openness and Growth: A Time Series, Cross Countries Analysis for Developing Countries
/ World Bank Policy Research
[report]
Lee, J. W.
/ 1993
/ International Trade, Distortions, and Long-Run Economic Growth
/ IMF
[report]
Obstfeld, M.
/ 2003
/ Globalization and Capital Markets
/ NBER Chapters: Globalization in Historical Perspective
[report]
Shahbaz, M.
/ 2011
/ Foreign Direct Investment-Economic Growth Nexus: The Role of Domestic Financial Development in Portugal
/ Munich Personal RePEc Archive
[report]
Southichack, M.
/ 2014
/ Lao Labor Migration and Remittances Report
/ Swiss Cooperation in the Mekong Region
[report]
World Bank
/ 2011
/ Lao PDR Development Report 2010 – Natural Resource Management for Sustainable Development
/ World Bank
[report]
World Bank
/ 2011
/ Lao PDR Labor Standards and Productivity in the Garments Export Sector: A Survey of Managers and Workers
/ PREM Department. East Asia and Pacific Region. World Bank
[report]
World Bank
/ 2016
/ The Labor Impact of Lao Export Growth
[web]
UN
/ Development Policy & Analysis Division
/ https://www.un.org/development/desa/dpad/least-developed-country-category/ldcs-at-a-glance.html
[web]
/ UN Comtrade
/ https://comtrade.un.org
[web]
UNCTAD
/ World Investment Report 2016
/ http://unctad.org/en/Pages/DIAE/World%20Investment%20Report/World_Investment_Report.aspx
[web]
/ World Bank
/ http://data.worldbank.org