The Theoretical And Empirical Studies On Laos Attracting FDI From China

In recent years, countries in the world adopted various preferential measures to attract foreign direct investment (FDI), in order to promote the rapid development of the local economy and productivity improvements. Laos is no exception. However, after the Lao government implemented reform and opened up lines in 1991, its work focused on attracting foreign investment, but the actual effect was not very clear a. On the other hand, China as its neighbors, because of a natural geographical advantage and high economic growth rate, has always been one of important sources of FDI. In this context, making theoretical and empirical analysis of Laos attracting FDI from China can not only help to better introduce FDI from China to Lao, but also better understand the Lao domestic investment environment to attract FDI from other countries.Based on this, this thesis first summarized on one hand classical theory, including the monopolistic advantage theory, product life cycle theory, internalization theory, international production and comparative advantage theory of compromise; on the other hand, it combed and summarized domestic and abroad literature of Lao attracting FDI; and on the basis of the above it analyzed and commented the researches. Then from the investment scale, investment, trade and investment areas the theses described, respectively, the status of FDI from the world and China. The fourth chapter made a SWOT analysis on Laos attracting FDI from China, including the strengths, weaknesses, opportunities and challenges facing, in order to build a framework of the Laos's FDI environment.In quantitative analysis, this paper used 1995-2008 GDP and FDI data of Laos to explore the correlation between GDP and FDI in the co-integration test. The results showed that:on the one hand, the Lao attracting FDI significantly promoted the growth of national GDP, while foreign trade and investment in infrastructure on the contribution of GDP growth was also relatively large; on the other hand, the Granger causality test showed that FDI was the Laos Granger cause of GDP, but GDP Granger was not the cause of FDI.Based on the above research, this thesis finally revealed the main conclusions, and put forward some suggestions from six angles of the protection of agriculture, improving the quality, strengthening infrastructure construction and ex., in order to attract FDI from China and develop the economic of Laos.