Research The Factors To Attract Foreign Investment In Laos

Overseas funds have been flowing into the Laos people Democratic Republic increasingly, since the new thought and policy were adopted in1986and Foreign Investment Law was promulgated in1988. Foreign direct investment plays a important role for economic development and enables the development and growth of the national economy.The present study aims to research foreign investment position and various factors to attract foreign investment, such as a variety of laws, regulations and policies, preferential policies of creating favorable investment environment. The present study calculated correlation coefficient between control variable and independent variable by using log-linear regression model, and estimated the range of each variable by using multivariate statistical analysis which adopted least squares method. The results show that Gross Domestic Product (GDP) is very associated with foreign investment, its reliability is99%and its coefficient is2.073%; the coefficient of economic openness is0.019%, and reliability is95%; the coefficient of infrastructure projects is0.017%, and reliability is95%; the coefficient of Consumer Price Index(CPI) is0.014%, and reliability is90%. From this, it can be seen that The Gross Domestic Product (GDP) is the most important factor for foreign direct investment, because foreign investors will consider that economic development is a primary factor firstly. Next, they will take into account the economic openness, the number of infrastructure projects and consumer price index.In the process of promoting national economic development in Laos, foreign direct investment has become an important factor of economic development in Laos. Multinational companies can disseminate knowledge and technology, and foreign investment can promote Laos economic development with funds and a variety of information. In addition, theory and research results show that foreign investment can help Laos as an investment introduction country to solve the employment problems, and the Lao labor wages and benefits enhanced greatly in foreign direct investment industry, and the livelihood security of the labor force has increased. However, open foreign direct investment is very important. Considering integrated advantages and disadvantages and selecting appropriate strategies and countermeasures is the only way to make our country obtain the maximum benefit from the introduction of foreign investment.。...