Analysis Of Influencing Factors Of Chinese Investment In Laos Infrastructure

Laos as a developing country whose infrastructure is not only horizontally backward,but also seriously affected by its economic development.In 2013,the Chinese government's initiative of "One belt one road" was put forward and implemented.This was for the two countries to create favorable conditions for infrastructure cooperation.It is in this context that this paper chooses China's investment in infrastructure and its influencing factors such as highway,railway and electric power in Laos,and hopes to provide policy references and developments for the Lao government in the construction and development of infrastructure.First,based on local and foreign literature,this paper uses detailed data of China's investment in Laos infrastructure from 2000 to 2014.This not only describes the amount of investment of China's in Lao infrastructure on a macro level,but also on areas like highways,railways,water and electricity and describes the specific distribution of infrastructure investment.Second,this paper uses SWOT analysis to analyze China's investment in infrastructure in Laos,which is mainly reflected in the relatively rich natural resources of Laos,which is adjacent to China's geographical location and is conducive to the mutual flow of products between the two countries.Factors like backward level of infrastructure,backward macro management,lack of industrial chains and investment law limits the pace of Laos in attracting China's infrastructural investment.For Laos to develop good conditions and create great investment projects,other countries should invest in Laos.However,the large-scale entry of infrastructure has brought new developmental momentum to Laos,it also poses great challenges to the social and economic development of Laos,such as the impact on the economic subjectivity of Laos,the impact on the development of enterprises and the culture,as well as the challenges of life and so on.Third,this paper conducts an empirical test on the influencing factors of China's investment in infrastructure in Laos,that is,using the time series data of China's investment in Lao infrastructure from 2000 to 2014,using ARIMAX estimation method for benchmarking and testing.The results show that there is a significant long-term equilibrium relationship between China's investment in Laos infrastructure and the macroeconomic factors of both China and Laos,their trade factors and the factors of economic globalization.Finally,at the national level,the heads of government of the two countries should establish regular communication mechanisms to strengthen China's negotiations on Lao infrastructure investment projects and create conditions for cooperation between enterprises in the two countries on infrastructure.The provincial government of Laos should also strengthen communication with the Chinese side,formulate specific details of infrastructure investment,clarify the rights and obligations of both China and Laos,and supervise the smooth progress of infrastructure construction.