Impact Study On China's Direct Investment To The Economic Development Of Laos

Since the normalization of the relations between China and Laos in1989,the foreign direct investment(FDI)of Laos has been increasing and the foreign direct investment has continued to grow.China has now become one of the most important sources of foreign investment in Laos.In 2014,China's investment in Laos is over 1 billion US dollars.FDI can make up for the shortage of money in host countries,promote industrial development and improve the level of economic and social development.In the research results of the economic and trade relations between Laos and China,the research is mainly based on the perspective of the Chinese enterprises' FDI in Laos.The results can provide reference for Chinese enterprises to enter the Laos investment decision,but lack the research results from the perspective of China's absorption of FDI from Laos,which is a reference for the decision of Laos' government to attract Chinese investment.This paper does a research from the perspective of Laos' s absorption of China's FDI.So,this paper analyzes the historical trajectory of China's investment in Laos,and the current status of politics,economy,society,science and technology and talent environment in Laos,also analyzes China's investment in Laos' layout situation from space and industrial structure.Using data from 2000 to 2015,the relationship between Laos GDP and China's FDI to Laos is studied by linear regression model,and the relationship between the three industrial outputs of Laos and the China's FDI in Laos is also studied by the grey relational model.Some meaningful conclusions are drawn,and corresponding countermeasures and suggestions are put forward.It can provide decision references forLaos to make policies to attract Chinese FDI.