Research On Improvement Strategy Of Investment Environment In Laos Based On FDI

Since the economic globalization,many developing countries in the world have taken a series of measures to actively attract foreign direct investment,thus gaining the capital and management experience of developed countries and realizing the rapid development of their own economies.Since China joined the World Trade Organization in 2001,it has also been actively improving its investment environment and attracted foreign direct investment to achieve rapid economic development.Laos,a typical developing country,is located in Southeast Asia and is also a member of ASEAN.However,as a newly emerging developing country,China has more and more internationally competitive enterprises going out of China to make foreign direct investment.China's “One Belt One Road” strategy has also brought new opportunities to Laos' economic development.In this context,a detailed analysis of the actual situation of attracting FDI in Laos,based on a detailed analysis of Laos' investment environment,would help Laos to take advantage of its own privileges,seize opportunities and improve the Lao investment environment,Therefore,the introduction of foreign direct investment from all over the world to promote the economic development of Laos was important research significance.Therefore,firstly,this paper summarizes the classic theory of FDI in the literature review section.Then,the paper analyzes the international macro economy,the Lao internal environment and the Lao FDI status respectively,so as to comprehensively analyze the development status of Laos' FDI investment and the advantages and disadvantages of Laos' investment environment and external opportunities and threats.Furthermore,,based on the data materials of Laos' foreign investment and Laos investment environment in 2000-2017,using the co-integration test analysis and error correction model,this paper draws out the relationship between foreign direct investment of Laos with Laos' gross national product,infrastructure construction and national education.This paper find there is a short-term stable relationship between them.Finally,on the basis of the above-mentioned research,the improvement strategy is proposed.It is suggested that Laos should actively improve its infrastructure,its service capacity of relevant departments,its government administrative efficiency,and develop the country's education in order to better introducing FDI.