Research On China’s Real Estate Investment In Laos And Its Impact On Housing Prices

As a developing country in Southeast Asia,Laos has experienced rapid economic growth in recent years,attracting foreign investment from many countries.With the proposal of China’s "One Belt and One Road" proposal,China’s investment in Laos has reached a new level,and investment in the Laos real estate market has soared.Considering that the real estate market price is a "barometer" of a country’s economic development,moderate housing price growth can reflect a country’s economic growth potential and investor confidence,so this thesis selects China’s foreign direct investment in the Laos real estate market(OFDI)for its real estate The impact of price is the research theme,with a view to providing advice on the sustainable development of the Laos real estate market.Based on the existing literature research,this dissertation first illustrates the different trends of China and other countries’ investment in the Laos real estate market through a large number of typical facts,and uses the same period housing price of Vientiane City as a proxy variable for the Laos real estate market price.Preliminary statistical results show that there is a significant correlation between Chinese capital inflows into the Laos real estate market and Laos house prices.Secondly,according to the market equilibrium theory,this dissertation analyzes the factors affecting the real estate market demand and price in Laos,and puts forward four hypotheses in this dissertation:namely,the number of urban population,disposable income of residents and Laos house prices are positively related.There is a positive correlation between the amount of Chinese and other countries’ investment in the Laos real estate market and Laos house prices.Thirdly,this dissertation selected 2000-2018 Laos real estate market related data,Laos economic data and Chinese investment data to conduct an empirical test on the impact of Chinese enterprises on the Laos real estate market.The estimation results show that there is a positive correlation between the population of Laos and the income of residents and the price of the Laos real estate market.There is also a positive correlation between the Laos real estate market invested by China and the price of the Laos real estate market.However,no significant relationship has been found between the investment in the Laos real estate market by other countries except China and the price of the Laos real estate market.Except for China,the investment in the Lao real estate market and the price of the Lao real estate market changed from positive to negative after the financial crisis.The empirical results and corresponding case indicate that,at the current stage of the Laos real estate market,there is still a shortage of supply.More foreign capital is needed to stimulate the development of this market.Foreign capital from China is its important main force.Finally,on the basis of summing up the previous points,this dissertation brings forward Laos’ policy recommendations for attracting more foreign investment to enter and continue to develop the real estate market in terms of improving infrastructure,improving the real estate investment environment,and meeting the demand for diversified real estate.