Study On The Impact Of FDI From China On The Growth Of Lao Economy

This article analyzes the theory of foreign direct investment and economic growth,the current situation of economic growth in Laos,the actual use of China's international direct investment in Laos,the problems faced by Laos in the process of introducing Chinese capital,and the countermeasures to promote the use of foreign direct inve stment in Laos.Several aspects analyzed the impact of FDI from China on the growth of the Lao economy.As a country with a strong accumulation of heavy chemical industries,China's capital exports to Laos can have a significant impact on infrastructure mo re easily.At the same time,through the Belt and Road Initiative,China will promote economic cooperation between Laos and ASEAN countries.Based on this background,this paper constructs the theoretical framework for the analysis of the impact of Chinese FDI on the economic growth of Laos by using such theoretical tools as endogenous economic growth theory,location condition theory and regional economic integration.Through the theoretical and empirical analysis of FDI from China on the growth of the Lao economy,(1)The impact of Chinese FDI on the growth of the Lao economy can be summarized as endogenous growth,industrial linkages,multiplier effects,externalities and international division of labour.Chinese capital can increase the capital supply of Laos,and at the same time bring more jobs.In the middle schools,we can promote the improvement of the quality of the Lao labor force,cultivate human capital,and form a joint promotion of mining,electricity and even manufacturing in industrial relations.At the same time,the construction of infrastructure has formed a huge external nature.Of the total foreign direct investment that Laos has absorbed,the proportion of capital from China is as high as 60 %,which will directly promote economic and trade ties between Laos and China.To promote Lao development through international division of labour;(2)From the perspective of the distribution of data and the structure of the country,we can see that China's foreign direct investment in Laos is in fact mainly based on the continuous growth of secondary industry investment,and that its own economy is also growing.From 2005 to 2017,China's international direct investment in Laos,the total domestic economy of Laos,and the total economic output of Laos' s various industries were selected as the main data sources for empirical testing.The total economic volume of Chinese FDI to Laos and the growth of the primary and secondary industries in Laos have a good promotion effect.(3)In order to deal with the problems affecting the Lao PDR's further absorption of Chinese investment,it is possible to transfer the power of construction and operation of relevant road sections to the corresponding investors,and when the relevant investment infringes the righ ts and interests of local residents,the government may organize compensation and coordination.The Lao PDR should constantly promote the young workers in the Lao PDR to fill the gaps in their own basic education.The Lao government must continue to build a system that can better serve investors through its own transformation.