| On January 1,2010,the CAFTA was officially launched and officially completed.As an important ASEAN country,Laos will gain practical benefits in economy and trade after the completion of the CAFTA.Through research,this article concludes that after Laos joined the CAFTA,it has found that the impact on Laos’ economy is dual.On the one hand,it has promoted the growth of trade between Laos and other members of China ASEAN,increasing the total volume of Laos’ import and export trade.On the other hand,it will exacerbate Laos’ trade dependence,especially on China,which may make Laos more vulnerable to fluctuations in China’s economic development.The main conclusions of this paper are as follows: First,after the descriptive analysis of this paper,after joining the free trade zone,joining the free trade zone will increase the total trade volume of Laos.Laos has reportedly already seen a positive impact of trade growth.After joining the free trade zone,Laos’ s total annual exports increased to $1.127 billion and imports to $307 million.This is mainly due to the increase in Lao exports to China.Second,after empirical analysis,there is no connection between the free trade zone and trade imports from Laos.Third,the inspection of the gravity model of trade found that joining the free trade zone promoted the trade exports of Laos,but had little impact on the trade imports of Laos.the CAFTA has stimulated Laos’ economic development,provided Laos with a broader market and increased trade ties with China and other ASEAN member countries.However,in the future,Laos needs to pay attention to avoiding excessive and unbalanced trade dependence on China,while also committing to developing a competitive export industry in order to consolidate its position in the global market.Based on the conclusions of the article,this article puts forward specific suggestions for improving the trade level of Laos from the perspectives of the government and enterprises. |
