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Increasing foreign direct investment(FDI)promotes economic growth,improvement,global connectivity,and spillover effects.FDI is essentially important to the developing countries to revamp investment policies to attract capital flows from both domestic and foreign investors.Lao People’s Democratic Republic(Lao PDR)undergone the New Economic Mechanism(NEM)in 1986 to promote an open-door market policy.Using timeseries data from 1990 to 2019,this study attempts to analyze the relationships between the economic growth of Lao PDR and Chinese foreign direct investment(CFDI)at national,regional,and sectoral levels.Indirect or secondary data are collected from sources including World Development Indicator(WDI)published by World Bank(WB),Ministry of Planning and Investment(MPI),and Asian Development Bank(ADB).First,this study utilizes historical data to identify the trends of CFDI distribution across Lao PDR at national,regional,and sectoral levels.Second and a primary focus,this research employs correlation matrix and multiple regression analysis techniques to examine the relationship of CFDI and the economic growth of Lao PDR at three levels of the economy.This study tests the empirical model through a series of tests including the endogeneity,multicollinearity,heteroskedasticity,and robustness tests.The findings on the trends and patterns of CFDI in Lao show a rising and falling movement for all levels of investment.At the national level trend,investment activities become more active from the mid half of the 2000 s with few occasional drops between the investment years onward.At regional level trend,CFDI is more popular in the urban central region,followed by the northern and southern regions,correspondingly.At sectoral level trend,two-third of CFDI investments are concentrated in the industry sector,about a quarter in the service sector,and the rest in the agriculture sector.The findings on the impacts discover an overall positive and significant relationship between CFDI and the economic growth of Lao PDR at all levels of investment.At the national level impact,FDI was statistically positive and significant to GDP.At regional level impact,CFDI impacts on growth differ;northern regional CFDI and central regional CFDI were both positive and significant,while the southern regional CFDI was positive and insignificant.At sectoral level impact,the findings from the agricultural sectoral CFDI,industry sectoral CFDI,and services sectoral CFDI all impact economic growth positively,especially the industry sector CFDI which is both positive and significant.Even more so,when each region and sector were analyzed independently,the parameters of significance increased for all the variables,including the independent variables used.Thus,the impacts of CFDI on the economic growth of Lao PDR are proven positive and significant,the findings also concluded that growth was not equally transferred from the different levels of FDI,in this case,regional and sectoral investment levels.The unbalanced distributions of the investment inflows could have led to uneven economic development within the regions and sectors.This research recommends government officials and policymakers to enhance the country’s investment attractiveness by highlighting geographical areas and sectors where favorable.Also,investment sectors and economic regions could be diversified to sustain economic growth,economic development,and economic sustainability in both the short run and long run.