The Relationship between Foreign Direct Investment from Thailand and Export on the Economic Growth of Laos
This study examines the relationship between Laos’s GDP, Thailand’s direct investment to Laos and Laos’s export to Thailand by using 44 quarters of data from 2005 Q1 to 2015 Q4. All relationships were studied using the vector error correction model (VECM). The results presented long run relationsh...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
University of Wollongong
2017-09-01
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| Series: | Australasian Accounting, Business and Finance Journal |
| Subjects: | |
| Online Access: | http://ro.uow.edu.au/aabfj/vol11/iss3/5 |
| Summary: | This study examines the relationship between Laos’s GDP, Thailand’s direct investment to Laos and Laos’s
export to Thailand by using 44 quarters of data from 2005 Q1 to 2015 Q4. All relationships were studied using
the vector error correction model (VECM). The results presented long run relationship from Laos’ GDP and
Laos’ export to Thailand as well as from Thailand’s direct investment to Laos’s GDP and Laos’s export to
Thailand. In the short run, there was only unidirectional relationship from Laos’s GDP to Laos’s exports to
Thailand. This study indicates that Laos’s exporters receive benefits from Thailand’s direct investment
contribution to accelerate economic growth in the short term. Therefore, Laos’s government should distribute
income from the exporters to other economy sectors or spread the types of export goods into a larger range. |
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| ISSN: | 1834-2000 1834-2019 |