VGU RESEARCH REPOSITORY
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https://epub.vgu.edu.vn/handle/dlibvgu/679| Title: | Determinants of foreign direct investment inflows to Lao PDR | Authors: | Phavanna Khounsombat | Keywords: | Foreign direct investment;FDI;Lao PDR | Issue Date: | 2017 | Publisher: | Vietnamese-German University | Abstract: | Limited research has identified the influential factors that affect FDI in Lao PDR and results seem to vary and unspecified from study to study. Hence, this study aims to investigate the main determinants that attract Foreign Direct Investment in Lao People’s Democratic Republic (Lao PDR) over the period 1996-2015. The study analyzes three main factors (economic, institutional, and political), which have different sets of determinants: 1. Economic factor: market size (GDP), market growth (GDPG), inflation (INF), exchange rate (EXR), unemployment (UE), labor force (LF) and trade openness (TOPEN); 2. Institutional factor: economic freedom (EF); 3. Political factor: political stability (PS) and these are defined as independent variables (explanatory variables), whereas, FDI is the dependent variable. The empirical results of this study based on a linear regression analysis that performed on R studio software and estimated by the OLS method. The results reveal the key determinants that significantly influence FDI inflows to Lao PDR including market size, economic freedom, political stability, and market growth. Meanwhile, inflation, exchange rate, unemployment, labor force and trade openness seem to have insignificant influence or adverse effects on FDI in Lao PDR. On this basis, it is recommended that economic, institutional, and political factors direct the inflows of FDI to Lao PDR to a great extent, however, with only the specified determinants. |
URI(1): | http://epub.vgu.edu.vn/handle/dlibvgu/679 | Rights: | Attribution-NonCommercial 4.0 International |
| Appears in Collections: | Finance & Accounting (FA) |
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| Determinants off foreign direct investment inflows to Laos PDR.pdf | 1.21 MB | Adobe PDF |
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