Dutch disease in the Lao economy: Diagnosis and treatment

Insisienmay, Sthabandith; Nolintha, Vanthana; Park, Innwon

doi:10.1177/2233865915595155

Cited by 5 publications

(6 citation statements)

References 11 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…They found two‐side effects: positive impacts in the short run and negative effects in the long run, that is, the Dutch Disease effect through appreciation of real exchange rate. Insisienmay et al () searched for evidence of the Dutch Disease on Lao economy by investigating the causal link from natural resource exports to real exchange rate, through estimating multiple regression equations. They found some symptoms of the disease and proposed policy options such as the investments of resource revenues for infrastructure and education.…”

Section: Literature Review and Contributionmentioning

confidence: 99%

Analysis of the ‘Dutch Disease’ Effect on the Selected Resource‐Rich ASEAN Economies

Taguchi

Khinsamone

2018

Asia & Pacific Policy Stud

View full text Add to dashboard Cite

This article examines the applicability of the Dutch Disease hypothesis by using a vector auto-regression model, focusing on the resource-rich and middle-income economies in the Association of Southeast Asian Nations. The empirical study found that the latecomers of Lao People's Democratic Republic and Myanmar seemed to suffer from the Dutch Disease over the sample period for 1970-2015; and the forerunners of Indonesia and Malaysia, on the other hand, appeared to have no Dutch Disease effect at least in the current period of 1997-2015, although Indonesia had experienced the Dutch Disease in the previous period of 1970-1996. The lessons from the forerunners' experiences in order for the latecomers to escape from the Dutch Disease are to establish some funding system of allocating resource revenues for investment projects; to diversify domestic industries through improving business environments; and to improve institutional quality to reinforce resource governance.

show abstract

Section: Literature Review and Contributionmentioning

confidence: 99%

Analysis of the ‘Dutch Disease’ Effect on the Selected Resource‐Rich ASEAN Economies

Taguchi

Khinsamone

2018

Asia & Pacific Policy Stud

View full text Add to dashboard Cite

show abstract

“…Not only will this number of projects pose environment and safely concerns, in the long-run, the country needs to sustain a sufficient level of capability in resource management knowledge and expertise across all sectors in order to avoid Dutch Disease effects (a causal link between the boom of development in natural resource sectors and the decline of development in other sectors, Corden & Neary, 1982). This concern has been identified in the studies of the Lao PDR's economy for some years (e.g., Menon & Warr, 2013;Insisiengmay, Nolintha, & Park, 2015). Taguchi and Khinsamone (2018) found that over the period 1970 to 2015, the economy of the Lao PDR suffered from Dutch Disease effects due to a lack of funding reallocation from natural resource revenues, impacting its overall business environment.…”

Section: Introductionmentioning

confidence: 99%

The Effects of Foreign Direct Investment and Economic Absorptive Capabilities on the Economic Growth of the Lao People’s Democratic Republic

Nantharath¹,

KANG²

2019

JAFEB

View full text Add to dashboard Cite

The paper examines the effects of Foreign Direct Investment (FDI) on the economic growth of Lao People's Democratic Republic (Lao PDR) between 1993 and 2015. The investigation is based on the influence of growth and economic absorptive capability determinants such as human capital, trade openness, and institutional quality. The methodological analysis uses a multivariate framework accounting capital stock, labor stock, FDI, human capital, trade openness, and institutional quality in regression of the Vector Autoregressive model. Augmented Dickey-Fuller unit root test, Johansen Cointegration test, and Granger Causality test were applied as parts of the econometric time-series analysis approach. The empirical results demonstrate the positive effects of FDI and trade openness, and the negative effects of human capital and institutional quality on the economic growth of the Lao PDR over the 1993 to 2015 period. The findings confirm that trade openness complemented by a sufficient level of infrastructure, education, quality institutions, and transparency significantly influence economic growth and attract more FDI. Research results lend credence to the need for the Lao PDR's government to focus on improving its economic absorptive capability and economic competitiveness regionally and globally by improving wealth and resource management strategies, as failure to take this course of action could lead to the Dutch Disease effects.

show abstract

“…The historical and current evolution of the economy and the social aspects of Laos' development are in the focus of several theoretical, empirical, and analytical studies (Evans, 2002;St. John, 2006;Insisienmay et al, 2015;Bunce, 2017;London, 2017;Andreev and Amphavanh, 2018;Kenney-Lazar, 2019). However, according to Bekkevold et al (2020: 4), despite widening literature on its development, Laos is still a less studied and understood country in the region with socialist market economy or, as some authors call it (London 2017;Creak and Barney 2018), market-Leninist system of state.…”

Section: Literature Reviewmentioning

confidence: 99%

Specifics and Perspectives of Laos’ Socialist Market Economy

2022

BJIEP

View full text Add to dashboard Cite

Laos is a remarkable country situated at the crossroads of the political and economic processes in the region of Southeast Asia. The country is rich in natural wealth, which is exploited mainly by foreign actors and influences the distribution of prosperity for the benefit of domestic political elites. This paper focuses on the peculiarities of the current economic development, the structure of the national economy, involvement in international economic relations, and the current economic dynamics of the national economy. We will try to point out the perspectives of economic development as well. To reach the purpose of the paper, we use the basic methods of research, including synthesis, deduction, comparison, or mathematical methods, and work with scientific literature, statistics of international databases and data of national institutions. The results suggest that Laos, as the least developed country, is still dependent on exogenous factors that prevent productivity gains and, consequently, qualitative economic growth. Economic structure hinders economic growth and socio-economic development as well. Capital-intensive but low-tech industries do not create highly qualified jobs, thus producing low standards of living.

show abstract

Dutch disease in the Lao economy: Diagnosis and treatment

Cited by 5 publications

References 11 publications

Analysis of the ‘Dutch Disease’ Effect on the Selected Resource‐Rich ASEAN Economies

Analysis of the ‘Dutch Disease’ Effect on the Selected Resource‐Rich ASEAN Economies

The Effects of Foreign Direct Investment and Economic Absorptive Capabilities on the Economic Growth of the Lao People’s Democratic Republic

Specifics and Perspectives of Laos’ Socialist Market Economy

Contact Info

Product

Resources

About