Research In Motivation Of Chinese Direct Investment And Economic Effects In Laos

In 1961, Laos and China establishes diplomatic relations, since then, both governments attach great importance to the economic and trade cooperation. The Lao government is please to welcomes Chinese enterprises for domestic investment.In recent years, Lao economy is in a developing period. It is requiring enormous of capital and technology to the Country. Successful businesses are increasing day by day in Laos. There are a lot of potential for Chinese enterprises to succeed, and great opportunities for Chinese investors to enter Laos. Lao natural resources and government preferential policies are attractive sources to Chinese enterprises to invest their company in Laos; especially Vientiane the Capital City, and other provinces for developmental opportunities. It is understandable that the present Chinese enterprises in Laos invest widely from agriculture industry to services. Thus, in recent years, investment hot spots are increase in three sections:electricity, mining and agriculture-forestry.The scope of research is highly significant in the country level, it describes the economic and trade cooperation between Laos and China This research showing the situation of Chinese direct investment in Laos, their motivation that choose to invest in Laos to development direction and status in deep impact to the Lao economic growth.Therefore, this researched will help all the departments, enterprises domestic/foreign researchers to further their understanding about the investment of Chinese enterprises status and trends in Laos. In the other hand, the study found the motivation of Chinese outward foreign direct investment with reasonable causes of Chinese enterprises enter in Laos, the investment analysis of the industries that promote rapid growth of the Lao economic, and an increase in foreign currency exchange.This paper explores theoretical of foreign investment combined economic grown knowing. Empirical analysis using econometric methods to study motivation of Chinese direct investment effected to Laos domestic economic growth. As we known, China is the most successful country for introduction of foreign capital. Therefore, this article will draw on foreign direct investment effects on China's economic growing to research results. The use of econometric methods that direct investment in China to Lao's domestic economic growth, this impact of empirical research cutting into the factors of perspective from China direct investment into Laos and effect of Chinese direct investment to Laos economic. On the basis, select the relevant variables using EViews software, the actual of Chinese direct investment and Laos GDP growth data for the measurement of regression analysis. The outcome of a direct investment in Lao's economic growth for Laos is not only a short-term, but also a long-term positive effect. We have known that Chinese direct investment will promote Laos economic rapidly growth.