The Correlation Study Between Foreign Capital Utilization(FDI),Foreign Trade And Economic Growth Of Laos

The utilization of foreign direct investment(FDI)and foreign trade are usually regarded as catalysts of economic growth and development in developing countries,and the relationship between them has always been a hot issue that scholars pay attention to.Since the reform and opening up,Laos has actively developed an export-oriented economy,and the use of foreign capital has gradually become the main way of utilizing external resources throughout the country,vigorously developing foreign trade,rapidly expanding its rade scale,and increasing its dependence on foreign trade.The continuous expansion of foreign trade and the inflow of foreign capital have had an important impact on the economic growth of Laos.This paper first introduces the relevant research literature and theory on FDI,foreign trade and economic growth at home and abroad,then carries on the statistical analysis,reviews the Lao economic development course,the FDI utilization situation and the foreign trade development situation.Then,based on the relevant data of Laos from 2001 to 2016,this paper is to deeply study the relationship among FDI,foreign trade and economic growth in Laos by using the method of establishing econometric model.Through the stationary test,cointegration test,Granger causality test,VEC model,pulse response and so on,this paper makes a series of empirical analysis on the relationship among foreign investment,foreign trade and economic growth in Laos.It is of theoretical and practical significance to analyze the relationship between them from the point of view of causality.Finally,this paper puts forward measures and suggestions for the stable development of the Lao's economy.