The Impacts Of Rice Export On Economic Growth Of Lao People Democratic Republic

This study aims to explore the impact of rice export on the economic growth in Lao PDR by employing time series data analysis tools and error correction regression model using secondary data from the World Bank database from 1987 to 2017.All variables were subjected to a different test to inspect for unit root problems and some variables exhibit unit root problems to solve this problem lag lead and differencing operations were conducted.The result of the study reveals that one-unit increment in a quantity of rice export will have a 0.75-unit increment in gross domestic product.The first model tested was only includes a variable quantity of rice exported as independent and Gross Domestic Product as dependent variables the which indicates the appropriateness of the model is acceptable.The result of ARIMA model shows that the inflation rate,exchange rate,population growth,and quantity of rice produced are proportionally related whereas the quantity of rice exported negatively correlated.On the other hand,the test for the identification of major macroeconomic factors affecting the quantity of rice exported only inflation rate affect rice export negatively.Form the result of the study rice export has the potential of contributing to economic growth if appropriate attention is given to the sector.Rice milling industry is not efficient in the processing of rice export standards so to increase the competitiveness of Lao rice in the world market improving rice milling industry efficiency has an indispensable role.Branding also one way to increase Laos' s rice export in the world market.