Analyze The Effect Of Electricity Trade On Economic Development In Lao PDR

This research aim to studies the Effect of Electricity Trade on Economic development in Lao PDR’ by used annual data of variables related to Electricity trade and Economic growth in Lao PDR of the period 2000-2018,and used descriptive research’ especially in an interrelationship research method to analyze the relationships between Electricity trade and Economic growth in Lao PDR,and applying the multiple linear regression(Ordinary Least Square: OLS)’ as a tools of the data analysis method.The studies of the Electricity industry in Lao PDR’ founded the Talent potential on Electricity industry in Lao PDR’ including Resources potential,Technical potential,and Markets potential’ are attracted and encourage directly or indirectly to Lao-electric constructions such as Hydropower,Coal power,Solar power,wind power and Biomass in term a total 61 plants,and installed capacity a total 7,207 MW(2018),and Electric-generated an average 10,947 GWh/year.While the Electric-supply’s including supply to domestic consume by 20%,and Exports to neighboring countries in ASEAN regions by 71% of the Electricgenerated.Addition,the Electric-consume in domestic’ the largely consume by Industries sector by 38% followed by Residential by 37%.While the Electricexports the largely was Exports to Thailand and followed by Vietnam,Cambodia,and Myanmar.On the other hand,Lao PDR has also Imports electricity from neighboring countries for consume in the Rural areas and some manufacturing in domestic,the largely was imports from Thailand followed by China and Vietnam.Those reason created the Lao-electricity trade value in term a total 8,066 mill.USD an averaged 425 mill.USD per year(average increases of 10.59% per year);besides Lao PDR’ was surplus to neighboring countries in term of 6,452 mill.USD,an average 340 mill.USD per year.In addition,the results of the Electricity trade model analysis’ statistically significant,that mean independent variables(Electric-generate,Electric-consume,and Electric-losses)can estimate the changed of dependent variable(Electric-trade value);Beside have Only Electric-generate predictor’s statistically significant and influential to the changed of the Electric-trade value higher than another predictor,and has also positive relationship to Electric-trade value in Lao PDR.Due to the results of Economic growth model analysis’ s statistically significant,that mean independent variables can estimate the changed of dependent variable(GDP of Lao PDR).Besides the predictor’ statistically significant is including Electric-trade value and Trade balance,which the Electric-trade value predictor’ influential to the changed of the GDP of Lao PDR higher than another predictor,and has also a positive relationship to the GDP of Lao PDR.Regarding the Talent potentials on the Electricity industry’ especially renewable power sources that as renewable power and clean power such as Hydropower,Solar power,Wind power,and Biomass power’ are should lead Lao PDR’ have long-term comparative advantages in the Electricity trade and also lead to significantly on the Economic growth in time periods that should support the Lao-economic development and national wealth in the future.