The Relationship among FDI, Trade Openness and Economic Growth: Empirical Evidence from Lao PDR

摘要

The main objective of this study is to estimate the relationship between foreign direct investment (FDI), trade openess, and economic growth in Lao PDR. This article uses time series data from 1990 to 2015. To utilizeswith the most advance technique of bounds testing (ARDL) Cointegration Approach. More over, the Vector Error Correction (VECM) has been investigated to study the long run and short run association among variables. The outcome of this study reveals the positive sign on FDI and trade openness on economic growth in the long-run. According to the estimation of VECM model also reveals the unilateral direction in short run between foreign direct investment, labor force, capital investment and economic growth.