IDEAS home Printed from https://ideas.repec.org/a/bla/asiapr/v19y2024i2p295-318.html
   My bibliography  Save this article

Macroeconomic Imbalance, External Debt, and the Financial System in Laos

Author

Listed:
  • Fumiharu Mieno
  • Kazue Demachi

Abstract

External public debt exacerbation and macroeconomic destabilization in Laos are attributed to the subsequent complications of excessive foreign capital investments in the mining, power, and transport infrastructure sectors during the economic boom of the 2010s. This study examines the Lao economy from three perspectives: real sector growth, the characteristics of external fundraising, and the domestic financial system. Our findings suggest that the external debt issue still appears to be under control, real sector growth is expected to be strong in the medium term, and the less‐developed financial system has not realized its potential for fiscal financing and macroeconomic stability.

Suggested Citation

  • Fumiharu Mieno & Kazue Demachi, 2024. "Macroeconomic Imbalance, External Debt, and the Financial System in Laos," Asian Economic Policy Review, Japan Center for Economic Research, vol. 19(2), pages 295-318, July.
    • Handle: RePEc:bla:asiapr:v:19:y:2024:i:2:p:295-318
    DOI: 10.1111/aepr.12469
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/aepr.12469
    Download Restriction: no
    File URL: https://libkey.io/10.1111/aepr.12469?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jayant Menon & Peter Warr, 2013. "Lao Economy: Capitalizing on Natural Resource Exports," Asian Economic Policy Review, Japan Center for Economic Research, vol. 8(1), pages 70-89, June.
    2. Maurice Obstfeld & Jay C. Shambaugh & Alan M. Taylor, 2010. "Financial Stability, the Trilemma, and International Reserves," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(2), pages 57-94, April.
    3. World Bank, 2021. "International Debt Statistics 2022," World Bank Publications - Books, The World Bank Group, number 36289.
    4. Corden, W M, 1984. "Booming Sector and Dutch Disease Economics: Survey and Consolidation," Oxford Economic Papers, Oxford University Press, vol. 36(3), pages 359-380, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Souknilanh Keola, 2024. "Comment on “Macroeconomic Imbalance, External Debt, and Financial System in Laos”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 19(2), pages 319-320, July.
    2. Takatoshi Ito & Kazumasa Iwata & Colin McKenzie & Shujiro Urata, 2024. "ASEAN: Editors' Overview," Asian Economic Policy Review, Japan Center for Economic Research, vol. 19(2), pages 153-171, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Frankel, Jeffrey, 2010. "Monetary Policy in Emerging Markets," Handbook of Monetary Economics, in: Benjamin M. Friedman & Michael Woodford (ed.), Handbook of Monetary Economics, edition 1, volume 3, chapter 25, pages 1439-1520, Elsevier.
    2. Sthabandith Insisienmay & Vanthana Nolintha & Innwon Park, 2015. "Dutch disease in the Lao economy: Diagnosis and treatment," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 18(4), pages 403-423, December.
    3. Edouard Mien & Michaël Goujon, 2022. "40 Years of Dutch Disease Literature: Lessons for Developing Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(3), pages 351-383, September.
    4. Frankel, Jeffrey & Saravelos, George, 2012. "Can leading indicators assess country vulnerability? Evidence from the 2008–09 global financial crisis," Journal of International Economics, Elsevier, vol. 87(2), pages 216-231.
    5. Steiner, Andreas, 2013. "The accumulation of foreign exchange by central banks: Fear of capital mobility?," Journal of Macroeconomics, Elsevier, vol. 38(PB), pages 409-427.
    6. Peretto, Pietro F. & Valente, Simone, 2011. "Resources, innovation and growth in the global economy," Journal of Monetary Economics, Elsevier, vol. 58(4), pages 387-399.
    7. Blanco, Luisa & Grier, Robin, 2012. "Natural resource dependence and the accumulation of physical and human capital in Latin America," Resources Policy, Elsevier, vol. 37(3), pages 281-295.
    8. Gabriel Zucman, 2013. "The Missing Wealth of Nations: Are Europe and the U.S. net Debtors or net Creditors?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(3), pages 1321-1364.
    9. Badeeb, Ramez Abubakr & Lean, Hooi Hooi & Clark, Jeremy, 2017. "The evolution of the natural resource curse thesis: A critical literature survey," Resources Policy, Elsevier, vol. 51(C), pages 123-134.
    10. Po-Chin Wu & Chung-Chih Lee, 2018. "The non-linear impact of monetary policy on international reserves: macroeconomic variables nexus," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 45(1), pages 165-185, February.
    11. Kym Anderson & Anna Strutt, 2012. "Agriculture and Food Security in Asia by 2030," Macroeconomics Working Papers 23309, East Asian Bureau of Economic Research.
    12. T.K. Jayaraman & Chee-Keong Choong & Pravinesh Chand, 2016. "Do Foreign Aid And Remittance Inflows Hurt Competitiveness Of Exports Of Pacific Island Countries? An Empirical Study Of Fiji," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 41(2), pages 111-125, June.
    13. Alex Robson, 2015. "The Australian Economy and Economic Policy During and After the Mining Boom," Economic Affairs, Wiley Blackwell, vol. 35(2), pages 307-316, June.
    14. Georgiadis, Georgios & Zhu, Feng, 2021. "Foreign-currency exposures and the financial channel of exchange rates: Eroding monetary policy autonomy in small open economies?," Journal of International Money and Finance, Elsevier, vol. 110(C).
    15. Peter Tulip, 2014. "The Effect of the Mining Boom on the Australian Economy," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 17-22, December.
    16. Muntasir Murshed & Seemran Rashid, 2020. "An Empirical Investigation of Real Exchange Rate Responses to Foreign Currency Inflows: Revisiting the Dutch Disease Phenomenon in South Asia," The Economics and Finance Letters, Conscientia Beam, vol. 7(1), pages 23-46.
    17. Georgios Georgiadis & Feng Zhu, 2019. "Monetary policy spillovers, capital controls and exchange rate flexibility, and the financial channel of exchange rates," GRU Working Paper Series GRU_2019_009, City University of Hong Kong, Department of Economics and Finance, Global Research Unit.
    18. Clements, Kenneth W. & Fry, Renée, 2008. "Commodity currencies and currency commodities," Resources Policy, Elsevier, vol. 33(2), pages 55-73, June.
    19. Carlos Morales, 2011. "Variedades de recursos naturales y crecimiento económico," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, December.
    20. Andreas Steiner, 2010. "Central Banks’ Dilemma: Reserve Accumulation, Inflation and Financial Instability," IEER Working Papers 84, Institute of Empirical Economic Research, Osnabrueck University.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:asiapr:v:19:y:2024:i:2:p:295-318. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/jcerrjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.