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The Lao Economy: Capitalizing on Natural Resource Exports

Author

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  • Menon, Jayant

    (Asian Development Bank)

  • Warr, Peter

    (Australian National University)

Abstract

Trade and investment reforms in the Lao People’s Democratic Republic (Lao PDR) since the mid-1980s have boosted natural resource-based exports, underpinning recent economic growth. A high proportion of the proceeds from these exports accrue directly to the government. Over the 8 years preceding 2011, total government revenue increased from 11% to over 19% of gross domestic product, due almost entirely to revenues derived from mining and hydropower. The effect on the Lao people depends on how the government uses these revenues. This paper examines how the Lao PDR’s export-led growth can be channeled into directions that deliver the greatest benefit to the Lao people.

Suggested Citation

  • Menon, Jayant & Warr, Peter, 2013. "The Lao Economy: Capitalizing on Natural Resource Exports," ADB Economics Working Paper Series 330, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0330
    Note: http://www.adb.org/sites/default/files/pub/2013/economics-wp330-lao-economy.pdf
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    References listed on IDEAS

    as
    1. Peter Warr, 2006. "The Gregory Thesis Visits the Tropics," The Economic Record, The Economic Society of Australia, vol. 82(257), pages 177-194, June.
    2. Jayant Menon, 2013. "Narrowing the development divide in ASEAN: the role of policy," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 27(2), pages 25-51, November.
    3. World Bank, 2010. "World Development Report 2010," World Bank Publications - Books, The World Bank Group, number 4387.
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    Citations

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    Cited by:

    1. Sothea Oum, 2013. "Comment on “Lao Economy: Capitalizing on Natural Resource Exports”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 8(1), pages 92-93, June.
    2. Warr, Peter & Menon, Jayant & Rasphone, Sitthiroth, 2015. "Public Services and the Poor in Laos," World Development, Elsevier, vol. 66(C), pages 371-382.
    3. Phanhpakit ONPHANHDALA & Terukazu SURUGA, 2013. "Chinese Outward FDI in Agriculture and Rural Development: Evidence from Northern Laos," GSICS Working Paper Series 25, Graduate School of International Cooperation Studies, Kobe University.
    4. 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.
    5. Phouphet Kyophilavong, 2013. "Comment on “Lao Economy: Capitalizing on Natural Resource Exports”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 8(1), pages 90-91, June.
    6. Peter Warr & Sitthiroth Rasphone & Jayant Menon, 2015. "Two Decades of Declining Poverty Despite Rising Inequality in Laos," Departmental Working Papers 2015-13, The Australian National University, Arndt-Corden Department of Economics.
    7. Peter Warr & Sitthiroth Rasphone & Jayant Menon, 2018. "Two Decades of Declining Poverty but Rising Inequality in Laos," Asian Economic Journal, East Asian Economic Association, vol. 32(2), pages 165-185, June.
    8. Nanhthavong, Vong & Bieri, Sabin & Nguyen, Anh-Thu & Hett, Cornelia & Epprecht, Michael, 2022. "Proletarianization and gateways to precarization in the context of land-based investments for agricultural commercialization in Lao PDR," World Development, Elsevier, vol. 155(C).
    9. Takatoshi Ito & Kazumasa Iwata & Colin McKenzie & Shujiro Urata, 2013. "Association of Southeast Asian Nations' New Frontiers: Editors' Overview," Asian Economic Policy Review, Japan Center for Economic Research, vol. 8(1), pages 1-24, June.
    10. Richard Pomfret, 2013. "ASEAN's New Frontiers: Integrating the Newest Members into the ASEAN Economic Community," Asian Economic Policy Review, Japan Center for Economic Research, vol. 8(1), pages 25-41, June.
    11. 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.
    12. Hal Hill, 2018. "Southeast Asia in the global economy: a selective analytical survey," Departmental Working Papers 2018-12, The Australian National University, Arndt-Corden Department of Economics.

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    More about this item

    Keywords

    Lao PDR; natural resource revenues; Dutch disease; trade and investment reforms;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • Q37 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Issues in International Trade

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