TITLE:
Economic Reform and Regional Development of Laos
AUTHORS:
Hatthachan Phimphanthavong
KEYWORDS:
Economic Reform; GDP; Regional Development; FDI; Transportation and Growth
JOURNAL NAME:
Modern Economy,
Vol.3 No.2,
March
28,
2012
ABSTRACT: The main purpose of this paper is to identify some reasons behind the economic performance of regions in Laos, especially the impacts of economic transformation from a central-planned economy to market-oriented under New Economic Mechanisms (NEMs) reform in 1986, the impact of reform has pursued significant economic growth, particularly the regional economic performance. Firstly, the growth was faster in big city with better infrastructure and then the growth extension from central to rural region by improving the infrastructure and information network. Moreover, the new policy to open the country leads to increase in the international cooperation and attractive foreign direct investment (FDI). Laos has successfully developed amicable relations with regional states, being a members of many international organization, particularly, a member of ASEAN is necessary for Laos in respect of its economic progress both regional and global procedure.