Lao Economy: Capitalizing on Natural Resource Exports

20 Pages Posted: 16 May 2013

See all articles by Jayant Menon

Jayant Menon

Asian Development Bank; Asian Development Bank Institute

Peter G. Warr

Australian National University (ANU) - Crawford School of Public Policy

Date Written: June 2013

Abstract

Trade and investment reforms in Laos 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 Laos' export‐led growth can be channeled into directions that deliver the greatest benefit to the Lao people.

Keywords: Dutch disease, Lao PDR, natural resource revenue, trade and investment reform

JEL Classification: O13, O24, Q37

Suggested Citation

Menon, Jayant and Warr, Peter G., Lao Economy: Capitalizing on Natural Resource Exports (June 2013). Asian Economic Policy Review, Vol. 8, Issue 1, pp. 70-89, 2013, Available at SSRN: https://ssrn.com/abstract=2265740 or http://dx.doi.org/10.1111/aepr.12006

Jayant Menon (Contact Author)

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Asian Development Bank Institute ( email )

Kasumigaseki Building 8F 3-2-5
Kasumigaseki, Chiyoda-ku
Tokyo, 100-6008
Japan

Peter G. Warr

Australian National University (ANU) - Crawford School of Public Policy ( email )

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

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