International trade as an engine of growth in Laos’ economy.pdf

1、The promotion of free trade is one of the oldest policy implications offered byinternational economic theory.While significant disconnects have historically existed betweenthe politics and the economics of trade policy,

2、the rapid economic growth experienced by theexport-oriented Southeast Asian countries during the1960's and 1970'when trade-restrictivedeveloping world provided precedent for effective development policy, especially withi

3、n theworld's less developed countries(LDCs).Free trade arguments have since been championed by amajority of global institutions, including International Monetary Fund(IMF), the InternationalBank for Reconstruction and De

4、velopment(IBRD)or World Bank, the Organization forEconomic Co-operation and Development (OECD) and the World Trade Organization.Theargument goes that a reduction in trade barriers will induce greater economic efficiency

5、withinLaos offering a cheaper world prices to domestic producers (forcing domestic production to shifttowards the most efficient sectors based upon availability of domestic factors.
　　The main purpose of this study is

6、 to investigate the impact between export, import andgrowth in Laos for the period of 1988-2012.Dickey Fuller (ADF) tested on stationary of thevariables.Ordinary least Squares were applied to test the existence of relati

7、onship between thevariables.As a result of this paper, it is found that the relationship from net exports towardseconomic growth in Laos was significant.Net exports, exchange rate and trade policy changeshave a strong re