Dutch disease in the Lao economy: Diagnosis and treatment

Sthabandith Insisienmay, Vanthana Nolintha and Innwon Park
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Sthabandith Insisienmay: Macroeconomic Research Division, National Economic Research Institute, the Lao PDR
Vanthana Nolintha: Macroeconomic Research Division, National Economic Research Institute, the Lao PDR

International Area Studies Review, 2015, vol. 18, issue 4, 403-423

Abstract: Searching for evidence of Dutch disease in the Lao economy, we do find some of its symptoms, though they are not very strong. Accordingly, we propose some policy options to mitigate its effects and ensure the sustainable development of the Lao economy: (a) invest the revenues from the booming resource-intensive exports, foreign direct investment and official development assistance in infrastructure and education; (b) reduce import barriers against capital and equipment imports; (c) establish a natural resource fund and a foreign exchange equalisation fund; (d) actively participate in regional trade agreements for advanced technologies and domestic reform; (e) establish a comprehensive bank for efficient trade and investment activities. Above all, we strongly suggest public sector reform to increase transparency in governance.

Keywords: Dutch disease; resource curse; sustainable development; international competitiveness; Lao PDR (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:intare:v:18:y:2015:i:4:p:403-423

DOI: 10.1177/2233865915595155

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