Advanced

The New China Syndrome?

Wirmén, Filippa LU (2020) EKHK18 20201
Department of Economic History
Abstract
The view of FDI and its impacts has shifted throughout history. In conjunction with globalization and liberalization, new opportunities have emerged which have allowed FDI, in its current state to flourish across the globe. South-South FDI has emerged as a cross-border investment of developing and transitional economies to create lasting links with economies of similar structures. The purpose of this study is to explore the South-South FDI relationship between Laos and China since Laos’ economic liberalization in 1986. Chinese South-South FDI in Laos has seen a vast increase in the past decades, which has spurred the export of Laos and its economic development. As Laos aims to continue to fuel its economic development through FDI,... (More)
The view of FDI and its impacts has shifted throughout history. In conjunction with globalization and liberalization, new opportunities have emerged which have allowed FDI, in its current state to flourish across the globe. South-South FDI has emerged as a cross-border investment of developing and transitional economies to create lasting links with economies of similar structures. The purpose of this study is to explore the South-South FDI relationship between Laos and China since Laos’ economic liberalization in 1986. Chinese South-South FDI in Laos has seen a vast increase in the past decades, which has spurred the export of Laos and its economic development. As Laos aims to continue to fuel its economic development through FDI, utilizing it as a catalyst to support its export-led growth, this study also aims to examine the trends of trade and patterns from the same point of take-off. This study was conducted using a mixed-methods approach to provide a holistic and panoramic view of the relationship. The findings of the studies were analyzed using the conceptual frameworks of New Structural Economics and the role of FDI. Through the analytical discussion, the study suggests that a more skeptical or dirigist approach towards FDI is essential by the host government to achieve structural change and continues prosper development. Due to its nature, lack of diversification and ineffective enforcement is vital to thoroughly weigh the for and against argumentations of the current situation to adjust policy accordingly. To secure the economic base for the Laos economy, it is suggested to further diversify the FDI in Laos, to continuously improve industries across sectors to allow for the utilization of the country’s natural endowment for its economic development in the long run. (Less)
Please use this url to cite or link to this publication:
author
Wirmén, Filippa LU
supervisor
organization
alternative title
A case study of the increasing South-South FDI from China to Lao PDR
course
EKHK18 20201
year
type
M2 - Bachelor Degree
subject
keywords
Laos, Lao PDR, China, People’s Republic of China, foreign direct investments, trade impact, trade patterns, South-South foreign direct investments
language
English
id
9014884
date added to LUP
2020-08-18 12:29:36
date last changed
2020-08-18 12:29:36
@misc{9014884,
  abstract     = {The view of FDI and its impacts has shifted throughout history. In conjunction with globalization and liberalization, new opportunities have emerged which have allowed FDI, in its current state to flourish across the globe. South-South FDI has emerged as a cross-border investment of developing and transitional economies to create lasting links with economies of similar structures. The purpose of this study is to explore the South-South FDI relationship between Laos and China since Laos’ economic liberalization in 1986. Chinese South-South FDI in Laos has seen a vast increase in the past decades, which has spurred the export of Laos and its economic development. As Laos aims to continue to fuel its economic development through FDI, utilizing it as a catalyst to support its export-led growth, this study also aims to examine the trends of trade and patterns from the same point of take-off. This study was conducted using a mixed-methods approach to provide a holistic and panoramic view of the relationship. The findings of the studies were analyzed using the conceptual frameworks of New Structural Economics and the role of FDI. Through the analytical discussion, the study suggests that a more skeptical or dirigist approach towards FDI is essential by the host government to achieve structural change and continues prosper development. Due to its nature, lack of diversification and ineffective enforcement is vital to thoroughly weigh the for and against argumentations of the current situation to adjust policy accordingly. To secure the economic base for the Laos economy, it is suggested to further diversify the FDI in Laos, to continuously improve industries across sectors to allow for the utilization of the country’s natural endowment for its economic development in the long run.},
  author       = {Wirmén, Filippa},
  keyword      = {Laos,Lao PDR,China,People’s Republic of China,foreign direct investments,trade impact,trade patterns,South-South foreign direct investments},
  language     = {eng},
  note         = {Student Paper},
  title        = {The New China Syndrome?},
  year         = {2020},
}