Work

Does ASEAN-Korea FTA Reduce Poverty in Laos? The Roles of FDI and Trade Facilitation

Year: 2014

Type: article

Abstract: The objective of this paper is to attempt to quantify the impact of the ASEAN-Korea Free Trade Agreement (AKFTA) on the roles of Foreign Direct Investment (FDI) and the improvement of trade facilitation for the national economy and poverty. The study uses a standard Global Trade Analysis Project (GTAP) model for this analysis. The simulation results show that with consideration to the flow of FDI and the improvement in trade facilitation. Laos has gained significantly from AKFTA. The real GDP, welfare, and household income have increased as well as improvement in Laos’ trade terms and balance. In addition, the income of unskilled labor that affects the poverty level has also increased significantly. Therefore, AKFTA has increased growth and also improved income distribution in Laos.

Source: Journal of Social and Development Sciences

DOI: 10.22610/jsds.v5i2.805

Authors: Jeong-Soo OH, Phouphet KYOPHILAVONG

Institutions: Kunming University of Science and Technology, National University of Laos

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: No poverty, Decent work and economic growth, Partnerships for the goals, Industry, innovation and infrastructure, Reduced inequalities

Open Access status: diamond

OpenAlex ID: W2182480918

FWCI: 3.297

Cites: 24

Cited by: 8

Related to: 10