Author

  • Jeong-Soo OH

    • National University of Laos, Lao PDR
    • Kunming University of Science and Technology, Lao PDR
    • Lao People's Democratic Republic

  • Phouphet KYOPHILAVONG

    • National University of Laos, Lao PDR
    • Lao People's Democratic Republic

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.

Keywords

References

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How to Cite

OH, J.-S., & KYOPHILAVONG, P. (2014). Does ASEAN-Korea FTA Reduce Poverty in Laos? The Roles of FDI and Trade Facilitation. Journal of Social and Development Sciences, 5(2), 50-57. https://doi.org/10.22610/jsds.v5i2.805

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Section

Research Paper

Published in

Vol. 5 No. 2 (2014) Economies, Health & Environment View issue contents

Published

2014-06-30

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