Scandinavian Working Papers in Economics

EIJS Working Paper Series,
Stockholm School of Economics, The European Institute of Japanese Studies

No 234: REGIONAL DEVELOPMENT IN LAO PDR: GROWTH PATTERNS AND MARKET INTEGRATION

Magnus Andersson (), Anders Engvall () and Ari Kokko ()
Additional contact information
Magnus Andersson: European Institute of Japanese Studies, Postal: Stockholm School of Economics, P.O. Box 6501, S-113 83 Stockholm, Sweden
Anders Engvall: European Institute of Japanese Studies, Postal: Stockholm School of Economics, P.O. Box 6501, S-113 83 Stockholm, Sweden
Ari Kokko: European Institute of Japanese Studies, Postal: Stockholm School of Economics, P.O. Box 6501, S-113 83 Stockholm, Sweden

Abstract: Lao PDR has shown a strong record of economic growth and poverty alleviation since the early 1990s. Yet, the pace of economic development has varied significantly between different parts of the country - the rate of growth was initially faster in more developed areas, but after the mid-1990s growth has been stronger in poorer rural areas. Here it is shown that this pattern of regional development has been driven by the nature of market integration. This is highlighted in three case studies covering: (i) the effect of transport infrastructure and local institutions on domestic consumer good markets; (ii) the process of regional integration with neighboring countries; and (iii) the ability of Lao producers to compete on the world market for coffee.

Keywords: Laos; Lao PDR; regional development; market integration; infrastructure

JEL-codes: L11; L66; O12; O18; R11

55 pages, June 1, 2007

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