A Study the Relationship between Balance Of Payment and National Income in Lao PDR

Phousith Phongsavath, Dwi Wulandari

Abstract


The national income and balance of payments are very important role and cannot be isolated from each other because of the balance of payments is linked to affected the national income in the term of using of the fiscal and monetary policy. In this case, we have 2 objectives: understanding the overview and analysis of the relationship between national income and balance of payments. The data collection is from different sources as Bank of Lao PDR., Asian Development Bank and the World Bank to describe perfectly content. This journal, we used to describe and analysis the econometric on using the program Stata 13 to analysis by setting model assumptions of national income and the independent variables of the balance of payments. The finding results reveal that: the changing of the balance of payments are influencing to the growing of national income of Lao PDR. Independent variables affect that: if balance of payment or BOP, money supply or M2 and Foreign direct investment or FDI are change up or down 1 unit or $ 1 million would make national income change increases or decreases 3.58 units or $3.58 million, 1.57 units or $1.57 million and 1.80 units or 1.80 million respectively.


Keywords


Gross domestic product (GDP), Balance of Payment (BOP), Money supply (M2), Foreign direct investment (FDI)

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References


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Andreica, C., & Maricescu, D. L. (2011). Foreign direct investment - support for development. Metalurgia International, 16(11), 95–97.

Chaitip, P., Chokethaworn, K., Chaiboonsri, C., & Khounkhalax, M. (2015). Money Supply Influencing on Economic Growth-wide Phenomena of AEC Open Region. Procedia Economics and Finance, 24(July), 108–115. https://doi.org/10.1016/s2212-5671(15)00626-7

Deposits, P., Supply, M., Banks, R., Money, Q., Other, S., & Shares, T. (2015). Money Supply M2 and Influencing Factors. March, 1–5.

Goleman, D. (2013). 済無No Title No Title. In Journal of Chemical Information and Modeling (Vol. 53, Issue 9). https://doi.org/10.1017/CBO9781107415324.004

Gundersen, S. (2016). Disappointing returns to education in Ghana: A test of the robustness of OLS estimates using propensity score matching. International Journal of Educational Development, 50, 74–89. https://doi.org/10.1016/j.ijedudev.2016.05.003

Haller, A.-P. (2016). Concepts of economic growth and development. Challenges of crisis and of knowledge. Economy Transdisciplinarity Cognition, 15(1), 66–71. www.ugb.ro/etc

Hamdan, A., Sarea, A., Khamis, R., & Anasweh, M. (2020). A causality analysis of the link between higher education and economic development: empirical evidence. Heliyon, 6(6), e04046. https://doi.org/10.1016/j.heliyon.2020.e04046

IMF. (2019). Lao People’s Democratic Republic, Staff Report for the 2019 Article IV Consultation. 19.

Leamer, E. E. (2009). Macroeconomic patterns and stories. Macroeconomic Patterns and Stories, January, 1–359. https://doi.org/10.1007/978-3-540-46389-4

Moutinho, L., Hutcheson, G., Hutcheson, G., & Hutcheson, G. (2014). Ordinary Least-Squares Regression. The SAGE Dictionary of Quantitative Management Research, 225–228. https://doi.org/10.4135/9781446251119.n67

Najdov, E., & Phimmahasay, K. (2016). Lao Economic Monitor, May 2016. Lao Economic Monitor, May 2016. https://doi.org/10.1596/24372

Owusu-Antwi, G., Antwi, J., & Poku, P. K. (2013). Foreign Direct Investment: A Journey To Economic Growth In Ghana - Empirical Evidence. International Business & Economics Research Journal (IBER), 12(5), 573. https://doi.org/10.19030/iber.v12i5.7832

Pdr, L., & Economic, R. (2009). Lao PDR Recent Economic Developments.

Pesaran, M. H., & Pesaran, M. H. (2016). Hypothesis Testing in Regression Models. Time Series and Panel Data Econometrics, 51–82. https://doi.org/10.1093/acprof:oso/9780198736912.003.0003

Piętak, Ł. (2014). Review Of Theories And Models Of Economic Growth. Comparative Economic Research. Central and Eastern Europe, 17(1), 45–60. https://doi.org/10.2478/cer-2014-0003

Pufall, E., Eaton, J. W., Nyamukapa, C., Schur, N., Takaruza, A., & Gregson, S. (2016). The relationship between parental education and children’s schooling in a time of economic turmoil: The case of East Zimbabwe, 2001 to 2011. International Journal of Educational Development, 51, 125–134. https://doi.org/10.1016/j.ijedudev.2016.09.003

Quarter, F. (1962). Balance of payments. February, 417–427. https://doi.org/10.18356/f74e0427-en-fr

Spinola, D. (2020). Uneven development and the balance of payments constrained model: Terms of trade, economic cycles, and productivity catching-up. Structural Change and Economic Dynamics, 54, 220–232. https://doi.org/10.1016/j.strueco.2020.05.007

Sugiyono, P. D. (2016). 済無No Title No Title. Journal of Chemical Information and Modeling, 53(9), 1689–1699. https://doi.org/10.1017/CBO9781107415324.004

Wan, A. (2018). Statistical Methods for Business Research: Assumptions and Properties of Ordinary Least Squares - Lecture Notes.

william. (1973). Supply of Money. Money and Banking in Japan, August 2006, 90–103. https://doi.org/10.1007/978-1-349-01485-9_7




DOI: http://dx.doi.org/10.33087/dikdaya.v11i1.190

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