| ID | 111472 |
| Title Proper | Quality of the trade statistics of the Lao PDR |
| Other Title Information | incompatibility with international standards and inaccuracies due to smuggling |
| Language | ENG |
| Author | Hamanaka, Shintaro |
| Publication | 2011. |
| Summary / Abstract (Note) | This paper assesses the quality of the trade statistics of the Lao People's Democratic Republic (Lao PDR) by comparing its export/import data with the import/export data of its trading partners (mirror data). The author finds, first, that publicly available Lao PDR statistics compiled by the Ministry of Industry and Commerce (MIC) are not consistent with the Harmonized System (HS) of classification. It would therefore be advisable for the Lao PDR to release the HS classification-based data. Second, there is concern about the quality of the import data. For example, total imports from major trading partners are less than half of the total of those partners' recorded exports to the Lao PDR. Lao PDR imports of fuel and gas, vehicles and parts, plus construction materials, do not seem to be correctly reflected in the statistics. The government's policy of controlling domestic prices, irrespective of international prices, seems to produce incentives for import smuggling. Third, the overall quality of the Lao PDR's export data is good compared with its import data. Most of the differences between the respective statistics of the Lao PDR and its trading partners are connected with mineral-related and wood-related products. However, export restrictions on raw logs, for example, which aim to support domestic wood processing industries, seem to produce incentives for export smuggling. The unsatisfactory quality of the trade statistics, especially with regard to imports, has important policy implications. First, there is a large loss in tariff revenue. Second, while annual Lao PDR trade deficits appear to be small or moderate if calculated using MIC statistics, the actual deficits are likely to be far larger. |
| `In' analytical Note | South East Asia Research Vol. 19, No.3; Sep 2011: p.595-633 |
| Journal Source | South East Asia Research Vol. 19, No.3; Sep 2011: p.595-633 |
| Key Words | Trade Statistics ; Mirror Analysis ; Smuggling ; Lao PDR |