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| 1 |
ID:
142029
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| Summary/Abstract |
This study applies a stochastic frontier gravity model to examine Laos’ export potential as well as factors hindering its export growth. This article uses a panel data of thirty-four importing countries from 2001 to 2011. Three main export growth factors are analysed in the model: (i) core factors (income per capita, population, and distance); (ii) implicit behind-the-border constraints; and (iii) implicit beyond-the-border constraints. The findings show that only half of the country’s export potential has been realized to date and export losses can primarily be attributed to implicit behind-the-border constraints. At the same time, these constraints have been reduced during the last decade. This article identifies border trade, a common language, income per capita and the Generalized System of Preferences scheme as important factors for export growth. Conversely, it finds that an appreciating real exchange rate is a signal of a slowdown in export growth.
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| 2 |
ID:
160545
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| Summary/Abstract |
This study uses the stochastic production frontier and inefficiency models to examine paddy rice production in Laos and identify the factors hindering its efficiency. Based on cross-sectional data from 343 farm households in the country, key inputs such as farmland, labour, capital, water supply and other expenses are analysed in the production model. Similarly, the impact of specific factors like farmers’ education, soil quality, credit access, extension services, and environmental conditions are examined in the inefficiency model. The results show that the potential of 77.75 per cent of Laos’ paddy rice output has been realized and that knowledge transfer among farmers—via rice association membership and training—is the most effective way to improve efficiency. Another important finding is that public extension services and disaster management mechanisms need more attention.
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