Abstract

The objectives of the Correlation between Public Investment and Economic Growth of Lao PDR from 2000 to 2015 are studying the situation of Lao economic growth, public investment from 2000 to 2015 and the correlation between public investment and economic growth of Lao PDR from 2000 to 2015. There are three independent variables the percentage of public investment in Transportation sector, the percentage of public investment in Education sector and the percentage of public investment in Other sector and the dependent variable is economic growth which was form Gross Domestic Product (GDP). We analyzed and explained the result by using secondary data. In addition, we used Descriptive Statistic percentage to analyzing the situation of economic growth and public investment. We also used Inferential Statistic R2, t-test, F-test and Durbin Watson to analyzing the correlation between public investment and economic growth in 95 percent of confidence level.

The result of analyzing:

  1. The situation of economic growth and public investment of Lao PDR from 2000 to 2015, the keys of causing economic growth are the effect of nearly countries economic and the expanding of Mine sector and Dam electricity sector. Furthermore, the goals of Lao Governments public investment are investing in infrastructures and solving poverty.
  2. The correlation between Public Investment and Economic Growth of Lao PDR from 2000 to 2015, there is only public investment in Education Sector that positive correlation with economic growth which mean that a percentage of public investment in Education Sector of GDP can cause the economic growth rise 1.083 percentage in 95 percent of confidence level. Moreover, public investment in Transportation sector is negative correlation with economic growth in 84 percent of confidence level. However, public investment in Other sector does not correlate with economic growth in 95 percent of confidence level.