The effect of Chinese foreign direct investment in Laos: Deal with the devil or a bright future ahead?

In recent years, China’s rise has had profound effects on a global scale as well as on individual states. There is an academic debate whether this rise is peaceful and possibly mutual beneficial or that it is a threat, economically speaking as well as political. This thesis aims to determine to what extent Chinese foreign direct investment (FDI) affects the economic sovereignty of Laos. In this context, economic sovereignty is defined as the power and capability of a national government to decisions make independent of the interests of other governments. Using quantitative and qualitative research and various case studies, research has been conducted to examine the effects of Chinese FDI on the economic sovereignty of Laos in the last five years including current times. The results indicate a strong correlation between Chinese economic activity in Laos and the deepening of economic dependency on China as well as a decay of economic sovereignty for Laos due to significant debt...Show moreIn recent years, China’s rise has had profound effects on a global scale as well as on individual states. There is an academic debate whether this rise is peaceful and possibly mutual beneficial or that it is a threat, economically speaking as well as political. This thesis aims to determine to what extent Chinese foreign direct investment (FDI) affects the economic sovereignty of Laos. In this context, economic sovereignty is defined as the power and capability of a national government to decisions make independent of the interests of other governments. Using quantitative and qualitative research and various case studies, research has been conducted to examine the effects of Chinese FDI on the economic sovereignty of Laos in the last five years including current times. The results indicate a strong correlation between Chinese economic activity in Laos and the deepening of economic dependency on China as well as a decay of economic sovereignty for Laos due to significant debt accumulation.Show less

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The effect of Chinese foreign direct investment in Laos: Deal with the devil or a bright future ahead?