The empirical analysis of this study examines the effect of monetary policy on economic growth in Lao PDR. This study uses Vector Autoregressive Model (VAR) and quarterly data from the first quarter of 1995 to the last quarter of 2018. The results found that GDP was negatively responding to price level indicates that a shock in monetary policy or when the central bank adopts an expansionary monetary policy will result in consumer price level, and therefore leads to decline on the real output in the Lao economy. Moreover, this study also found negative effect of the real interest on GDP in Lao PDRD.

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This article examines the determinants of the foreign direct investment (FDI) inflow to the Lao People's Democratic Republic (Lao PDR). Namely, the study develops a static and dynamic gravity model that captures said determinants over the 1995 to 2015 time period. The results reveal that market size, trade openness, inflation rate, labor cost and exchange rate are primary FDI inflow attractants. And every year's FDI inflow is itself a crucial precursor of next year's foreign investor decision-making, while distance and border sharing among countries do not seem to support FDI inflow. Despite the study's qualifications, exporting is a vital business component that affects a manufacturing firm's working capital, with multiple implications for business practice and research.

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