Determinants of Poverty in LAO PDR

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Country Economic Report
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Magnus Andersson , Anders Engvall , Ari Kokko
This study on Laos is part of a series of annual studies, undertaken by various Swedish universities and academic research institutes in collaboration with Sida. This report has been prepared by Magnus Andersson, Anders Engvall and Ari Kokko at the Stockholm School of Asian Studies at Stockholm School of Economics. It analyses the determinants of poverty Lao PDR through econometric modelling of household level consuption based on comprehensive primary date from the Lao Expenditure and Consumption Survey 2002/2003. It also provides a unique mapping of poverty broken down on regions as well as on main ethnic groups. The analysis identifies five crucial areas for reducing poverty: (i) reducing the number of dependents in households, (ii) investment in education, not least for girls, (iii) promotion of entrepreneurship, (iv) raising agricultural productivity, and (v) improvement of the infrastructure.

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