Estimating the potential impacts of WTO accession on Lao economy: Revisited

Phouphet Kyophilavong Faculty of Economics and Business Management, National University of Laos Email: Jong-Hwan Ko Department of International and Area Studies Pukyong National University, Busan, Korea Email: Yan Tan China-ASEAN Research Center Guangxi University for Nationalities Email:


The objective of this paper is to re-estimate the potential impact of WTO accession on Lao economy used the GTAP model. This study was different from the previous study. First, this paper considered the improvement of trade facilitation from the WTO accession. In addition, this paper also considered the increasing FDI, and increase technical transfer/productivity from the WTO accession. Our finding showed that the WTO accession will increase real GDP, welfare. However, WTO accession will lead to increase trade deficits, surprisingly the trade deficit will be declined. There are negative and positive impacts on output. The demand for skilled labor and un-skilled labor will also increase. The poverty will be reduced from the WTO accession.