The Impact of Private Investment on Economic Growth of Champasak

Abstract

The main objective of this research is to examine the impact of Private Investment on Economic Growth. With panel data that are collected from 10 districts in Champasak Province, with time period is 11 years from 2008-2018 and a random effect model is applied for analysis. The result shows that private investment in agriculture and forestry, industry and handicraft, and trade and services sectors have a positive significant impact on economic growth of Champasak provice. This study also finds that private investment in trade and services sector contributes to economic higher than other sectors. We concluded that private investment has a play important role on economic development and growth of Champasak province. This study suggests that policy makers or public agencies to improve conditions and create a favorable environment for investment to attract and promote both domestic and foreign private investment to create jobs for people; to generate income; encourage domestic production to replace imports, and to increase exports. By focussing to support on socio-economic development plan of Champasak province as well as the national socio-economic development plan to achieve the goals of socio-econmic development in short term and long term.