The Relation among gold price and the macroeconomic factor in Lao PDR

The purpose of this paper is to examine the relation among gold price and macroeconomic factor in Lao PDR. Objectives for: the overview of gold market in Lao PDR and The study discusses about the outlook of Gold price...

Abstract

The purpose of this paper is to examine the relation among gold price and macroeconomic factor in Lao PDR. Objectives for: the overview of gold market in Lao PDR and The study discusses about the outlook of Gold price. For instance, the gold price is relation to the macroeconomic by M2, inflation, exchange in USD, foreign deposit, Balance of payment, Gross domestic product. Moreover, this study also includes an analysis about the relation among gold price and macroeconomic factor in Lao PDR from 2002 – 2022. We use the Johnsen test to test each variable for Unit Root. Then, VCEM model to cointegration in the long-run.

            The results of the paper show that an increasing of M2 1% effect to the gold price in 3.71%, inflation 1% will effect to gold price in 0.15%, increasing of balance of payment 1% effect to the 0.21% exchange in USD lead to an increase in gold price 2.35% output is significant. Moreover, and Gross domestic product and foreign deposit an opposite with gold price in 0.0008% and 8.03%. For the Gross domestic product has been found to contribute to increase short-term and long-term in gold price.