Impacts of Chinese, Outward Investment on Agricultural Transformation and Rural

Development: Evidence from Oudomxay, Northern Laos

By Khampheng KINGKHAMBANG

Faculty of Economic and Business Management (FEBM), National

University of Laos (NUOL)

1. Research question• What are the trends of Chinese investment in

agriculture sector in Oudomxay province?

• What are the significant changes in agriculture sector in terms of cropping, production system and marketing in Oudomxay province?

• What are the impacts of Chinese investment on agriculture sector and changes in agricultural practices to rural people in Oudomxay province?

2. Objectives

• a) To study the trends of Chinese investment in agriculture sector in Oudomxay province.

• b) To review and analyze the change or transformation of agriculture sector in Oudomxay province.

• c) To analyze the impacts of Chinese investment on agricultural transformation to rural livelihood in Oudomxay province.

4. Scope of study • To study on the impact of Chinese investment on

agricultural transformations and rural livelihoods in

Oudomxay province. Especially analyzing on the

trends of Chinese investment in agriculture sector

and review and analyze the change or

transformation of agriculture sector in Oudomxay

province.

4. Scope of study

• To survey from three villages such as Mainatao, Nasavang, and Kuangkham located in Namor district, Oudomxay province. In the survey, our team interviewed key persons including village head, vice village head and primary school principle. The survey in 2012, approximately 190 households composition, agriculture and forestry, education and health (especially for children).

5. Conceptual framework

Chinese investment on

agriculture sector

Village except

Village reject

Changing on agriculture productions

Little changing Or stable

Good livelihood standard

Little changing Or stable of livelihood standard

6. Literature Review

• Rural livelihoods of Northern villagers in Laos

have been changing rapidly in recent years, as a

result of increases in external demand from China

and domestic economic integration

• Existing studies have focused on changes in land

use (e.g. Sandewall et al. 2001, and

Thongmanivong and Fujita, 2006)

6. Literature Review

• Changes in rural livelihoods caused by rubber

plantation projects (e.g. Manivong and Cramb,

2008 and Thongmanivong et al. 2009)

• Onphandala and Suruga (2009) suggest that there

is evidence of a significant impact of Chinese

investments on the widening of income gap

7. Methodology

Hypothesis

- Chinese investment increases the level of household’s income.

The empirical model is below:

Y = + 1Rice + 2Other Crops + 3Maize + 4Livestock + 5NTFP + 6X +

7. Methodology• Following to the previous study by

Onphanhdala and Suruga (forthcoming) Interestingly, the proposed research will further investigate the changes over the period of 2009 to 2011

• The conducted field surveys in Oudomxay province cover many villages in Namor district

• in order to compare the differences among urban and rural areas

7. Methodology

• In the survey, our team interviewed key persons including village head, vice village head and primary school principle

• Similarly, 190 households were asked about household composition, agriculture and forestry, education and health (especially for children) in 2012

Thank You