It has been expected that trade liberalization would bring about improvement in the
country‟s comparative advantages and export diversification, yet the empirical evidence has
lent support only in limited cases. However, it should be borne in mind that Laos‟
international trade is also affected by many other factors, both internal elements (trade
policies, reform agenda, institutions of a market economy, DFI policies, integration,
geographical location, etc.) and external elements (trade policies and trade procedures of
neighboring and other partner countries, etc.) Such factors have not been quantitatively
addressed in this study and could be an area for further analysis on trade, particularly in a
relation with FDI and resource sectors.