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Exports and Jobs for Inclusive Growth in Cambodia

Author

Listed:
  • Kokas, Deeksha

    (Nanyang Technological University, Singapore)

  • Roche Rodriguez, Jaime Alfonso

    (World Bank)

  • Lopez-Acevedo, Gladys

    (World Bank)

  • Robertson, Raymond

    (Texas A&M University)

  • Karamba, Wendy

    (World Bank)

Abstract

Cambodia's rapid economic growth in the past few decades has coincided with trade liberalization and structural transformation. This growth has been extensively associated with more employment, higher wages, shared prosperity, and poverty reduction. By combining two complementary approaches, the Gravity model and the Bartik model, this paper estimates: (i) the relationship between trade agreements and trade flows, and (ii) the relationship between trade exposure and various local labor market outcomes. Our gravity estimates show that trade agreements between the Association of Southeast Asian Nations (ASEAN) are positively related with trade flows, and that Cambodia's specific gains from these increases in trade have been larger than for the average trade agreement. This has led to better results for workers in Cambodia's local labor markets. Our shift-share Bartik results suggest that increases in trade exposure in Cambodian districts between 2009 and 2019 correlate with reduced informality and an increase in hours worked, with more positive effects for female workers.

Suggested Citation

  • Kokas, Deeksha & Roche Rodriguez, Jaime Alfonso & Lopez-Acevedo, Gladys & Robertson, Raymond & Karamba, Wendy, 2024. "Exports and Jobs for Inclusive Growth in Cambodia," IZA Discussion Papers 17209, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17209
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    References listed on IDEAS

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    3. Yoko Asuyama & Dalin Chhun & Takahiro Fukunishi & Seiha Neou & Tatsufumi Yamagata, 2013. "Firm dynamics in the Cambodian garment industry: firm turnover, productivity growth and wage profile under trade liberalization," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 18(1), pages 51-70.
    4. Harrison, Ann & Hanson, Gordon, 1999. "Who gains from trade reform? Some remaining puzzles," Journal of Development Economics, Elsevier, vol. 59(1), pages 125-154, June.
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    More about this item

    Keywords

    trade policy; exports; trade exposure; employment; informality; wages;
    All these keywords.

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