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Impediments to Growth of the Garment and Food Industries in Cambodia: Exploring Potential Benefits of the ASEAN-PRC FTA

Author

Listed:
  • Chheang, Vannarith

    (Cambodian Institute for Cooperaiton and Peace)

  • Hamanaka, Shintaro

    (Asian Development Bank)

Abstract

This paper attempts to identify structural constraints to growth and exports within Cambodia’s key industries and to consider the policy actions needed to reduce obstacles to trade. The paper places special emphasis on Cambodia’s exports to the People’s Republic of China (PRC), given the major export opportunities arising from the free trade agreement (FTA) between the Association of Southeast Asian Nations (ASEAN) and the PRC, known as the ASEAN–[People’s Republic of] China FTA (ACFTA). A qualitative case study method was applied at the firm-level by conducting face-to-face interviews to identify the impediments to the growth and exports of key industries in Cambodia, and to examine the opportunities and challenges presented by the ACFTA. This study covers the garment and food industries, which are critical to the economic development of Cambodia in the context of regional and global economic integration. The food industry, with its large number of small and medium-sized enterprises, has great potential for contributing to pro-poor growth in Cambodia, while the textile industry is the largest employer in the Cambodian labor force and is critical for poverty reduction efforts through export-led growth. The study also provides policy recommendations at both the industry and government levels.

Suggested Citation

  • Chheang, Vannarith & Hamanaka, Shintaro, 2011. "Impediments to Growth of the Garment and Food Industries in Cambodia: Exploring Potential Benefits of the ASEAN-PRC FTA," Working Papers on Regional Economic Integration 86, Asian Development Bank.
    • Handle: RePEc:ris:adbrei:0086
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    References listed on IDEAS

    as
    1. Yamagata, Tatsufumi, 2006. "The Garment Industry in Cambodia: Its Role in Poverty Reduction through Export-Oriented Development," IDE Discussion Papers 62, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    2. Ear, Sophal, 2009. "Sowing and sewing growth: The political economy of rice and garments in Cambodia," MPRA Paper 21200, University Library of Munich, Germany.
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    Cited by:

    1. Hamanaka, Shintaro, 2013. "A note on detecting biases in assessing the use of FTAs," Journal of Asian Economics, Elsevier, vol. 29(C), pages 24-32.

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    More about this item

    Keywords

    Cambodian economy; garment industry; food industry; ASEAN-[People’s Republic of] China FTA; firm-level analysis; bribery;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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