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FDI, Services Liberalisation, and Logistics Development in Cambodia

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  • Vannarith CHHEANG

Abstract

This paper reviews Cambodia's economic development based on flows of foreign direct investment (FDI) and services sector liberalisation. It uses Cambodia's logistics industry as a case study. Services sector liberalisation in Cambodia has been mainly driven by its commitments under the World Trade Organization (WTO) framework and the ASEAN Framework Agreement on Services (AFAS). Logistics is one of the key contributors to economic growth and competitiveness. To improve the logistics sector, Cambodia needs to develop a comprehensive master plan and national council on logistics to overcome the main issues and challenges such as corruption and informal payments, lack of institutional capacity and coordination, low-quality transport infrastructure, weak urban-rural and cross-border transport networks, limited participation of the private sector, lack of skilled human resources, and low public and private investments. Promoting healthy competition in logistics and removing the impediments to investment are vital to improving the quality and coverage of logistics services.

Suggested Citation

  • Vannarith CHHEANG, 2017. "FDI, Services Liberalisation, and Logistics Development in Cambodia," Working Papers DP-2016-39, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2016-39
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    References listed on IDEAS

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    1. Bernard Hoekman (ed.), 2012. "The WTO and Trade in Services," Books, Edward Elgar Publishing, volume 0, number 2984.
    2. Fauziah ZEN & Michael REGAN, . "Financing ASEAN Connectivity," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2013-rpr-15 edited by Fauziah ZEN & Michael REGAN, July.
    3. Noland, Marcus & Park, Donghyun & Estrada, Gemma B., 2012. "Developing the Service Sector as Engine of Growth for Asia: An Overview," ADB Economics Working Paper Series 320, Asian Development Bank.
    4. Fauziah ZEN & Michael REGAN, . "ASEAN Public Private Partnership Guidelines," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2014-rpr-01 edited by Fauziah ZEN & Michael REGAN.
    5. Hikari Ishido, 2011. "Liberalization of Trade in Services under ASEAN+n: A Mapping Exercise," Working Papers DP-2011-02, Economic Research Institute for ASEAN and East Asia (ERIA).
    6. World Bank & International Finance Corporation, 2012. "Zimbabwe Country Profile 2011 : Enterprise Survey," World Bank Publications - Reports 12591, The World Bank Group.
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    More about this item

    Keywords

    Foreign direct investment; logistics; services; liberalisation; ASEAN; WTO;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • L90 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - General

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