The Garment Industry in Cambodia: Its Role in Poverty Reduction through Export-Oriented Development
AbstractCambodia's export-oriented garment industry has contributed greatly to poverty reduction in the country through employment of the poor. This paper provides a statistical verification of this contribution based on firm-level data from 164 sampled companies collected in 2003. Its main conclusions confirm the substantial impact that employment in the garment industry has had on poverty reduction in Cambodia. Firstly, entry-level workers receive wages far above the poverty line. Secondly, females make up the predominant share of the main category jobs in the industry. Thirdly, barriers to employment and to promotions up to certain job categories are not high in terms of education and experience. Another important finding is that a typical sample firm exhibited high profitability, although there was wide variation in profitability among firms. This average of high profitability could be a good predictor of Cambodia's viability in the intensified competition since the phase out of the Multi-Fiber Arrangement (MFA) at the beginning of 2005. A point of note is that Cambodia's pattern of industrial development led by a labor-intensive industry is similar to that of neighboring countries in East Asia which earlier went through the initial stage of industrial development, except that Cambodia has lacked a strong government industrial promotion policy which characterized the earlier group.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 62.
Date of creation: Jun 2006
Date of revision:
Publication status: Published in IDE Discussion Paper. No. 62. 2006.6
Postal: Publication Office, IDE 3-2-2 Wakaba, Mihama-ku, Chiba-shi, Chiba 261-8545 JAPAN
Find related papers by JEL classification:
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-11-18 (All new papers)
- NEP-DEV-2006-11-18 (Development)
- NEP-SEA-2006-11-18 (South East Asia)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Gladys Lopez-Acevedo & Raymond Robertson, 2012. "The Promise and Peril of Post-MFA Apparel Production," World Bank Other Operational Studies 10043, The World Bank.
- Cornelia Staritz, 2011. "Making the Cut? Low-Income Countries and the Global Clothing Value Chain in a Post-Quota and Post-Crisis World," World Bank Publications, The World Bank, number 2547.
- John Pickles, 2012. "South African horticulture: opportunities and challenges for economic and social upgrading in value chains," Brooks World Poverty Institute Working Paper Series ctg-2012-13, BWPI, The University of Manchester.
- Lavopa, Alejandro & Szirmai, Adam, 2012. "Industrialization, employment and poverty," UNU-MERIT Working Paper Series 081, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
- Cuyvers L. & Plasmans J. & Soeng R. & Van den Bulcke D., 2008. "Productivity Spillovers from Foreign Direct Investment in the Cambodian Manufacturing Sector: Evidence from Establishment-Level Data," Working Papers 2008004, University of Antwerp, Faculty of Applied Economics.
- Yamagata, Tatsufumi, 2007. "Prospects for Development of the Garment Industry in Developing Countries: What Has Happened Since the MFA Phase-Out?," IDE Discussion Papers 101, Institute of Developing Economies, Japan External Trade Organization(JETRO).
- Fukunishi, Takahiro & Yamagata, Tatsufumi, 2013. "Slow and steady wins the race : how the garment industry leads industrialization in low-income countries," IDE Discussion Papers 412, Institute of Developing Economies, Japan External Trade Organization(JETRO).
- Dennis Arnold, 2013. "Workers’ agency and re-working power relations in Cambodia’s garment industry," Brooks World Poverty Institute Working Paper Series ctg-2013-24, BWPI, The University of Manchester.
- Cuyvers L. & Plasmans J. & Soeng R. & Van den Bulcke D., 2008. "Determinants of Foreign Direct Investment in Cambodia: Country-Specific Factor Differentials," Working Papers 2008003, University of Antwerp, Faculty of Applied Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marie Kobayashi).
If references are entirely missing, you can add them using this form.