The Driving Forces Underlying the Growth of Total Factor Productivity in Cambodia
This case study explores the driving force of the productivity growth in Cambodia, one of the least developed countries. Quantitative and qualitative studies were used to analyze the source and impact of the input factors on the nation¡¯s productivity growth. For a quantitative study, a small panel data set was formed that allowed the adoption of a simple linear regression and a non-parametric approach of divisia index as the main methodologies for the quantitative analysis. Beside the conventional inputs of the growth model, the study selected the energy consumption and the aid and investment in the telecommunication sector to be additional factors of the growth. The selection of additional factors was based on the consistent precedents in literature that highlighted the important of each variable, and the availability of the data and the background of the country. The properties of the estimation were used for another empirical step to examine Total Factor Productivity (TFP), which in this study is a proxy of the national economic growth. The focus of the study was to explore the direct contribution factors of the productivity in Cambodia by performing the second regression of TFP. For qualitative analysis, a successful country case will be reviewed and used as development references. Referring to the results of both analyses, suggestions and policy implications are offered.
|Date of creation:||Oct 2010|
|Date of revision:||Oct 2010|
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